Liberty Media Acknowledges SiriusXM Is Navigating Difficulties

Liberty Media Corporation today reported first quarter 2023 results. Headlines include: 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 resultsFirst 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

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

Greg Maffei

“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.”