Liberty(LSXMB) - 2025 Q2 - Quarterly Results

Executive Summary & Strategic Highlights Liberty Media achieved significant strategic milestones and strong financial performance in Q2 2025, highlighted by the MotoGP acquisition and F1's commercial growth Key Achievements Liberty Media reported excellent progress in Q2 2025, completing the MotoGP acquisition, advancing the Liberty Live split-off, and achieving strong financial and operating results at Formula 1, driven by commercial momentum and record fan engagement - Completed acquisition of MotoGP on July 3rd[2] - Renewed agreements for Canadian Grand Prix through 2035 and Austrian Grand Prix through 2041[2] - Secured PepsiCo as new Official Partner of F1 through 2030 and extended Global Partnership with MSC Cruises through 2030[2] - Announced new licensing agreement with Disney's Mickey & Friends beginning in 2026[2] - F1 The Movie opened globally on June 27th, becoming Apple's highest-grossing film ever[2] - Fair value of Live Nation investment was $10.5 billion as of June 30th[2] - Filed preliminary proxy statement on July 25th for Liberty Live split-off, expected in Q4 2025[2] Corporate Updates Liberty Media completed the acquisition of MotoGP in July 2025, securing approximately 84% ownership of Dorna Sports MotoGP Acquisition Liberty Media completed the acquisition of Dorna Sports, S.L. (MotoGP) on July 3, 2025, gaining approximately 84% ownership, with MotoGP's financial results to be consolidated from that date, though not reflected in the Q2 2025 results due to timing - Acquisition of Dorna Sports, S.L. (MotoGP) completed on July 3, 2025[4] - Liberty Media owns approximately 84% of MotoGP, with management retaining 16%[4] - MotoGP is attributed to the Formula One Group tracking stock[4] - Initial accounting for the acquisition is not reflected in Q2 2025 financial results due to timing[4] Discussion of Results This section details the financial performance of Formula One Group, highlighting significant revenue and income growth, and provides an overview of Liberty Live Group's financial allocations and assets Formula One Group Financial Performance Formula One Group demonstrated significant financial growth in Q2 2025 and year-to-date, with substantial increases in revenue, operating income, and Adjusted OIBDA, primarily driven by F1's strong performance Formula One Group Financial Results (Q2 and YTD 2025 vs. 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | Q2 % Change | YTD 2024 (millions) | YTD 2025 (millions) | YTD % Change | | :---------------------- | :----------------- | :----------------- | :---------- | :------------------ | :------------------ | :----------- | | Revenue | | | | | | | | Formula 1 | $871 | $1,226 | 40.8% | $1,424 | $1,629 | 14.4% | | Corporate and other | $141 | $145 | 2.8% | $185 | $198 | 7.0% | | Intergroup elimination | $(24) | $(30) | (25.0)% | $(34) | $(39) | (14.7)% | | Total Revenue | $988 | $1,341 | 35.7% | $1,575 | $1,788 | 13.5% | | Operating Income (Loss) | | | | | | | | Formula 1 | $84 | $293 | 248.8% | $220 | $265 | 20.5% | | Corporate and other | $(25) | $(13) | 48.0% | $(66) | $(52) | 21.3% | | Total Operating Income | $59 | $280 | 374.6% | $154 | $213 | 38.3% | | Adjusted OIBDA (Loss) | | | | | | | | Formula 1 | $160 | $361 | 125.6% | $368 | $446 | 21.2% | | Corporate and other | $5 | $8 | 60.0% | $(1) | $(4) | (300.0)% | | Total Adjusted OIBDA | $165 | $369 | 123.6% | $367 | $442 | 20.4% | F1 Operating Results F1's operating results showed strong growth in Q2 2025, driven by an additional race, contractual fee increases, new sponsors, and F1 TV subscription growth, leading to significant increases in total revenue, Adjusted OIBDA, and operating income Formula 1 Operating Results (Q2 and YTD 2025 vs. 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | Q2 % Change | YTD 2024 (millions) | YTD 2025 (millions) | YTD % Change | | :-------------------------------------- | :----------------- | :----------------- | :---------- | :------------------ | :------------------ | :----------- | | Number of races in period | 8 | 9 | 12.5% | 11 | 11 | 0.0% | | Primary Formula 1 revenue | $739 | $1,032 | 40% | $1,202 | $1,351 | 12% | | Other Formula 1 revenue | $132 | $194 | 47% | $222 | $278 | 25% | | Total Formula 1 revenue | $871 | $1,226 | 41% | $1,424 | $1,629 | 14% | | Team payments, excluding Concorde incentive payments | $(435) | $(513) | (18)% | $(598) | $(627) | (5)% | | Other cost of Formula 1 revenue | $(210) | $(274) | (30)% | $(333) | $(402) | (21)% | | Cost of Formula 1 revenue, excluding Concorde incentive payments | $(645) | $(787) | (22)% | $(931) | $(1,029) | (11)% | | Selling, general