Q4 2019 Earnings Call

Well, let's start with them.

[music].

Ladies and gentlemen, thank you for standing by welcome to the Liberty Media Corporation 2019, Q4 earnings call. During the presentation. All participants will be in listen only mode. Afterwards, we will conduct the question answer session at the time. If you have a question. Please press star one on your telephone as a reminder, this conference is.

Being recorded February 26.

I would now like to turn the conference over to Courtney Chen Chief portfolio Officer in senior Vice President of Investor Relations. Please go ahead.

Thank you.

We are beginning to remind everyone that this call includes certain forward looking statements in the medium and private Securities Litigation Reform Act.

Actual events or results could differ materially gives you a number of risks and uncertainties.

As mentioned in our most recent form 10-K filed with the FCC. These forward looking statements speak only as stated this call and Liberty media and Liberty Tripadvisor expressly disclaim any obligation or undertaking disseminate any updates or revisions to any forward looking statement contained herein reflect any change in liberty media or Liberty Tripadvisor is expectations.

With regard to or any change in events conditions or circumstances I wish any such statement is based on today's call with certain non-GAAP financial measures, including adjusted OIBDA and adjusted even though the required definitions and reconciliations for Liberty media and Sirius XM scheduled one into can be found at the end of the earnings press release issued today.

She's available on our website now I'd like to turn the call over to Liberty, President and CEO of breaking the site.

Thank you for me and welcome all of you on the call.

Today speaking besides myself, we'll have we'll watch chairman and CEO Chase Carey and Liberty, Chief Accounting Officer, and principal financial Officer, Brian went away.

During Q1, I will also be available to answer questions related to Liberty trip advisor.

So beginning with Liberty Sirius XM.

We continued our purchase as opposed to stock.

And bought an additional $55 million from the period of November 1st of January 31st incoming buying both our success and elephants that acacias.

I would note. This the first time, we bought the shares. In addition, the case and we just look out in the marketplace or what is a more attractive value in determining our repurchases.

If you look through to the underlying Sirius XM shares are looking for price was $5 of 11 cents over this period price, we probably pretty attractive for devry likes to restock.

As I said before and we'll continue to say, we continue to take advantage of the discount target and maybe.

And as of January 31st our ownership answer as such I was 71.6%.

That's really looking at the underlying curious extra myself and a strong finish to the year.

With record high financial performance at both jurisdiction and Pandora.

This was the 10th consecutive year of 1 billion plus helping that adds.

Jurisdiction returned about $2.4 billion a capital during the year.

And they continue to focus on innovation.

First the three six yells nexgen platform, which will be distributed across six Oems and 13 of their underlying brands. We anticipate 2 million vehicles will be an operation by the end 2020.

And innovation on the content from when they couldn't quadrupled the number of podcasts available in the platform last two was solid growth in monthly listening.

Very creative programming agreements with Drake Marvel abroad, uninterrupted and too.

We're pleased with the integration of Pandora to remind you the deal close just over a year ago, especially the combination of our development team and our AD Tech resources.

75% of Sirius XM development resources resources are now being spent in ways that benefit both of the brand for services.

And Pandora is a positive contribution to the today.

Turning to the Formula One group.

We had strong financial results and you'll hear more about that from chase in a moment and leverage is already done with 5.1 time.

As we discussed at our Investor meeting in November we began repurchasing Liberty Sirius XM stock add on to hedge ourselves against some of the underlying suppose should we have with our convert and the period of November 1st of January 31st we bought back $52 million.

We very much before the start of the Formula One season March 15th in Melbourne.

Well I've nations not yet reporting so I'm going to defer commentary on that.

And looking at the Braves.

Very solid revenue growth.

Third consecutive year of attendance and true West Park, our newest name opt for the ballpark.

We opened a new braised Academy adjacent to our spring training ballpark, just south of service on in Florida, and we held the first game last Saturday first pre season or spring training game, where it came Felix.

A strong outing.

Oh, we have filled out our 40 man roster.

Extended contracts with Alex and probably surprised Snifter and.

MS coaching staff and we are excited bar on field prospects in 2020.

I'd also note we've seen a very good advance on sales of tickets.

Turning over to Liberty Tripadvisor Trust had a difficult year.

But we believe it's focused on right areas continues to drive revenue growth outside of the hotel auction into faster growing areas of experiences in restaurants.

Maybe just as our cost structure to support strong adjusted EBITDA and free cash flow growth in 2020, and they returned 540 million of capital to shareholders in 2019.

With that I'll turn it over to Brian for more on our financial results. Thanks, Greg and good morning, everyone.

A year end Liberty Sirius XM group had attributed cash restricted cash and liquid investments of 387 million.

Including 120 million of cash unrestricted cash held it.

Your next them.

The Sirius XM common stock held at Liberty Sirius XM as of yesterday closed was 22 billion and we have approximately 1.4 billion debt against these holdings.

Total Liberty Sirius XM group attributed principal amount of debt was 9.3 billion, which includes 7.9 billion of debt that's held directly at the Sirius XM level.

Formula One group had attributed cash and liquid investments of 185 million, which excludes four on 402 million of cash held at one.

Formula One group had attributed public markets Securities, where the market value of approximately 4.9 billion as of yesterday as close.

Which include their group interest in the Braves Group Universe interest and Liberty Sirius XM group and of course are second line nation.

Total Formula One group attributed principal amount of debt was 5.1 billion, which includes 2.9 billion of debt held it one leaving 2.2 billion.

At the corporate level.

Formula ones total net debt covenant OIBDA ratio as defined in up once credit facilities was 5.1 times as of yearend as compared to a maximum allowable leverage up 8.25.

If set a target total net leverage ratio for formula one of five to five and a half times bank covenant or though.

Please note that these leverage ratios are for the Formula one business not the Formula One group.

As the branch group, we have attributed cash liquid investments and restricted cash of 212 million and attributed principal amount of debt of 559.

With that I'll turn it over to chase to talk about that.

Thank you Brian.

I was in 19 once a year of growth for both fans and the business a formula one from a fan perspective attendance at our racist again exceeded 4 million up 1.75%, even with the Saturday cancellation of the shop in East Grand Prix do that due to the tie soon.

The average attendance per race was over 200 in 2000.

Eight Grand Prix exceeded crowds.

Had crowds of over 200000 over the weekend with five tracks hosting over 100000 spectators on race day.

The scale of these events is truly unmatched in sports and we continue to be impressed with our promoters in the world class If I'd say orchestrate.

We're even more engaged get home with a total global cumulative audience at 1.9 to 2 billion the highest since 2012 and an increase of 9% over 2018.

The third consecutive year of growth.

19 of the 21, grom freeze and higher cumulative audiences that 2018.

Across Formula one social media platforms, we saw followers increased significantly at almost 33%.

Page views in our core digital platforms, surpassing 1 billion.

We continue to expand or digital initiatives recently launching F. One TV on ROE COO in North America everything up one TV is a large screen format for the first time.

We also encourage you to listen to our podcast beyond the grid, which now is 43 episodes and reached up to 15 million listens in 2019.

For a business perspective, 2019, so I'll begin to reap the benefits of our foundation built in 2017 in 2018.

2019 revenue grew over 10% and EBITDA grew over 25%.

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Up to over 20%.

One of the one also attributed continued to be a cash machine with 2019 net operating cash flow exceeding.

The solid growth in cat as strong cash conversion.

We finished 2019 with a leverage ratio of about 5.1 times near the low end of a recently originated range.

We expect this momentum to continue into 2020.

2020 season marks the seventh anniversary the Formula One World Championships and we recently debuted a special logo for this milestone to celebrate this achievement throughout the year.

All car Liberty's for this year have been revealed someone dramatic fashion and we saw the potential of these new cars when a testing of Barcelona.

We look forward to first race in Melbourne and March 15th.

As announced earlier after ongoing discussions with authorities and our promoter in China, we decided to postpone the Chinese brown pre which was scheduled to be held are still 19th.

Corona virus.

We will continue to monitor the situation and we're working to reschedule the like race later in the season.

No you have questions about how potential cancellation the race could impact our financials.

The events. The race is not held me, we're not receive approach and revenue given the early notice on this postpone it we're working hard to mitigate the effects, which at the end back to adjusted EBITDA to be relatively minimal.

In anticipation of your next question in General Broadcasting sponsorship deals are not dependent on race County.

We're excited to welcome to new races to the 2020 calendar.

Vietnam Grand Prix will take place on April 5th in Hanoi into anticipate another question.

We do plan to proceed with the race.

I talk to her Vietnam taught Vietnamese partners yesterday, and Atlanta to stop in annoying April 5th on my way.

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March 16th on my way back to London from Australia, and all systems are though.

Equally excited about our second race and getting the Netherlands ground free at San for a makes or.

