Q2 2021 Liberty Media Corp Earnings Call

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Ladies and gentlemen, thank you for standing by and welcome to the Liberty Media Corporation 2021, Q2 earnings call. During the presentation. All participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at.

At that time, if you have a question. Please press star 1 on your telephone as a reminder, this conference is being recorded August.

I would 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. On this call includes certain forward looking statements and then media as a private Securities Litigation Reform Act and 1995 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned and Liberty media and most recent form 10-K, and 10-Q for Liberty media acquisitions form S..1.

Interest ration statements 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 and liberty media or Liberty media acquisition corporations expectations with regard.

Are there to or any change in events conditions or circumstances on which any such statements made on today's call. We will discuss certain non-GAAP financial measures for Liberty media and Sirius XM and what.

And he and adjusted OIBDA, and adjusted EBITDA and required definitions and reconciliations for Liberty media and Sirius XM and schedules 1 through 3 can be found at the end of the earnings press release issued today, which is available on Liberty media website now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO. Thank you Courtney and good morning for all of you.

Today speaking on the call. We will also have formula one's president and CEO, Stefan and I was going to college, and Liberty's, Chief accounting and principal financial Officer, Brian Wendling.

So beginning with Liberty Sirius XM.

Continuing to repurchase shares purchasing $141 million across <unk> and the case years from May through July.

The discount remains and we therefore were purchased at a look through price for it on CRE of just over $4 per share.

We continue to take advantage on the discount opportunity and I expect we will continue to do it going for it on our ownership of Sirius XM is 78, 1% as of July 2003rd.

Looking now at Sirius itself, they had an outstanding results for the quarter, another beat and raise with record low churn at 1.5%.

EBITDA also set a new quarterly record and new car penetration increased to 82%.

We have a continued focus on growing the already strong presence and the car, they're 140 million vehicles on the road today, which are enabled for Sirius XM.

And the 360 <unk> enhanced feature set will continue to evolve based on data received from us.

We're also growing engagement outside of the car and the rebranded SSM App.

Is gaining traction the variable margins are as good or better than satellite and <unk>.

Courage you to get it today.

And please don't forget we are growing our advertising platform with 150 million listeners the largest digital audio AD platform in North America.

All of these combined platforms and capabilities, we believe Sirius XM presents a compelling comprehensive offering for talent media and social brands create and monetize audio experiences.

So I'm trying to live nation.

The reopening accelerated led by.

Outdoor concerts, and the U S and the UK with other countries coming along and vaccination levels increase.

Festival and amphitheater and are the focus for the summer led by Lollapalooza Rolling Loud Hip Hop Festival in Miami.

Latitude and the U K.

Between them. They all had 750000 fans, which is back to pre COVID-19 levels.

Live nation is helping to put on that New York reopening concert in Central Park AGA.

August 21.

And <unk> our streaming can service continues to be incremental live revenue stream for us with Bob for Bob Dylan show later this month.

A live expect all segments to return to profitability and the second half of 'twenty 1 and.

And all signs continue to point to a great 2022, and we expect 2022 activity and financial results will exceed 2019.

Turning now to the Formula 1 group.

That was phenomenal racing.

For the first half of the season up until the summer break with a fierce battle between Louis and Max.

Among the rest of the drivers there was a tight competition for third.

And the Constructors Championship is also highly competitive with Mercedes and Red Bull going wheel to wheel and Macquarie Mclaren and Ferrari battling for the third spot.

We remain impressed with the way Formula 1 and continues to navigate the continued challenges from the pandemic.

I have lost count of how many times, we have made changes to the 2021 calendar, but we continue to move forward and.

And the Formula 1 team continues to plan for the known and unknown variables that can come back on.

We did welcome a full crowd at Silverstone and 356000 fans over the weekend, which was tremendous and.

And we remain confident and our ability to have a full 23 race season.

We also had our first sprint event, there, which was a resounding success.

We made meaningful progress on sponsorship we continue and we are consistently announcing new partners.

You haven't already I encourage you to tune into the business breakdowns and podcast with Stefano.

And he's quite articulate about the future of the business the linked to what is on our IR homepage.

