麻豆app

麻豆app Reports Third Quarter 2022 Financial Results

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- 麻豆app ("麻豆app Media" or 鈥溌槎筧pp鈥�) (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) today reported third quarter 2022 results. Headlines include⁽¹⁾:

• Attributed to 麻豆app SiriusXM Group
  • SiriusXM reported third quarter 2022 financial results
    • Revenue of $2.28 billion; increase of 4% year-over-year
    • Net income of $247 million; diluted EPS of $0.06
    • Adjusted EBITDA⁽²⁾ of $720 million
    • SiriusXM announced 10% increase to quarterly dividend; year-to-date capital returns to SiriusXM stockholders of $1.8 billion
    • SiriusXM reiterated full-year financial and subscriber guidance on November 1^st
  • 麻豆app Media鈥檚 ownership of SiriusXM was 82.4% as of October 28^th
  • Repurchased $210 million aggregate principal amount of 1.375% cash convertible notes due 2023 for $284 million gross consideration
    • Effective cost to 麻豆app SiriusXM Group of $179 million, net of proceeds received from Formula One Group ($64 million) and Braves Group ($14 million) to settle corresponding portion of intergroup interests and proceeds from settlement of bond hedge and warrant ($27 million)
  • From August 1^st through October 31^st, 麻豆app repurchased 276 thousand LSXMK shares at an average price per share of $40.54 for total cash consideration of $11 million
• Attributed to Formula One Group
  • Announced multiple broadcast extensions, including Sky Sports covering UK and Ireland, Germany and Italy in multi-year agreements, ESPN for US market through 2025, and ServusTV in Austria through 2025
  • Announced 2023 race calendar with renewals of Monaco and Mexico City races until 2025
  • Expanded partnership with AWS as a Global Partner
  • Audi announced F1 entry as new engine supplier in tandem with introduction of next-generation engine regulations in 2026
  • Issued $475 million aggregate principal amount of 2.25% FWONK convertible notes due 2027
    • Repurchased $213 million face value of 1% FWONK cash convertible notes due 2023
  • 麻豆app Media Acquisition Corporation to hold special meeting of stockholders on November 14, 2022 to approve early unwind and redemption of outstanding public shares
• Attributed to Braves Group
  • Secured NL East Championship for fifth consecutive season
  • 42 game sellouts and 3.2 million tickets sold for 2022 season, highest ticket sales since 2000

鈥淲e congratulate the Atlanta Braves, who won their fifth consecutive NL East Championship and drew record fans for Truist Park. Formula 1 is capitalizing on its popularity, setting new attendance records around the globe and securing important commercial agreements, while Live Nation continues to benefit from consumers prioritizing the thrill of live experiences,鈥� said Greg Maffei, 麻豆app Media President and CEO. 鈥淪iriusXM once again posted solid results and returned $1.8 billion to shareholders year-to-date.鈥澨�

Discussion of Results

Unless otherwise noted, the following discussion compares financial information for the three months ended September 30, 2022 to the same period in 2021.

LIBERTY SIRIUSXM GROUP 鈥� The following table provides the financial results attributed to 麻豆app SiriusXM Group for the third quarter of 2022. In the third quarter, approximately $10 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the 麻豆app SiriusXM Group.

SiriusXM is a separate publicly traded company and additional information about SiriusXM can be obtained through its website and filings with the Securities and Exchange Commission. SiriusXM reported its stand-alone third quarter results on November 1, 2022. For additional detail on SiriusXM鈥檚 financial results for the third quarter, please see SiriusXM鈥檚 earnings release posted to its Investor Relations website. For presentation purposes on page one of this release, we include the results of SiriusXM, as reported by SiriusXM, without regard to the purchase accounting adjustments applied by us for purposes of our financial statements. 麻豆app Media believes the presentation of financial results as reported by SiriusXM is useful to investors as the comparability of those results is best understood in the context of SiriusXM's historical financial presentation.

