Liberty(LSXMB) - 2024 Q1 - Quarterly Report

Financial Position - As of March 31, 2024, the Liberty SiriusXM Group had cash and cash equivalents of approximately $135 million, including about $71 million of subsidiary cash[207]. - The Formula One Group had cash and cash equivalents of approximately $1,233 million, which included $1,076 million of subsidiary cash as of March 31, 2024[209]. - Liberty's total cash and cash equivalents amounted to $1,666 million as of March 31, 2024, with $1,233 million from the Formula One Group[240]. - Liberty had $125 million of unencumbered marketable equity securities as of March 31, 2024[238]. Revenue and Earnings - Consolidated revenue increased by $193 million for the three months ended March 31, 2024, compared to the prior year, driven by increases of $172 million in Formula 1 and $18 million in Sirius XM Holdings revenue[218]. - For the three months ended March 31, 2024, net earnings increased to $245 million from $52 million in the same period of 2023, reflecting fluctuations in revenue, expenses, and other gains and losses[236]. - Total revenue for SiriusXM was $2,162 million for the three months ended March 31, 2024, compared to $2,144 million in the same period of 2023, representing a 0.8% increase[261]. - Formula 1's total revenue increased by 45.2% to $553 million in Q1 2024 from $381 million in Q1 2023[281]. Operating Performance - Consolidated operating income increased by $162 million for the three months ended March 31, 2024, primarily due to increases of $101 million in Formula 1 and $35 million in Sirius XM Holdings operating results[219]. - SiriusXM's operating income increased to $422 million in Q1 2024, up from $387 million in Q1 2023[261]. - Adjusted OIBDA increased by $138 million for the three months ended March 31, 2024, reaching $826 million, compared to $688 million in the prior year[222]. - Adjusted OIBDA for Formula 1 rose to $208 million in Q1 2024, compared to $117 million in Q1 2023[281]. Subsidiary and Business Operations - Sirius XM Holdings operates two audio entertainment businesses, SiriusXM and Pandora, with a subscription fee basis for its services[197]. - The Company holds an ownership interest in Live Nation, which is accounted for as an equity method investment as of March 31, 2024[199]. - The Split-Off of Braves Holdings in 2023 impacted revenue and operating results, leading to a decrease in Braves Holdings revenue[218]. - Corporate and other operating results improved due to the Split-Off of Braves Holdings, offsetting some losses from QuintEvents[219]. Subscriber Metrics - SiriusXM had approximately 33.4 million subscribers as of March 31, 2024, contributing to its primary revenue source from subscription fees[253]. - As of March 31, 2024, Pandora had approximately 45.0 million monthly active users and 5.9 million subscribers[255]. Expenses and Costs - Stock-based compensation expense was $61 million for the three months ended March 31, 2024, compared to $56 million in the same period of 2023[221]. - Total operating expenses for SiriusXM were $1,240 million in Q1 2024, compared to $1,227 million in Q1 2023, reflecting a 1.1% increase[261]. - Cost of Formula 1 revenue increased by $80 million to $286 million during the three months ended March 31, 2024, compared to $206 million in the prior year[285]. Market and Economic Risks - The Company has significant operational risks associated with its subsidiaries and business affiliates operating outside the U.S.[191]. - The ability of Sirius XM Holdings to attract and retain subscribers and listeners is critical for maintaining revenue growth from its advertising products[194]. - The company is exposed to significant market risks related to stock prices and interest rates, managing these risks through a mix of fixed and variable rate debt[292]. - The Company is subject to various risks, including competition faced by Sirius XM Holdings and the impact of weak economic conditions on consumer demand[191]. Cash Flow and Investments - Cash provided by operating activities for Liberty SiriusXM Group was $264 million, down from $319 million in the same period of 2023[243]. - Liberty's cash used in investing activities totaled $650 million for the three months ended March 31, 2024, compared to $415 million in the prior year[243]. - The company expects to fund projected uses of cash through cash on hand, borrowing capacity, and dividends from operating subsidiaries[246]. Tax and Interest Expenses - The company recognized a tax expense of $71 million for the three months ended March 31, 2024, compared to $50 million in the same period of 2023[235]. - Consolidated interest expense decreased by $5 million to $191 million for the three months ended March 31, 2024, compared to $196 million in the prior year[226].