Financial 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 as of September 30, 2023[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]. Corporate Actions - The Split-Off of Atlanta Braves Holdings was completed on July 18, 2023, with each outstanding share of Liberty Braves common stock exchanged for one share of Atlanta Braves Holdings common stock[223]. - On August 3, 2023, the Company reclassified its outstanding shares into three new tracking stocks: Liberty SiriusXM common stock, Liberty Formula One common stock, and Liberty Live common stock[224]. - The Company intends to either exchange or dispose of shares of Atlanta Braves Holdings Series C common stock attributed to the Liberty SiriusXM Group within one year of the Split-Off[235]. Revenue and Earnings - 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 from $2,280 million, while Formula 1 revenue increased to $887 million from $715 million for the same period[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 same period in 2022, representing a decrease of 43%[260]. Operating Performance - Consolidated operating income increased by $123 million (28.6%) to $629 million for the three months ended September 30, 2023, driven by increases in Sirius XM Holdings and Formula 1 operating results[243]. - Adjusted OIBDA increased by $23 million (2.5%) to $932 million for the three months ended September 30, 2023, primarily due to increases in Formula 1 and Sirius XM Holdings Adjusted OIBDA[247]. - Adjusted OIBDA decreased by $66 million (2.6%) to $2,497 million for the nine months ended September 30, 2023, primarily due to a decrease in Braves Holdings Adjusted OIBDA[247]. - SiriusXM's adjusted OIBDA for the three months ended September 30, 2023, was $748 million, an increase from $722 million in the same period of 2022[288]. Subscriber Metrics - Sirius XM Holdings 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]. Expenses - Interest expense increased by $17 million (9.5%) to $196 million for the three months ended September 30, 2023, primarily due to rising interest rates on loans[250]. - Selling, general and administrative expenses decreased 14% to $331 million for the three months ended September 30, 2023, compared to $384 million in the prior year, primarily due to lower marketing expenditures[300]. - Other operating expenses increased approximately 3% to $61 million for the three months ended September 30, 2023, compared to the prior year, driven by higher cloud hosting costs[301]. - Stock-based compensation decreased 6% to $48 million for the three months ended September 30, 2023, compared to $51 million in the same period of 2022[305]. Formula 1 Performance - 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]. - Primary Formula 1 revenue increased by $166 million (27%) for the three months ended September 30, 2023, compared to the same period in the prior year, driven by one additional event and higher race promotion fees[310]. - Operating income for the three months ended September 30, 2023, was $132 million, up from $82 million in the same period of 2022, representing a 61% increase[308]. - Cost of Formula 1 revenue increased by $121 million (24%) to $615 million for the three months ended September 30, 2023, compared to $494 million in the prior year[312]. - Other Formula 1 revenue increased by $6 million (7%) to $97 million for the three months ended September 30, 2023, driven by higher hospitality revenue[311]. - 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]. - Team payments increased by $62 million (17%) to $432 million for the three months ended September 30, 2023, reflecting higher expected payments for the full year[312]. Risks and Challenges - The operational risks of subsidiaries and business affiliates with operations outside of the U.S. could adversely affect the Company's performance[211]. - The ability of Sirius XM Holdings to attract and retain subscribers and listeners is critical for maintaining revenue growth[211]. - The impact of supply chain issues on Sirius XM Holdings and the auto industry it relies on is a significant risk factor[211].
Liberty(LSXMK) - 2023 Q3 - Quarterly Report