Q1 2021 Liberty Media Corp Earnings Call

[music].

Ladies and gentlemen, thank you for standing by welcome to day Liberty Media Corporation, 2020, Q1 earnings call.

During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press star one on your telephone keypad. As a reminder, this conference is being recorded may 7th.

I'd now like to turn the conference over to Courtney Chun Chief portfolio Officer. Please go ahead.

Thank you.

Let me begin we'd like to remind everyone that this call includes certain forward looking statements within the meeting of private Securities Litigation Reform Act of Thanks from 95 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in Liberty media. Its most recent form 10-K, and 10-Q Liberty media acquisitions forms S. One registration statement filed with the SEC.

These forward looking statements speak only as of the date of this call and Liberty media and Liberty Media acquisition expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statement contained herein to reflect any change in liberty media or Liberty media acquisition corporations expectations with regard thereto or any change.

In events conditions or circumstances on which any such statement is based on today's call. We will discuss certain non-GAAP financial centers for Liberty media, and Sirius XM, including adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media and Sirius XM schedules one through three can be found at the end of the earnings press release issued today.

Which is available on Liberty Media's website now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO. Thank.

Thank you Courtney and good morning to all of you out there.

Today's began the call. Besides myself, we'll have formula one's president and CEO Stefano Domenicali.

And Liberty's, Chief accounting and principal financial Officer, Brian Wendling.

Beginning with Liberty Sirius XM, we continued our share repurchases purchasing $114 million across <unk> and K shares from February through April the discount stubbornly remains and we repurchased at a look through price of.

And Syria of just over $4 per share.

We do.

To continue to take advantage of that stubborn discount opportunity.

Our ownership of Siriusxm as of April 26 stood at 77, 3%.

Im looking at Sirius XM itself, they're off to a fast start this year with self paced subgroup of sub growth of 83%.

While starts in the first quarter were the highest in the company's history and they recorded record low first quarter churn.

We're also experiencing rapid growth and off platform advertising revenue.

360 L. The next generation platform is now with 2 million vehicles, providing valuable data and offering engaging features.

We expect it will be about 25% of this year's installs.

We are now the largest digital AD platform in North America, reaching almost two third of online audio listeners.

We're also continuing at Sirius XM, our expansion in the podcast segment with our acquisition of 99% invisible.

Furthering our content creation capabilities.

Turning to live nation.

You may have seen in today's earnings release from them concerts are back and in high demand for data in 2021. In fact, we have booked twice as many shows in 'twenty one as we did in 19.

Brian The 2021 ACM entertainer of the year's ongoing on tour and the railroads festival with headliner David Matthews band is another notable addition.

Following up on acquiring the majority stake in <unk>, we have begun our ticketed live platform and started equipping 60, plus concert venues to offer turnkey live streaming events we.

We continue to help artists expand revenue and creative opportunities connecting them with more fans via deep and other means.

Looking at the Formula One group, we've had phenomenal racing this season as Stefano will outline a little bit more in a minute, it's exciting to see the battle between Lewis and Max it's going to be a very competitive youre also for third place and the constructive championships have lots of exciting racing.

The teams continue to execute well given the ongoing challenges from the pandemic.

Turkey will replace Canada in June showing that.

Sustained demand to expand Gp's.

We've also extended our agreements with Canada and Japan.

Looking forward to the first we are looking forward to the first sprint qualifying race in July at Silverstone and there'll be two more of those during the rest of the season.

Moving to survive.

Our programming on Netflix continues to grow and properly already in its third season, and it's also getting recognized in the awards circuits, both in the U S and Canada.

And finally, we look forward to seeing all of you in Miami in 2022.

Turning to Braves.

After a slow start to the season. Our record is just under 500 and we are close third in the least a game and a half out of first place.

We were helped by sweeping the net over the last three games raised.

Our number one at home runs this season and also number one in average attendance almost 16000 per game that is if you exclude Texas, which we'd be third including Texas.

<unk> was named nationally play of the month for April Tableau, Santa ball three pinch hit Homeruns in April the most by any Braves player in a calendar month for it and its franchise history.

And as of today, we expect to expand capacity.

100% of fans after opening the season at 33%.

Notably in partnership with Emory healthcare, the Braves are offering vaccine shots before enduring games against Philly Vince.

And to get vaccinated those games will receive two free tickets to future Braves games as well.

And finally at the Braves looking at the battery kitchen crop is expected to occupy their office space in July and Papa John's later in the summer demand for remaining office space remains very strong and the aloft and omni hotels had high occupancy on Friday night.

And Saturday night games are the nights in March with several sellouts on game nights.

We continue to make good progress on Almac this back.

Back market has changed.

We believe it to our benefit as some of the euphoria of Japan.

January and February has deflated, we believe recent weakness in the pipe marketplace, well for Liberty, given our strong balance sheet our capabilities with investors.

The support that we have.

Finally, we wanted to share with you that we have recently published our SaaS B disclosure on our website as a part of our ongoing ESG efforts.

So with that I'd like to turn it over to Brian to discuss our financial results in a little more detail.

Thank you, Greg and good morning, everyone Liberty Sirius XM group had attributed cash restricted cash and liquid investments of approximately $1 billion, excluding $67 million of cash and restricted cash held at Sirius XM.

This balances prior to paying the Formula one group $384 million to settle the live nation call spread in April the <unk>.

Settlement of the live nation call spread was a non taxable transaction among the tracking stock groups.

We also have $1 1 billion of Undrawn margin loan capacity at the parent level.

But a portion of our cash will be used in 2021 to repay our 225% live nation exchangeable bonds based on the fair value of the bonds at quarter end the amount of cash used would be $514 million.

As of May six the value of the Sirius XM stock held by Liberty Sirius XM group was nearly $19 billion and the value of the live nation stock held was $5 billion.

We have $3 2 billion in principal amount of debt against these holdings.

Total Liberty Siriusxm group attributed principal amount of debt is $13 2 billion, which includes $9 billion of debt held directly at Sirius XM.

Formula One group had attributed cash and liquid investments of $1 4 billion at quarter end. This excludes the $429 million of cash that's held directly at the upcoming Opco.

Post quarter end Formula One group received the additional $384 million that we just discussed and proceeds.

Related to the live nation call spread.

Total Formula One group attributed principal amount of debt was $3 6 billion, which includes the $2 $9 billion of debt held directly down at F. One, leaving $724 million at the corporate level.

And at <unk> $500 million revolver remains undrawn.

Please note that during the three months ended March 31, 'twenty. One F. One began reclassifying certain components previously reported in other revenue into primary F. One revenue to better align with the way management currently evaluates the business.

Components reclassified in the primary F. One revenue.

Generally relate to effluent TV subscriptions certain half two and half three related fees broadcast origination and support fees and digital advertising among others.

Additional detail on this re class, including the impact.

For the years ended 12, 31, 19% and 20 it can be found in schedule three to our earnings release, which will be posted on our website.

At quarter end, the Braves group had attributed cash liquid investments and restricted cash of $218 million and attributed principal amount of debt of $670 million $676 million.

Liberty and our consolidated subsidiaries are in compliance with our debt covenants at quarter end.

And with that I'll turn it over to Stephane to discuss Formula one.

Thank you Brian and good morning also from my side. So 2021 has begun with huge under Jim momentum in the past few weeks, we announced <unk> segment rates in the U S. In Miami Gardens, with a huge and positive reaction from our fence the teams and all our partners.

Taking away from U S. Starting in 2022 provides a great opportunity for our sport and will ensure we continue to increase our strong focus and funding growth.

Last week, we announced that we'll have something day 100 kilometers print quality claim four months free races in 2021.

Following 19 with support from all the teams vs.

<unk> will be exciting for all our fence provide more on track action over the next weekend.

Our partners and the teams greater commercial opportunities sales.

One of the vendors for the new Formula already reported a surge in ticket sales following news that they would be hosting one of these events.

We have announced the three years extension of the Japanese Grumpy vs.

That's always been an important ways for formula one and we cannot wait for the price to cheer from day one.

We have extended our partnership with the Canadian ground fleet by two years and welcome the New announced last week by Dr. Bell Media has entered into agreements to acquire the molecule base Canadian race promoter Octane racing group, which is a great news for the long term future and development operations.

Chemical.

While the global situation has been fluid to the COVID-19 pandemic for one that's shown is that we.

The ability to overcome the issue thrown us and continues to raise safety just last week. We provided that these can be the case, while we are not able to we've seen kind of this year. We have secured the replacement rates in Turkey at short notice. Many we have Nokia Houston number or they seem to Colombia.

It is very exciting to see the level of interest from both the new and historic location to host exemplary and this gives us possible option, which required for 2021, but those are good opportunities for the future.

