ENGLEWOOD, Colo.–(BUSINESS WIRE)–Liberty Media Corporation (“Liberty Media” or “Liberty”) (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) today reported first quarter 2023 results. Headlines include(1):
- Targeting completion of planned split-off of Atlanta Braves Holdings, Inc. and reclassification of tracking stocks to create Liberty Live Group tracking stock by end of second quarter 2023
-
Attributed to Liberty SiriusXM Group
-
SiriusXM reported first quarter 2023 operating and financial results
- First quarter 2023 revenue of $2.14 billion; down 2% year-over-year
- Net income of $233 million, down from $309 million in 2022; diluted EPS of $0.06
- Adjusted EBITDA(2) of $625 million and free cash flow(2) of $144 million
- SiriusXM increased full-year adjusted EBITDA and free cash flow guidance on April 27th
- Liberty Media’s ownership of SiriusXM was 82.9% as of April 25th
- Issued $575 million of 3.75% LSXMA convertible senior notes and used proceeds, along with cash on hand, to repurchase $591 million aggregate principal of 1.375% cash convertible notes and $112 million aggregate adjusted principal of 2.125% exchangeable senior debentures
-
SiriusXM reported first quarter 2023 operating and financial results
-
Attributed to Formula One Group
- Announced multiple updates to sponsorship agreements, including extending MSC Cruises as Global Partner, welcoming Puma as Official Provider of F1’s sporting apparel and naming Paramount+ and Liqui Moly as Official Partners
- Extended agreement with ESPN to broadcast F1 in Latin America and Caribbean through 2025
- Las Vegas Grand Prix Paddock Building construction at 60% completion with expected occupancy by end of September
- Formula 1 leverage at quarter-end of 2.2x will trigger permanent reduction in existing Term Loan B margin from 3.25% to 3.00%
- Formula One Group paid $202 million in exchange for the cancellation of 3.1 million notional FWONA shares underlying intergroup interest held at Liberty SiriusXM Group corresponding to the portion of 1.375% cash convertible notes repurchased
-
Attributed to Braves Group
- Braves home opener on April 6th drew 42,000 fans, largest home opener crowd in Truist Park history
“We are progressing well on the split-off of the Atlanta Braves and the creation of the Liberty Live Group tracking stock,” said Greg Maffei, Liberty Media President and CEO. “SiriusXM navigated a difficult auto and ad market backdrop in the first quarter, but we are confident in their improving trajectory for the remainder of the year evidenced by management increasing 2023 adjusted EBITDA and free cash flow guidance. The Formula 1 season is underway and fans are tuning in across platforms. Arrangements for the Las Vegas Grand Prix are ramping up, with the Paddock Building construction and track preparations progressing on-time and in-line with our capex expectations. The Atlanta Braves are seeing strong trends in ticket sales and concessions early in the season.”
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months ended March 31, 2023 to the same period in 2022.
LIBERTY SIRIUSXM GROUP – The following table provides the financial results attributed to Liberty SiriusXM Group for the first quarter of 2023. In the first quarter, approximately $14 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Liberty SiriusXM Group.
|
|
1Q22 |
|
1Q23 |
|
% Change |
||||||
|
|
amounts in millions |
|
|
||||||||
|
Liberty SiriusXM Group |
|
|
|
|
|
||||||
|
Revenue |
|
|
|
|
|
||||||
|
SiriusXM |
$ |
2,186 |
|
$ |
2,144 |
|
(2 |
)% |
|||
|
Total Liberty SiriusXM Group |
$ |
2,186 |
|
$ |
2,144 |
|
(2 |
)% |
|||
|
Operating Income (Loss) |
|
|
|
|
|
||||||
|
SiriusXM |
|
493 |
|
|
387 |
|
(22 |
)% |
|||
|
Corporate and other |
|
(9 |
) |
|
(14 |
) |
(56 |
)% |
|||
|
Total Liberty SiriusXM Group |
$ |
484 |
|
$ |
373 |
|
(23 |
)% |
|||
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
||||||
|
SiriusXM |
|
690 |
|
|
625 |
|
(9 |
)% |
|||
|
Corporate and other |
|
(5 |
) |
|
(11 |
) |
(120 |
)% |
|||
|
Total Liberty SiriusXM Group |
$ |
685 |
|
$ |
614 |
|
(10 |
)% |
|||
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 first quarter results on April 27, 2023. For additional detail on SiriusXM’s financial results for the first quarter, please see SiriusXM’s 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. Liberty 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 Liberty SiriusXM Group consist primarily of Liberty Media’s interests in SiriusXM, which includes its subsidiary Pandora, and an investment in Live Nation.