and administrative expenses | $(66) | $(78) | (18)% | $(125) | $(154) | (23)% | | Adjusted OIBDA | $160 | $361 | 126% | $368 | $446 | 21% | | Concorde incentive payments | — | — | NM | — | $(50) | NM | | Stock-based compensation | $(1) | — | NM | $(1) | — | NM | | Depreciation and Amortization | $(75) | $(68) | 9% | $(147) | $(131) | 11% | | Operating income (loss) | $84 | $293 | 249% | $220 | $265 | 20% | - Primary F1 revenue increased due to one additional race in Q2 2025, higher sponsorship and media rights revenue, and one-time revenue from the F1 movie[14][15] - Other F1 revenue increased due to higher hospitality and experiences revenue (Paddock Club growth, additional event) and growth in licensing income[14][15] - Operating income and Adjusted OIBDA grew due to revenue increases, partially offset by higher team payments, increased freight costs, commissions, partner servicing, Paddock Club costs, and personnel/marketing expenses[16] Corporate and Other Operating Results Corporate and Other revenue increased in Q2 2025, primarily driven by Quint's results from F1 Experiences and the Kentucky Derby, with Grand Prix Plaza rental income remaining stable - Corporate and Other revenue increased in Q2 2025 due to Quint results[17] - Quint's Q2 results were primarily driven by F1 Experiences across nine races and the Kentucky Derby[17] - Grand Prix Plaza in Las Vegas generated $6 million in rental income in both Q2 2025 and Q2 2024[17] Liberty Live Group Financial Overview Liberty Live Group was allocated $7 million in corporate-level selling, general, and administrative expenses in Q2 2025, and its primary assets include Liberty Media's interest in Live Nation and other minority investments - $7 million of corporate-level selling, general, and administrative expense was allocated to Liberty Live Group in Q2 2025[18] - Liberty Live Group's assets consist of Liberty Media's interest in Live Nation and other minority investments[19] Share Repurchases Liberty Media reported no common stock repurchases in Q2 2025, with a remaining repurchase authorization of $1.1 billion Share Repurchase Activity Liberty Media did not repurchase any common stock between May 1 and July 31, 2025, with a remaining repurchase authorization of $1.1 billion applicable across all tracking stocks - No repurchases of Liberty Media's common stock occurred from May 1 through July 31, 2025[20] - Total remaining repurchase authorization as of August 1, 2025, is $1.1 billion[20] Financial Statements & Debt Information This section provides a comprehensive overview of Liberty Media's financial position, including cash, debt, balance sheet, statements of operations, and cash flows Cash and Debt Formula One Group saw an increase in cash and cash equivalents, while its debt remained relatively flat. Liberty Live Group experienced a slight decrease in cash, with its debt remaining stable, and both entities are in compliance with debt covenants Cash and Debt (as of March 31, 2025, and June 30, 2025) | Metric | 3/31/2025 (millions) | 6/30/2025 (millions) | Change (millions) | | :--------------------------------------- | :-------- | :-------- | :----- | | Cash and Cash Equivalents Attributable to: | | | | | Formula One Group | $2,833 | $3,140 | $307 | | Liberty Live Group | $314 | $308 | $(6) | | Total Consolidated Cash and Cash Equivalents (GAAP) | $3,147 | $3,448 | $301 | | Debt: | | | | | Total Attributed Formula One Group Debt (GAAP) | $2,982 | $3,030 | $48 | | Total Attributed Liberty Live Group Debt (GAAP) | $1,582 | $1,769 | $187 | | Total Liberty Media Corporation Debt (GAAP) | $4,564 | $4,799 | $235 | | Formula 1 leverage | 1.2x | 0.7x | -0.5x | - Total cash and cash equivalents attributed to Formula One Group increased by $307 million in Q2, primarily from F1 operations and derivative contract settlements, partially offset by capital expenditures[27] - Total debt attributed to Formula One Group was relatively flat in Q2[27] - Total cash and cash equivalents attributed to Liberty Live Group decreased by $6 million in Q2, primarily due to interest payments and corporate overhead[28] - Liberty Media and F1 are in compliance with their debt covenants as of June 30, 2025[27] Balance Sheet Information (Unaudited) As of June 30, 2025, Liberty Media Corporation reported total consolidated assets of $13,821 million, with total liabilities of $6,458 million and total equity/attributed net assets of $7,341 million Consolidated Balance Sheet (June 30, 2025) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Assets | | | Cash and cash equivalents | $3,448 | | Total current assets | $4,102 | | Goodwill | $4,135 | | Intangible