We have had very good conversation with all of our promoters and all of whom we expect day rates at this season to go ahead as planned and just this week. We have had the confirmation that 1000 fans will have been eating Barcelona. The spend is going free and that multiple will welcome approximately 40%.

<unk> of the capacity the grandstand for day rates in two weeks time.

One side of the business started the year off the track that AC on the track has been equally exciting dramatic we kicked it off our 22 races season in Bahrain and haven't had three races to date, which with the gross baths overtake it.

And the tax closer together than in the recent years, although it's.

As mentioned with this bathroom for the channel Cushing playing now this could be a golden year for Formula one.

The season operating but did not disappoint with both top and security proposition. It was a pleasing race between Mexico Luis that was only besides within the final laps the.

Wed also strong showings by noise in Paris, and the Japanese Luca you get to know the score points in his first at flow rates for doubtful salary and it looks like yes, it probably just couldn't get on the.

The buzzword for the first computer into hemoglobin <unk> has an amazing start off the line in the rain and carry through for the weighted impressive given he's starting third yeah, and his new team mates Central Paris, London low risk maybe.

Thats, what im mistaken qualifier and securities part of the program showing the continued strength of Macquarie.

Last weekend in Portugal, Misstatements fended off of certain challenge from Redburn.

Hamilton clean shot hub for Victor I think we'll come out with both a starting on pole and Louis I had loans to stopping et cetera.

Talk of delays so the Red Bull get passed in the phases of having him from before the seven time champion it pull it off bring them to overtake from both his team mate bulk Assembly stop depletes victory.

Once again shows that there is a real battle underweight four Bcf type and we add on that the only the three day racism.

Competition from the currently it's also appears in the constructor stemming from the cloud and is making the early pace, but mainly themes in the midst still have something to prove and it is great to see fit out of Houston is try to get there.

We respect them a formula one race, so Nathan with fans from engagement is very high to date, we have data for the first two races at both the 24 principal markets, we monitor and digital TV viewership growth over both 2020 in 2019 with particular strength in Italy, the Netherlands, France, the U K the U S in the spring.

On the digital from unique users for Epsilon web and App have been up 77% on the equivalent rates in 2020, and social engagement and also pleased with open pit didnt need any direction in both of the first two way Street.

We continue to grow our social media following reached $36 5 million after the immediate on the GP up from 35 million under the theory of it.

That's one P D. Our otp product has also stopped the second strongly with a record viewing.

Current viewer each race weekend out around three times higher.

<unk> 'twenty season average and engagement measured by the Nimbus deal with over the course of the weekend is that more than 60% over the last year.

Okay.

Absolutely season.

<unk> many additional features including high video quality and allows us to control the viewing experience. This new version also makes it easier to find comfort in our collection, which includes over 2000 hours of footage and coverage of everything from peak in the last 50 years, along with our latest seed is set to change in the dream it's lumpy.

He is now available in 188 territories with the people that bought TD pro available in 85.

Seasonal free of drive to survive the growth of March 19, and continues to build mass global popularity for the sport, reaching number one on Netflix in 27 different countries and also globally.

And on all almost daily basis, we hear.

About how the show was broken into new non typical plants. It was great to the DCP 2020 season and seen the back story of the volatility of many drivers changes I do highly recommend episode nine which is a terrifying exhilarating and expiring. This show was nominated for a sport any put out.

Pending city sports documentary and made the short list in the supplemental income.

For the UK broadcast awards.

Heading into the season, we have had numerous sponsorship announcements we were pleased with new our global partnership with DHL.

Relationship, which now spans across several Vacates. These extended partnership will include enhanced his involvement and that's why I'm esports seats and the president of Epsilon digital channels as official pop we want them to let's say this is Martin seats got provide them and sell everything from the official dose from an award. In addition, we have announced.

He's very interest in blood culture official supplier and welcome global citizen as charity partner for our <unk> initiatives.

We continue to engage fans to esports and had the very successful <unk> official Grand Prix during the off season.

Current drivers along with full Ms dogs, and future prospects competing to win a share of the $100000 price point in their challenges.

Part of the competing for to improve diversity and inclusion in formula one as part of our weird I suppose while on the initiatives, we announced the theme of the only qualification routes for the F Y E sport to see this broke SAP issue.

This is our first female only competition and we hope it will encourage more drivers from the passionate and talented teammates from rates and community with the goal of becoming the first ever seen main driver to be signed by an official Epsilon esports secrecy.

In closing Formula one is off to a strong start in 2020, but building off the foundation put in place the last few years.

Gross Houston these absolutely strong and the competition on the <unk> I want to thank all the dedicated employees of Formula One full day continuous diligence and hard work and I Hope you will watch the Spanish grumpy this weekend.

Now I'll turn the call back to over to you Greg. Thank you very much.

Thank you Stefano and thank you Brian.

And to the listening audience. We appreciate your continued interest in Liberty Media Hope you all stay healthy and safe.

And with that operator, we will open it up for questions.

Yes.

Thank you.

So if you would like to ask a question again. Please press star one on your telephone keypad. If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again that is star one to ask a question.

We will now take our first question from Jeff asked me. If this is a research.

Please go ahead your line is open.

Good morning, I had one on Syria, and one on a formula one.

Greg It at 77, he ownership stake in theory.

All else being equal you're probably going to crossover to 80, plus in the third quarter and your dividends go tax free just wanted to get your latest thoughts on whether series is going to raise their dividend materially.

Or are you happy with the status quo and letting your buyback sort of computer right higher and then on <unk>.

Just wondering about the color on how the $145 million cost cap is going relative to your expectations. Thanks.

Paul I'll take the Syrian I'll, let Stefano speak to the cost cap I'm, sorry look we I think that.

Your pace may be just slightly aggressive Jeff I think it might be it depends on the stock price and where series buying but it might be in Q4.

We're in one of those two quarters, we're likely to pass any.

Obviously any dividend policies that are put.

It will be decided by the full board there but.

We have lots of alternatives from which we could.

Either.

Take advantage of those dividends to continue to go after the discounted Syria at.

<unk>, rather of Siri to increase the dividend or potentially.

So into that buyback hold ourselves above 80 and use the capital.

To buyback our own stock. So they are really multiple ways to get at the same result, which is we're going after the discount and whether it's.

Through their dividend, increasing or us selling the buyback and we will be attacking the discount.

Definitely let me turn it to you about the cost GAAP.

Thank you, Greg and Jeff as you know cash capital as being one of the most important significant things that from a run into this year.

And the fact, not only because of the savings that the teams will make in the future, but also in the change of the mentality that the major team has to apply with the organization to make sure that they can really be effective with a different line of expenditure and this is just the first step into a new way of managing supporting from or what and I think that.

See if I see what is happening around the world that everybody is focused just from the revenue side I think before on is just part of the part that is on the other way around but of course revenues crucial but now we have just taken that so starting with the cost cap, we do not take all the cost cutting other area that did not close in this moment as the engine for the future.

But we are putting assured but these are also the problems of the theme, which has been a huge step in making sure that the foremost sustaining reported stupid.

Alright, thank you.

Yes.

Thank you we will now take our next question from Dan asked Morgan Stanley.

Please go ahead your line is open.

Yeah.

Hi, good morning.

Greg just on the cash balance at Liberty Formula One I think it's 1 billion eight and.

All signs point to a strong year ahead I'm just wondering at what point does that day.

Some excess cash in the eyes of Liberty.

And then Stefano I have a couple of questions around drivers, which I wondering if you can humor humor me a bit.

I've gotten questions from from investors around the retirement of Lewis Hamilton, and Vettel and what that might mean to the sport and sort of the business I know theyre coming back and they come back for next year at least but as you think about that and sort of the outsized impact they have on the sport you know how do you how would you suggest we think about it if it matters and how.

You manage that.

And then I was curious moving to.

On Miami, obviously huge.

Opportunity in the whole U S market as well as an American driver important.

And F. One in terms of driving popularity here in the U S and do you have any expectations that we might see one anytime soon thank you.

So on the cash at Formula one really at the Holdco level one level.

I think a couple of things to note first of all we put that cash in place to ensure.

The health of the whole ecosystem not only the formula one.

Business that we own but really the teams and to ensure that we have liquidity and we did use some of that liquidity for some teams during.

During the pandemic, we still have.

Uncertainty about exactly what our revenues will be in 2021, you heard already we've had to cancel for example, Canada and Turkey. In we are getting paid for that but those are a way reduced levels compared to what we would get if we had full fans. So we have a fairly large.

Contingency in our own budgeting for the potential that we will not get the kind of revenue that we hope and therefore that cash is useful you may also know that we committed in.

And the forward purchase agreement with Almac. This back at least $250 million would go towards the pipe in any transaction. If we were to complete one so I think we're going to see potential for opportunities.