FORMULA ONE GROUP – The following table provides the financial results attributed to the Formula One Group for the first quarter of 2023. In the first quarter, the Formula One Group incurred approximately $16 million of corporate level selling, general and administrative expense (including stock-based compensation expense).
“The F1 season is off to a fantastic start, with thrilling races to-date and many more to come on our record 23-race 2023 calendar. The race weekends are drawing huge crowds, with the Australian Grand Prix hosting 445,000 fans and sellouts for the majority of the remaining calendar,” said Stefano Domenicali, Formula 1 President and CEO. “The power of our platform continues to draw interest also from commercial partners, with a number of new and expanded sponsors already announced season-to-date.”
|
|
|
1Q22 |
|
1Q23 |
||||
|
|
|
amounts in millions |
||||||
|
Formula One Group |
|
|
|
|
|
|
||
|
Revenue |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
360 |
|
|
$ |
381 |
|
|
Total Formula One Group |
|
$ |
360 |
|
|
$ |
381 |
|
|
Operating Income (Loss) |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
34 |
|
|
$ |
35 |
|
|
Corporate and other |
|
|
(15 |
) |
|
|
(19 |
) |
|
Total Formula One Group |
|
$ |
19 |
|
|
$ |
16 |
|
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
122 |
|
|
$ |
117 |
|
|
Corporate and other |
|
|
(10 |
) |
|
|
(12 |
) |
|
Total Formula One Group |
|
$ |
112 |
|
|
$ |
105 |
|
The following table provides the operating results of Formula 1 (“F1”).
|
F1 Operating Results |
|||||||||||
|
|
1Q22 |
|
1Q23 |
|
% Change |
||||||
|
|
amounts in millions |
|
|
||||||||
|
Primary Formula 1 revenue |
$ |
287 |
|
$ |
314 |
|
9 |
% |
|||
|
Other Formula 1 revenue |
|
73 |
|
|
67 |
|
(8 |
)% |
|||
|
Total Formula 1 revenue |
$ |
360 |
|
$ |
381 |
|
6 |
% |
|||
|
Operating expenses (excluding stock-based compensation): |
|
|
|
|
|
||||||
|
Team payments |
|
(100 |
) |
|
(112 |
) |
(12 |
)% |
|||
|
Other cost of Formula 1 revenue |
|
(95 |
) |
|
(94 |
) |
1 |
% |
|||
|
Cost of Formula 1 revenue |
$ |
(195 |
) |
$ |
(206 |
) |
(6 |
)% |
|||
|
Selling, general and administrative expenses |
|
(43 |
) |
|
(58 |
) |
(35 |
)% |
|||
|
Adjusted OIBDA |
$ |
122 |
|
$ |
117 |
|
(4 |
)% |
|||
|
Depreciation and Amortization(a) |
|
(88 |
) |
|
(82 |
) |
7 |
% |
|||
|
Operating income (loss) |
$ |
34 |
|
$ |
35 |
|
3 |
% |
|||
|
|
|
|
|
|
|
||||||
|
Number of races in period |
|
2 |
|
|
2 |
|
|
||||
| ____________________ | ||
|
a) |
Includes $81 million and $74 million of amortization related to purchase accounting as of March 31, 2022 and March 31, 2023, respectively, that is excluded from calculations for purposes of team payments. |
|
Primary F1 revenue represents the majority of F1’s revenue and is derived from (i) race promotion revenue, (ii) media rights fees and (iii) sponsorship fees. There were two races held in the first quarter of both 2022 and 2023. There are 23 events scheduled for the 2023 race calendar.
Primary F1 revenue increased in the first quarter with growth across media rights, race promotion and sponsorship. Media rights revenue increased due to continued growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements. Race promotion revenue grew due to contractual increases in fees, and sponsorship revenue increased due to the recognition of revenue from new sponsors and growth in revenue from existing sponsors. Other F1 revenue decreased in the first quarter primarily due to lower freight income driven by the easing of freight cost inflation on billing rates, partially offset by increased hospitality revenue from higher Paddock Club attendance.