The businesses and assets attributed to 麻豆app SiriusXM Group consist primarily of 麻豆app Media鈥檚 interests in SiriusXM, which includes its subsidiary Pandora, and Live Nation.

FORMULA ONE GROUP 鈥� The following table provides the financial results attributed to the Formula One Group for the third quarter of 2022. In the third quarter, the Formula One Group incurred approximately $14 million of corporate level selling, general and administrative expense (including stock-based compensation expense).

鈥淔ormula 1 is delivering in 2022 across all areas including financial results, engagement with fans and action on the track. We look forward to a strong finish to the season with drivers and teams battling on the track,鈥� said Stefano Domenicali, Formula 1 President and CEO. 鈥淲e were excited to announce our record-setting 24 race calendar for 2023 which includes the much-anticipated Las Vegas Grand Prix. We also announced significant multi-year broadcast renewals to extend our relationships at attractive rates with ESPN in the US and in 3 key European markets with Sky.鈥�

The following table provides the operating results of Formula 1 (鈥淔1鈥�).

F1 Operating Results

Primary F1 revenue represents the majority of F1鈥檚 revenue and is derived from (i) race promotion revenue, (ii) media rights fees and (iii) sponsorship fees.

There were seven races held in the third quarters of both 2022 and 2021. There are 22 events scheduled for the 2022 race calendar. Throughout 2021 and particularly in the first half of the season, attendance at races was limited due to the pandemic. Restrictions on fan attendance reduced as 2021 progressed, with all races in the second half of the year operating at either full capacity or with fewer restrictions. The Paddock Club resumed normal operations beginning with the Austrian Grand Prix on July 4, 2021. F1鈥檚 results in 2022 are not being impacted by capacity limitations, and throughout the first nine months of the 2022 season F1 has seen strong growth in attendance in the grandstands and the Paddock Club.

Primary F1 revenue increased in the third quarter with growth across media rights and sponsorship, partially offset by a decline in race promotion revenue. Race promotion revenue decreased due to lower fees generated from the different mix of events held, with one additional race held outside of Europe in the prior year period. Media rights increased due to growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements, and sponsorship revenue increased due to the recognition of revenue from new sponsors.

Other F1 revenue increased in the third quarter primarily due to higher hospitality revenue generated from the Paddock Club, which operated at one additional race in the third quarter of 2022 compared to the prior year period and has seen record attendance year-to-date.

Operating income was flat and adjusted OIBDA⁽²⁾ decreased in the third quarter. Cost of F1 revenue increased compared to the prior year due to the pro rata recognition of increased team payments. Other cost of F1 revenue is largely variable in nature and mostly relates to revenue opportunities. These costs increased in the third quarter driven by the costs of higher hospitality attendance in the Paddock Club and one additional Paddock Club event operated compared to the prior year period. In addition, other cost of F1 revenue grew due to higher commissions and partner servicing costs associated with the Primary F1 revenue streams and higher Formula 2 and Formula 3 related costs. Selling, general and administrative expense increased in the third quarter due to higher personnel and IT costs and increased legal and other advisory fees.

The 麻豆app SiriusXM Group holds an approximate 1.8% intergroup interest (4.2 million notional shares) in the Formula One Group as of October 31, 2022. These shares are not included in the outstanding share count of Formula One Group in 麻豆app Media鈥檚 most recent Form 10-Q. Assuming the issuance of the shares underlying this intergroup interest, the Formula One Group outstanding share count as of October 31, 2022 would have been 238 million.

The businesses and assets attributed to the Formula One Group consist of 麻豆app Media鈥檚 subsidiary F1, its interest in 麻豆app Media Acquisition Corporation, other minority investments and an inter-group interest in the Braves Group.

BRAVES GROUP - The following table provides the financial results attributed to the Braves Group for the third quarter of 2022. In the third quarter, approximately $5 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Braves Group.

