Financial Data and Key Metrics Changes - Total revenue increased to 272 million in Q3 2023 [20] - Baseball revenue rose to 256 million in the prior year, driven by new sponsorship agreements and contractual rate increases [21] - Adjusted OIBDA decreased to 40 million in the prior year, primarily due to increased operating costs [23] Business Line Data and Key Metrics Changes - Mixed-use development revenue grew to 16 million in the prior year, mainly due to increases in parking and rental income [22] - Operating income fell to 16 million in the prior year due to higher baseball operating costs [22] Market Data and Key Metrics Changes - The team sold over 3 million tickets for the third consecutive year, ranking fifth highest in Major League Baseball [16] - There remains a 20,000-person waiting list for season tickets, with high renewal rates for 2025 [16] Company Strategy and Development Direction - The company is focused on enhancing the fan experience at Truist Park and the Battery Atlanta, with plans for further upgrades ahead of the 2025 season [17][18] - Management emphasizes the importance of winning and playoff participation as key drivers of value creation [35][36] - The company is exploring growth opportunities in both the ballpark and the Battery, including new media opportunities and special events [27][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's leadership and talent, despite falling short of winning the World Series [8] - The company is monitoring the bankruptcy proceedings of Diamond Sports Group, which could impact future revenue [17][42] - Management is optimistic about the potential for legalized sports betting in Georgia, viewing it as beneficial for the game [54] Other Important Information - The company had $100.9 million in cash and cash equivalents as of September 30, 2024, with compliance in all financial debt covenants [24] - The Atlanta Braves Foundation continues to support community initiatives, reflecting the company's commitment to its local region [12] Q&A Session Summary Question: Growth opportunities for the business - Management highlighted ongoing investments in both the ballpark and the Battery, indicating significant upside potential [27] Question: Conversion of EBITDA to free cash flow - Management noted that increasing expenses, particularly around player payroll, have impacted cash flow despite revenue growth [30] Question: Value creation strategy - Management emphasized that winning is the primary way to drive value, with a focus on increasing top-line revenue [36][37] Question: Local TV rights and Diamond Sports Group bankruptcy - Management is closely monitoring the situation and is prepared for various outcomes, believing they are in a strong position regardless [43] Question: Expansion of concert activity and real estate development - Management is exploring opportunities for more non-game day events and assessing undeveloped real estate associated with the Battery [49] Question: Commentary on sports betting - Management supports the legalization of sports betting in Georgia, viewing it as a positive development for the industry [54] Question: Media opportunities in AR and VR - Management is exploring new media opportunities but has no specific announcements at this time [56]
Atlanta Braves (BATRA) - 2024 Q3 - Earnings Call Transcript