Operating income was relatively flat and adjusted OIBDA(2) decreased in the first quarter. Team payments were higher compared to the prior year due to the pro rata recognition of increased payments across the race season. Other cost of F1 revenue is largely variable in nature and is mostly derived from servicing both Primary and Other F1 revenue opportunities. These costs were relatively flat, as significantly lower freight costs were largely offset by increased Paddock Club costs associated with servicing higher hospitality attendance at the two events held in the first quarter, and higher commissions and partner servicing costs associated with increased Primary F1 revenue streams, including F1 TV subscriptions. Selling, general and administrative expense increased in the first quarter due to higher personnel, IT and marketing costs. There were approximately $6 million of costs associated with the planning of the Las Vegas Grand Prix included in selling, general and administrative expense in the first quarter of 2023.
The Liberty SiriusXM Group has an approximate 0.4% intergroup interest (1.1 million notional shares) in the Formula One Group attributed to it as of April 30, 2023. These shares are not included in the outstanding share count of Formula One Group in Liberty Media’s most recent Form 10-Q. Assuming the issuance of the shares underlying this intergroup interest, the Formula One Group outstanding share count as of April 30, 2023 would have been 235 million.
The businesses and assets attributed to the Formula One Group consist of Liberty Media’s subsidiary F1, other minority investments and an intergroup interest in the Braves Group.
BRAVES GROUP – The following table provides the financial results attributed to the Braves Group for the first quarter of 2023. In the first quarter, approximately $6 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Braves Group.
|
|
|
1Q22 |
|
1Q23 |
||||
|
|
|
amounts in millions |
||||||
|
Braves Group |
|
|
|
|
|
|
||
|
Revenue |
|
|
|
|
|
|
||
|
Corporate and other |
|
$ |
23 |
|
|
$ |
31 |
|
|
Operating Income (Loss) |
|
|
|
|
|
|
||
|
Corporate and other |
|
$ |
(40 |
) |
|
$ |
(49 |
) |
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
||
|
Corporate and other |
|
$ |
(19 |
) |
|
$ |
(31 |
) |
The following table provides the operating results of Braves Holdings, LLC (“Braves”).
|
|
1Q22 |
|
1Q23 |
|
% Change |
||||||
|
|
amounts in millions |
|
|
||||||||
|
Baseball revenue |
$ |
11 |
|
$ |
18 |
|
64 |
% |
|||
|
Mixed-use development revenue |
|
12 |
|
|
13 |
|
8 |
% |
|||
|
Total revenue |
|
23 |
|
|
31 |
|
35 |
% |
|||
|
Operating expenses (excluding stock-based compensation included below): |
|
|
|
|
|
||||||
|
Operating expenses |
|
(23 |
) |
|
(39 |
) |
(70 |
)% |
|||
|
Selling, general and administrative expenses |
|
(17 |
) |
|
(18 |
) |
(6 |
)% |
|||
|
Adjusted OIBDA |
$ |
(17 |
) |
$ |
(26 |
) |
(53 |
)% |
|||
|
Stock-based compensation |
|
(2 |
) |
|
(2 |
) |
— |
% |
|||
|
Depreciation and Amortization |
|
(18 |
) |
|
(15 |
) |
17 |
% |
|||
|
Operating income (loss) |
$ |
(37 |
) |
$ |
(43 |
) |
(16 |
)% |
|||
|
|
|
|
|
|
|
||||||
|
Number of home games in period |
|
— |
|
|
— |
|
|
||||
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). Mixed-use development revenue is derived from the Battery Atlanta mixed-use facilities and primarily includes rental income.
In December 2021, the Collective Bargaining Agreement (“CBA”), which requires MLB clubs to sign players using a uniform contract, expired and MLB commenced a lockout of the Major League players. As a result of the lockout, the start of the 2022 regular season was delayed and the number of spring training games played was reduced. The start of the 2023 season was not impacted by these factors and a full spring training schedule took place. No regular season home games were played in the first quarter of 2023 nor the prior year period.
Baseball revenue increased in the first quarter due to more spring training home games and additional special events held at the ballpark compared to the prior year period. Development revenue increased during the first quarter due to increases in rental income related to tenant recoveries.