As we previously as leaving as mentioned previously dynamic new locations like the spring wonderful fresh energy to Formula One and we look forward to welcoming new fans in Vietnam, while engaging the Orange Army in Holland.

In sponsorship, we announced one eight bet as the official F. One sponsor in Asia.

This is part of our previously announced deal with the into regional Sports group that we'll see that bookmaker effect feature exclusively throughout the Asian broadcast market through Twentytwenty for <unk>.

We expect announced an exciting new additions to our sponsor lined up in coming weeks before our season launch in Australia.

The driver line up for the 2020 season has the promise of some great racing Informatics story lines.

Lewis Hamilton will be chasing a seven world championship, which would equal the record set by Michael Schumacher.

His team mate fell three bought this followed up in a strong 2019 showing.

Hi exciting competition.

The battled Ferrari between Battle in Leclerc would continue to provide drama that the new team has adopted a let the race policy.

You can forget to raise sending coalition in Brazil.

Red Bull powered by Honda is hoping to challenge, both Mercedes and Ferrari, even more this season with Max per snap and one of the rising stars a formula one leading the way.

Mclaren looks to build on their progress from last year really exciting to Atlanta, Morris and Carlos signs behind the wheel.

At Renault Esteban O'connor will make has returned to the grid well like a likely have something to prove.

And then the only driver did you for the year, we welcome Nicolas like TV to the Williams team.

Uniquely exciting Nixon veteran World Championship drivers going to head to head with one of the most talented groups of young drivers the sport has seen a generation.

So to kinda drama in storytelling, that's compelling part of the Netflix series to drive to survive, we anxiously await ceasing to which will debut on February 28.

Fantastic Clamoring for season, too and it does not disappoint, especially with the addition of Ferrari and Mercedes.

The series has been instrumental and bringing new fans and building our base and other penetrated markets, especially in North America, and we're pleased with our relationship with Netflix.

In other areas of new fan outreach 2019 F. One new balance he sports Pro series, we Carter's its largest audience ever a 5.8 million.

This represents an uplift of 76% year over year.

In a clear demonstration of how we're reaching a new younger and more digitally minded audience, 79%. If you wish to anything were below the age of 34.

This was followed by our inaugural or have flying E Sports China Championship held in Shanghai.

Qualification spanned across six major cities into over 6 million viewers for the finals.

This year will host three fan festivals Johannesburg in March London in May New York in October.

This will be and further celebration of our Seventyth anniversary.

Expose formula one to new audiences.

We're excited to happy W series joined the 20, Twond calendar or Austin in Mexico City races, further efforts of promoting diversity and inclusion in motor sports.

After track, we were thrilled to share ambitious sustainability plan to have a net zero carbon footprint by 2030.

Throughout our history Formula was spent at the forefront of technological innovation.

Many of our innovation has it been adopted by road cars and other industries.

Our current F. One hybrid power unit is the most efficient engine in the world delivering more power using less fuel than any other car.

As engine presents an opportunity to be net zero carbon.

Though through advanced sustainable fuels and energy recovery systems.

So for 1 billion of the 1.1 billion vehicles in the world are powered by in a general combustion engines.

So the impact here can be tremendous.

Electrification of road transport is the personal solution. That's still true requires generation of the energy to power the car manufacturer the battery and then disposal of it.

My 2025 Lawson sure all of our events are sustainable so be through the use of sustainable materials.

Emanation to single use plastics, and always being reuse just recycled or come posted while offering our fans greater options to reach the race.

Corporate level, we will move to ultra efficient logistics and travel and 100% Renewably powered offices facilities in factories.

These plants are the result of over a year of work between the F.I. sustainability experts teams and promoters and we aim to set. The example for sustainability in the world to sports.

Well the 2020 season hasn't begun we're already working looking toward 2021 and beyond to that end, we're thrilled with the progress in the last few weeks of Miami to become closer to finalize thing that potential tent pole event on future calendars.

We're excited to partner with the Miami Dolphins to bring a world class event to the region and our second race to the U.S.

Falling on the ratification of the regulations for the 2021 season.

We're making progress in a new Concord agreement, which will include undo governance and price fund structure.

These discussions are at advanced stages with teams will strengthen the business model and promote growth in the sport.

Financially. We also expect 2020 to be another year of strong across the board growth for Formula one with each of our three primary revenue categories race promotion media and sponsorship.

Contributing to the growth.

We also we're also expecting growth in other important segments of our business like hospitality and are excited to see business segments like licensing and digital advertising.

Hardly existed a couple of years ago become exciting new growth areas.

We further expect RTT platform to continue to be a fourth source of growth as we stabilize the platform. The second half of last year and we now begin to launch new features like our recently expanded coverage of winter testing.

And the cost side, while we continue to add new initiatives to engage in excite fans.

Our organization, it's clearly a more mature one today that will enable us to limit cost increases.

Growth in some areas like hospitality afraid to have cost increases that are tied to revenue growth well emerging areas like deal to de platform are still in an investment phase, but the foundation for our business and sport is largely in place.

Due to the contractual nature of our business.

Many of the key drivers over 2021 2020 results are largely in place in fact much of our current efforts are focused on initiatives.

In fact, 2021 and beyond in areas like median race promotion.

We're excited about the engagement with a range of third parties in these areas as many react to the renewed energy and excitement around the sport.

Activity further reinforces our conviction formula one is uniquely positioned for the diet for dynamic growth in the next few years.

Lastly, I'd like to think Sean branches for the contribution he made to fund the one over the past three years. He was instrumental in transforming the commercial side of the business.

Making formula one a fan centric sport with growing popularity and set us up for continued success.

You get a strong leader of the organization and personally a great partner.

I will turn call back over to Greg.

Thanks, Jason.

Let me Echo chases comments about the we will Miss shot my friend and thanks for all your great work.

Thanks also to chase and Brian as I said for their comments here on all the great year for Liberty media.

We set the name for our Investor meeting in New York.

Leasehold Thursday November 19th.

We do appreciate your continued interest in Liberty media look for speaking with you on next quarter's call a thought before and with that operator I'd like to open the line for questions.

Thank you if you ask the question. Please said another pressing star one on your telephone keypad. Okay. Speakerphone. Please make sure you I mean function is turned off well, you're saying not to reach our equipment.

Dan Press Star one to ask a question.

Just a moment hello, everyone an opportunity say no further questions. Thank you.

Well take our first question from Benjamin Swinburne Morgan Stanley. Please go ahead.

Thanks, Good good morning Chase could you I know I'm the virus situation is quite fluid and sort of hard to depend not exactly where this is going to end up.

What are the things that factor into the decision to move forward would races, or not and you know, what's what's sort of the level of confidence around some of the races. In Asia that you few highlighted you guys are going to continue to you're planning on having sitting here today, just trying to get a sense for you know sort of what the range of outcomes are as we think about at least.

The early part of the season, and then I was wondering either one of the things. We've all been hoping for I think you as well on the new conquered agreement is greater team parity long term and I'm wondering if you could tell us today, given where you are in the process of negotiating these feel agreements. If you think you're going to achieve that and if the sports you seek.

Greater parity as we move into 2021 and beyond.

Sure.

I just first on the Corona virus minutes of use.

As you said upfront which is probably.

The obvious state it's it's fluid so its difficult up you know really a pair of double where the where this plays out obviously a country like easily wasn't really on the radar screen a few days ago and now it is.

Yeah, I think we you know by largest process. What we're doing is rapidly engaged with all you know all the events upcoming I guess, particularly the more current ones to get perspective from in countries. This and I had a conversation yesterday.

Yeah, I know a partner.

And they're update with I think they said they were around 15 cases and actually all of them you know kind of bad debt recovery. So they don't took thinks that they had they've recovered.

Yeah, we are continuing to talk to others about it we're obviously and we are in London.

For our own channels connecting with experts who had been sites you know to this you know I think mostly what we need to do is continuing to get wrapped together with the on top of the issue to try to get the right advice to try to plan and some of its logistics because at the trail travel planning as merging them in Bahrain just.

Added a number of cities that have.

Travel restrictions are coming from them cities. So you know I think part of what we can plan is to make sure we have flexibility and.

Options in place to which were either logistical issues and getting to win from races.

Other than China.

You know I guess back in with a particular focus on the races. The beginning of the year, they're all going at home. So down certainly we're heading to what we're heading in Melbourne.

Heading to Bahrain heading to a I'm heading to Hawaii, although the state the obvious yeah, we got to see what evolves and becoming the coming days.

And we are working actively.

To see if there are ways to mitigate the China postponement.

So I don't think at this point, so long and short of it is you know, we're connecting with sort of in country experts our own experts I'm trying to stay on top of logistical issues on getting to in some long distance places and up.

Feel we've got as good handle on it as you can and the conquered agreement.