The Braves baseball fans nationwide, but particularly in Atlanta, and here and certain parts of Colorado were devastated so your cornea and his season early we do wish him a speedy recovery.

The team has been battling despite setbacks, we had an impressive comeback last night to sweep the Cardinal and the brands are now over 500.

And truth at.

<unk> Park fans are back on a big way, we expanded the capacity of 100% and early may.

<unk> revenue per home game is up and the second quarter compared to 2021, despite only partial capacity and Oems.

Ticket sales concessions and retail per caps are all trending very favorably.

We're having trouble keeping jerseys and stock and high quality problem.

For the Braves do lead major League baseball and total attendance and over 1.5 million and average attendance debt over 29000 per game.

With our financial strength, we are reinvesting and on field talent before the tread deadline, you saw from do that rebate and that the battery development revenue continues up and the quarter due to rental income from new tenants for the Teekay and Papa John's and the end of Covid related modified rents.

You'll also see the phase III office tower work.

Confident it will be fully leased and the near term and.

And just and crop will move into their new headquarters later this month.

Finally, we continue to make good progress on Almac spak.

We think the trends and the spec market, which are challenging for many actually play to the benefit of Liberty.

With that I will turn it over to Brian for more on our financial results.

Thank you, Greg and good morning, everyone Liberty Sirius XM group had attributed cash restricted cash and liquid investments of approximately $418 million.

Excluding $1.1 billion of cash and restricted cash held at Siriusxm.

We also have $1.1 billion of Undrawn margin on capacity at the parent level related to our series and live nation margin.

Note that a portion of our cash will be used later in 2021 to repay our 225% 5 nation exchangeable bonds.

Based on the fair value of the liability at quarter end and the amount of cash use would be $517 million.

As of August 5th the value of our Sirius XM stock held at Liberty Sirius XM group was over $20 billion.

And the value for live nation stake was nearly $6 billion.

We had $3.2 billion and principal amount of debt against these hold it for.

Total Liberty Sirius XM group attributed principal amount of debt and $14.1 billion, which includes the $9.9 billion of debt that's held directly at Siriusxm.

Formula 1 group had attributed cash and liquid investments of $1.7 billion, a quarter and which excludes $537 million of cash held directly at F..1 the corporate cash balance includes.

$384 million that was received from <unk> and Q2 related to settling out of the cost growth.

Formula 1 group attributed principal amount of debt was $3.4 billion, which includes $2.9 billion of debt and F, 1, leaving $546 million and corporate level.

F 1 and 500 million $500 million revolver remains undrawn.

But we are still on this period of a covenant waiver and F..1 target leverage for the business remains bond for 5.5 times.

Please note that during the 3 months ended March 31, 2021 F..1 began reclassifying certain components previously reported and other revenue and the primary F..1 revenue to better align with the way it currently evaluating.

Components reclassified and the primary iPhone revenue include F..1 TV subscriptions F..2 and a 3 related fees broadcast origination and support fees and digital advertising on others.

Additional detail, including the impact of the revenue reclassification for the years ended December 31, 19, and 20 can be found on schedule 3 of our earnings press release posted to our website.

And lastly to the Braves at quarter and spreads had attributed cash liquid investments and restricted cash of 231 million and attributed principal amount of debt of 690 for libert.

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

And with that I'll turn it over to Stefano to discuss Formula 1.

Thank you, Brian because it doesn't and 21 season is exceeding expectations on support.

We can on that.

And the and.

And then Gary and Jim is known for.

As a point a zone.

And these amazing victory and the highest first on the annuity and branded team and all of them.

Also impressed with this expense holding off on in terms for them for those labs.

The rivalry between Lewis from Max continues to build and debt by choice for the challenge, which culminated with the instance of the simple and.

And we'd be unpredictable outcome on Sundays, and rentals and the potatoes and for this from a great slightly ahead and understanding.

And the Buffalo for the Thursday between.

Between now and this focus on debt.

The contest among the 2 stocks is just those fears.

And let's say this for first and the cloud and on for Ravi.

For <unk>, leading up to the promise and defense are responding.