In that market that could be attractive to us as the spec market gets more turbulent that placed away as I mentioned earlier, our strength and we wait may want to put some of the cash in that but as the year progresses, and we get more certainty about promoter revenue.

We will look at what we do with that cash and how to utilize it.

<unk>.

What is the most epic efficacious way to deliver value to our shareholders.

Yeah.

If I may now then the question related to the drivers that could lose habit, but there surely channel. There's a great batch is doing an incredible job on the sporting side in terms of image. He was able to broad from a widening other AD is Brad and I'll tell you specifically related to former one but from one itself is strong strong.

Again.

Drivers <unk>.

I'd always in a place where one day they may retire I don't know what Louis with low and we have talked with them, but of course now let's focus on these actual season is fully boosted to make sure that will be the only driver that they are going to win the eight titles.

In the history of from Iran.

But the full one is solid and robust and for sure what I believe that the seasonal Louise.

From a wildly to react that will move forward, but the good news is that low.

Louis.

Wednesday, we'll have an incredible season and from going in but with the new cars with a new challenge and push all of this will maybe that interest.

If it was decided it'd be somewhere around I mean, the good news is that the per one we had so many good drivers today, that's at least the challenge of the chance will be even stronger therefore of course, whatever it was either the season, the lowest with respect but somewhere around there is really solid and strong where they got to Miami with the American drivers it is important.

The answer from me is vertically at ECS.

We have we are working with teams of play to understand what is really the possibility for American driver to come to the attention of approval on theme in the short term. This could come I don't see that as being very pragmatic and realistic coming as the next two three years, but maybe after yes, I know that the team's watching the goods.

Why was that.

We already would be a big boost for the American plants, because as we know you know faces drivers that puts our enthusiasm passion that people want to see these guys and therefore, the hope that we have is that very very soon we have an American drivers competing again. So this is a formula one tracker.

Thank you.

Yeah.

Thank you so I mean I would take our next question from Brian <unk> with Deutsche Bank.

Please go ahead good morning, Hi, Thank you good morning.

Would you be willing to size the onetime settlement impact on the first quarter of Formula One revenue for US and then separately, it's great to see Miami on the calendar next year I know its something <unk> been working on for three or four years.

What can you tell us about your plans for the event, maybe contrast, it to Austin and how significant do you think it will be for growing the sport in the U S and related to that you broadcast contract with ESPN is up for renewal I believe after next season. So how are you thinking about the opportunity with ESPN given their focus on ESPN plus.

With now Miami in the calendar and also just the general progress you've made so far and growing in the U S. Thanks.

So I'll, let Brian talk about.

One time events in the first quarter revenue and then.

Want to weigh a little on ESPN and I'll, let Stefano as well Brian start yeah as it relates to the settlement we can't comment on the specific details, but it did impact our results, but obviously when you look at the year over year results.

The fact that we have the the one race versus zero last year in the proportionate revenue recognition was the material driver of that but we can't comment on a specific zone.

Yes.

Yeah.

On the issue of the U S and ESPN look when we put that up.

Among the various broadcasters in alternatives.

A little over a year ago.

Chase.

And it was in total agreement had the belief that we were going to grow in popularity in the U S and our hand would be strengthened.

Due to both now doing Miami and doing drive to survive and all the other things that we have going on from fan festivals to digital engagement. All of those are building our interest in the U S and as Stefano noted and many groups that heretofore have not been interested I have people coming up to me, who are saying I'm upset.

First with Formula one because of drive to survive.

Who were not our typical audience.

Women are.

Teenagers.

Many different kinds of audiences that are expanding which is great. When we did that we took a shorter deal with ESPN that had a broader set of exposure for us in terms of their eyeballs, but it was not the highest.

Our current deal we can get and it was not the longest deal we could get and in fact it was the opposite it was the least amount of money. The most amount of eyeballs in a short period of time, because our belief was that we would have a much stronger hand, as we went forward among the various bidders I think that is a good bet. It's one that we are winning and all the reasons we.

I outlined before I think we will have a much strengthened.

Strengthened when we go to renew against that ESPN and other alternatives Stefan or what might you add.

Oh, absolutely Yeah again, I think that's you know the good news is that.

We are talking about some other ways.

U S Miami digitally culture with a different philosophy.

The way that we're going to structure the the show around it and the incredible news that's it and just a couple of weeks up to our announcement day the attention. They got to these events is really massive and the expectation of getting at the level that we want and this is the reason why we are building.

No.

A good series of.

Communications I'd say this.

Throat and thermal communication with the good day American community, because we want to maximize everything out of it.

I cannot.

For example, one thing that it would be fantastic and we're going to share it.

They do Miami gardens, with the Miami Dolphins, the Racine multiple because there you know they want to start leaving the atmosphere and this will provide us the right platform in order to be ready to make sure that the value that we're going to generate from U S will be even higher and thus really the fundamentals so digital thinking behind the fact.

Because I have to race in the United States.

Great. Thank you so much.

Thank you so when I tell you our next question from Vijay.

Evercore.

Please go ahead.

Hi, good morning, So I have a couple of questions on Formula one.

Primarily probably for Stefano.

So what are you thinking about rates promotions. This year, obviously, you have 22 races, but with or without fans in different proportions of the fan how should we think about that are you getting flow promoter revenue.

Letting some of it based on fan or getting non non hosted in the rates. So any any sort of thoughts because thats sort of the low.

The segment that has the most variability.

And then we.

<unk> been seeing a lot more press releases coming out on sponsorship on Formula one.

The new sponge, Japan is there a resurgence on that or is that sort of more like a formalized process of letting us know and what's going on.

Because that seems to be probably one of the biggest growth drivers for the business long term and finally, one for or Greg, maybe it's premature but from.

From the one becomes an ATB and Jan next year.

And you'll have grain from an ATB.

Any thoughts from what's structurally you could do or would like to do if you can share. Thanks.

Thank you Vijay I mean, the first question related to the fact that of course, we have the situation that is evolving with regards to the COVID-19.

Attendance is up with people track Greg those are as I mentioned the Kingdom, we'll need to monitor race by race case by case of course, the movie going to happen day more it's likely that the opening up.

The fans will not have a direct effect on the revenues.

We are also confident but we cannot get into the data rather low.

With respect to the attendees of the people that have no influence on what would be the.

The effect on our revenue so it's really a mixed situation, but we need to evolve them manage it I didn't get the question with regard to the sponsorship VJ can you repeat that for me. Please.

Yes, definitely there have been announcements zoom and bunch of other answers you've announced more recently I'm just trying to understand is that sort of a resurgence in sponsorship.

In Formula one more recently or is it sort of just.

Better disclosure for us.

No it does.

So yeah just to show the fact that he had the interest 241 is getting back again at the level that we really believe is the right. One so the fact that despite the pandemic situation, but all the big companies that.

Are willing to engage and be our partners is a great sign of trust in what we're building is the future and we need to expect the vs.

This approach even stronger in the future.

And as far as structural.

Changes, we have no plan or intent today, obviously, having a second ATB today, the only ATB we have at Liberty media is the Braves, having a second ATB gives us flexibility if we want to create other spins.

But we have no plans today.

Alright, thanks, so much.

Thank you we'll now take our next question from David ask J P. Morgan.

Please go ahead.

Alright, thank you.

On that one.

We've seen Disney moved to shut down and star sports channels.

Parts of the Asia, just kind of interested to know how this impacts your first directly as I believe the carry of the series, but at a higher level. How you think this pivot to streaming will impact demand for sports content and some of those regions.

And then maybe just separately Stefan Stefan knows you noted viewership seems to be a nice uptick.

Through the races, so far would be interested to get your thoughts on how much you attribute this to the rebel Mercedes dynamic versus kind of the actions that you've taken off the track like <unk> like the social media outreach.

Well, if I may start from the cyclone David it's clear that the better show rates, but the engagement from better that's a figure for the people. There is no doubt, but the thing is that there's one element. The other element is the fact that we really are.

<unk> with more people that are in love with Formula. One therefore, the fact that we are able to attract other people too.

In a way of languages that were not used to.

We used before I think is also helping the fact of the viewership and the engagements in any case from because not only the TV.

Note that our social media platform and others.

Mattel OTT is showing that there is a lot of attention.

So the interest for sure.

What is happening on the track is very very important that there's no doubt about it and this is for sure.

A good sign for us.

Yeah.

Good.

I would totally agree but.

But I don't want to comment on the rest of it and then I'll add.

First part.

Sorry, Greg the language Tulsa on my side.

Maybe you want to repeat your question because I don't think we cover sure yeah.

Sure. The question was about Disney and they're moved to shutdown Star sports.

