Financial Performance - Consolidated revenue increased by $382 million (17.5%) and $697 million (13.6%) for the three and six months ended June 30, 2022, respectively, driven by growth in Formula 1, Sirius XM Holdings, and Braves Holdings [226]. - Consolidated operating income decreased by $66 million (10.6%) for the three months ended June 30, 2022, but increased by $255 million (33.4%) for the six months ended June 30, 2022, compared to the prior year, primarily due to a decrease in Sirius XM Holdings [227]. - Adjusted OIBDA increased by $63 million (7.7%) and $127 million (8.3%) for the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year, with notable increases in Formula 1 and Braves Holdings [231]. - Net earnings for the three and six months ended June 30, 2022, were $674 million and $970 million, respectively, compared to $528 million and $514 million for the same periods in 2021, reflecting fluctuations in revenue and expenses [243]. - Total revenue for Sirius XM Holdings was $4,440 million for the six months ended June 30, 2022, compared to $4,217 million for the same period in 2021, representing an increase of approximately 5% [274]. Cash and Liquidity - As of June 30, 2022, the Liberty SiriusXM Group has cash and cash equivalents of approximately $494 million, including $126 million of subsidiary cash [217]. - As of June 30, 2022, Liberty had $494 million in cash and cash equivalents within the Liberty SiriusXM Group, $207 million in the Braves Group, and $1,944 million in the Formula One Group, totaling $2.645 billion [247]. - Liberty's cash provided by operating activities for the six months ended June 30, 2022, was $887 million for the Liberty SiriusXM Group, $100 million for the Braves Group, and $234 million for the Formula One Group, totaling $1.221 billion [252]. - Liberty expects to fund its projected cash uses through cash on hand, borrowing capacity under margin loans, and dividends from operating subsidiaries [256]. - Sirius XM Holdings expects to fund its projected uses of cash with cash provided by operations, cash on hand, and borrowings under its existing credit facility [257]. Subscriber Metrics - Sirius XM Holdings had approximately 34.0 million subscribers as of June 30, 2022, with subscription fees being the primary revenue source [263]. - Pandora had approximately 6.3 million subscribers as of June 30, 2022, generating revenue primarily from advertising on its ad-supported radio service [266]. - Subscriber revenue for Sirius XM increased by approximately 5% for the three months ended June 30, 2022, reaching $1,588 million, driven by a 7% increase in average monthly revenue per subscriber [274]. - Subscriber acquisition costs increased by approximately 2% for the three months ended June 30, 2022, totaling $91 million, driven by higher OEM installations [285]. - Subscriber revenue for Pandora decreased 2% for the three months ended June 30, 2022 [266][279]. Revenue Sources - Advertising revenue for Sirius XM increased by approximately 11% for both the three and six months ended June 30, 2022, totaling $50 million and $97 million respectively, due to a greater number of spots sold [275]. - Pandora and off-platform advertising revenue increased by 5% for the three months ended June 30, 2022, reaching $402 million, attributed to higher podcast revenue and AdsWizz platform performance [280]. - Total Formula 1 revenue increased to $744 million for the three months and $1,104 million for the six months ended June 30, 2022, compared to $501 million and $681 million in the prior year [293]. - Primary Formula 1 revenue increased by $164 million and $292 million during the three and six months ended June 30, 2022, respectively, due to higher race promotion, media rights, and sponsorship revenue [295]. - Braves Holdings' baseball revenue increased by $44 million (21.6%) to $247 million for the three months ended June 30, 2022, compared to $204 million in the prior year [308]. Operating Expenses - Total operating expenses for Sirius XM increased, with selling, general and administrative expenses rising by 14% for the three months ended June 30, 2022, totaling $386 million [286]. - Selling, general and administrative expenses rose by $19 million and $32 million during the three and six months ended June 30, 2022, respectively, primarily due to higher personnel and IT costs [302]. - Other operating expenses increased approximately 7% and 8% for the three and six months ended June 30, 2022, respectively, driven by higher cloud hosting costs [287]. - Other operating expenses increased by $33 million (23.2%) to $175 million for the three months ended June 30, 2022, compared to $142 million in the prior year, primarily due to higher player salaries and game day expenses [310]. - Stock-based compensation expense decreased to $112 million for the six months ended June 30, 2022, down from $123 million in the prior year, primarily due to decreases at Formula 1 and Sirius XM Holdings [229]. Risks and Compliance - The company faces risks related to competition, regulatory compliance, and the ability to attract and retain subscribers and listeners [205]. - The operational risks of subsidiaries and business affiliates with operations outside of the United States may impact overall performance [205]. - As of June 30, 2022, Liberty and its subsidiaries were in compliance with their debt covenants [250].
Liberty(LLYVA) - 2022 Q2 - Quarterly Report