Liberty(US:LSXMB)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 the Formula One Group and $297 million for the Liberty Live Group[187]. - As of September 30, 2025, substantially all cash and cash equivalents were invested in highly rated financial instruments, indicating a strong liquidity position[184]. - Potential sources of liquidity include available cash balances, cash generated by operating activities, and proceeds from asset sales, among others[185]. - 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's primary cash use was $3,267 million for the acquisition of MotoGP, funded by cash on hand and borrowings[189]. - Liberty expects to fund its projected uses of cash through cash on hand, margin loans, and distributions from operating subsidiaries[190]. 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 and MotoGP revenues[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[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]. - 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, a 12.4% increase[214][215]. - Primary revenue for the three months ended September 30, 2025, increased by $1 million to $147 million, and for the nine months, it rose by $41 million to $365 million, primarily due to additional MotoGP events and favorable currency exchange rates[215]. Operating Performance - 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 results and the acquisition of MotoGP[170]. - Adjusted OIBDA rose by $84 million (40.9%) and $152 million (26.6%) for the three and nine months ended September 30, 2025, respectively, mainly due to increases in Formula 1's Adjusted OIBDA and the acquisition of MotoGP[174]. - MotoGP's operating income for the three months ended September 30, 2025, was $28 million, down from $36 million in the prior year, while for the nine months, it decreased to $41 million from $44 million[214]. Expenses - Stock-based compensation expense was $18 million for the nine months ended September 30, 2025, down from $27 million in the prior year[172]. - Acquisition costs totaled $14 million for the three months ended September 30, 2025, compared to $3 million in the prior year, and $28 million for the nine months ended September 30, 2025, compared to $23 million in the prior year[173]. - Selling, general and administrative expenses increased by $33 million during the nine months ended September 30, 2025, attributed to higher marketing and personnel costs[207]. - Cost of motorsport revenue increased by $5 million to $84 million for the three months ended September 30, 2025, and by $37 million to $214 million for the nine months, mainly due to additional events and unfavorable currency exchange rates[221]. - Selling, general and administrative expenses rose by $2 million to $19 million for the three months ended September 30, 2025, and by $13 million to $53 million for the nine months, primarily due to higher personnel costs[222]. Tax and Interest - 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]. - 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]. 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 and reportable segment[157]. - Liberty acquired approximately 84% of MotoGP's equity interests on July 3, 2025, consolidating 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]. - The Liberty Live Group is primarily comprised of Liberty's interest in Live Nation and other minority investments[165]. Future Plans and Events - 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 from the Formula One Group[167]. - MotoGP's 2025 Championship calendar is scheduled to consist of 22 events, an increase from 20 events in 2024[210]. Market Risks - The company is exposed to market risks, including interest rates and foreign currency exchange rates, which can impact future earnings and cash flows[224][225]. - A 10% change in the Euro/U.S. dollar exchange rate would impact MotoGP's reported revenue by approximately $17 million for each reporting period[228].