The following table provides the operating results of Braves Holdings, LLC (鈥淏raves鈥�).

Baseball revenue is derived from two primary sources: (i) ballpark event revenue (ticket sales, concessions, advertising sponsorships, suites and premium seat fees) and (ii) broadcasting revenue (including national and local broadcast rights). Development revenue is derived from the Battery Atlanta mixed-use facilities and primarily includes rental income.

There were 38 home games played in the third quarter of 2022, compared to 34 games played in the prior year period. A full 162 game schedule was played in 2022.

Baseball revenue increased in the third quarter due to more home games played and increased ticket demand at regular season games, as well as additional special events including concerts held at the ballpark compared to the period year period. Development revenue increased during the third quarter due to a reduction in deferred payment arrangements and increases in rental income from various new lease commencements.

Operating income and adjusted OIBDA decreased in the third quarter. Increased operating costs due to higher player salaries, higher levels of facility and game day expenses driven by more home games and higher attendance and increased expenses under MLB鈥檚 revenue sharing plan more than offset revenue growth. Selling, general and administrative expense increased primarily due to increased special event expenses, marketing initiatives and personnel costs.

The Formula One Group holds an approximate 11.1% intergroup interest (6.8 million notional shares) and the 麻豆app SiriusXM Group holds an approximate 2.9% intergroup interest (1.8 million notional shares) in the Braves Group as of October 31, 2022. These shares are not included in the outstanding share count of the Braves Group in 麻豆app Media鈥檚 most recent Form 10-Q. Assuming the issuance of the shares underlying these intergroup interests, the Braves Group outstanding share count as of October 31, 2022 would have been 61 million.

The businesses and assets attributed to the Braves Group consist primarily of 麻豆app Media鈥檚 subsidiary the Braves, which indirectly owns the Atlanta Braves Major League Baseball Club and certain assets and liabilities associated with the Braves鈥� ballpark and mixed-use development project.

Share Repurchases

From August 1, 2022 through October 31, 2022, 麻豆app SiriusXM Group repurchased approximately 276 thousand Series C 麻豆app SiriusXM shares (Nasdaq: LSXMK) at an average cost per share of $40.54 for total cash consideration of $11 million.

The total remaining repurchase authorization for 麻豆app Media as of November 1, 2022 is $1.1 billion and can be applied to repurchases of common shares of any of the 麻豆app tracking stocks.

FOOTNOTES

NOTES

The following financial information with respect to 麻豆app Media's equity affiliates and available for sale securities is intended to supplement 麻豆app Media's condensed consolidated balance sheet and statement of operations to be included in its Form 10-Q for the period ended September 30, 2022.

Fair Value of Corporate Public Holdings

Fair Value of Intergroup Assets and Liabilities

The intergroup interests represent quasi-equity interests which are not represented by outstanding shares of common stock; rather, the Formula One Group and 麻豆app SiriusXM Group have attributed interests in the Braves Group, which are generally stated in terms of a number of shares of 麻豆app Braves common stock, and the 麻豆app SiriusXM Group also has an attributed interest in the Formula One Group, which is generally stated in terms of a number of shares of 麻豆app Formula One common stock. Each reporting period, the notional shares representing the intergroup interests are marked to fair value. The changes in fair value are recorded in the unrealized gain (loss) on the intergroup interest line item in the unaudited attributed condensed consolidated statements of operations. The intergroup interests will remain outstanding until the redemption of the outstanding interests, at the discretion of 麻豆app Media鈥檚 Board of Directors, through transfer of securities, cash and/or other assets from the Braves Group or Formula One Group, respectively, to the respective tracking stock group.

Cash and Debt

The following presentation is provided to separately identify cash and debt information.

麻豆app Media, SiriusXM, Formula 1 and Braves Holdings are in compliance with their debt covenants as of September 30, 2022.