I guess, the general packets again don't Wanna get too far into things you know I mean, I think prefers general practice to be comedy when things are done I guess, what I would say that wasn't agreed we feel we're achieving the goals we set out to make a sport healthier and I think a fair distribution the funds.

As one of the cornerstones, we've identified as being important for healthier sport. So I think yeah. He's not all the things we're doing that will launch in 2021 beyond again, I think there a significant step they're not up again, you know if not sort of declare that during a home everything's done, but I think we are making.

Significant steps to achieve the goals.

We set out for the business to make it a healthier a better sport in a better business for everybody on the net deals and addressing cost revenue distribution and the others. So I think you know we we do believe you know I'm on a path to it.

Certainly directionally achieving the goals, we set out at the beginning the process.

Thank you so much.

Sure.

Hi, Mike.

David Karnovsky from JP Morgan. Please go ahead.

Hi, Thank you just could change the you know in France that looks like you lowered the price of the F. One TV product and introduced the monthly option as well just wondering if you can elaborate on the strategy there and how this new play into your recent broadcast renewal and them for Brian would it be possible to get.

Operating free cash flow number for Formula 120, <unk>. Thanks.

Yeah, I guess, what I'd say on up once he bake is.

As we launch definitely TV, they're different issues in different countries based on what agreements existed in place and clearly we need to work with our traditional television partners. So you know that maybe throttling. So we had.

Yeah, we had different if she says it replaces I mean, you pay as an example, it still no not available due to a degree mix we have.

You places luxury in U.S. is more widely available in France, Yeah, we had <unk> distributor on a on a basis that which consisted of agreements we reach for their local partners.

I think what we've done in France, just try and move it there if you look through it yeah, I'm, probably as a market probably theres not a single market price because obviously varies doing it right of issues in country, but there's generally a range of price that we've targeted for this.

And.

France brings that France with like priced at that above the high end of what we would have we think is the appropriate price at this point in time for F. One TV and I think this brings more into what we think is sort of up where we'd like the market price you know for this study, but I guess.

Racing is all part of how do we navigate through the distribution that existing television partnerships.

Yeah and on the work down the free cash flow for Formula One as you can see unreleased according to a adjusted OIBDA for Formula one for the year really good cash conversion this year with some positive working capital movements.

So just over 500 million of operating free cash though.

Okay. Thank you.

Our next question comes from Bryan Kraft.

Bank. Please go ahead.

Hi, Good morning, I want to see if you could quantify for us the impact of the Japanese cramp pretty cancellation, and which revenue lines. It impacted so we can take that into account and forecast in 2020, and then separately wanted to ask you reserve or perhaps related was there a particular driver for the flat year over year trend.

In advertising and sponsorship in the fourth quarter relative to the much stronger full year growth was that Japan is there any read through from that into the growth outlook for 2020 in advertising and sponsorship. Thank you.

So the first question just sit on shipping what was the question in Japan, So I'm not sure I followed it.

But the in Japan, The Graham Creek that typhoon impact on the Grand Prix out that was there a financially independent did call out there wasn't a there's not a financial and there was not a financial impact of Formula one the.

There was a financial probably a financial attached to the local promoter due to ticket sales but.

It wasn't material.

Financial impact.

To watch there was an attendance impacts as we said.

Yeah, I forget if you're looking at attendance figures. So clearly that the impact that we're on track for actually quite a nice growth attendance and Japan pent up you could threatening show.

That didnt that didn't manifest as I didnt occur, but the financial impact was with limited because the Tyson.

Yeah.

And.

The the other.

In fact, you asked about.

The other the other thanks for that and the other question was I think in your release you called out a decline in advertising and sponsorship revenue. So this one year over year.

Yeah, I don't Seth I don't know that actually offenders anything, particularly material. I mean, you know we can have local pop local sponsors and local Parker said, there was nothing sort of.

On a large deals sort of global partner level. So I would you know actually just I'm, assuming so I don't actually know specifically, but it would be more.

Variance within that.

Yeah, probably but local partnership level or a one off partnership levels that up that can occur you raised to race or when you get.

I mean, it's why sometimes the comparisons on quarters, where races for I don't know what race felt good have fallen on either side of say a quarter and you know as with promotion fees or response, just if you could have large promotion deals.

When you get down to quarters, they can swing just on race scheduling.

And things like that.

Great. Thank you James.

Our next question comes from let me say that from Evercore. Please go ahead.

Thanks.

Okay, you know, obviously, you're talking about potentially or do you you X rays 2021 broker or talk about maybe in Saudi Arabia rate case, how preferred understand how fast can you scaled it makes a lot from 22 this year.

Looking at two way through you know you gonna be like one when they said the time.

Just sort of understand foods are these promotions and then property for Greg, but you know as you started buying from Formula one started buying from babysitter stock.

This quarter to be so can you help us understand how do you think about how much could be so that's got to buy well. So you know how much could potentially by if I mean, one given a again now that you don't know whether it be talking levered and things like you.

Yeah, I think in general Yeah. She said I think we feel we can increase yeah, you don't get a limited based increase number races. It if we try to take our goal would be to do it at a disciplined basis disciplined way yeah clearly the teams we recognized there.

Logistical it organizational issues for the teams to accommodate that yeah. We you know they directionally. They know what we're going but I think we want to in fairness young kid them in them and to make it a management process trying to do it in a disciplined way so I wouldn't see us all of a sudden adding to races in one year sorry.

It's probably more stepping up to level in it and again, we only step up if we have races that we really think or.

There are bringing something yep yep, bringing another dimension sport sort of a beneficial to swap both for fans and business.

But I do expect us to be I think our goal would be to do it in a disciplined way.

So BJ I think what we at Investor Day, we talked about the fact, we did 3 billion of free cash flow.

Okay sizable assets and leverage capability.

Over the four year period, a 2020 to 2023 and you know I think that gives us ample opportunity to buyback LSAG. So the amount we will actually buyback is somewhat related to run at a loss X. I may trade.

And how much or potential liability is but.

No I can't even if you look at the total is likely to be less than a third of that over the period. So we'll see where that comes out.

We have ample free cash flow to do that which we need on outlets x. I might add anything else relating to.

Flexibility de leveraging share repurchase other forms of retry cabinet.

Got it.

Thank you. Thank you.

Our next question comes from John Tinker from Gabelli. Please go ahead.

Hi, I'm back from or genteel pace baseball think good [laughter] [noise].

Uh huh.

I understand that said the the teams can now I don't I streaming rights would be and I'll be giving them, giving them back to <unk> do you where you stand on those rights, particularly vis-a-vis your TV deal.

Just secondly, tyson crops going through some changes.

Does that have any impact on the timing of.

A new elevator building by that I think summer of 2021.

So John Thanks on the on the first point I don't think they've testing.

Financial issues will impact the timing or no construction cycle at all were very good shape on that.

And this is the.

Jewel in the <unk> crown in terms of its business. So.

We feel very secure about whatever happens in kitchen craft, we're in good shape with them financially et cetera.

I'm on the streamed right. This complicated because the contracts are a with the Rs and provider saves are not utilizing a certain way. They go back to a they go to them. So I would say we don't have any current plans.

Or current large revenue streams are going to explore where we go with that and we'll see what happens to that or send provider and whether capabilities over the next couple of years.

Thanks.

Thank you.

Well take our next question from Brian Gone back from Bank of America Merrill Lynch. Please go ahead.

Thanks, I had a couple of questions on F. One.

First on your comments about your direct to consumer growth plan.

In 2020.

Just curious I think you characterize this year as it was another you're like it investment phase and I'm just curious.

When we talk about investment or you are we talking more about programming around the events themselves or the acquisition of non life programming or is this more a function of a rising subscriber acquisition costs and then my my second question is no Chase I think he talked about it.

2020, your expectation for all three of your revenue categories to be up in 2020, and I guess the calendar stands today, you should have a higher than count, which is an obvious driver of growth, but outside of that how should we think about the same store growth potential or crossways promotion broadcasting and sponsorship is this a year that's going to be dictated.

More by rate escalators in existing contracts or are there significant contractual renewal opportunities or and or greater sponsorship sell through opportunities.

Thanks.

So I guess only OTI T <unk> investment.

We're not investing significantly I guess, probably more I'd say, it's early stage growth. So it's probably a bit of yep.

Yeah, a bit of all of those things.

They didn't content, but you know you know marginal into context, if our overall business.

Abated marketing as you push it out particularly into you know we still are for at least age in some markets, rather see relaunch and the price point in France.

Yeah, Yeah on just that we only really take lots of platform second half of last year. So.

So it's not the investment size, it's probably more saying almost maybe a better fracing early stage growth, but given its scale at this point, where yeah. We're more focused on on the growth of that subscriber base and the growth in that business then on it as being a significant profit.