We have a full crowd the silver slipper posting 300.

Sample over the weekend with the hospital for 2000.

The source of the tenders is unrivaled and schools.

Attendance was certainly aided by the highest volume for the championship.

F..1 spring events produced compelling racing and the return on the public cloud.

On the strength the first on 3 events and this season, we have received overwhelmingly positive feedback from the teams drivers and.

And certainly these provides additional opportunities for our for multiple media and sports so problems and.

And we'll continue to discuss any lessons learned from the farmers with the teams, but the fundamentals are strong.

And this time, we'd be expands on the 2022 and look forward to the next strengthened.

Cash and.

Engaging across the Oakland.

We have and data to the British Grand Prix and on the digital from you and excuses for the S..1 website and App this season.

Over 8 per cent compared with 2000 and.

Social engagement continues to grow reaching 14 media and social interaction for the biggest real quick.

And we've seen this growth reflected in our total number of dose literally as well on social media, which now stands at almost sports media.

<unk> is up to me and we have seen strong growth over 2010, and 2020 NAV in many markets, notably songs.

And no weak, Spain, Sweden, and the United States and.

<unk> remains a great ways for patents to catch all the action on the race weekend.

Peak concurrent views for risk based has consistently been more than 2.5 times higher than for 2020 season average with miniscule over or at least we can buy more than 1.5 times and vessels last season.

We have now and level basis into our plan and 23 racing season.

This time last year, we had only completed for.

2021 has presented some of the same challenges.

And although with some new ones.

I'm proud of our team and our partners as we continue to navigate.

On our last earning calls the Canadian growth as just being replaced by the <unk> growth rate.

Youtube travel restriction related to turnkey, we have to compete with again and secure back to regulators and Ulster Bank moving the French from them for your weekend.

Dimensionally, we wished and able to secure a software product and Nathan and the Columbus as a replacement for the Singapore Company.

All of these changes required great named blizzards and Tvs.

PBT and hard work flow.

Our partners and the confidence and which new ways.

<unk> hundred 1 as a demonstrated ability to manage the logistics on COVID-19 restrictions in multiple countries and then set the gold standard and testing and effective protocols to deal with positive cases.

Good day from free we have conducted 56000 tests on drivers themes and questionnaire that produce.

Positive cases photo positivity rate on 0.06 per se.

Through these fine tuned operation, we've seen comps and our ability to safely deliver a 23 race season.

The non to host for on a racist and ceased up all on high as evidenced by venue.

And be able to slow in 2021.

And we wouldn't see net interest from new venues and that now.

Currently part of the 2020 calendar and the existing venues open to host and a separate ways.

As different and part of the World.

And the stages of emerging from Depomed and the government's view on <unk> as an exciting way to return to the public stage and was convinced OPEC.

Ill make tremendous progress in 2021 and sponsorship and the momentum that has continued since our last earnings call and May take.

Joining us on a global partner and now we're on partners of the F..1 screen Stevens and will become decisional hipster photos to sponsor and Thats the NFC horizontal for Epsilon.

They will present the brand New award would be announced ahead of the budget growth rate.

We have also will come and <unk> as the title sponsor of the Austrian and double Heather and last week announced that they will become everyone's on facial water technology partner working with Epsilon to deliberate on single use plastic screen and look back.

Thank you for.

What day title on the regional finance and HR and depressed pausing on that 1 across the UK and Germany.

Finally, we completed a multiyear extension of our financing company and ecommerce and manufacturing and following an outstanding performance from our <unk>.

Sales on the official online as far as total grew by more than 40% and it doesn't flow and accelerates a triple digit growth some of the for.

First 6 months of 2000 and well see you.

Mark It is the largest in term of sales on the <unk> side.

And they increasingly and resolution of the sports and the country.

For the thing I would go to expand our reach we have announced and doubtful on policy, but it's for all debt and excellent teams will feature in the videogame rockets and these latest spring back.

Many of them won't be and partnerships we.

We have less on how can we assume that 2021 season.

Planning for 2022 has been ongoing for some time.