I think in parts of Asia, just wondering how that empower directly and then just your higher level thoughts on.

We have with the streaming and kind of what that means for demand.

Stefan and why don't you say from commenting and then I'll give you I may have some views. Thank you yes.

Yes, absolutely. Thank you gave I mean, David we have of course as you know agreement in place. So we are expecting you know for that to be totally postal. So we don't see that there was a problem, we see actually a big opportunity for the growth of the Tvs and the engagement Seeger index started the wall to find other solutions.

We are working on of course, but on the on this ship pardon I shouldn't be there with respect to anything that would happen.

So I think more broadly if you think about it.

More platforms is a positive for us and yes. They are the some of the <unk>.

Legacy platforms may.

A decline or even be eliminated but in general we're seeing a new platform created that's an opportunity to just the way that.

You know here in the United States when satellite came and eventually win.

And other fiber alternatives came that created upwards pressure on content cost.

Because of the bidding I think we will see the same opportunity and what we do worldwide at Formula one.

As usual, we'll have a tradeoff on exposure, which for ATV offers against.

In many cases higher short term rates for either over the top platforms or even more streaming platforms over the excuse me platforms like satellite or streaming platforms, and we will way our total dollars available.

Against the exposure that we get for things like generally promoter value and advertising and sponsorship so I'm not so worried about these.

Sort of slower growth platforms being cut out by people like Disney I'm much more excited about the opportunity from the digital platforms, particularly as they gain scale.

Okay.

Thank you.

Okay.

Thank you we will now take our next question from David Beckham asked I have Eric Berg.

Please go ahead it makes a lot of.

Great. Thanks, I've got two on F. One.

Wanted to talk a little bit about the spring race format, maybe get a little bit of the thinking behind that it obviously adds incremental value to your partners, but more specifically as it relates to future economics.

Do you expect this to add to the value you receive from your partners or is it more a part of just adding value to existing agreements and then secondarily.

Going back to the U S market and with the TV deal and play in a few years I'm sure you've paid attention to what Ww. He did with Peacock I'm wondering if there is potential to sort of leverage the <unk> TB over the top platform in a way that can sort of augment.

The broader value of your U S broadcast and overall TV distribution rights.

Thank you David I mean with regards to the sprint sprint.

Four months I think.

It would be.

Beneficial to everyone and if I add two answers day delay to the the last part of the question of course, we expect to have more value of it first of all there is action that would be very very positive and some of it had to be organized because from Friday to Saturday to Sunday, there is something to talk.

A lot of action a lot of intensity is something that of course. This will have a direct effect on the people that will attend to the race and this has been a.

<unk> welcomed by all the organizer in a in a very possibly be weight on top of it of course, that's something that we are offering to our media partners because we can't predict the new content, we can generate other form of entertainment in a new format that can be deployed before and also to the partners that have the.

<unk> two in the previous to be in the three to four two times sales since after the COVID-19 at Docomo will be different of course, because day the central role that we can will be the race of assembly, but this is something that we believe that we levels from impact on the on this industrial point of view.

On top of the AD in the excitement of what these rates is all about.

With regards to the.

Market, the TV deal and deleverage.

And related to all of our tools.

We believe that these will enable us to discussing the future even a different way of integrating our FTB OTT.

OTT platform that is going very very well in the future and therefore that will allow us to benefit from the fact that the market will be interest in our sport and the commitments that will be very very big on our side to make sure that this is what happened.

Got it if I could add to what Stefano said on that I think we certainly watch what Ww day with Peacock and I think it's.

Somewhat indicative of the longer term trend.

Very few sports I believe have enough content to run their own over the top service as their primary vehicle. There's just not enough content. If you look at WWE they have tonnage.

Compared to us and so F. One TV, it's a great asset.

For our.

Connectivity with fans and for our connectivity in particular with our most hardcore fans, but I don't believe its a plants are traditional broadcasters or other other over the top broadcasters, who are looking from a broader set of content and relationships. So I think we certainly watch that it's consistent with our view and I do believe.

We will see that kind of opportunity with larger digital platforms in F. One TV can be a part of the solution with them as you note.

Great. Thank you.

Thank you we will now take our next question from David Joyce with Barclays.

Go ahead.

Thank you two topics one is just another clarification on the promotion.

When you say it was worth a ton does that mean it was just one promoter or.

Uh huh.

Are there any others lingering out there and was within the range of a typical promotion free.

And then secondly on sponsorship how should we think about the range of sponsorship types of contracts like how many.

Are based solely on the particular races versus you know the proportion of revenue that is really allocated across the season.

And are there any other types of new sponsorship structures. Thank you.

But I can I can do the promoter piece. It was one race and that's disclosed in our earnings release.

As it relates to the typical range of a promoter agreement we have a wide range. So it falls within that range yes.

So.

David with regard to the sponsorship of the range of course depends on the on the water.

The package that we have we have official partner.

We have other kind of relationship in all of our related to really the rights that they gonna have until we have different packages, but that all consistent with the seasonal with the old and club channel.

And not related to the single event itself.

Yeah.

Alright, thank you.

Okay.

Yeah.

So we will now take our next question from John asked Gabelli.

Your line is open. Please go ahead.

Hi, Thank you.

Switching gears.

Sports gambling.

Probably saw I think dropped kings swings and so on so what are the benefits you might see from raw sand with.

Per hour or Bali as it is now is there anything that could actually help you.

John.

Ill take a shot at that I think.

That those benefits are going to be secondary not primary.

Have increased fan engagement there may be.

Georgia is soon to open it appears.

Gambling will become legal in the near term in Georgia, it's not today, but it has been on the ballot and it looks fairly favorably inclined in the next in the coming cycles.

I think that will provide us some marginal revenue opportunities there, but I don't view it as a huge revenue line for us directly I view it secondarily, the interest and if we and baseball MLP can capitalize on that more broadly I think it just continues to draw the fans not not clear that it is.

No revenue line on the P&L directly.

And just as a second broader question on sports, you're probably seeing some of the disruption in England.

For the fans became engaged.

About around the Super League Youre, saying.

Yeah generally.

A fair amount of disruption that a lot of talk of P. E companies buying into Siri a nothing happening.

That an area, where you might see some opportunities or is the fact that the soccer team can be relegated to just makes it too risky.

No.

John we have looked at as many of those opportunities as we can possibly find we.

We do think it's interesting we can debate what.

What's going on in each of the various leagues and where they stand in terms of their cycles unlikely broadcast revenue and other kinds of opportunities. We do look to our experience both at Formula One and the Braves and what we'd like to think we have done positively with the league at Formula One and what we'd like to think we've done positively around things like.

Truest and a battery and think about how we can apply the skill sets that are inside liberty at various opportunities.

And we tried to sell that we have been a a good and long term strong owner.

Perhaps different than some of the other Americans have been perceived or how P has been perceived.

Haven't yet found the intersection of where somebody wants us and we want them, but we continue to look and.

And I do think that disruption over there does create opportunity we have gone through we watch with Super League with interest because.

Before we were involved.

With Formula one there was certainly the talk of a breakaway at Formula one, which did not come to pass and we feel very confident we understand breakaways very well and I think we've pretty much eliminated that opportunity or potential at formula one as a side note.

Thank you.

Thank you Sue and I will take our final question for today's conference from match U S. Benchmark. Please go ahead. Thank you.

Even apart from extra stopping literally banging wheels with Lewis Hamilton always seemed relatively cortisol track you'd probably have the most competitive season. Since I think 2012 for your Ferrari is coming back from Macquarie on land in the north.

It's Sarah and I was just curious you've got a broad suite of changes coming next year.

The competition on the track more competitive.

Does it give you any pause.

Thank you Mark next year, even if this year seemingly is proceeding so strong right out of the gate.

Do you have any real sales.

Okay.

<unk> to roll on.

Well Matthew the changes has been already discussed the teams are already working on new cars and new regulation and the trading as already left the station. So we are very pleased because we are convinced that this year is already a great season next year with the changes that that's been the plan there would be another greater percentage.

To showcase what is formula one impairment.

<unk> always keeping the attention.

At the center and therefore, there's no other things, but the checking that everything.

All business day to make sure that the changes will be massive from the cosmic <unk>.

Hi line COVID-19, the possibility to have a bigger site literally two or three drivers, but even more and thats the objective.

From a really a riveting.

Yes.

Look we're lucky this season's great.

The work that was done in the cockpit agreement.

By Chase and Ross Brawn and others.

We hope to only increase the competitive next year and we're very excited to Stefano noted about what's going on now and even more excited about what we can do in the coming years I think with that operator, we are done for the day. Thank you very much to all of you listening out there for your interest in Liberty.

And we look forward to speaking with you again next quarter if not sooner.

This concludes today's call. Thank you for your participation you may now disconnect.