Operating income and adjusted OIBDA decreased in the first quarter. Revenue growth was more than offset by increased operating costs due to higher player salaries, as player salary expense was not recognized in the prior year period due to the delayed start of the season, as well as higher levels of MLB shared expenses, baseball operations expenses and facility and game day expenses for spring training games. Selling, general and administrative expense increased modestly due to increased promotion and marketing initiatives and higher personnel costs.
The Formula One Group has an approximate 11.0% intergroup interest (6.8 million notional shares) and the Liberty SiriusXM Group has an approximate 2.9% intergroup interest (1.8 million notional shares) in the Braves Group attributed to them as of April 30, 2023. These shares are not included in the outstanding share count of the Braves Group in Liberty Media’s most recent Form 10-Q. Assuming the issuance of the shares underlying these intergroup interests, the Braves Group outstanding share count as of April 30, 2023 would have been 62 million.
The businesses and assets attributed to the Braves Group consist primarily of Liberty Media’s subsidiary the Braves, which indirectly owns the Atlanta Braves Major League Baseball Club and certain assets and liabilities associated with the Braves’ ballpark and mixed-use development.
Share Repurchases
There were no repurchases of Liberty Media’s common stock (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) from February 1, 2023 through April 30, 2023. The total remaining repurchase authorization for Liberty Media as of May 1, 2023 is approximately $1.1 billion and can be applied to repurchases of common shares of any of the Liberty Media Corporation tracking stocks.
FOOTNOTES
|
1) |
Liberty Media will discuss these headlines and other matters on Liberty Media’s earnings conference call that will begin at 9:30 a.m. (E.T.) on May 5, 2023. For information regarding how to access the call, please see “Important Notice” later in this document. |
|
|
2) |
For definitions of Adjusted OIBDA (as defined by Liberty Media) and adjusted EBITDA and free cash flow (as defined by SiriusXM) and applicable reconciliations see the accompanying schedules. |
|
NOTES
The following financial information with respect to Liberty Media’s equity affiliates and available for sale securities is intended to supplement Liberty Media’s condensed consolidated balance sheet and statement of operations to be included in its Form 10-Q for the period ended March 31, 2023.
|
Fair Value of Corporate Public Holdings |
||||||||
|
|
|
|
|
|
||||
|
(amounts in millions) |
12/31/2022 |
3/31/2023 |
||||||
|
Liberty SiriusXM Group |
|
|
|
|
||||
|
Live Nation Investment(a) |
|
4,857 |
|
4,875 |
||||
|
Total Liberty SiriusXM Group |
$ |
4,857 |
|
$ |
4,875 |
|
||
|
Formula One Group |
|
|
|
|
||||
|
Other Monetizable Public Holdings(b) |
|
80 |
|
|
172 |
|
||
|
Total Formula One Group |
$ |
80 |
|
$ |
172 |
|
||
|
Braves Group |
|
N/A |
|
|
N/A |
|
||
|
Total Liberty Media |
$ |
4,937 |
|
$ |
5,047 |
|
||
| ____________________ | ||
|
a) |
Represents the fair value of the equity investment in Live Nation. In accordance with GAAP, Liberty Media accounts for its investment in the equity of Live Nation using the equity method of accounting and includes it in its condensed consolidated balance sheet at $158 million and $157 million as of December 31, 2022 and March 31, 2023, respectively. |
|
|
b) |
Represents the carrying value of other public holdings that are accounted for at fair value. Includes approximately $126 million of exchange-traded funds as of March 31, 2023 that are expected to be contributed to Liberty Live Group upon the reclassification of the tracking stocks. Excludes intergroup interests. |
|
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 Liberty SiriusXM Group have attributed interests in the Braves Group, which are generally stated in terms of a number of shares of Liberty Braves common stock, and the Liberty SiriusXM Group also has an attributed interest in the Formula One Group, which is generally stated in terms of a number of shares of Liberty 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 gains (losses) on the intergroup interest line item in the unaudited attributed condensed consolidated statements of operations. In connection with the previously announced split-off of Atlanta Braves Holdings, Inc., the intergroup interests in the Braves Group attributed to Liberty SiriusXM Group and Formula One Group will be settled and extinguished in connection with the split-off.