As mentioned before and he is a high demand from day needs to make 2022 calendar and we hope to announce the provision for Columbia During September and October.

We can confirm that the much anticipated and Miami Grand Prix will happen and the first half of May.

The non school they think it is high and some states have not sufficiently stock.

We also look forward to our move to some features for the <unk>.

Cash and growth beginning in 2073.

Thanks, Tony.

And we'll provide is coming back from them.

No.

We have previously discussed the foundation that were put in place over the last 2 years with coast GAAP and regulation and the new Concorde agreement, we have created a sustainable and a flourishing ecosystem for this for.

These along with a compelling products on the drag for us greater interest and opportunities across the board.

And this includes ongoing discussion and the highest lead them and with edge and factors, we've seen the breath and daily with Formula 1 as well as opportunities for the new engine and development of sustainable fuels.

Along these lines, we continue to develop programs on the pool.

And once we and I suppose 1 initiatives.

For the British going for you, we delivered a carbon neutral growth.

We plan for things these learnings as we work towards our goals and ensuring all of that for events are sustainable by 2025 and on our way to become a net zero carbon by 2000 and uncertainty.

We have also seen great interest from Oems and our plans for the next film on 1 engine to be on the percent sustainable fuels and those positive discussion on continuing.

But I wouldnt focus too increased diversity and inclusion across 401, we have recently announced commitments relating to 10 engineers scholarships, Florida and.

A representative groups and apprentice and intimacy programs within the F..1 organization.

And if thats a truly global sport, we can make a difference by ensuring that we are diverse and inclusive in our own communities as the communities we serve around the world.

Thanks for change for these channel donation to funding.

For ships.

I think the logos right I want to thank everyone on October 1, including all of our drivers teams and business partners for this indication and hard work. So far this season and joy some much deserved time off and we look forward for the Humanization and August and Tonight I wanted to.

Full speed ahead.

And now I will turn the call net.

Moving to Greg. Thank you so much bye bye.

Stephane and thank you Stefano and Brian.

And very exciting news.

And our Investor meeting and will be held on Thursday August 18th for fall.

Paul experience will be offered and person at the New York Times Center and virtually please save the date.

<unk> details will be provided soon.

Please note that all in person and attendees will need to be fully vaccinated against COVID-19.

We appreciate your continued interest and Liberty media and hope you all stay safe and healthy and.

And with that operator, I'd like to open the line for questions. Thank you.

Absolutely and if you would like to ask a question. Please signal by pressing star 1 on your telephone keypad, if using a speakerphone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment. Once again, everyone to ask a question press star 1 on your telephone keypad and we'll pause for a quick moment to assemble the queue.

Alright, and our first question will come from Ben Swinburne with Morgan Stanley. Please go ahead.

Yeah.

Hey, good morning, everybody.

Greg just to clarify is it August 18th on November 18th.

November 18th and I say August.

And he did yes.

And I saw you meant November so thanks for clarifying and yet exciting for for in person.

2 actual questions if I could Greg just looking at the discounts.

Liberty broadband I know this isn't a liberty broadband and call, but I think it's relevant for Liberty Siri that discount has not improved it's probably widened even since then that buyback kicked into substantial levels and I'm. Just wondering what you take from that as we think about the opportunity to sort of go out for the discount at Liberty Sirius since youre going to and theory of it.

Access to a lot more capital.

You know at some point over the next quarter or 2.

And then.

You guys commented in the release about Formula 1 TV contributing to revenue growth and I feel like that product went from something we were really focused on as a business to sort of fading and now I'm sort of wondering.

Given COVID-19 and just the popularity of the sport increasing what's the vision there or is that something that you guys are investing more and do you see that as a big revenue opportunity or is it more of an enhancer of kind of the core rights and may be a driver of engagement. Just maybe you can update us on how you're thinking about the OTT streaming product at this point.

Sure.

Thank you Ben.

First on the discounts.

Well I happen to be well aware since we have on Liberty broadband and Paul.

Sure.

And going on there and we actually.

During the quarter for example, charter was up about 15% and R and Z per.

Per share of Liberty broadband charter was up about 17% because we were able to buy as much as we were able to buy this year at a discount.