Yeah.

Yes.

[music].

Sure.

Yeah.

[music].

[music].

[music].

Ladies and gentlemen, thank you for standing by welcome to the Liberty Media Corporation 2020, Q1 earnings call joined.

During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press star one on your telephone keypad.

As a reminder, this conference is being recorded.

<unk>.

I'd now like to turn the conference over to Courtney Chun Chief portfolio Officer. Please go ahead.

Thank you.

Before we begin we'd like to remind everyone that this call includes certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in Liberty media. Its most recent form 10-K, and 10-Q Liberty media acquisitions forms S. One registration statement filed with the SEC.

These forward looking statements speak only as of the date of this call and Liberty media and Liberty Media acquisition expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statement contained herein to reflect any change in liberty media or Liberty media acquisition corporations expectations with regard there to or any.

In events conditions or circumstances on which any such statement is based on today's call. We will discuss certain non-GAAP financial measures for Liberty media, and Sirius XM, including adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media and Sirius XM schedules one through three can be found at the end of the earnings press release issued today.

Which is available on Liberty Media's website now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO. Thank.

Thank you Courtney and good morning to all of you out there.

Today ill begin the call. Besides myself, we'll have formula one's president and CEO Stefano Dominion Kelly and.

And Liberty's, Chief accounting and principal financial Officer, Brian Wendling.

Beginning with Liberty Sirius XM, we continued our share repurchases purchasing $114 million across <unk> and K shares from February through April the discount stubbornly remains and we repurchased at a look through price of.

And Syria of just over $4 per share.

We do expect to continue to take advantage of that stubborn discount opportunity are.

Our ownership of Siriusxm as of April 26 stood at 77, 3%.

Im looking at Sirius XM itself, they're off to a fast start this year with self pay sub growth.

Growth of 83%.

While starts in the first quarter were the highest in the company's history and they reported record low first quarter churn.

We're also experiencing rapid growth and off platform advertising revenue.

360 L. The next generation platform is now in 2 million vehicles, providing valuable data and offering engaging features.

We expect it will be about 25% of this year's installs.

We are now the largest digital AD platform in North America, reaching almost two thirds of online audio listeners.

We're also continuing at Sirius XM, our expansion in the podcast segment with our acquisition of 99% and visible.

Furthering our content creation capabilities.

Turning to live nation.

You may have seen in today's earnings release from them concerts are back and in high demand for data in 2021. In fact, we have booked twice as many shows in 'twenty one as we did in 19.

Brian The 2021 ACM entertainer of the years aren't going on tour and the rail Bridge Festival with headline are David Matthews band is another notable addition.

Following up on acquiring the majority stake in Vieques, we've begun our ticketed live platform and started equipping 60, plus concert venues to offer turnkey live streaming.

Hence we.

We continue to help artists expand revenue and creative opportunities connecting them with more fans via VPN other means.

Looking at the Formula One group, we've had phenomenal racing this season as Stefano will outline a little bit more in a minute, it's exciting to see the battle between Lewis and Max it's going to be a very competitive youre also for third place and the constructive championships have lots of exciting racing.

The teams continue to execute well given the ongoing challenges from the pandemic.

Turkey will replace Canada in June showing that sustained.

Demand to expand GPS.

We've also extended our agreements with Canada and Japan.

Looking forward to the first we are looking forward to the first spread qualifying race in July at Silverstone and there'll be two more of those during the rest of the season right.

Drive to survive or.

Our programming on Netflix continues to grow in popularity in its third season, and it's also getting recognized from the awards circuits, both in the U S and Canada.

And finally, we look forward to seeing all of you in Miami in 2022.

Turning to embrace.

After a slow start to the season. Our record is just under 500 and we are close third in the least a game and a half out of first place.

We were helped by sweeping net adds over the last three games.

Our number one at home runs this season and also number one in average attendance almost 16000 per game that is if you exclude Texas, which we'd be third including Texas.

Bryan Caronia was named nationally player per month for April Tableau standard ball three pinch hit home runs in April the most by any Braves player in a calendar month for it and its franchise history.

And as of today, we expect to expand capacity.

100% of fans after opening the season at 33%.

Notably in partnership with Emory healthcare, the Braves are offering vaccine shots before enduring games against Philly fans, who get vaccinated those gains will receive two free tickets to future Braves games as well and.

And finally, the Braves looking at the battery kitchen crop is expected to occupy their office space in July and Papa John's later in the summer demand for remaining office space remains very strong and the aloft and omni hotels had high occupancy on Friday night.

And Saturday night games are the nights in March with several self sellouts on game nights.

We continue to make good progress on Almac this back.

<unk> market has changed the way we believe it to our benefit as some of the euphoria of Japan.

January and February has deflated, we believe recent weakness in the pipe marketplace, well for Liberty, given our strong balance sheet our capabilities with investors.

The support that we have.

Finally, we wanted to share with you that we have recently published our SaaS B disclosure on our website as a part of our ongoing ESG efforts.

So with that I'd like to turn it over to Brian to discuss our financial results in a little more detail.

Thank you, Greg and good morning, everyone Liberty Sirius XM group had attributed cash restricted cash and liquid investments of approximately 1 billion, excluding $67 million of cash and restricted cash held at Sirius XM.

This balances prior to paying the Formula one group $384 million to settle the live nation call spread in April the <unk>.

Settlement of the live nation call spread was a non taxable transaction among the tracking stock groups.

We also have $1 1 billion of Undrawn margin loan capacity at the parent level.

That a portion of our cash will be used in 2021 to repay our 225% live nation exchangeable bonds based on the fair value of the bonds at quarter end the amount of cash use would be $514 million.

As of May six the value of the Sirius XM stock held by Liberty Sirius XM group was nearly $19 billion and the value of the live nation stock held was $5 billion.

We have $3 2 billion in principal amount of debt against these holdings.

Total Liberty Sirius XM group attributed principal amount of debt is $13 2 billion, which includes $9 billion of debt held directly at Sirius XM.

Formula One group had attributed cash and liquid investments of $1 4 billion at quarter end. This excludes the $429 million of cash that's held directly at the F. One opco.

Post quarter end 401 group received an additional $384 million that we just discussed and proceeds related to the live nation call spread.

Total Formula One group attributed principal amount of debt was $3 6 billion, which includes the $2 $9 billion of debt held directly down at up one leaving $724 million at the corporate level.

And at <unk> $500 million revolver remains undrawn.

Please note that during the three months ended March 31, 'twenty one F. One began reclassifying certain components previously reported in other revenue and the primary half one revenue to better align with the way management currently evaluates the business.

Components reclassified in the primary up one revenue.

Generally related to F. One TV subscriptions certain half two and half three related fees broadcast origination and support fees and digital advertising among others.

Additional detail on this re class, including the impact.

For the years ended 12 31 19 in 'twenty. It can be found in schedule III to our earnings release, which will be posted on our website.

At quarter end, the Braves group had attributed cash liquid investments and restricted cash of $218 million and attributed principal amount of debt of $678 million $676 million.

Liberty and our consolidated subsidiaries are in compliance with our debt covenants at quarter end.

And with that I'll turn it over to savanna to discuss formula one.

Thank you Brian and good morning also from my side. So 2021 has begun with acute gender Jim momentum in the past few weeks, we announced our second rates in the U S. In Miami Gardens, with a huge and positive reaction from our fence the teams and all our partners.

Take away from the U S. Starting in 2020 to revise its a great opportunity for our sport and will ensure we continue to increase our strong focus and funding growth.

Last week, we announced that we will have the 100 kilo meet the Supreme qualifying formats three races. In 2021 following non it will support from all the teams vs.

<unk> will be exciting for all of our plants provide modem track action OLED relates to Ken and Keith.

Our partners and the teams greater commercial opportunities.

One of the vendors for the new Formula already reported a surge in Pekin fate. Following news that they would be hosting one of these events.

We have announced the three years extension of the Japanese Grand Prix.

<unk> has always been unimportant wasteful formula one and we cannot wait for the price to cheer from day one.

We havent dependent that work partnership with the Canadian Grand Prix by two years and welcome the New announced last week by Dr. Bell Media.

The agreement to acquire the molecule base Canadian rates through multiple operating rates and group, which is a great news for the long term future and developing automation chemical.

While the global situation has been fluid to the COVID-19 pandemic.

One that's shown.

Has the ability to overcome day issue thrown us and compete in today's safety.

Last week, we provided these can be the case, while we are not able to waste and kind of this year. We have secured the replacement rates in Turkey at short notice, meaning we have Nokia Houston number one they seem to Colombia.

It is very exciting to see the level of interest from both the new and historic location to host exemplary and this gives us possible option with required for 2021, but those two things for the future.