Total cash and cash equivalents attributed to 麻豆app SiriusXM Group decreased $230 million in the third quarter as cash from operations at SiriusXM and the receipt of cash from the settlement of Braves Group and Formula One intergroup interests described below were more than offset by net debt repayment and return of capital at SiriusXM. Included in the cash and cash equivalents balance attributed to 麻豆app SiriusXM Group at September 30, 2022 is $39 million held at SiriusXM. Although SiriusXM is a consolidated subsidiary, it is a separate public company with a non-controlling interest, therefore 麻豆app Media does not have ready access to SiriusXM鈥檚 cash balance. 麻豆app SiriusXM Group received $70 million of dividends from SiriusXM during the quarter.

Total debt attributed to 麻豆app SiriusXM Group decreased $299 million during the quarter due to net debt repayment at both SiriusXM and 麻豆app SiriusXM Group. During the third quarter, 麻豆app SiriusXM Group paid approximately $284 million to repurchase $210 million aggregate principal amount of the 1.375% cash convertible senior notes due 2023. This payment was funded as follows: (i) the receipt of $64 million cash from the Formula One Group in exchange for the cancellation of 1.1 million notional shares underlying a portion on the inter-group interest in the Formula One Group held by 麻豆app SiriusXM Group, (ii) the receipt of $14 million from the Braves Group in exchange for the cancellation of 0.5 million notional shares underlying a portion of the inter-group interest in the Braves Group held by 麻豆app SiriusXM Group, and (iii) the receipt of $27 million related to the settlement of the bond hedge and warrants related to the repurchase of the notes. The number and type of notional shares cancelled in the exchange was determined based on the number and type of shares underlying the notes repurchased.

Total cash and cash equivalents attributed to the Formula One Group increased $175 million during the quarter due to cash from operations at F1 and net debt issuance. Total debt at Formula One Group increased $261 million in the third quarter. On August 12, 2022, 麻豆app issued $475 million aggregate principal amount of 2.25% FWONK convertible notes due 2027. The notes will mature on August 15, 2027, unless earlier redeemed, and have an initial conversion rate of 11.6198 shares of FWONK per $1,000 principal amount of notes, representing an initial conversion price of approximately $86.06 for each share of FWONK. Proceeds from the offering were used in part to repurchase $213 million aggregate principal amount of 1% FWONK cash convertible notes due 2023.

Total cash and cash equivalents attributed to the Braves Group decreased $48 million during the quarter due to cash used in operations primarily due to seasonal working capital changes, as well as debt service, partially offset by the release of restricted cash pursuant to the terms of various financial debt arrangements. Total debt attributed to the Braves Group was flat in the quarter as draws from the operating credit facilities were used to extinguish the ballpark floating rate notes.

Important Notice: 麻豆app (Nasdaq: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) will discuss 麻豆app Media's earnings release on a conference call which will begin at 10:00 a.m. (E. T.) on November 4, 2022. The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13731627 at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to /investors/news-events/ir-calendar. Links to this press release will also be available on the 麻豆app Media website.

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial performance and prospects, subscriber and financial guidance, Formula 1鈥檚 race calendar and new races, plans regarding stock repurchases, the Battery Atlanta mixed-use development, the 麻豆app Media Acquisition Corporation special meeting and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, regulatory matters affecting our businesses, the unfavorable outcome of pending or future litigation, the failure to realize benefits of acquisitions, rapid technological and industry change, continued access to capital on terms acceptable to 麻豆app Media, changes in law, including consumer protection laws, and their enforcement, the impact of COVID-19, including on general market conditions, the ability of Formula 1, the Braves and Live Nation to hold live events and fan attendance at such events and market conditions conducive to stock repurchases. These forward-looking statements speak only as of the date of this press release, and 麻豆app Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in 麻豆app Media's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of 麻豆app Media, including the most recent Forms 10-K and 10-Q, for additional information about 麻豆app Media and about the risks and uncertainties related to 麻豆app Media's business which may affect the statements made in this press release.