Financial Performance - Consolidated revenue increased by $147 million (6.7%) and $844 million (10.3%) for the three and nine months ended September 30, 2022, respectively, 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 ended September 30, 2022, compared to the prior year [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 ended September 30, 2022, compared to the prior year [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]. - 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]. - Sirius XM's total revenue for the nine months ended September 30, 2022, was $5,181 million, up from $4,918 million in the prior year, representing a growth of approximately 5.3% [276]. - Total revenue for Pandora and Off-platform services was $1,539 million for the nine months ended September 30, 2022, compared to $1,497 million in the prior year, marking a growth of approximately 2.8% [276]. Subscriber and Revenue Growth - 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]. - Advertising revenue for Sirius XM increased by approximately 2% for the three months ended September 30, 2022, totaling $49 million, due to a greater number of spots sold [277]. - Advertising revenue for Sirius XM increased by approximately 8% for the nine months ended September 30, 2022, primarily due to a greater number of spots sold and aired [277]. Operational Costs and Expenses - Selling, general and administrative expenses increased by 6% for the three months ended September 30, 2022, amounting to $384 million, driven by higher marketing expenditures [288]. - Selling, general and administrative expenses increased by 6% and 13% for the three and nine months ended September 30, 2022, respectively, due to higher advertising and marketing investments [288]. - Other operating expenses increased by approximately 2% for the three months ended September 30, 2022, totaling $59 million, primarily due to higher cloud hosting costs [289]. - Other operating expenses for Braves Holdings increased by $31 million and $67 million for the three and nine months ended September 30, 2022, respectively, primarily due to higher player salaries and game day expenses [312]. - Impairment charges of approximately $5 million were recognized by Braves Holdings during the three months ended September 30, 2022, due to hurricane damage to the spring training facility [314]. 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 $2,119 million, with $1,115 million held by Formula 1 [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]. - As of September 30, 2022, Liberty had $875 million available under margin loans secured by shares of Sirius XM Holdings [250]. - Liberty and its subsidiaries were in compliance with their debt covenants as of September 30, 2022 [251]. Formula 1 Performance - Formula 1 revenue increased by $47 million (7.0%) to $715 million for the three months ended September 30, 2022, compared to $668 million in the prior year [226]. - Formula 1's total 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]. - Primary Formula 1 revenue increased by $12 million to $624 million for the three months ended September 30, 2022, and by $304 million to $1.539 billion for the nine months ended September 30, 2022 [297][298]. - Other Formula 1 revenue rose by $35 million to $91 million for the three months and by $166 million to $280 million for the nine months ended September 30, 2022, primarily due to increased activities post-COVID-19 [299]. - Operating income for the three months ended September 30, 2022, was $82 million, compared to $80 million in the same period of 2021, while for the nine months, it increased to $181 million from $11 million [295]. - Adjusted OIBDA for Formula 1 was $170 million for the three months ended September 30, 2022, compared to $180 million in the prior year [295]. - Cost of Formula 1 revenue increased by $45 million to $494 million for the three months and by $292 million to $1.223 billion for the nine months ended September 30, 2022 [301]. Braves Holdings Performance - The 2021 regular baseball season for the Atlanta Braves comprised 161 games, returning to pre-pandemic levels, while Formula 1 held a record 22 events [223]. - Braves Holdings' total revenue increased by $18 million and $69 million during the three and nine months ended September 30, 2022, respectively, driven by increased ticket demand and the number of home games [311]. - Selling, general and administrative expenses for Braves Holdings increased by $4 million and $13 million for the three and nine months ended September 30, 2022, respectively, due to higher marketing initiatives and personnel costs [315].
Liberty(LSXMK) - 2022 Q3 - Quarterly Report