We have had very good conversation with all our promotions and all of whom we expect day rates as this season to go ahead.

And just this week, we have had the confirmation that 1000 fans will have 10 getting bumps known that the spend is going free and that multiple will work from approximately 40% of the capacity is just the grandstand full day rates in the wintertime.

Alongside the busy start of the year off the track that AC on the track has been equally exciting dramatic we kicked it off our 22 racing season in body and haven't had the three <unk> races to date, which with the most about overtaking and the packed closer together that in the region.

And to US that's grown as mentioned with this bathroom for the channel Cushing now this could be a golden year for Formula one.

This season operating buffet did not disappoint with the stop in security proposition. It was a pleading race between maximum Luis that was only decided within the final laps.

Wed also strong showings by noise in Paris, and the Japanese yen.

You get to know the score point in his first epsilon rates for alpha salary and it looks like yes, it probably just going to get ahead.

The backlog for the first continuing to email and whatnot has an amazing stat off the line in the rain and carry through for the weighted impressive given he's starting third <unk> central Paris, One day.

Maybe that's one of them is taking what we find in securities pulp from the program showing the continued strength from Macquarie.

We can be in Portugal, let's say the standard dose of certain challenge stronger boot as Louis handle book clean shot hub, Victor Nick will come out with both the staffing and Poland. Louise day ahead of the stopping a check from the stock of delays. So the red Bull get passed in the phases of handling from before the seven time champion's it pull it all green and silver.

It takes on both these teammate both December stop it depletes victory.

Once again shows that there is a real battle underweight four Bcf type and we are the only the three day recently.

The competition from the currently social peers in the construct of stenting.

<unk> is making the early pace, but mainly themes in the midst still have something to prove and it is great to see fit out of Houston is try to get the.

With respect to loans Formula one is resonating with fans from engagement is very high to date, we have data for the phase two races, but both the 24 principal markets, we monitor and these show TV viewership growth over both 2020 in 2019 with particular strength in Italy, the Netherlands, France, the U K the U S in the spring.

On the digital from unique users for Epsilon web and App have been up 77% on the equivalent rates in 2010, and social engagement and also pleased with open pit can meet any direction in both of the first two race week.

We continue to grow our social media following and reached $36 5 million. After the immediate on the GP up from 35 million under the theory of it.

<unk>, our otp product has also stopped the second strongly with a record viewing.

From current viewer each race weekend at around three times higher than the 2020 season average and engagement measured by the Nimbus deal with over the course of the weekend is that more than 60% over the last year, we launched an updated version of the App for the season.

Many additional features include the high video quality and allows us to control the viewing experience. This new version also makes it easier to find comfort in our collection, which includes over 2000 hours. The <unk> coverage of everything from peak in the last 50 years allow me that where latency is set to change in the dream and from people.

He is now available in 188 territories with the theme of that CD pool available in 85.

Season, three of drive to survive the growth of March 19, and continues to build global popularity for the sport, reaching number one on Netflix from 27 different countries and also globally.

And on almost daily basis, we hit a net.

About how the show was broken into new non typical clients.

It's great to the vision 2020 season and seen the best story of the viral D. O mainly drivers changes I do highly recommend episode nine which is a terrifying exhilarating and expiring.

The share was nominated for the sport and the pending.

Pending city sports documentary and made the short list in the supplemental income equity for the UK broadcast awards.

Heading into the season, we have had numerous sponsorship announcements we were pleased with new our global partnership with DHL.

Relationship, which now spans across several vacates. These extended after she will include enhancements involvement and that's why in esports EBITDA and a pleasant I'll ask one digital channels as official pop we want them to let's say this is Martin seats got provides an ancillary thing from the official close from an award.

Additionally, we announced that he's very interest in dry cough, yet official supplier and welcome global citizen as charity partner for <unk>.

We raised is one initiative.

We continue to engage fans to esports and had the very successful <unk> visual Grand Prix during the off season.

Current drivers along with homeless dogs and future prospects competing to win a share of the $100000 price point in their challenges.

Possibly competing for to improve diversity and inclusion of Formula one as part of our release those bond initiatives.

So a team of the only qualification route for the F Y E sport to see this broke SAP issue.

Our first female only competition and we hope it will encourage more drivers from the passionate and talented teammates see rates and community with the goal of becoming the first ever seen main driver to be signed by an official Epsilon esports sittercity.

In closing Formula one is off to a strong start in 2020 low bids.

Now the foundation put in place the last few years the ecosystem. These absolutely strong and the competition on the second thing I want to thank all the dedicated employees of Formula One full day continuous diligence and hard work and I Hope you will watch the Spanish grumpy this weekend.

Now I'll, let Tony to pulled back to over to you Greg. Thank you very much.

Thank you Stefano and thank you Brian.

To the listening audience. We appreciate your continued interest in Liberty media and hope you all stay healthy and safe.

And with that operator, we will open it up for questions.

Yes.

Thank you.

If you would like to ask a question again, Please press star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again that is star one to ask a question.

So we will now take our first question from Jeff asked me. If this is a research.

Go ahead your line is open.

Good morning, I had one on Syria, and one on a formula one.

Greg It at 77 key ownership stake in Siri.

All else being equal youll, probably going to crossover to 80 plus from the third quarter.

Dividends go tax free just wanted to get your latest thoughts on whether series is going to raise their dividend materially or are you happy with the status quo and letting your buyback sort of continuing to write higher and then on <unk> just.

Just was wondering about the color on how the $145 million cost cap is going relative to your expectations. Thanks.

Paul I'll take the Syrian that'll, let Stefano speak to the cost cap I'm, sorry look we I think that.

The pace may be just slightly aggressive Jeff I think it might be it depends on the stock price and where series buying but it might be in Q4.

We're in one of those two quarters, we're likely to pass any.

Obviously any dividend policies that are put.

It will be decided by the full board there but.

We have lots of alternatives from which we could.

Either.

Take advantage of those dividends to continue to go after the discount at Syria as.

Alex XM, rather of Siri to increase the dividend or potentially.

So into that buyback hold ourselves above 80 and use the capital to.

To buyback our own stock. So they are really multiple ways to get the same result, which is we are going after the discount and whether it's their through.

Through their dividend, increasing or selling of the buyback we will be attacking the discount.

Definitely let me trying to you about the cost GAAP.

Thank you, Greg and Jeff as you know cost cathodes being one of the most important is significant since that's overwhelming.

Sure.

This is happening the fact, not only because of the savings that the teams will make in the future, but also in the change of mentality.

Major team has to apply with the organization to make sure that they can really be effective with a different line of expenditure and this is just the first step into a new way of managing supporting tumor one and I think that's facing if I see what is happening around the world that everybody is focused just from the revenue side I think for one has just started the pathogen.

On the other way around but of course revenues crucial but now we have just taken the first step into the cost GAAP, we do not take all the costs GAAP in other areas that did not close in this moment as the engine for the future, but we are putting assured but these are also the problems of the theme is that being a huge step in making sure that the pulmonary sustainable products suite.

Alright, thank you.

Yes.

Thank you we will now take our next question from day at Morgan Stanley.

Please go ahead your line is open.

Hi, good morning.

Greg just on the cash balance at Liberty Formula One I think it's a 1 billion eight and.

All signs point to a strong year ahead I'm just wondering at what point does that day.

Some excess cash in the eyes of Liberty.

And then Stefano I have a couple of questions around drivers, which I wondering if you could humor humor me a bit.

I've gotten questions from from investors around the retirement of Lewis Hamilton, and Vettel and what that might mean to the sport and sort of the business I know, they're coming back and they're coming back for next year at least but as you think about that and sort of the outsized impact they have on the sport you know how do you how would you suggest we think about it if it matters and how.

You manage that.

And then I was curious let me know Miami, obviously huge opt.

The opportunity in the whole U S market as well as an American driver important Ah in.

N F. One in terms of driving popularity here in the U S and do you have any expectations that we might see one anytime soon thank you.

So on the cash at Formula one really at the Holdco level one level.

I think a couple of things to note first of all we put that cash in place to ensure.

The health of the whole ecosystem not only the formula one.

Business that we own but really the teams to ensure that we have liquidity and we didn't use some of that liquidity for some teams during.

During the pandemic, we still have.

Uncertainty about exactly what our revenues will be in 2021, you heard already we've had to cancel for example, Canada and Turkey, and we are getting paid for that but those are a way reduced levels compared to what we would get if we had full fans. So we have a fairly large.

Contingency in our own budgeting for the potential that we will not get the kind of revenue that we hope and therefore that cash is useful you may also know that we committed in.

In the fourth purchase agreement with Almac. This back at least $250 million would go towards the pipe in any transaction. If we were to complete one so I think we're going to see potential per opportunities.

