Financial Position - As of September 30, 2023, the Liberty SiriusXM Group had cash and cash equivalents of approximately $327 million, including about $53 million of subsidiary cash[227]. - The Formula One Group had cash and cash equivalents of approximately $1,470 million, which included $947 million of subsidiary cash[230]. - As of September 30, 2023, Liberty had cash and cash equivalents totaling $1,470 million in the Formula One Group, $327 million in the Liberty SiriusXM Group, and $315 million in the Liberty Live Group[265]. - As of September 30, 2023, Liberty had $167 million of unencumbered marketable equity securities available as potential sources of liquidity[262]. Revenue Performance - Consolidated revenue decreased by $40 million (1.8%) to $3,207 million for the three months ended September 30, 2023, compared to $3,247 million in the prior year[241]. - Sirius XM Holdings revenue decreased to $2,271 million for the three months ended September 30, 2023, down from $2,280 million in the same period last year[241]. - Formula 1 revenue increased by $172 million (24.1%) to $887 million for the three months ended September 30, 2023, compared to $715 million in the prior year[241]. - For the three months ended September 30, 2023, net earnings were $443 million, compared to $434 million for the same period in 2022, reflecting a year-over-year increase of 2.1%[260]. - For the nine months ended September 30, 2023, net earnings were $798 million, down from $1,404 million in the prior year, indicating a decrease of 43%[260]. Operating Income and Expenses - Consolidated operating income increased by $123 million (28.6%) to $629 million for the three months ended September 30, 2023, compared to $506 million in the prior year[243]. - Total operating income increased to $550 million in Q3 2023 from $444 million in Q3 2022, reflecting improved cost management[288]. - Selling, general and administrative expenses decreased 14% to $331 million in Q3 2023 from $384 million in Q3 2022, primarily due to reduced marketing expenditures[300]. - Selling, general and administrative expenses rose by $6 million (12%) to $57 million for the three months ended September 30, 2023, primarily due to increased personnel and marketing costs[316]. Subscriber Metrics - SiriusXM had approximately 34.0 million subscribers as of September 30, 2023, maintaining a stable subscriber base[277]. - Pandora had approximately 46.5 million monthly active users and 6.1 million subscribers as of September 30, 2023, indicating a strong user engagement[279]. Cash Flow and Uses - Liberty's cash provided by operating activities for the nine months ended September 30, 2023, was $1,881 million, an increase from $1,740 million in the prior year[268]. - Liberty's primary uses of cash during the nine months ended September 30, 2023, included $419 million for net debt repayments and $239 million for capital expenditures[268]. - The company expects to fund its projected uses of cash with cash on hand, borrowing capacity under margin loans, and dividends from operating subsidiaries[271]. Investment and Equity - The company has investments in Sirius XM Canada Holdings, Inc. and SoundCloud Holdings, LLC, accounted for as equity method investments[216]. - Total unrecognized compensation cost related to unvested Liberty equity awards was approximately $11 million as of September 30, 2023, to be recognized over a weighted average period of 1.6 years[245]. - Total unrecognized compensation cost related to unvested Sirius XM Holdings stock options and restricted stock units was $479 million as of September 30, 2023, to be recognized over a weighted average period of 2.7 years[245]. Market Risks - The company is exposed to market risks related to stock prices and interest rates, with a fair value of marketable equity securities at $167 million as of September 30, 2023[322]. - The company plans to manage interest rate exposure through a mix of fixed and variable rate debt, with variable rate debt totaling $341 million at a weighted average interest rate of 7.9%[321]. Operational Risks - The operational risks of subsidiaries and business affiliates outside the U.S. could adversely affect operations and limit the ability to react to economic changes[211]. - The company’s ability to attract and retain subscribers and listeners is critical for maintaining revenue growth from advertising products[211].
Liberty(LLYVA) - 2023 Q3 - Quarterly Report