The Braves Group will attribute shares of New BATRA and New BATRK to Liberty SiriusXM Group and Formula One Group, respectively, on a one-for-one basis equal to the number of notional shares representing the intergroup interest attributed to each immediately prior to the split-off. Following the split-off: (i) Liberty SiriusXM Group intends to deliver the shares of New BATRA to and exchange such New BATRA shares with one or more third party lenders for satisfaction of certain debt obligations of Liberty SiriusXM Group and (ii) the new BATRK shares attributed to Formula One Group will be distributed on a pro rata basis to Formula One Group common shareholders.
The intergroup interest in the Formula One Group attributed to Liberty SiriusXM Group will be settled and extinguished through the attribution of cash prior to the split-off.
|
|
Attributed |
|||||||||||||||||||
|
|
as of March 31, 2023 |
|||||||||||||||||||
|
|
Liberty |
|
|
|
|
|
|
Formula |
||||||||||||
|
|
SiriusXM |
|
Braves |
|
One |
|||||||||||||||
|
|
Group |
|
Group |
|
Group |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
(amounts in millions) |
Notional Shares |
|
Value |
|
Notional Shares |
|
Value |
|
Notional Shares |
|
Value |
|||||||||
|
Braves Group intergroup interests(a) |
1.8 |
$ |
63 |
(8.6) |
$ |
(291 |
) |
6.8 |
$ |
228 |
|
|||||||||
|
Formula One Group intergroup interest(a) |
1.1 |
$ |
71 |
|
|
|
|
(1.1) |
$ |
(71 |
) |
|||||||||
| ____________________ | ||
|
a) |
During the three months ended March 31, 2023, Formula One Group paid $202 million to Liberty SiriusXM Group to settle and extinguish 3.1 million notional shares underlying the portion of the intergroup interest in the Formula One Group held by Liberty SiriusXM Group as a result of the repurchase of a portion of the 1.375% cash convertible notes due 2023. |
|
Cash and Debt
The following presentation is provided to separately identify cash and debt information.
|
(amounts in millions) |
12/31/2022 |
3/31/2023 |
||||||
|
Cash and Cash Equivalents Attributable to: |
|
|
|
|
||||
|
Liberty SiriusXM Group(a) |
$ |
362 |
|
$ |
430 |
|
||
|
Formula One Group(b) |
|
1,733 |
|
|
1,584 |
|
||
|
Braves Group(c) |
|
151 |
|
|
215 |
|
||
|
Total Consolidated Cash and Cash Equivalents (GAAP) |
$ |
2,246 |
|
$ |
2,229 |
|
||
|
|
|
|
|
|
||||
|
|
|
|
||||||
|
Debt: |
|
|
|
|
||||
|
SiriusXM senior notes(d) |
$ |
8,750 |
|
$ |
8,750 |
|
||
|
Pandora convertible senior notes(e) |
|
193 |
|
|
118 |
|
||
|
1.375% cash convertible notes due 2023(f) |
|
790 |
|
|
199 |
|
||
|
3.75% convertible notes due 2028(f) |
|
— |
|
|
575 |
|
||
|
2.125% SiriusXM exchangeable senior debentures due 2048(f) |
|
387 |
|
|
275 |
|
||
|
2.75% SiriusXM exchangeable senior debentures due 2049(f) |
|
586 |
|
|
586 |
|
||
|
0.5% Live Nation exchangeable senior debentures due 2050(f) |
|
920 |
|
|
920 |
|
||
|
SiriusXM margin loan |
|
875 |
|
|
875 |
|
||
|
Live Nation margin loan |
|
— |
|
|
— |
|
||
|
Other subsidiary debt(g) |
|
580 |
|
|
710 |
|
||
|
Total Attributed Liberty SiriusXM Group Debt |
$ |
13,081 |
|
$ |
13,008 |
|
||
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
62 |
|
|
(108 |
) |
||
|
Total Attributed Liberty SiriusXM Group Debt (GAAP) |
$ |
13,143 |
|
$ |
12,900 |
|
||
|
|
|
|
|
|
||||
|
1% cash convertible notes due 2023(f) |
|
27 |
|
|
— |
|
||
|
2.25% convertible notes due 2027(f) |
|
475 |
|
|
475 |
|
||
|
Formula 1 term loan and revolving credit facility |
|
2,425 |
|
|
2,420 |
|
||
|
Other corporate level debt |
|
63 |
|
|
63 |
|
||
|
Total Attributed Formula One Group Debt |
$ |
2,990 |
|
$ |
2,958 |
|
||
|
Fair market value adjustment |
|
(43 |
) |
|
— |
|
||
|
Total Attributed Formula One Group Debt (GAAP) |
$ |
2,947 |
|
$ |
2,958 |
|
||
|
Formula 1 leverage(h) |
|
2.7x |
|
2.2x |
||||
|
|
|
|
|
|
||||
|
Atlanta Braves debt |
|
546 |
|
|
542 |
|
||
|
Total Attributed Braves Group Debt |
$ |
546 |
|
$ |
542 |
|
||
|
Deferred loan costs |
|
(4 |
) |
|
(4 |
) |
||
|
