Financial Performance - Consolidated revenue increased by $147 million (6.1%) and $844 million (10.3%) for the three and nine months ended September 30, 2022, respectively, compared to the prior year, driven by growth in Sirius XM Holdings, Formula 1, and Braves Holdings [227]. - Consolidated operating income decreased by $196 million (27.9%) for the three months ended September 30, 2022, but increased by $59 million (4.0%) for the nine months, primarily due to changes in operating results across segments [228]. - Adjusted OIBDA decreased by $37 million (3.9%) for the three months ended September 30, 2022, but increased by $90 million (3.6%) for the nine months, with significant contributions from Formula 1 [232]. - For the three months ended September 30, 2022, net earnings were $434 million, an increase of 8.5% compared to $400 million for the same period in 2021 [244]. - For the nine months ended September 30, 2022, net earnings reached $1,404 million, up 53.5% from $914 million in the prior year [244]. Cash and Liquidity - As of September 30, 2022, the Liberty SiriusXM Group has cash and cash equivalents of approximately $264 million, including $39 million of subsidiary cash [218]. - As of September 30, 2022, Liberty's cash and cash equivalents totaled $2,543 million, with $1,115 million held by the Formula One Group [248]. - Cash provided by operating activities for Liberty SiriusXM Group was $1,304 million for the nine months ended September 30, 2022, slightly up from $1,298 million in 2021 [253]. - Liberty's primary cash uses included $2.0 billion for debt repayments and $358 million for stock repurchases during the nine months ended September 30, 2022 [253]. - Liberty expects to fund projected cash uses through cash on hand, margin loans, and dividends from operating subsidiaries [258]. Subscriber Metrics - Sirius XM Holdings had approximately 34.2 million subscribers as of September 30, 2022, contributing significantly to revenue through subscription fees [265]. - Pandora had approximately 6.3 million subscribers as of September 30, 2022, generating revenue primarily from advertising [268]. - Subscriber revenue for Sirius XM increased by approximately 5% for the three months ended September 30, 2022, reaching $1,603 million, driven by a 7% increase in average monthly revenue per subscriber [276]. - Sirius XM's subscriber revenue increased by approximately 6% for the nine months ended September 30, 2022, driven by an 8% increase in average monthly revenue per subscriber [276]. - Pandora's subscriber revenue decreased by 1% during the nine months ended September 30, 2022, primarily driven by a decrease in its subscriber base [281]. Revenue Breakdown - Sirius XM's total revenue for the three months ended September 30, 2022, was $2,280 million, an increase of approximately 4% compared to $2,198 million in the same period of 2021 [276]. - Advertising revenue for Sirius XM increased approximately 2% for the three months ended September 30, 2022, totaling $49 million, due to a greater number of spots sold on news and sports channels [277]. - Equipment revenue increased approximately 22% for the three months ended September 30, 2022, reaching $50 million, driven by higher chipset volume [278]. - Total Formula 1 revenue for the three months ended September 30, 2022, was $715 million, an increase of 7% compared to $668 million in the same period of 2021 [295]. - Total revenue from Pandora and Off-platform increased by approximately 2% for the nine months ended September 30, 2022, primarily due to additional revenue from off-platform and podcast businesses [282]. Expenses and Costs - Selling, general and administrative expenses increased 6% for the three months ended September 30, 2022, amounting to $384 million, driven by higher advertising and marketing investments [288]. - Other operating expenses increased approximately 2% for the three months ended September 30, 2022, totaling $59 million, primarily due to higher cloud hosting costs [289]. - Subscriber acquisition costs increased approximately 23% for the three months ended September 30, 2022, totaling $86 million, primarily due to higher OEM installations [287]. - Programming and content costs rose by 7% and 9% for the three and nine months ended September 30, 2022, respectively, primarily due to higher content licensing costs [285]. - Impairment, restructuring, and acquisition costs for the three months ended September 30, 2022, included $43 million related to restructuring expenses and $16 million for impairment of vacated office spaces [290]. Operational Highlights - The Formula One Group has cash and cash equivalents of approximately $2,119 million as of September 30, 2022, which includes $1,115 million of subsidiary cash [222]. - The 2021 regular baseball season for the Atlanta Braves comprised 161 games, returning to pre-pandemic levels [223]. - In 2022, Formula 1 expects to hold 22 Events, maintaining its schedule from the previous year [223]. - Live Nation experienced a meaningful restart of operations in Q3 2021, with growth in ticket sales and new sponsor partners [223]. - The Liberty SiriusXM Group retains an approximate 2.9% intergroup interest in the Braves Group as of September 30, 2022 [220].
Liberty(LLYVA) - 2022 Q3 - Quarterly Report