In that market that could be attractive to us as the spec market gets more turbulent that place to way as I mentioned earlier, our strength and we wait may want to put some of the cash in that but as the year progresses, and we get more certainty about promoter revenue.

We will look at what we do with that cash and how to utilize it.

<unk>.

What is the most epic efficacious way to deliver value to our shareholders.

Yeah.

If I may know, Greg because then the question related to the drivers there is absolutely standard shortly channel. There's a great batch is doing an incredible job on the sports side and some of image. It was able to growth the former one and other and as we have and I'll tell you specifically related to former one but from a long itself is strong strong.

Again.

Drivers' Championship.

We're always in a place where one day. They may retire I don't know what Louis with building, we are consulting with them, but of course now let's focus on these actual season is fully boosted to make sure that will be the only driver that theyre going to win the eight titles.

In the history of from day one.

But the full one is solid and robust and for sure what are the lead that the seasonal Louise.

From a wildly to react they will move forward, but the good news is that low.

As we all hope will stay will have an incredible season and from England with the new cars with a new challenge and for sure. This will maybe net interest.

If it was decided it'd be probably around I mean, the good news is that the per one we had so many good drivers today, that's at least the challenge of the chance would be even stronger therefore of course, whatever will be the decision the lowest with respect but still move around is really solid and strong whether that's through Miami would be American drivers. It is important.

The answer for me, it's very clear these yes.

You know we have.

Working with teams of play to understand what is really the possibility for American driver to come to the attention of a pool one team in the short term this could come I don't see that as being very pragmatic and realistic coming as the next two three years, but maybe after yes, I know that the team's watching other good drivers.

They are ready would be a big boost growth.

For the American tax because as we know.

<unk> drivers that boosts, our enthusiasm passion that people want to see these guys and therefore, the hope that we have is that very very soon we have on a mood from drivers competing again. So this is a promo on channel.

Thank you.

Thank you. So we will now take our next question from Brian <unk> with Deutsche Bank.

Please go ahead good morning.

Thank you good morning.

Would you be willing to size the onetime settlement impact on the first quarter Formula one revenue for US and then separately, it's great to see in Miami on the calendar next year I know, it's something you've been working on for three or four years what.

What can you tell us about your plans for the event, maybe contrast, it to Austin and how significant do you think it will be for growing the sport in the U S and related to that you broadcast contract with ESPN is up for renewal I believe after next season. So how are you thinking about the opportunity with ESPN given their focus on ESPN plus.

With now Miami in the calendar and also just the general progress you've made so far and growing in the U S. Thanks.

So I'll, let Brian talk about.

One time events in the first quarter revenue and then.

Ill.

Want to weigh a little on ESPN and I'll, let Stefano as well Brian start yes, as it relates to the settlement we can't comment on the specific details, but it did impact our results, but obviously when you look at the year over year results.

The fact that we have the the one race versus zero last year in the proportionate revenue recognition was the material driver of that but we can't comment on a specific zone.

Yeah.

Yeah.

On the issue of the U S and ESPN look when we put that up.

Among the various broadcasters in alternatives.

A little over a year ago.

Chase.

And I was in total agreement had the belief that we were going to grow in popularity in the U S. In our hand would be strengthened.

Due to both now doing Miami and doing drive to survive and all the other things that we have going on from fan festivals to digital engagement. All of those are building our interest in the U S and as Stefano noted and many groups that heretofore have not been interested I have people coming up to me, who are saying I'm obsessed.

First with Formula one because of drive to survive.

Who were not our typical audience.

Women.

Teenagers.

Many different kinds of audiences that are expanding which is great. When we did that we took a shorter deal with ESPN that had a broader set of exposure for us in terms of their eyeballs, but it was not the highest.

Current deal, we can get and it was not the longest deal we could get and in fact it was the opposite it was the least amount of money. The most amount of eyeballs in a short period of time, because our belief was that we would have a much stronger hand, as we went forward among the various bidders I think that is a good bet. It's one that we are winning and all the reasons we.

I outlined before I think we will have a much strengthened.

Strengthened when we go to renew all against that ESPN and other alternatives Stefan or what might you add.

Oh, absolutely yeah, again, I think that the good news is that.

We are talking about another race in U S. Miami wouldn't be fully culture with the digital geological window would get you to wait till we get a structured the the show around it and the incredible noon that day.

Just a couple of weeks up to a little announcement day, the attention where they've got to these events really massive and and the expectation of getting the level doesn't work and this is the reason why we are building.

No.

Good to see this all.

Communications I see this.

The throat and thermal communication with the medical community, because we want to maximize everything out of it.

I cannot say it had been.

For example, one thing that people would be fantastic, we're going to share.

With the stadium Miami Gardens, with the Miami Dolphins.

With the race day multiple because there you know they want to start leaving the atmosphere and this will provide us the right platform in order to be that day.

So the volume that we got from you actually would be even higher and thats really the fundamentals.

Thinking behind the fact that we that I have to ration in United States.

Great. Thank you so much.

Yeah.

So when I tell you our next question from Vijay.

Evercore piece.

Please go ahead.

Hi, good morning, So I have a couple of questions on Formula one.

Primarily public for Stefano.

So what are you thinking.

Think about rates promotions. This year, obviously, you have 22 races, but with or.

Without fans in different proportions of fan how should we think about that are you getting flow promoter revenue.

Letting some of it based on fan or getting non non hosted in the rates. So any any sort of thoughts because thats sort of the go to the segment that has the most variability.

And then.

We've been seeing a lot more press releases coming out on sponsorship on Formula one with the new sponsorship had is there a resurgence from that or is that sort.

More like a formalized process of letting us know on what's going on.

Because that seems to be probably one of the biggest growth drivers for the business long term and finally, one for Greg.

Greg maybe it's premature but from.

From the one becomes an ATB and Jan next year.

And you'll have great from an ATB.

Any thoughts on what structurally you could do or would like to do if you can share. Thanks.

Thank you Vijay I mean, the first question related to the fact that of course, we have the situation that is evolving with regard to the cause.

And this is what the people of track Greg those are as I mentioned.

But we need to monitor race by race case by case of course, they're mostly going to have them. The more it's likely that the opening up.

The two day.

Fans will not have a direct effect on the revenues.

We have also content, but we cannot get into the page rather we don't expect that the attendees of the people that have no influence on what would be the.

The effect on our own so it's really a mixed situation, but we need to evolve the message I didn't get the question with regard to the sponsors should be J can you repeat that for me. Please.

Yes, that's what I mean, there have been announcements zoom and bunch of other answers you've announced more recently I'm, just kind of incentives that sort of a low.

And sponsorship.

In Formula one more recently or is it sort of just better disclosure for us.

No just to show you just to show the fact that he had the interest to full one is getting back again at the level that we really believe is the right. One so the fact that despite the from Dennis situation, but other big companies.

Willing to engage and be our apartment is a great sign of trust in what we're building is the future and we need to expense.

This approach even stronger in the future.

And as far as structural.

Changes, we have no plan or intent today, obviously, having a second ATB today, the only ATB we have at Liberty media is the Braves, having a second ATB gives us flexibility if we want to create other spins.

But we have no plans today.

Alright, thanks, so much.

Thank you we'll now take our next question from David ask J P. Morgan.

Please go ahead.

Alright, thank you.

On that one.

We've seen Disney moved to shut down in Stark sports channels.

Parts of the Asia, just kind of interested to know how this impacts your first directly as I believe the carry of the series, but at a higher level. How you think this pivot to streaming will impact demand for sports content and some of those regions and then maybe just separately Stefan.

Stefano as you noted viewership seems to be a nice uptick.

Through the races, so far would be interested to get your thoughts on how much you attribute this to the rebel Mercedes dynamic versus kind of the actions that you've taken off the track like <unk> like the social media outreach.

Well, if I may start from the cyclone David it's clear that the by the show rates, but the engagement from better than to pay me for the people. There is no doubt, but the thing is that there's one element. The other element is the fact that we really are engaging with more people that can be lumpy for more one therefore, the fact that we are able to attract.

Other people too.

It's a way of languages, we're not used to.

We used before I think is also helping the fact of the viewership and the engagements in any case for them because they're about not only the TV. There's been about a social media platform and then the other element that OTT is showing that there is a lot of attention a lot of interest for sure.

What is happening on the track is very very important that there's no doubt about it.

And this is for sure a good sign for us.

I would.

I would totally agree.

But separately why don't you comment on the rest of it and then I'll add.

First part.

Sorry, Greg the language.

We're excited.

Maybe you want to repeat your question because I don't think we cover sure Yeah sure. The question was about Disney and they're moved to shut down and Star sports.

I think in parts of Asia, just wondering how that empower yes, you did.

And then just your higher level thoughts on yes.

