Liberty(US:FWONK)2021-11-06 02:01Financial Data and Key Metrics Changes - The Braves' season-to-date baseball revenue per home game is up 11% compared to 2019, and retail per caps are up 33% versus 2019 [10] - Liberty SiriusXM reported the highest revenue and EBITDA ever for the quarter, with 616,000 self-paying net adds, the highest quarterly figure ever recorded [14][22] - Total Liberty SiriusXM Group attributed principal amount of debt is $13.1 billion, which includes $8.9 billion of debt at SiriusXM [25] Business Line Data and Key Metrics Changes - Liberty SiriusXM's advertising revenue is up 31% [14] - Formula One Group had attributed cash and liquid investments of $1.6 billion at quarter end, with a total principal amount of debt of $3.4 billion [26] - The Braves Group had attributed cash and liquid investments of $134 million, excluding $83 million of restricted cash [29] Market Data and Key Metrics Changes - Formula One attendance in Austin set a record with 400,000 people over the race weekend, with almost 70% being first-time attendees [18] - Digital engagement for Formula One is up 56% compared to 2020, with social interactions reaching record numbers [40] - The TV audience has seen strong growth in several markets, including the United States, with concurrent viewership on race days consistently more than 2.7 times higher than the 2020 season average [41] Company Strategy and Development Direction - The company is focused on growing engagement outside the vehicle and has launched a new ad campaign [14] - Formula One is looking to enhance its race promotion and pricing power with host partners due to increased demand [86] - The company aims to achieve net zero carbon by 2030 and is working on developing a 100% sustainable fuel for new generation hybrid engines [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2022, expecting better performance than in 2021 and significantly better than 2019 [59] - The ongoing pandemic conditions are still a concern, but the situation is improving, and management believes that initiatives from the past years will pay off [60] - The demand for races continues to exceed available supply, indicating a strong market position for Formula One [42] Other Important Information - The company sold its entire iHeart stake for after-tax proceeds of $175 million, realizing a 40% pre-tax gain [13] - The company continues to repurchase shares, having repurchased $98 million across the As and Ks [12] - Formula One has announced a 23-race calendar for 2022, including a second race in the U.S. in Miami [41] Q&A Session Summary Question: Will 2022 see the benefits of the last four and a half years' initiatives for Formula One? - Management believes 2022 will show improved performance, but it is hard to predict if everything will come together due to potential attendance issues [59][60] Question: Why was the decision made to sell the iHeart stock? - The decision was based on recognizing gains and utilizing proceeds for other opportunities, as iHeart was no longer seen as a strategic interest [61] Question: What does the tax-free exchange mean for SiriusXM's qualification as an ATB? - The tax-free exchange allows SiriusXM to become an ATB, providing optionality and flexibility for the company [67] Question: How does the company view the economic split between F1 and the teams? - Management is optimistic about continuing to negotiate favorable terms with the teams, as their success is crucial for F1's growth [102] Question: What is the outlook for the Sprint races in 2022? - There is potential for monetization through increased attendance and sponsorship, but there are tensions regarding the impact on teams and drivers [131]