assets subject to amortization, net | $2,570 | | Total assets | $13,821 | | Liabilities and Equity | | | Total current liabilities | $3,103 | | Long-term debt | $2,996 | | Total liabilities | $6,458 | | Equity / Attributed net assets | $7,341 | | Noncontrolling interests in equity of subsidiaries | $22 | | Total liabilities and equity | $13,821 | Statement of Operations Information (Unaudited) This section presents the consolidated statements of operations for Liberty Media Corporation for the three months ended June 30, 2025, and 2024, detailing revenue, operating costs, and net earnings Three months ended June 30, 2025 For Q2 2025, Liberty Media reported consolidated total revenue of $1,341 million, operating income of $273 million, and net earnings attributable to stockholders of $204 million Consolidated Statement of Operations (Q2 2025) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Total revenue | $1,341 | | Operating income (loss) | $273 | | Earnings (loss) before income taxes | $228 | | Net earnings (loss) attributable to Liberty stockholders | $204 | Three months ended June 30, 2024 For Q2 2024, Liberty Media reported consolidated total revenue of $988 million, operating income of $57 million, and net earnings attributable to stockholders of $457 million (including discontinued operations) Consolidated Statement of Operations (Q2 2024) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Total revenue | $988 | | Operating income (loss) | $57 | | Earnings (loss) from continuing operations before income taxes | $193 | | Net earnings (loss) attributable to Liberty stockholders | $457 | Statement of Cash Flows Information (Unaudited) This section details the consolidated cash flow activities for Liberty Media Corporation for the six months ended June 30, 2025, and 2024, covering operating, investing, and financing activities Six months ended June 30, 2025 For YTD 2025, Liberty Media generated $612 million in net cash from operating activities, used $120 million in investing activities, and provided $8 million from financing activities, resulting in a net increase of $509 million in cash Consolidated Statement of Cash Flows (YTD 2025) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Net cash provided (used) by operating activities | $612 | | Net cash provided (used) by investing activities | $(120) | | Net cash provided (used) by financing activities | $8 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $509 | | Cash, cash equivalents and restricted cash at end of period | $3,472 | Six months ended June 30, 2024 For YTD 2024, Liberty Media generated $394 million in net cash from operating activities, used $200 million in investing activities, and provided $6 million from financing activities, resulting in a net increase of $81 million in cash Consolidated Statement of Cash Flows (YTD 2024) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Net cash provided (used) by operating activities | $394 | | Net cash provided (used) by investing activities | $(200) | | Net cash provided (used) by financing activities | $6 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $81 | | Cash, cash equivalents and restricted cash at end of period | $2,109 | Non-GAAP Financial Measures This section defines and reconciles Adjusted OIBDA, a key non-GAAP financial measure used to assess operational performance Adjusted OIBDA Definition and Reconciliation Adjusted OIBDA is defined as operating income (loss) plus depreciation and amortization, stock-based compensation, litigation settlements, Concorde incentive payments, and restructuring/acquisition/impairment charges, serving as a key indicator of operational performance and reconciled to GAAP operating income for Formula One Group - Adjusted OIBDA is defined as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, Concorde incentive payments, and restructuring, acquisition, and impairment charges[44] - Liberty Media uses Adjusted OIBDA to identify items not directly reflecting business performance or ongoing trends, facilitating analytical comparisons and performance improvement strategies[45] Formula One Group Adjusted OIBDA Reconciliation (Q2 and YTD 2025 vs. 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | YTD 2024 (millions) | YTD 2025 (millions) | | :--------------------------- | :------ | :------ | :------- | :------- | | Operating income (loss) | $59 | $280 | $154 | $213 | | Depreciation and amortization | $89 | $80 | $175 | $157 | | Stock compensation expense | $6 | $6 | $18 | $8 | | Acquisition costs | $11 | $3 | $20 | $14 | | Concorde incentive payments | — | — | — | $50 | | Adjusted OIBDA | $165 | $369 | $367 | $442 |