We are actually driving the NAV.

Charter excuse me up L BRD up substantially faster than charter itself. So look I think it'll habits desired result.

Good things come to those who wait.

Not necessarily hoping for suggesting everyone's going to wait forever, but we believe it will ultimately pay to our benefit and we can already see those results mathematically from them.

What's happened to the NAV per share of <unk> D on the compare.

Compared to the underlying charter.

So I think we'll go at it and as you point out we're going to have more capital we would expect in the coming months.

And we'll see what how it how it responds.

On the vision for F. On TV I think it has evolved I'll, let stefano comment as well but.

Uh huh.

I think just the sheer heft.

And out of content, we have cash.

Cause us to think about whether that was going to be a meaningful way to connect with our customers for.

And enhanced way would it be a primary way on enhanced way and I think it still is going to be an enhanced way and how much of it becomes incremental revenue how much of it becomes a weighted to join with our customers that will evolve, but it's you've seen what's happened for example, with WWE going into Peacock and obviously the scale of content and much higher than us.

I think it's very difficult for a point service to think Youre going to replace what we have currently with scaled and aggregated services, whether those are linear or whether those are <unk>.

Scaled aggregated digital services, so 1 way or another I think that is that those are going to be the primary way, we get paid but we will find other ways to add value and revenue through things like F. On TV, sorry, I hope I didn't steal your Thunder there step it up.

And now Greg and I think debt.

Totally spot on and I think Ben if I may ask on what Greg just said.

<unk> is a huge potential to make sure that we can and have the experience with more and more content to our customers and we are exploring relative together with our promoters to give the real and live content, we can offer and especially provision to the ones that that attended 2 day to day.

Events, and then extended the appetite of AD and unique content in these and other.

And Catherine.

And that experience, because that's really and incremental way of adding more and more appetite and contract with peoples at that level for 1.

And on the TV rights.

And generally talking I mean, we have the privilege of and many of our major deals have been already completed and so we had and that's to.

And when we can really see the evolution on the TV right. Because this is something that is not uniformly from from.

We seem to reach and and the OTT development for should have a big hit and the future. So we had and the Cleveland position of IV and the biggest problem for.

We'll be ready on and then the habit that says for what's flowing from what we are positioned to day, though this will be ready at the right time to maximize the fact that for what he's really great sit today.

That makes sense. Thanks for your day.

And as supposed to.

And up next we'll take a question from Bryan Kraft with Deutsche Bank. Please go ahead.

Hi, Thanks, Good morning, and I have 1 for Stefano and 1 for Greg.

Greg just curious if there's anything from.

And from the infrastructure legislation that could be an opportunity or risk for liberty that youre watching whether it's something for an existing portfolio company or a new opportunity for liberty to invest behind.

Sort of an open ended question, but I'm curious on your thoughts there and then Stefano and sports betting was 1 of the opportunities that the chase had identified when we first became CEO and I'm. Just wondering if you could give some perspective on that opportunity for formula 1 going forward and any plans for activity that.

And that you have going on and the sports spending area. Thank you.

So touching first on the infrastructure Bill I think we're we're full on <unk> questions and a way that today already and the LFC call, but that's alright.

I think there are some opportunities that will arise most of them are going to arise at charter for GCI.

And if you look at our businesses.

I don't think we're going to see a massive change.

CRE I guess, if you think about <unk>.

<unk> connectivity in general that's probably a plus for our 360 L. But it's on the margin it's not like a massive opportunity I think in and of itself and just the continuation or acceleration of ongoing trend.

<unk>.

The rest of the businesses Formula 1 the Braves.

Not as a live nation not as obvious to me how the infrastructure Bill is helpful. Obviously, a broadband and charter and GCI.

And there are both opportunities there in terms of increasing customer.

And the supply of funds to buy broadband increasing money around broadband probably helping us extend some of our our broadband footprint, but there are also some threats there were new entrants.

May be encouraged so pluses gives and takes and that bill I would say from a prospect for charter and.

Uh huh.

