Liberty(US:FWONA)2025-11-05 18:31Financial Position - As of September 30, 2025, the Formula One Group had cash and cash equivalents of approximately $1,291 million, including $825 million of subsidiary cash[164] - The Liberty Live Group had cash and cash equivalents of approximately $297 million as of September 30, 2025[165] - As of September 30, 2025, Liberty's total cash and cash equivalents amounted to $1,291 million for Formula One Group and $297 million for Liberty Live Group[187][188] - As of September 30, 2025, substantially all cash and cash equivalents were invested in highly rated financial instruments, indicating a strong liquidity position[184] - During the nine months ended September 30, 2025, Formula One Group generated $813 million in cash from operating activities, while Liberty Live Group used $28 million[188] - Liberty expects to fund its projected uses of cash through cash on hand, borrowing capacity, and distributions from operating subsidiaries[190] Acquisitions and Corporate Structure - The Company acquired approximately 84% of the equity interests in Dorna Sports, S.L. (MotoGP) on July 3, 2025, making it a consolidated subsidiary[157] - The Liberty Live Split-Off is expected to be completed on December 15, 2025, and is intended to be tax-free to stockholders[167] - The Liberty Sirius XM Holdings Split-Off was completed on September 9, 2024, exchanging each share of Liberty SiriusXM common stock for 0.8375 of a share of Liberty Sirius XM Holdings common stock[161] - The Company is pursuing a plan to split off the Liberty Live Group, which will involve reattributing assets and cash from the Formula One Group[167] - The reclassification of common stock into three new tracking stocks occurred on August 3, 2023, affecting the attribution of businesses, assets, and liabilities[160] - Liberty acquired approximately 84% of MotoGP's equity interests on July 3, 2025, consolidating results from that date[211] Revenue and Earnings - Consolidated revenue increased by $174 million (19.1%) and $387 million (15.6%) for the three and nine months ended September 30, 2025, respectively, driven by increases in Formula 1 revenue and MotoGP revenue from its acquisition in July 2025[169] - Formula One Group's primary revenue for the nine months ended September 30, 2025, increased by $129 million to $2,089 million compared to the same period in 2024[195][196] - Other revenue for Formula One increased by $84 million during the nine months ended September 30, 2025, driven by higher hospitality revenue and growth in licensing income[200] - MotoGP's total motorsport revenue for the three months ended September 30, 2025, was $169 million, unchanged from the prior year, while for the nine months it increased to $417 million from $371 million[214] - Primary revenue for MotoGP increased by $1 million (0.7%) in Q3 2025 compared to Q3 2024, and by $41 million (12.7%) for the nine months ended September 30, 2025, primarily due to additional events and favorable currency exchange rates[215] Operating Performance - Consolidated operating income increased by $42 million (39.3%) and $94 million (36.6%) for the three and nine months ended September 30, 2025, respectively, primarily due to improvements in Formula 1's operating results and the acquisition of MotoGP[170] - Adjusted OIBDA increased by $84 million (40.9%) and $152 million (26.6%) for the three and nine months ended September 30, 2025, respectively, primarily due to increases in Formula 1's Adjusted OIBDA and the acquisition of MotoGP[174] - Formula 1's operating income for the nine months ended September 30, 2025, was $433 million, an increase from $366 million in the prior year[195] - MotoGP's operating income for Q3 2025 was $28 million, down from $36 million in Q3 2024, while for the nine months it decreased to $41 million from $44 million[214] Expenses and Costs - Stock-based compensation expense was $18 million for the nine months ended September 30, 2025, down from $27 million in the same period of 2024[172] - Acquisition costs related to corporate acquisitions were $14 million for the three months ended September 30, 2025, compared to $3 million in the same period of 2024[173] - Interest expense increased by $24 million (38.7%) and $14 million (7.6%) for the three and nine months ended September 30, 2025, respectively, primarily due to an increase in the average amount of debt outstanding[177] - Selling, general and administrative expenses increased by $33 million during the nine months ended September 30, 2025, primarily due to higher marketing costs and personnel expenses[207] - Selling, general and administrative expenses rose by $2 million (11.8%) in Q3 2025 and by $13 million (32.5%) for the nine months, primarily due to higher personnel costs[222] - Cost of motorsport revenue increased by $5 million (6.3%) in Q3 2025 and by $37 million (20.9%) for the nine months, mainly due to additional MotoGP events and unfavorable currency exchange rates[221] Tax and Financial Risks - The effective income tax rate for the three months ended September 30, 2025, was 43%, significantly higher than the expected federal tax rate of 21% due to non-deductible expenses[182] - The company does not have a debt rating, which may impact its borrowing costs and financial flexibility[186] - The company is exposed to market risks including interest rates and foreign currency exchange rates, with a significant portion of its debt being variable rate[224][225] - A 10% change in the Euro/U.S. dollar exchange rate would impact MotoGP's reported revenue by approximately $17 million[228] Market and Competitive Environment - The Company faces various risks including economic conditions, competition, and regulatory challenges that could impact its operations and financial performance[156] - MotoGP's 2025 Championship calendar is scheduled to consist of 22 events, an increase from 20 events in 2024[210] - MotoGP's revenue in constant currency decreased by 4.7% for Q3 2025, while it grew by 8.9% for the nine months, indicating the impact of currency fluctuations[219]