Contributor in the short term I think as we've said all along I think there certain areas that.

The opportunity inherent in it whether it's in the U.S. in China, or if you take claims including sort of.

Payoffs down the road not you know not 12 months. So you know it's not an investment in terms of.

Large resources for us, but it is probably you know investing in growing quite early stage, but early stage business that we think we increasingly important as we go forward over the years.

I think in terms of revenue yeah. It is you know we do expect revenue from each area. Yeah. There you know there's some places for media, it's not up in our bigger your immediate.

It's sort of 2021.

We did have some real so but the renewals work.

Smaller show its.

It is a combination of.

Some you know some new deals and pet and just some you know your your increases I'm thinking that.

Sponsorship side.

Again, we do expect does it because I said we are.

Looking forward to adding some sponsors in the short term.

So we think there's opportunity to continue to and we certainly have the room and the capacity and we expect.

Take some steps that getting sponsorships to where we kick it ultimately there should be on so you know again, it's probably a bit fiction Phil.

The incremental you know incremental growth and some.

Some new deals and I think when the promoter side the opportunity is probably a good yeah. We've got two races, we've talked about them. So clearly there are two races as wireless what would be the incremental growth.

So we had Vietnam in Vietnam and.

Amsterdam coming in you know, replacing Germany, so that clearly is positive for us.

And then we've got the ordinary course that exist beyond itself, there's a mixed bag of incremental growth in new varies by each of those big segments and the other areas like hospitality and licensing. It's amazing. So talk that are probably again more one going wrong, if they're not think driven kind of put into three good categories shooters up.

It is a bit of a mix.

Thanks, actually if I could not just a quick follow up on your efforts in Miami I think you got a favorable vote from the Miami Dade County Commission I think last week.

But now there's there's I think there's some sort of legal challenge to that and I was just wondering how should we think about next steps premiere in Miami.

Before you know that can better then can really really be solidified on a calendar yeah I can't I mean were positive steps. The last couple of weeks you know we're actively engaged with them I think we've got some meetings over the next week or two to continue to nail things down.

And yeah, we feel good about where we are without rates, obviously for 2021, it first and foremost I'm going if you're at a great race. The race it will live up to what that the potential of what that races, which was a real tent pole race.

Well, it's not just in the U.S., but around the world [noise] race that will capture the world matching nations that we want to make sure we do the race [noise].

And I'm going to work, we're still focusing on trying to get things place for 2021, obviously time continues.

Yeah, I get shorter, but yeah, we are actively working on it and engage with it and Ah you know you know I think making good headway. We feel yeah. These are complicated so there's.

Nothing new who've been there to this before so the steps and processes. We go through to ultimately to finalize the race you always have degrees of complications to him.

But I think we feel good about the path, we're on and we feel good about the opportunity to make the racing Miami you know a reality in the short term.

Thanks, a lot.

Yep.

Well take our next question from Zack Silver from B. Riley FBR, Inc. Please go ahead.

Okay, great. Thanks, you're going to question. The first one I appreciate you kind of half while I'm just I think the provided US an update on the sponsorship pipeline back in November I, just wondering if you'd give us an update that you know whether that has changed gotten more healthier or perhaps no dissipated departure from Paris.

No I guess I don't think it's a dramatically different story again I think we.

I think we are excited about to be.

The level of interest the breadth of interest to be engagement in the sport. Yeah. Certainly you know we are actively pursuing.

Many conversations I guess is as we've said sponsorships, it's probably over the.

Three years, we'd been involved it's been.

And area that is probably had a few more headwinds than we thought I think whether it was telling the state of the degree to which the wasn't the pipeline. There. So building the story building, providing an understanding building the capabilities to create the more tailored offerings, but I think you really need to be competitive.

And that that world today, I'm, sorry, if it make it headway it up and I think we are excited about you know degree we're certainly.

I think the last three months two months yeah. Since the season ended in this period, we probably wouldn't more active than ever and the bretts.

And ER and breadth number and variety of conversations you know when.

And we look forward to close in the field short term.

Got it. Thank you and then one I forgot to follow up on the Braves, obviously, maybe after the Braves just given that the length of time between your last deal and the real and 23 seven but that's the most seems a good chunk of revenues are coming from the broadcast deals.

Healthy growth in the value of the sports rights, but given some of the headwind that's it.

And the picky ecosystem and you know distributor some distributor drops.

Maybe that makes the right.

Our next canonical for some of the traditional our sand players. So work here just to get your sort of high level thoughts on how you think that evolved a you know over the next couple of years.

I think it's a good question.

If you were.

No the.

Team on the West coast, It had a relatively small territory and.

Gotten a massive our ascent contract.

You think about you know what would happen at the end of that.

A renewal.

No one question, whether you're going to see incremental value or decline.

We have a good contract not an amazing one it was a very low one and then when we bought it from time Warner It's been renegotiated was the longest.

And he just at the time, it's still among the longest.

I've never been written and because of that but it's relatively low even though the johnson value against the size of our territory, which is 12 million broadband households, the largest territory of in baseball team.

And the popularity of the Braves I feel pretty good [noise].

You're right to point out those headwinds as you may recall, we spend a lot of time looking theorist adds or no. The risks of the RCM business very well and you can see the cartilage.

[laughter] that it's unclear at the moment.

So all balance, but when you look at the factors that are favor. The Braves you look at our territory you look at our contract I'm not you know.

Not worried compared to where a lot of teams are.

That makes sense thanks right.

Thank you.

Next question comes from Jason Bazinet from Citi. Please go ahead.

Got a question for me Okay.

Other than Opportunistically working on that like kinase discount with their liquidity that you alluded to.

What did the other brought option that you think are at your disposal like if you're going to come up with the exhaustive.

Lists of options, what <unk>, what would be either three or four options that you have.

I'm not really sure I could come up with an infinite number of options and what to do the most them or not financially attractive because the trade the discount I think the right thing to do is to go out of your way to capture the discount there are several ways. We can do that we have sufficient liquidity between one and me.

Between bought on the hedging side and LS accent was capabilities on inside both with the dividend and the financial power. We raised to take advantage of that so we think this is the optimal way there are ways, which we could accelerate that.

And you know, perhaps raise more capital find some holder to split the difference with do things like that but we believe attacking it systematically we are available resources, which are suspicion is the right way.

Do you see emanating is one way to sort of course.

I'm not sure what you mean by M&A.

I don't want to use the stock because.

That is issuing stock at a discount seems like a fool's errand to me and I'm not sure what M&A do I want someone else to buy into it because they're getting the benefit of that discount I'm not really sure how that plays to our shareholders benefits, which is my goal.

Well I would say use your liquidity the buy something that's cash generative to give you more firepower to shrink the discount.

Well why not just go directly to use my gosh devised the discount itself.

Well I pay a premium because yeah.

Well because the market will look through the quantum of liquidity that you have which is very different than having them from Africa generates cash for your and your out.

I I disagreed because I'd have to utilize my cash flow to do that and I assume you know the combination of what capital we have and where we think we might get with Sirius XM as a more attractive option.

Understood. Thank you.

Our next question comes from Matthew Harrigan kind of benchmark. Please go ahead.

Oh, thank you.

Even have a very hard and our balance sheet, but if you back in 2008 2009, you're there are number.

<unk> pretty lax and created a lot of opportunities.

Okay. So if we do get a bad economic downturn off the Corona virus he loved that debt within the global economy right. Now do you think you're gonna have really good deal prospects across the board as you did.

Years ago, or do you think that.

Other people are more responsible can be as it.

So 2008 2009 I noticed it usually by question I apologize.

I asked because you don't always interesting brought to the macro deal environment.

I think you look and say 10 agree we have strong franchises, which I believe we do.

We will suffer less.

That kind of a downturn then.

Many other kind of businesses.

Which are maybe equally strong but are not you know really strong don't have other pieces in place like a management team or something so you know that could create opportunity. It also means you know that we may have to have nerve at a time when having nerve didn't readily apparent war.

You may be feasible.

What's the Buffett line about you know be bold, where others are beautiful and that's not always easy. So look I hope I I certainly have wishing for recession.

I wouldn't notably as we've noted before it's hard to buy things unless you either have synergies today.

Or a particular story both of which are hard in a market where things are rising put aside corona and you know so that may create opportunities.

But you speculate beyond that Matthew as hard just you know what will we be where we find the things in this bases we like.

Well will they be willing to sell often times, which a real problem is even if it's trading at a discount people don't want to move it takes a while for the sellers to a one it you know to come to that realization. They look at the high watermark before it takes a while to break.

So you know we that could create opportunity, but it's no assurance.

Thank you.

Thank you they got where that was our last question for this call a thank you again.

All the joint and also participated.

So to speak to again next quarter, if not before and thank you for your interest in Liberty media.

