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Atlanta Braves (BATRA) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Liberty SiriusXM's EBITDA grew by 4% year-over-year and 6% sequentially, with $40 million in cost savings realized during Q3 [6][15] - The dividend for SiriusXM was raised by 10%, reflecting confidence in cash flow generation capabilities [6] - Liberty SiriusXM Group had attributed cash and liquid investments of $339 million as of September 30, 2023 [14] Business Line Data and Key Metrics Changes - The Formula One Group saw a higher proportion of season-based income due to eight out of 22 races occurring in Q3 compared to seven in the prior year [17] - Baseball revenue for the Atlanta Braves increased by 11% year-to-date, driven by increased ticket demand and attendance [12][13] - Live Nation reported a 36% increase in revenue year-to-date, with 140 million tickets sold compared to 121 million for the full year of 2022 [11][12] Market Data and Key Metrics Changes - The Formula One Group experienced continued sellouts in grandstands and Paddock Club, with significant growth in engagement across social platforms [8][24] - Attendance records were set at various races, including 480,000 at Silverstone and 400,000 in Mexico [22][23] - The Las Vegas Grand Prix is expected to generate an estimated $1.2 billion in local economic benefits [29] Company Strategy and Development Direction - The company proposed a combination of Liberty SiriusXM and SiriusXM to create a single share class and enhance trading dynamics [5] - The acquisition of Quint is aimed at enhancing partnerships and expanding into other live sporting events [7] - Management remains focused on strategic objectives supported by significant EBITDA and free cash flow generation [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the profitability of the Las Vegas race despite initial higher start-up costs [37][46] - The company remains bullish on the overall impact of Formula One and the potential for the Las Vegas race to be profitable [46][47] - Management acknowledged challenges in the sports rights market but remains optimistic about F1 renewals [50][51] Other Important Information - The company is preparing for its Annual Investor Day on November 9, 2023, where further updates will be provided [34] - Significant expenses were incurred for the launch of the Las Vegas race, including safety and security provisions [10][18] Q&A Session All Questions and Answers Question: On Formula One payments, are you adjusting your expectation for the economics of the race in the first year? - Management acknowledged that initial start-up costs for Vegas were higher than anticipated but remains bullish on the race's profitability [37][46] Question: Are you still expecting around $500 million of revenue for the race weekend? - Management indicated that the revenue estimates remain reasonable, and the race is expected to be very profitable [46][47] Question: How are you thinking about the potential impact of a labor strike at hotels in Las Vegas? - Management stated that they have worked with unions and believe the race will not be directly impacted [41] Question: What is the timeline for reaching an agreement with the Special Committee of Sirius? - Management indicated that if a deal is reached, it would require shareholder votes and regulatory approvals, expecting several months of delay post-agreement [55][61] Question: Can you confirm if the Vegas race is sold out on ticketing? - Management confirmed that there are only a handful of tickets left and expects the event to be sold out by race day [66] Question: What are your views on adding to the grid in Formula One? - Management stated that there is an ongoing assessment process and will inform stakeholders once completed [79]