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 and $135 million from the Liberty SiriusXM Group[240]. - Cash provided by operating activities for Liberty SiriusXM Group was $264 million, down from $319 million in the same period last year[243]. - The company expects to fund projected uses of cash with cash on hand, borrowing capacity under margin loans, and dividends from operating subsidiaries[246]. Corporate Actions - The Company completed the split-off of Atlanta Braves Holdings on July 18, 2023, exchanging each outstanding share of Liberty Braves common stock for one share of Atlanta Braves Holdings common stock[202]. - 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[203]. - The proposed Transactions, including the Liberty Sirius XM Holdings Split-Off and the Merger with Sirius XM Holdings, are expected to be completed early in the third quarter of 2024[213]. Revenue and Earnings - Consolidated revenue increased by $193 million for the three months ended March 31, 2024, compared to the prior year, driven by $172 million from Formula 1 and $18 million from Sirius XM Holdings[218]. - Consolidated operating income increased by $162 million for the three months ended March 31, 2024, primarily due to $101 million from Formula 1 and $35 million from Sirius XM Holdings[219]. - For the three months ended March 31, 2024, net earnings were $245 million, compared to $52 million for the same period in 2023, reflecting fluctuations in revenue and expenses[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 for the three months ended March 31, 2024, compared to $381 million in the prior year[280]. Subscriber and User Metrics - SiriusXM had approximately 33.4 million subscribers as of March 31, 2024[253]. - As of March 31, 2024, Pandora had approximately 45.0 million monthly active users and 5.9 million subscribers[255]. Operating Performance - Adjusted OIBDA increased by $138 million for the three months ended March 31, 2024, reaching $826 million, primarily driven by a $91 million increase in Formula 1 Adjusted OIBDA[222]. - Adjusted OIBDA for SiriusXM was $635 million for the three months ended March 31, 2024, compared to $625 million in the prior year, reflecting a 1.6% increase[261]. - Operating income for SiriusXM increased to $422 million for the three months ended March 31, 2024, up from $387 million in the same period of 2023[261]. - Consolidated operating income for Liberty Sirius XM Group was $502 million for the three months ended March 31, 2024[222]. 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 unrecognized compensation cost related to unvested Liberty equity awards was approximately $29 million as of March 31, 2024[221]. - Total unrecognized compensation cost related to unvested Sirius XM Holdings stock options and restricted stock units was $425 million as of March 31, 2024[221]. - 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]. - Depreciation and amortization for the three months ended March 31, 2024, was $241 million, down from $260 million in the prior year[222]. Market Risks - The company is exposed to significant market risks due to changes in stock prices and interest rates, with a strategy in place to manage these risks through various financial instruments[290][291]. - The Company is subject to various risks, including competition faced by Sirius XM Holdings and the ability to attract and retain subscribers[194]. - The Liberty SiriusXM Group's financial performance may be impacted by the market for music rights and the ability to monetize non-music content[194]. Formula 1 Specifics - The number of Formula 1 events increased to 3 for the three months ended March 31, 2024, compared to 2 events in the prior year[280]. - Primary Formula 1 revenue increased by $149 million during the three months ended March 31, 2024, compared to the same period in the prior year, primarily due to one additional event[281]. - Media rights revenue increased due to a calendar variance in revenue recognition, with 3/24ths of season-based fees recognized in the current period compared to 2/23rds in the prior period[282]. - Other Formula 1 revenue increased by $23 million during the three months ended March 31, 2024, driven by the sale of new Formula 2 cars and higher hospitality income[283]. - Cost of Formula 1 revenue increased by $80 million during the three months ended March 31, 2024, compared to the same period in the prior year[284].
Liberty(LSXMK) - 2024 Q1 - Quarterly Report