Yeah. Thanks [noise].

[laughter] you for your participation you may now disconnect.

[noise].

[music].

[music].

Ladies and gentlemen, thank you for standing by welcome to the Liberty Media Corporation.

In Q4 earnings call during the presentation, all participants will be in listen only mode.

Right to conduct the question answer session at the time, if you have a question. Please press star one on your telephone as a reminder, this conference is being recorded February 26 I.

I would now like to turn the conference over to coordinate <unk> Chief portfolio offer third senior Vice President of Investor Relations. Please go ahead.

Thank you.

But again like to remind everyone that this call include certain forward looking statements within the meaning of the private Securities Litigation Reform Act.

Actual events or results could differ materially due to a number of risks and uncertainties.

As mentioned in our most recent form 10-K filed with the FCC. These forward looking statements speak only as of the data on this call and Liberty media Nobody trip advisor expressly disclaim any obligation or undertaking disseminate any updates or revisions to any forward looking statement contained herein to reflect any change in liberty media or liberty Tripadvisor and expectations.

With regard to or any change in advance conditions or circumstances on which any such statements based on today's call will not certain non-GAAP financial measures, including adjusted OIBDA and adjusted EBITDA.

Our definitions and reconciliations for Liberty media and Sirius XM scheduled wanted to be filed at the end of the earnings press release issued today, which is available on our website now I'd like to turn the call over to Liberty, President and CEO Greg Besides.

Thank you for me and welcome to all of you on the call.

They speaking besides myself will have no one's chairman and CEO Chase Carey and Liberty Chief Accounting Officer.

Natural officer, Brian Windowing.

During Q unable to be available to answer questions related to Liberty trip advisor.

Beginning with Liberty Sirius XM.

We continued our purchase of all the stock.

And bought an additional $55 million from the period up number for us to January 31st and calling buying both our success Hey, Alex X.M.K. shares.

I would note at the first time, we bought the shares. In addition, the case and we just look out the marketplace what is a more attractive value in determining our repurchases.

If you look through <unk> underlying Sirius XM shares are looking to price was $5. An 11 cents over this period price, we probably pretty attractive board you have like certain stock.

As I said before about continuing to say, we continue to take advantage of the discount tickets and maybe.

And as of January 31st our ownership answer as such I want to 71.6%.

It's really looking at the underlying curious I myself and a strong finish to the your.

We record financial performance at both jurisdiction and Pandora.

This was the 10th consecutive year, a 1 billion plus helping that adds.

Your next time returned about $2.4 billion a capital during the year.

And they continue to focus on innovation.

First 360 hours Nexgen platform, which will be distributed across six Oems and 13 of their underlying brands. We anticipate 2 million vehicles will be an operation by the end 2020.

And innovation on the concept front when they couldn't quadrupled the number of podcasts available platform last year was solid growth and monthly listening.

You had very creative programming agreements with drink Marvel abroad, uninterrupted and too.

We're pleased with the integration of Pandora to remind you the deal close just over a year ago.

Especially the combination of Mark adult contained in Iraq check resources.

75% jury SEC sounds development researching resources are now being spent in ways that benefit both of the brand or services.

And Pandora is a positive contribution to EBITDA today.

Turning to Formula One group.

We had strong financial results and you'll hear more about that from chase in a moment and leverage is already got were 5.1 times.

As we discussed at our Investor meeting in November we began repurchasing Liberty Sirius XM stock at flawed to hedge ourselves against some of the underlying exposure, we have with our convert and in a period of number first of January 31st we bought back $52 million.

We very much from Ford and the start of the Formula One season March 15th in Melbourne.

Well I've nations not yet reporting so I'm going to defer commentary on that.

And looking at the Braves.

Very solid revenue growth.

Third consecutive year of attendance and true West Park, our newest name how hot or the ballpark.

We opened a no brainer academy adjacent to our spring training.

Part.

Just south of service on in Florida, and we held the first game last Saturday pre season, our spring training game working Felix had a strong outing.

We have filled out our 40 man roster.

Dennis contracts with Alex and populates price per annum.

And I was just that and we're excited bar on field prospects in 2020.

I'd also note we've seen a very good advance on sales of tickets.

Turning over to Liberty Tripadvisor.

Just had a difficult year.

We believe it's focused on right areas continue to drive revenue growth outside of the hotel auction into faster growing areas of experiences in restaurants.

Hey, good job because our cost structure to support strong adjusted EBITDA and free cash flow growth in 2020, and they returned 540 million of capital to shareholders in 2019.

With that I'll turn it over to Brian for more on our financial results. Thanks, Greg and good morning, everyone.

Your end Liberty Sirius XM group had attributed cash restricted cash and liquid investments of 387 million.

Excluding 120 million of cash unrestricted cash held at Sirius XM.

The value of the Sirius XM common stock held at Liberty Sirius XM as of yesterday and close was 22 billion.

We have approximately 1.4 billion in debt against these holdings.

Oh Liberty Sirius XM group attributed principal amount of debt was 9.3 billion, which included 7.9 billion of debt that's held directly in the Sirius XM level.

Formula One group had attributed cash and liquid investments of 195 million, which excludes four on 402 million of cash held up one.

Formula One group had attributed public market securities, where the market value of approximately 4.9 billion as of yesterday close.

Which includes everything interest in the price group younger centrist and Liberty Sirius XM Group of course are second line nation.

Total Formula One group attributed principal amount that was 5.1 billion, which includes 2.9 billion of debt held it up one leaving 2.2 billion.

Corporate level.

Formula wants total net debt covenant OIBDA ratio as defined in up once credit facilities was 5.1 time as of yearend.

And to a maximum allowable leverage up 8.5.

It's set a target total net leverage ratio for formula one of five to five and a half times bank covenant on though.

Please note that these leverage ratios are for the Formula one business not the Formula One group.

At the branch growth, we attributed cash liquid investments and restricted cash of 212 million and attributed principal amount of 559 million.

With that I'll turn it over to chase to talk about that one.

Thank you Brian.

2019, with fear of growth for both fans and the business a formula one from a fan perspective attendance at our races again exceeded 4 million up 1.75%, even with the Saturday cancellation of the shopping East Grand Prix do that due to the tide soon.

Average attendance per race was over 200 in 2008 Grom free exceeded crowds.

Had crowds of over 200000 over the weekend with five tracks hosting over 100000 spectators on race day.

All of these events is truly unmatched in sports and we continue to be impressed with our promoters in the world class If I'd say orchestrate.

It's really been more engaged at home with a total global cumulative audience at 1.9 to 2 billion the highest since 2012 increase of 9% over 2018.

Third consecutive year of growth.

18 at the 21, Grom freeze and higher cumulative audiences in 2018.

Across Formula one social media platforms, we saw followers increased significantly at almost 33%.

Page views in our core digital platforms, surpassing 1 billion.

We continue to expand our digital initiatives recently launching F. One keeping on ROE COO in North America, everything up one TV to the large screen format for the first time.

We encourage you to listen to our podcast beyond the grid, which now is 43 episodes and reached up to 15 million listens and 2019.

For a business perspective, 2019, so lets begin to reap the benefits of our foundation built in 2017 in 2018.

19 revenue grew over 10%.

EBITDA grew over 25%.

Up to over 20%.

Formula One also attributed continued to be a cash machine with 2019 net operating cash flow exceeding.

Yup.

Solid growth.

Cat and strong cash conversion.

We finished 2019 with a leverage ratio of about 5.1 times near the low end of our recently originated range.

We expect this momentum to continue into 2020 to 22000 seats and marks a seven year anniversary the Formula One World Championships and we recently debuted a special logo for this milestone to celebrate this change throughout the year.

All car Liberty's for this year have been repealed someone dramatic fashion and we saw the potential of these new cars when are testing of Barcelona.

We look forward the first race in Melbourne and March 15th.

As announced earlier after ongoing discussions with authorities and our promoter in China.

Got it to postpone the Chinese grom pre which was scheduled to be held equal 19th Corona virus.

Continue to monitor the situation and we're working to reschedule the light rates later in the season.

No you up questions about how potential cancellation rates could impact our financials events. The race is not help me will not receive approach in revenue given the early notice on this postpone it we're working hard to mitigate the effects, but yet the in back to adjusted EBITDA to be relatively minimal.

In addition patient if your next question in General Broadcasting sponsorship deals are not dependent on lace count.

We're excited to welcome to new races to the 2020 calendar.

The Vietnam Grand Prix will take place on April 5th and NOI into anticipate another question.

We do plan to proceed with the race.

I talk to our Vietnam plot Vietnamese partners yesterday, and Atlanta to stop in Illinois and April 5th on my way.

In.

March 16th of my way back the London from Australia, and all systems are at though.

Equally excited about our second race in the Netherlands ground free apps and for a major.