Moving to streaming and kind of what that means for demand.

Stefan I wanted you say from commenting and then I'll give you I may have some views. Thank you yes.

Yes, absolutely. Thank you gave I mean, David we have of course as you know our agreements in place. So we are expecting you know for that to be totally postal. So we don't see that there's a problem, we see actually a big opportunity for the growth of the Tvs and the engagements Seeger and thats not from the wall to find other solutions.

We are working on of course, but on the on the share the finite shouldn't we don't expect anything that would happen.

So I think more broadly if you think about it.

More platforms is a positive for us and yes. They are the some of the <unk>.

Legacy platforms may decline or even be eliminated but in general we're seeing a new platform created that as an opportunity to just the way that you're.

You know here in the United States when satellite came in and eventually when filed and other fiber alternatives came that created upward pressure on content costs.

Because of the bidding I think we will see the same opportunity and what we do worldwide at Formula One as usual, we'll have a trade off on <unk>.

Exposure, which for ATV offers against from.

Many cases higher short term rates for either over the top platforms or even more streaming platforms over their TV platforms like satellite or streaming platforms, and we will way our total dollars available.

Against the exposure that we get for things like generally promoter value and advertising and sponsorship so.

I'm not so worried about these.

Sort of slower growth platforms being cut out by people like Disney I'm much more excited about the opportunity from the digital platforms, particularly as they gain scale.

Oh hi.

Okay.

Okay.

Thank you we will now take our next question from David Beckham, Assam Ehrenberg.

Please go ahead, thanks a lot.

Great. Thanks I've got.

Two on F. One I just wanted to talk a little bit about the sprint race format.

Maybe get a little bit of the thinking behind that it obviously adds incremental value to your partners, but more specifically as it relates to future economics do you expect this to add to the value you receive from your partners or is it more a part of just adding value to existing.

And then secondarily.

Going back to the U S market and with the TV deal and play in a few years I'm sure you've paid attention to what Ww. He did with Peacock I'm wondering if there is potential to sort of leverage the F. One TB over the top platform in a way that can sort of augment.

The broader value of your U S broadcast and overall TV distribution rights.

Thank you David I mean with regard to the sprint sprint.

Four months I think.

It will be.

Beneficial to everyone.

If I had to answer straight away to the last part of the question of course, we expect to have more value out of it first of all that is action that will be very very positive.

Type that would be a good idea because from Friday to Saturday to Sunday, there is something to talk about.

A lot of action a lot of intensity.

That of course this will have a.

That was the effect on the people that will attend to the race and this has been the.

<unk> welcomed by all the organizer and in a very positive new weight on top of it of course, that's something that we are offering to our media partners because we can create the new content, we can generate other form of entertainment.

A new format that thats been never deployed before and also through the partners that have the chance to treat it used to be in the 342 times of since after the Docomo will be different of course, because day the sensor relative because it'd be the race and simple, but this is something that we believe that we will have also an impact.

On the on this industrial point of view.

On top of the AD and the excitement of what these rates and it's all about.

With regard to the.

Market, the TV deal and deleverage.

And related to all our tools all right. We believe that this will enable us to discussing the future even additional ways of integrating our FTB OTT.

OTT platform that is.

Moving very very well in the future and therefore that will allow us to benefit from the fact that the market will be interesting other sports and the commitment that will be very very big on our side to make sure that this would happen.

Got it if I could add to what Stefano said on that I think we certainly watch what Ww day with Peacock and I think it's.

Somewhat indicative of the longer term trend.

Very few sports I believe have enough content to run their own over the top service as their primary vehicle. There's just not enough content. If you look at WWE they have tonnage.

Finally, compared to us and so <unk> TV is a great asset.

For our.

Connectivity with fans.

For connectivity in particular with our most hardcore fans, but I don't believe its a plants are traditional broadcasters or other other over the top broadcasters, who are looking for a broader set of content and relationships. So I think we certainly watch that and it's consistent with our view and I do believe we will see that kind of opportunity with larger.

Digital platforms in F. One TV can be a part of the solution with them as you note.

Great. Thank you.

Thank you we will now take our next question from David Joyce with Barclays. Please go ahead.

Thank you two topics one is just another clarification on the promotion.

When you said it was one time does that mean it was just one promoter or there are.

Are there any others lingering out there and was within the range of a typical promotion free.

And then secondly on sponsorship how should we think about the range of sponsorship types of contracts like how many.

Are based solely on the particular races versus the proportion of revenue that is really allocated across the season.

Are there any other types of new sponsorship structures. Thank you.

But I can I can do the promoter piece. It was one race and that's disclosed in our earnings release.

As it relates to the typical range of a promoter agreement we have a wide range. So it falls within that range yes.

Okay.

David with regard to the sponsorship of the range of course depends on the on the water.

The package that we have we have official partner.

We have other kinds of relationship and all are related to really the rights that they are going to have.

And so we have little impact just about that all consistent with the seasonal with the old <unk> Championship.

Not related to the single event itself.

Yes.

Alright, thank you.

Okay.

Okay.

Thank you. So we will now take our next question from John asset Gabelli Your.

Your line is open. Please go ahead.

Hi, Thank you.

Switching gears.

Sports gambling as hot coffee.

Probably saw I think dropped kings swings and so on so what are the benefits you might see from raw sand with.

<unk> Valley as it is now is there anything that could actually help you.

John.

Take a shot at that I think.

Those benefits are going to be secondary not primary.

You'll have increased fan engagement there may be.

Georgia is soon to open it appears.

Gambling will become legal in the near term in Georgia, it's not today, but it has been on the ballot and it looks fairly favorably inclined in the next in the coming cycles.

I think that will provide us some marginal revenue opportunities there, but I don't view it as a huge revenue line for us directly I view it secondarily, the interest and if we and baseball MLP can capitalize on that more broadly I think it just continues to draw a fans not not clear that it is.

No revenue line on the P&L directly.

And just as a second broader question on sports, you're probably seeing some of the disruption in England.

For the fans became engaged.

About around the Super League Youre, saying, yeah, just generally.

A fair amount of disruption that a lot of talk of PE companies buying into Siri, a nothing happening is that an area, where you might see some opportunities or is the fact that the soccer team can be relegated to just makes it too risky.

No.

John.

Have looked at as many of those opportunities as we can possibly find.

We do think it's interesting we can debate what.

What's going on in each of the various leagues and where they stand in terms of their cycles on Luckily broadcast revenue and other kinds of opportunities. We do look to our experience both at Formula one and the Braves and what we'd like to think we have done positively with the league at Formula One and what we'd like to think we've done positively around things like.

Truest and the battery and think about how we can apply the skill sets that are inside liberty at various opportunities.

And we tried to sell that we have been a a good and long term strong owner.

Perhaps different than some of the other Americans have been perceived or how it's been perceived we haven't yet found the intersection of where somebody want to us and we want them, but we continue to look.

And I do think that disruption over there does create opportunity we have gone through we watch with Super League with interest because.

Before we were involved.

With Formula one there was certainly the talk of a breakaway at Formula one, which did not come to pass and we feel very confident we understand breakaways very well and I think we've pretty much eliminated that opportunity or potential at formula one as a side note.

Thank you.

Thank you. So we will now take our final question for today's conference from match U S. Benchmark. Please go ahead. Thank you.

Even apart from Metro stop and literally banging wheels with Lewis Hamilton always seemed relatively cortisol track you'd probably have the most competitive season since I think 2012 for your Ferrari is coming back from Macquarie Lando Norris.

It's Sarah and I was just curious you've got a broad suite of changes coming next year.

The competition on the track more competitive.

Does it give you any pause between maybe a long day Mark next year, even if this year seemingly is proceeding so strong right out of the gate.

So if you have any assessment reassessment painters kantar.

Continue to roll on.

Well Matthew the changes has been already discussed the teams are already working on new cars, and new regulation and the train station.

Station. So we are very pleased because we are convinced that this year is already a great season for next year with the changes that has been the plan there will be another great opportunity to showcase what is formula one per month, the ability of always keeping the attention.

The center in Florida.

No other things, but the checking everything.

All business day to make sure that the changes will be Matthew from the cosmic <unk>.

Highlights of burden the possibility to have a bigger spike literally two or three drivers that even more and thats the objective.

From a really a riveting, but yes.

Look we're lucky this season's great.

The work that was done in the cockpit agreement.

By Chase and Ross Brawn and others.

We hope to only increase the competitive next year and we're very excited to Stefano noted about what's going on now and even more excited about what we can do in the coming years I think with that operator, we are done for the day. Thank you very much to all of you listening out there for your interest in Liberty.

And we look forward to speaking with you again next quarter if not sooner.

This concludes today's call. Thank you for your participation you may now disconnect.