Liberty(US:LSXMA)2023-11-03 16:52Financial Position - As of September 30, 2023, the Liberty SiriusXM Group had cash and cash equivalents of approximately $327 million, including approximately $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 $1,075 million available under margin loans secured by shares of Sirius XM Holdings[265]. - The company expects to fund projected uses of cash through cash on hand, borrowing capacity under margin loans, and dividends from operating subsidiaries[271]. - As of September 30, 2023, Liberty and its subsidiaries were in compliance with their debt covenants[267]. Revenue Performance - Consolidated revenue decreased by $40 million (1.8%) to $3,207 million for the three months ended September 30, 2023, and decreased by $67 million (0.7%) to $9,007 million for the nine months ended September 30, 2023 compared to the prior year[241]. - Formula 1 revenue increased by $172 million (24.1%) to $887 million for the three months ended September 30, 2023, and increased by $173 million (9.5%) to $1,992 million for the nine months ended September 30, 2023 compared to the prior year[241]. - SiriusXM total revenue for the three months ended September 30, 2023, was $2,271 million, a decrease of 0.4% compared to $2,280 million in the same period of 2022[288]. - SiriusXM subscriber revenue decreased less than 1% to $1,597 million for the three months ended September 30, 2023, primarily due to lower paid promotional revenue[288]. - Advertising revenue for SiriusXM decreased approximately 16% to $41 million for the three months ended September 30, 2023, driven by a decline in the number of spots sold[289]. - Equipment revenue decreased approximately 2% to $49 million for the three months ended September 30, 2023, due to lower royalty rates[290]. - Other revenue decreased 13% to $34 million for the three months ended September 30, 2023, primarily due to lower royalty revenue from Sirius XM Canada[291]. - Total Formula 1 revenue for the three months ended September 30, 2023, was $887 million, an increase of 24% compared to $715 million in the same period of 2022[308]. Operating Income and Expenses - Operating income increased by $123 million (28.8%) to $629 million for the three months ended September 30, 2023, but decreased by $33 million (2.2%) to $1,492 million for the nine months ended September 30, 2023 compared to the prior year[243]. - Sirius XM Holdings operating income increased by $106 million (23.9%) to $550 million for the three months ended September 30, 2023, but decreased by $15 million (1.1%) to $1,401 million for the nine months ended September 30, 2023 compared to the prior year[243]. - Selling, general and administrative expenses decreased 14% to $331 million for the three months ended September 30, 2023, primarily due to lower streaming marketing expenditures[300]. - Other operating expenses increased approximately 3% to $61 million for the three months ended September 30, 2023, driven by higher cloud hosting costs[301]. - Selling, general and administrative expenses rose by $6 million (12%) during the three months ended September 30, 2023, compared to the same period in 2022, mainly due to higher personnel and marketing costs[316]. Earnings and Adjusted OIBDA - 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]. - Adjusted OIBDA increased by $23 million (2.5%) to $932 million for the three months ended September 30, 2023, but decreased by $66 million (2.6%) to $2,497 million for the nine months ended September 30, 2023 compared to the prior year[247]. - Adjusted OIBDA for SiriusXM was $748 million for the three months ended September 30, 2023, an increase from $722 million in the same period of 2022[288]. - Adjusted OIBDA for the three months ended September 30, 2023, was $215 million, a 26% increase from $170 million in the same period of 2022[308]. Cash Flow and Investments - Cash provided by operating activities for Liberty SiriusXM Group was $1,298 million for the nine months ended September 30, 2023, slightly down from $1,304 million in the prior year[268]. - Formula 1's cash provided by operating activities increased to $554 million for the nine months ended September 30, 2023, compared to $416 million in the same period of 2022, marking a growth of 33%[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]. - Sirius XM Holdings declared quarterly dividends totaling $281 million during the nine months ended September 30, 2023, of which Liberty received $233 million[269]. - The 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 approximately 2.7 years[245]. Risks and Compliance - The operational risks of subsidiaries and business affiliates with operations outside of the U.S. could impact overall performance[211]. - The company is exposed to interest rate risk with variable rate debt of $341 million at a weighted average interest rate of 7.9% as of September 30, 2023[320]. - Share of earnings from affiliates decreased by $59 million (56.7%) to $45 million for the three months ended September 30, 2023, and decreased by $22 million (15.7%) to $117 million for the nine months ended September 30, 2023 compared to the prior year[252].