As we previously it as leaving ABS mentioned previously dynamic new locations like the spring wonderful fresh energy to Formula One and we look forward to welcoming new fans in Vietnam, while engaging the Orange Army in Holland.

And sponsorship we announced one eight bed at the official F. One sponsor in Asia.

As part of our previously announced deal with respect to regional Sports group that we'll see that bookmaker effect featured exclusively throughout the Asian broadcast market through 2024.

Correct announced an exciting new additions to our sponsor lineup in the coming weeks before our season launch in Australia.

The driver line up for the 2020 season has the promise of some great racing Informatics story lines.

With Hamilton will be chasing a seven world championship, which equaled the record set by Michael Schumacher.

His team mate fell three Baathists, followed up in a strong 2019, showing will provide exciting competition.

The battle at Ferrari between battling with Clark with continued it was like drama at the New team has adopted a let them race policy.

Who can forget that raised sending coalition in Brazil.

Red Bull powered by Honda is hoping to challenge, both Mercedes and Ferrari, even more this season with Knox per snap and one of the rising stars a formula one and eating away.

Mclaren looks to build on their progress from last year with exciting do have like a more as Carlos signs behind the wheel.

That Renault Esteban O'connor will make has returned to the grid well like AG likely have something to foods.

And then the only drivers if you for the year, we welcome Nicolas let TV to the Williams team.

It is uniquely exciting mix et cetera in World Championship drivers going to head to head with one of the most talented groups of young drivers the sport has seen a generation.

So the kids Raman storytelling, that's compelling part of the Netflix series to drive to survive, we anxiously await season to what's what they do on February 28.

Fantastic Clamoring for season, too and it does not disappoint, especially with the addition of Ferrari and Mercedes.

The series has been instrumental in bringing new fans and building our base and Underpenetrated markets, especially in North America, and we're pleased with our relationship with Netflix.

In other areas of new fan outreach 2019 F. One new balance sheet Sports Pro series B Carter, just largest audience ever a 5.8 million.

This represents an uplift of 76% year over year.

In a clear demonstration of how we're reaching a new younger and more digitally minded audience.

79%, if you wish to winning and were below the age of 34.

This was followed by our inaugural or have one E Sports China Championship held in China.

Qualification spanned across six major cities into over 6 million viewers for the finals.

Is your will host three fan festivals Johannesburg in March London in May New York in October.

This will be and further celebration of our Seventyth anniversary.

I suppose formula one new audiences.

We're excited to have to W series joined the 20 Twond calendar that our Austin in Mexico City races, further efforts of promoting diversity and inclusion in motor sports.

Off the track we were thrilled to share ambitious sustainability plan to have a net zero carbon footprint by 2030.

Throughout our history Formula was going at the forefront of technological innovation.

Many of our innovations had been adopted by road cars and other industries.

Our current that foreign hybrid power unit is the most efficient engine in the world delivering more power using less fuel than any other car.

I mentioned presents an opportunity to be net zero carbon.

Through advanced sustainable fuels and energy recovery systems.

For 1 billion over the 1.1 billion vehicles in the world are powered by an internal combustion engines.

So the impact here can be tremendous.

Retrofit Cajun of road transport.

Personal solution, that's still true requires generation of the energy to power the car manufacturer the battery and then disposal of it.

My 2025, we will also ensure all of our events are sustainable this will be through the use of sustainable materials.

Combination of single use plastics, and always being reuse recycled or composting, while offering our fans greener options to reach the race.

Corporate level, we will move to ultra efficient logistics and travel and 100% Renewably powered offices facilities in factories.

These plants are the result of over a year of work between the Fiat sustainability experts teams and promoters and we aim to set. The example for sustainability in the world the sports.

Well the 2020 season hasn't begun we're already working looking toward 2021 and beyond that and we're thrilled with the progress in the last few weeks in Miami as we come closer to finalize thing that potential tent pole event on future calendars.

We're excited to partner with the Miami Dolphins to bring a world class event to the region and our second race to the U.S.

Falling on the ratification of new regulations for the 2021 season, we're making progress and a new Concord agreement, which will include a new governance and price fund structure.

These discussions around advanced stages with teams will strengthen the business model and from a growth in the sport.

Financially. We also expect 2020 to be another year of strong across the board growth for Formula one with each of our three primary revenue categories race promotion media and sponsorship contributing to the gross.

We also we're also expecting growth in other important segment of our business like hospitality and are excited to see business segments like licensing a digital advertising, but hardly existed a couple of years ago become exciting new growth areas.

We further expect RTT platform to continue to be a fourth source of growth as we stabilize the platform the second half of last year.

We now beginning to launch new features like our recently expanded coverage of winter testing.

The cost side, while we continue to add new initiatives to engage nextcyte fans.

Our organization is clearly a more mature one today that will enable us to limit cost increases.

Growth in some areas like hospitality your freight cost increases tied to revenue growth.

Well the emerging areas like deal to de platform.

Our spend when an investment phase, but the foundation for our business and sport is largely in place.

Due to the contractual nature of our business.

Many of the key drivers or a 2021 2020 results are largely in place in fact much of our current efforts are focused on initiatives.

In fact, 2021 and beyond in areas like median race promotion.

We're excited about the engagement of arrange a third parties in these areas as many react to the renewed energy and excitement around the sport.

Activity further reinforces our conviction formula one is uniquely positioned for that diet for dynamic growth in the next few years.

Lastly, I'd like to thanks, Sean branches for like contribution to make the formula one over the past three years. He was instrumental in transforming the commercial side of the business.

Making formula one a fan centric sport with growing popularity and set us up for continued success.

He's got a strong leader of the organization personally great partner.

Now I'll turn call back over to Greg.

Thanks, Jason.

Let me Echo chases comments about Oh, we will Miss shot my friend and thanks for all your hard work.

Thanks also to chase and Brian as I said for their comments here on all the great year for Liberty media.

We set the name for our Investor meeting in New York.

These halt Thursday November 19th.

We do appreciate your continued interest in Liberty media look for speaking with you on next quarter's call a thought before and with that operator I'd like to open the lines for questions.

Thank you.

Quick question. Please take note pressing star one on your telephone keypad.

Speakerphone. Please make sure you I mean function has turned off well, you're saying not to reach our equipment.

Dan Press Star one to ask a question. So just a moment hello, everyone an opportunity say no further questions. Thank you.

[noise] well take our first question from Benjamin Swinburne Morgan Stanley. Please go ahead.

Thanks, Good good morning, Chase could skew I know a virus situation is quite fluid and then sort of hard to depend on exactly what is going to end up but.

What are the things that factor into the decision to move forward would races or not and.

What's the what's sort of their level of confidence around some of the races. In Asia that you. If you highlighted you guys are going to continue to you're planning on having sitting here today, just trying to get a sense for you know sort of what the range of outcomes are as we think about at least to the early part of the season and then I was wondering either one of the things we've all been.

Hoping for I think you as well on the new conquered agreement is greater team parity long term and I'm wondering if you could tell us today, given where you are in the process of negotiating these feel agreements. If you think you're going to achieve that and if the sports is see greater parity as we move into 2021 and beyond.

Sure.

I just first on the Corona virus minutes it.

She said upfront probably.

The obvious state.

It's fluid so its difficult up you know really paid off the wall, where the where this plays out obviously a country like easily wasn't really on the radar screen a few days ago and now it is.

Yeah, I think we you know by largest process. What we're doing is we're actively engaged with all you know all the events upcoming I guess, particularly the more current ones to get perspective from in countries as I had a conversation yesterday with our you know I know a partner.

And they're update with I think they said, they're around 15 cases and actually all of them.

Yep recovery, so they don't so things that they had every tougher.

Yeah, we are continuing to talk to others about it we're obviously and we are in London.

Through our own channels connecting with experts who had been sites to this.

Mostly what we need to do is continuing to get wrapping it would be on top of the issue, they're trying to get that right advice to try to plant in some of its logistics, but that's rental travel planning as merging them in Bahrain just.

And at a number of cities that have.

Travel restrictions are coming from them cities. So you know I think part of what we can plan is to make sure we have flexibility and.

Options in place to read or logistical issues getting to win from.

Races.

No other than China.

I guess that came with a particular focus on the rate since the beginning of the year, they're all going at home. So I'm certainly we're heading to what we're heading in Melbourne.

Heading to Bahrain heading to.

I'm heading to handling although the state the obvious.

Yeah, we got to see what evolves in the coming the coming days.

And we are working actively to see if there are ways to mitigate the China postponement.

So I don't I think at this point and so long and short of it is you know we are conducting what sort of in country experts our own that's birch I'm trying to stay on top of logistical issues on getting to and from.

Long distance places and up you know feel we've got as good handle on it as you can.

On the conquered agreements.