Total Attributed Braves Group Debt (GAAP) |
$ |
542 |
|
$ |
538 |
|
||
|
|
|
|
|
|
||||
|
Total Liberty Media Corporation Debt (GAAP) |
$ |
16,632 |
|
$ |
16,396 |
|
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a) |
Includes $57 million and $53 million of cash held at SiriusXM as of December 31, 2022 and March 31, 2023, respectively. |
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b) |
Includes $752 million and $1,043 million of cash held at F1 as of December 31, 2022 and March 31, 2023, respectively. |
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c) |
Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $22 million and $30 million as of December 31, 2022 and March 31, 2023, respectively. |
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d) |
Outstanding principal amount of Senior Notes or Term Loan with no reduction for the net unamortized discount. |
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e) |
During the three months ended March 31, 2023, certain investors exercised their right to require a Special Repurchase, as defined in the indenture governing the Pandora convertible senior notes, and Pandora repurchased $75 million principal amount of such notes with cash for an aggregate purchase price equal to 100% of the principal amount of the notes repurchased plus accrued and unpaid interest to the date of repurchase. |
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f) |
Face amount of the convertible notes and exchangeable debentures with no fair market value adjustment. |
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g) |
Includes SiriusXM revolving credit facility and term loan. |
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h) |
Net debt to covenant OIBDA ratio of F1 operating business as defined in F1’s credit facilities for covenant calculations. |
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Liberty Media, SiriusXM, F1 and the Braves are in compliance with their debt covenants as of March 31, 2023.
Total cash and cash equivalents attributed to Liberty SiriusXM Group increased $68 million in the first quarter as net debt repayment at Liberty SiriusXM Group (described below) and return of capital at SiriusXM were more than offset by cash received from the settlement of a portion of the Formula One Group intergroup interest held at Liberty SiriusXM Group (described below), cash from operations at SiriusXM and borrowings under the revolving credit facility at SiriusXM. Included in the cash and cash equivalents balance attributed to Liberty SiriusXM Group at March 31, 2023 is $53 million held at SiriusXM. Although SiriusXM is a consolidated subsidiary, it is a separate public company with a non-controlling interest, therefore Liberty Media does not have ready access to SiriusXM’s cash balance. Liberty SiriusXM Group received $77 million of dividends from SiriusXM during the quarter.
Total debt attributed to Liberty SiriusXM Group decreased $73 million during the quarter. During the first quarter, Liberty SiriusXM Group issued $575 million aggregate principal amount of 3.75% LSXMA convertible notes due 2028 and used net proceeds of the offering, together with cash on hand, to repurchase (i) $591 million aggregate principal amount of its 1.375% cash convertible notes due 2023 and (ii) $112 million aggregate adjusted principal amount of its 2.125% exchangeable debentures due 2048, for a total cost of $774 million. In addition to proceeds from the convertible notes, Liberty SiriusXM Group received (i) $39 million of net proceeds from the settlement of the bond hedge and warrants related to the portion of the 1.375% cash convertible notes repurchased and (ii) $202 million of cash from the Formula One Group in exchange for the cancellation of 3.1 million notional shares underlying a portion of the intergroup interest in the Formula One Group held by Liberty SiriusXM Group (equivalent to the FWONA common stock underlying the portion of the 1.
Contacts
Shane Kleinstein, (720) 875-5432
