Financial 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] - Liberty expects to fund its projected uses of cash through cash on hand, borrowing capacity, and distributions from operating subsidiaries[190] - Liberty believes that available sources of liquidity are sufficient to cover projected future cash uses[192] Acquisitions and Investments - 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] - Liberty acquired approximately 84% of MotoGP's equity interests on July 3, 2025, consolidating its results from that date[211] - The Company holds an ownership interest in Live Nation, which is accounted for as an equity method investment as of September 30, 2025[158] 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 the acquisition of MotoGP[169] - Formula 1's primary revenue for the nine months ended September 30, 2025, increased by $129 million to $2,089 million compared to the prior year, driven by contractual fee increases and new sponsorships[195][196] - Other revenue for Formula 1 increased by $84 million during the nine months ended September 30, 2025, primarily due to higher hospitality revenue and growth in licensing income[200] - Formula 1's operating income for the nine months ended September 30, 2025, was $433 million, up from $366 million in the prior year[195] - Total motorsport revenue for Formula 1 was $2,498 million for the nine months ended September 30, 2025, compared to $2,285 million in the prior year[195] - MotoGP's pro forma 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] Expenses and Costs - Operating income increased by $42 million (39.3%) and $94 million (35.5%) 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] - 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 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 Debt - 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%[182] - The company does not have a debt rating, which may impact its borrowing capacity[186] Split-Off Plans - 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 Company is pursuing a plan to split off the Liberty Live Group, with the split-off subject to various conditions including shareholder approval[167] - The Liberty SiriusXM common stock was intended to track the separate economic performance of the businesses attributed to the Liberty SiriusXM Group prior to the split-off[166] - The Liberty Live Group is primarily comprised of Liberty's interest in Live Nation, cash, other minority investments, and Liberty's 2.375% Exchangeable Senior Debentures due 2053[165]
Liberty(LLYVK) - 2025 Q3 - Quarterly Report