I guess the journal packets again don't Wanna get too far into things I mean, I think prefers general practice to be comedy when things are done I guess, what I would say that wasn't like read we feel we're achieving the goals. We set out the because we are healthier I think a fair distribution. The funds. You know is one of the cornerstones, we've identified as being important for healthier sports. So you know I think yeah.

Yes, all the things we're doing that will launch in 2021 beyond again, I think there a significant step they're not up you know you know, it's not sort of declare victory in the home everything's done, but I think we are making significant steps to achieve the goals.

We set out for the business to make it a healthier a better sport in a better business for everybody on but not deals in the dressing cost revenue distribution on the others, though so I think you know we we do believe you know I'm on a path to it.

Certainly directionally achieving the goals we set out.

Getting the process.

Thank you so much.

Sure.

Hi, Mike.

David Karnovsky from JP Morgan. Please go ahead.

Hi, Thank you just could change you know in France. It looks like you lowered the price of the F. One TV product introduced the monthly option as well just wondering if you can elaborate on the strategy there and how this may have played into your recent broadcast renewal and them for Brian would it be possible to get.

Operating free cash flow number for Formula 120, <unk>. Thanks.

I guess, what I'd say on Aplenty bake is.

As we launched F. One TV, they're different issues in different countries based on what agreements existed in place and clearly we need to work with our traditional television partners.

I think its retlin so we had.

Yeah, we had different if she sees it replaces an industry pacing sample it still not available due to good remote we have you places so.

Let germanium U.S. as more widely available in France, Yeah, we had.

Distributor on a on a basis that which consisted of agreements we reach with our local partners I think what we've done in France is trying to move it there if you look through it the.

Probably as a market probably theres not a single market price because I don't see varies doing the right of issues in country, but there's generally a range of price that we've targeted for this so and Ah.

France brings in France is like priced.

Above the high end of what we would have we think can be appropriate price at this point in time for F. One TV and I think this brings more into what we think is sort of them, where we'd like them market price you know for this to be but I didn't.

Pricing, it's all part of how do we navigate through the distribution and existing television partnerships.

Dan on the worked on the free cash flow for Formula One as you can see in the release, scoring two of 'em adjusted OIBDA performing a one for the year really good cash conversion this year with some positive working capital movements.

So just over 500 million.

I agree faster.

Okay. Thank you.

Our next question comes from Bryan Kraft from Deutsche Bank. Please go ahead.

Hi, Good morning, I want to see if you could quantify for us the impact of the Japanese cramp pre cancellation and which revenue lines. It impacted so if we can take that into account in forecasting 20, Twond and then separately wanted to ask you reserve or perhaps related was there a particular driver for the flat year over year trend in.

Advertising and sponsorship in the fourth quarter relative to the much stronger a full year growth was that Japan.

Is there any read through from that into the growth outlook for 2020 in advertising and sponsorship. Thank you.

The first question just sit and shipping what was the question on Japan, So I'm not sure if all of it.

But the in Japan, the Grand Prix tycoon impact on the Grand Prix.

Financially.

While there was not a there's not a financial I mean, there's not a financial impact of Formula one the.

There was a financial probably a financial impact to the local promoter due to pick up sales.

But there wasn't material.

Financial impact.

Was there was an attendance impact certainly said.

Yeah, if you're looking at attendance figures, so clearly that the impact that we're on track for actually quite a nice growth attendance and Japan and you can trapping show Saturday.

That didn't manifest but didnt occur.

But the financial impact was with limited.

Because its nicely.

One.

And be the other.

Yes, I mean pack you asked about.

Yeah, the other than the other thanks for that and the other question was I think in your release you called out a decline in advertising and sponsorship revenue. So this one year over year.

Yeah I don't.

I don't know it actually up and there was anything particularly material I mean, we can have local pop local sponsors and local Parker said, so there was nothing sort of.

On a large deals sort of global partner level. So I wouldn't you know actually interest I'm, assuming so I don't actually know specifically, but it would be more.

Variance within that.

Probably the local partnership level or a one off partnership levels that up that can occur race to race or when you get.

It's why sometimes the comparisons on quarters, where race this fall.

I don't know what race felt good have fallen on either side of say a quarter and as with promotion fees and response, just if you could have large promotion deals.

When you get down to quarters, they can swing just on race scheduling.

And things like that.

Great. Thank you trust.

Our next question comes from <unk> from Evercore. Please go ahead.

Thanks.

Okay. You know, obviously, you're talking about potentially if you X rays, 2021, North Korea or talk about maybe or Saudi Arabia, right can help us understand how fast can you scale. Good waste is up from 22. This year you know looking at doing through you know you got me like.

When it makes it a time.

Just sort of understand food or promotions and then probably for Greg, but you know as you started buying some formula one started buying committed easier stock.

And this quarter to be so can you help us understand how do you think about how much could be said, it's got to buy well. So you know how much could potentially by probably in one given a again now lets you know low and if you're talking levered and things like him.

Yeah, I think in general.

With that I think we feel we can increase yeah.

Limited basis increased number races pick we tried to take our goal would be to do it in a disciplined basis disciplined way you know clearly the teams we recognized there are.

Logistical and organizational issues for the teams to accommodate that yeah. We you know they directionally. They know what we're going but I think we want to in fairness.

I'm in them and to make it a management process try and do it in a disciplined way so I wouldn't see us all of sudden having to races. In one year. So I think it's probably more stepping up to level in it and again, we only step up if we ever issues that we really think on our.

Bringing something yeah, bringing another dimension sport sort of a beneficial to us what both for fans and business.

But I do expect us to be.

Well, we just do it in a disciplined money.

So BJ I think what we at Investor Day, we talked about the fact, we did 3 billion of free cash flow.

Hi, guys ball assets and leverage capability over the four year period, a 2020 to 2023 and you know I think that gives us ample opportunity to buyback LSAG.

The amount we will actually buyback is somewhat related to run at a loss X. I may trade.

And how much or potential liability is but.

No I can't even if you look at the total it's likely to be less than a third of that over the period. So we'll see where that comes out.

We have ample free cash flow to do that which we need on elec tech savvy and anything else relating to.

Flexibility de leveraging share repurchase other walks that return capital.

Got it.

Thank you.

Our next question comes from John pickup from Gabelli. Please go ahead.

Hi.

Back to more genteel paid baseball I could.

[laughter] [noise].

I understand that said the the teams can now so that streaming rights for the and I'll be giving them given them back.

Do you, where you stand on those rights, particularly vis-a-vis LTB deal.

Secondly types and crops going through some changes.

Does that have any impact from the timing of brought a new elevator building by that I think summer of 2021.

So John Thanks on the on the first point I don't think they're testing.

Financial issues will impact the timing or you know construction cycle at all were very good shape on that.

And this is the.

Jewel in the <unk> crown in terms of its business. So.

We feel very secure by whatever happens with this incredible were in good shape financially et cetera.

On the streamed right gets complicated because the contracts are a whitney Rs and provider they've been not utilizing a certain way. They go back to they go to them. So I would say we don't have any current plans.

Or current large revenue streams are going to explore where we go with that and we'll see what happens to that our ascent provider and what their capabilities over the next couple of years.

Thanks.

Thank you.

Well take our next question from Brian Gone back from Bank of America Merrill Lynch. Please go ahead.

Thanks, I had a couple of questions on F. One.

First on your comments about your direct to consumer growth plan.

In 2020.

Just curious I think you characterize this year is another year, where good investment phase and I'm just curious.

When we talk about investment or you are we talking more about programming around the a bench themselves or the acquisition of non live programming or is this more a function of a rising subscriber acquisition costs and then my my second question is no Chase I think he talked about it.

2020, your expectation for all three of your revenue categories to be up and 2020 and I guess the calendar stands today, you should have a higher that count which is hobbyist driver of growth, but outside of that how should we think about the same store growth potential or crossways promotion broadcasting that sponsorship is this a year that's going to be dictated.

More by rent escalators and existing contracts or are there significant contractual renewal opportunities or add or greater sponsorship sell through opportunities.

Thanks.

So I guess only oaky.

Investment.

We're not investing significantly I guess, probably more I'd say, it's early stage growth. So it's probably a bit stuff yeah.

Yes, a bit of all of those things.

We didn't content, but yet you know Marshall into context, if our overall business.

You know a beta marketing as you push it out particularly into you know we still are for at least age in some markets.

Launch and the price points in France.

Yeah, Yeah, I notice that we only really take lots of platform second half of last year. So.

So it's not the investment size, it's probably worth saying almost maybe a better prices have been early stage growth, but given its scale. At this point you know we are yeah were more focused on on the gross stuff that subscriber base and the growth in that business then on as it being.

Significant profit contributor in the short term I think as we've said all along I think there.

Certain areas that there.

The opportunity inherent in it whether it's in the U.S. and China or do you take claims are clearly sort of.

Payoffs down the road not you know not 12 months. So you know it's not an investment in terms of.

Large resources for us, but it is probably you know investing in growing quite early stage, but early stage business that we said we increasingly important as we go forward over the years.

I think in terms of revenue.

It is you know we do expect revenue from each area. Yeah. There you know there's some places for media, it's not up and our bigger your immediate.

It's sort of 2021, we did have some renewals so up the renewals work.

Smaller so its.

As a combination of.

Some you know some new deals.

And Ah interesting.

Your increases I'm thinking that.

When the sponsorship side.

Again, we do expect I'm sensitive as I said, we are.

Looking forward to adding some sponsors in the short term. So we think there's opportunity to continue to and we certainly have the room and the capacity and we expect you ought to take some steps on.

Getting sponsorships to where we take it ultimately there should be long so again, it's probably a bit fiction. So.

Incremental incremental growth and some.

Some new deals and I think when they are the promoter side the opportunity is probably.

Yeah, Yeah, we've got treating races, we've talked about them. So clearly there are two races wireless what would be the incremental growth.

So we have.

Dom and Vietnam and.

Amsterdam coming in you know, replacing Germany.

Clearly some positive for us and that we've got the ordinary course that exist beyond itself.

A mixed bag of incremental growth in new varies by each of those big segments. The other areas like hospitality and licensing and somebody having said talk that are probably again more ongoing growth or not and driven but in the three good categories that are so is a bit of mix.

Thanks, actually if I could not just a quick follow up on your efforts in Miami I think you got a favorable vote on the Miami Dade County Commission I think last week, but.

But now there's there's I think because some sort of legal challenge to that and I was just wondering how should we think about next steps premiere in Miami.

Before you know that can better that can really really be solidified on a calendar. Yeah again were positive steps. The last couple of weeks you know we're actively engaged with them I think we've got one meetings over the next week or two to continue to nail things down.

And yeah, we feel good about where we are without rates, obviously for 2021, its first and foremost one if you're at a great race at rates that were live up to what that potential of what that races, which was a real tent pole race.

Well, that's not just in the U.S., but around the World Cup race to capture that world batch nations that we want to make sure we do the race [noise].

And I'm going to work.

Focusing on trying to get things place for 2021, obviously time continues.

Yeah, I get shorter, but yeah, we are actively working on it and engage with it.

And yeah, you know I think making good headway we feel.

At least are complicated so there's nothing new we've been there through this before so the steps and processes. You know we go through to ultimately to finalize the race you always have degrees of complications to him.

But I think we feel good about the path, we're on and we feel good about the opportunity to make the racing Miami you know a reality and short term.

Thanks, a lot.

Yep.

Well take our next question from Zack Silver B. Riley FBR, Inc. Please go ahead.

Okay, great. Thanks during the question. The first one portray staff while I'm just I think the provided US an update on the sponsorship pipeline back in November I. Just wondering if you get a set up there that you know whether that has changed gotten more healthy or perhaps no dissipated sponsorship and Karen.

No I guess I don't think it seems dramatically different story again I think we.

I think we are excited about the leap.

The level of interest the breadth of interest to be engagement in the sport. Yeah. Certainly you know we are actively pursuing.

Many conversations I guess is as we've said sponsorship since probably over that.

Three years, we'd been involved it's been.

And area that is probably had a few more headwinds than we thought I think whether it was telling the degree to which that wasn't the pipeline. There. So building the story building, providing an understanding building the capabilities to create more tailored offerings, but I wouldn't you really need to be competitive.

And that that world today, So I think we've made good headway it up and I think we are excited about you know degree we are certainly.

I think the last three months two months yeah. Since the season ended in this period, we probably wouldn't more active than ever the breadth.

And then bretts number and variety of conversations you know where it.

And we look forward to close with you in the short term.

Got it. Thank you and then one I forgot to follow up on the Braves, obviously, maybe not for the Braves just given the length of time between your last year on and the real and 23, seven but ever mostly and a good chunk of revenues are coming from the broadcast you know it's in helping grow within the value of the sports rights, but.

Given some of the headwinds that fit.

In the pay TV ecosystem, and you know distributor some distributor drops I you know maybe that makes the you're right uneconomical for some of the traditional RFM players. So more curious just to get your sort of high level thoughts on how you think that evolved a you know over the next couple of years.

I think it's a good question.

If you were.

You know the.

Team on the West coast that had a relatively small territory and had gotten a massive our ascent contract.

You think about you know what would happen at the end of that.

A renewal it's an open question, whether you're going to see incremental value or decline.

We have a good contract not amazing one.

With a very low why that when we bought it from time Warner it's been renegotiated with longer.

And exist at the time, it's still among the longest.

That's ever been written and because of that but it's relatively low even that adjusted value against the size of our territory, which is 12 million broadband households, the largest territory of any baseball team.

And the popularity of the brain I feel pretty good.

Right to point out those headwinds as you may recall, we spend a lot of time, let's keep the are said to know the risks, but the RSM business very well and you can see the cartilage.

That is Sinclair at the moment.

So all balance, but when you look at the factors that are favor. The Braves you look at our territory you look at our contract I thought you know.

I'm not worried compared to where a lot of teams are.

That makes sense that's right.

Thank you.

Next question comes from Jason Bazinet.

Please go ahead.

Got a question for me right.

Other than Opportunistically working on that line.

It's a discount with their liquidity that you alluded to.

What are the other brought option that you concur at your disposal like if you're going to come up with an exhaustive.

Lists of options, what <unk>, what would be either three or four options.

I'm not really sure I can come up with an infinite number of options on what to do most of them or not financially attractive because the tried to discount I think the right thing to do is to go out of your way to capture the discount there are several ways. We can do that we have sufficient liquidity between won and.

Needs between bought on the hedging side and LS exams capabilities on inside both with the dividend and the financial power. We raised to take advantage of that so we think this is the optimal way there are ways, which we could accelerate that.

And you know, perhaps raise more capital find some holder to split the difference with do things like that but we believe attacking and systematically with our available resources, which are sufficient is the right way.

Do you see M&A is one way to sort of course.

I'm not sure what you mean by M&A.

I don't want to use the stock because.

That issuing stock at a discount seems like a fool's errand to me.

And I'm not sure what M&A do I want someone else to buy into it because they're getting the benefit of that discount I'm not really sure how that plays to our shareholders benefits, which is Michael.

Well I would say use your liquidity the buy something that's cash triggered it to give me more firepower to shrink that discount.

Well why not just go directly and use by gas divides the discount itself.

Well I pay a premium.

<unk>.

Well because the market will look through the quantum of liquidity that you have which is very different than having them mathematical generates cash flow year you're out.

I I disagreed because I'd have to utilize my cash flow to do that and I assume you know the combination of what capital we have in where we think we might get with Sirius XM as a more attractive option.

Understood. Thank you.

Our next question comes from Matthew Harrigan Kinda benchmark. Please go ahead.

Well thank you.

Hi, I'm, a very hard and our balance sheet, but if you back in 2008 2009, there were number.

<unk> pretty loud created a lot about the TV.

So occasions.

Got a bad economic downturn off the Corona virus and the level of debt within the global economy right. Now do you think you're gonna have really good.

Oh prospects across the board.

He did 12 years ago <unk> good.

Oh, there are people who are more responsible can be was up <unk>, who do but was there are 2008 2009 I noticed that usually broad question I apologize, but when do they ask because UN drawn always interesting brought into the macro and deal environment.

I think you'd look and say 10 agree we had strong franchises, which I believe we do.

ER, we will suffer less and that kind of a downturn than many other kind of businesses.

Which are maybe equally strong but are not.

Given the strong don't have other pieces in place like a management team or something so you know that could create opportunity. It also means you know that we may have to have nerve at a time when having nerve.

Isn't readily apparent or you know you may be fearful, what's the bucket line about be bold, where others are beautiful and that's not always easy. So look I I certainly have wishing for recession.

I wouldn't notably as we've noted before it's hard to buy things unless you either have synergies today.

Or a particular story both of which are hard in a market where things are rising put aside corona.

And.

So that may create opportunities.

What you expect going beyond that Matthew as hard as you know what will we be well we find the things in this bases we like.

Well will they be willing to sell oftentimes whichever real problem is as even if it's trading a discount people don't want to move it takes a while for the sellers to a want it you know to come to that realization. They look at the high watermark before and takes a while the break.

So you know we.

Good great opportunity, but it's no assurance.

Thank you.

Thank you they got where that was our last question for this call a thank you again through all the joint and all the participated.

So to speak to again next quarter, if not before and thank you for your interest in Liberty media.

Yeah.

Great.

Thank you for your participation you may now disconnect.