GCI could have been far worse for some of the initial proposals I think the ones in terms of the threat level are way down from what might have been initially proposed about preferences for fiber over coax preferences for overbuild preferences for munis Muni.

Beauty builds all of those things are muted compared to what might have been.

If I may Brian on the on your question with regards to Beth first of all with enough to put debt to Diablo and they'd be more partner these money doing that and that.

We are working together.

No.

The idea of better news and added with a lot for be should depending on the region and the country and we need to make sure that everything is really good on that side for sure and it's a big opportunity, but could that be explosion and the future. So once again working on programs to make sure that the next step for Bellwood partners, who would be the right 1 in terms of dementia and opportunity.

And that could be good for front of the sport.

Okay. Thank you.

Yeah.

Up next we'll hear from David Karnofsky with J P. Morgan. Please go ahead.

Alright, Thank you on terms.

And it'll 1 definitely could you discuss in more detail your takeaways on the sprint race format. Both in terms of how do you think it was received by the fans, but also by your partners on the race promotion and TV side and I think you mentioned, maybe expanding the format next year and any sense for how many races. You can roll this out to and then maybe 1 for Greg you mentioned good.

Progress on L. Mack I know you're somewhat limited in what you can say on this but is there any more color you can provide on it or your position and the stock market overall.

Thanks, David for the question well first of all when we talk about the screen formats. The idea was to offer something different but in order to make sure that there was something new that we can know for.

To all the stakeholders and.

From a 1 we have said that we wanted to do 3.3 tests, 1 that has been done and supersede the other 1 would be and.

And in the Monza and the other 1 it would be at the end of the season in Brazil.

At the end of this.

Complete cash we do not have a plan and look to see what will be the next steps what I can't really say that after the first day of spring event and Superstorm they respond, but we have both from the drivers from the teams. The media has been really positive and also for the for the promoter because if you think that for April day, we had something to say.

And the people from another check on Friday June.

For for the first what he find religion on Friday, so the outcome as opposed to them has been dramatically positive if I may say and it's great because that's real attention interest for TV and also partners because our claims for that built in for example for Dot Com and so we have already seen on financial influent deposits.

On the port that has been that if I may say well, it's a good sign and very very very positive sign and we worked on this though what we said we gonna have a full day briefly if I may say I forget for the season, we have a plan for the future and of course, we have developed and that we are fine tuning and some of the comments that we've achieved and what I can say that.

If we move how do we show that I do believe so.

And that directly and the future for sure there would be no for every race, we have ideas for special Puma for certainly started for grumphie and certain especially on the worst, but we want to offer and add to the already.

The big problem for 1 on ones, so very very positive the problem and something to the first exercise and ready to tap at the end of the of the of the 3 events a proposal that's been home what we could see hopefully would be a big step for vessels due for the future for 1.

And also in our sport and proposition.

Alright, and moving on we are taking a question now from James Ratcliffe with Evercore ISI. Please go ahead.

Thanks, I want to on a L. S like Sam and went on and put me on 1 if I could first of all on Formula 1 and a.

A couple of recent sponsorship deals can you just give us and update on how many meanings for verticals. You think are really available to you and are tracking opportunities and secondly on Liberty Formula 1 and you bought back 100, and excuse me on Liberty Sirius you brought back a 140 million Bucks and stock in the quarter, presumably youre going to.

We're able to get the cash flows from Sirius tax free rent at the end of the year why not accelerate the buyback now.

Got it on.

And $1 billion and debt or was it more than that directly and margin loans.

And you know the massive value of the Sirius stake why not take that buyback activity up to now.

Ramping up now rather than waiting until you have it.

And you get the cash tax free.

Definitely.

Yeah, Yeah yeah.

You want to comment on.

Thank you, Greg and Jamie and Mike.

And from my perspective.

That'd be a great momentum to be shedding and the sponsorship for grow.

Both the debt is connected to all what we are achieving and the championship that theyre going to the better question regarding to how many verticals do you believe there could be still open.

Our global partners I would say, maybe 1 or 2 and maybe the 1 on which we are working on debt is very important for us the technological provider.

That is something related to our possible.

And the promotional offer but we want to exploit through a great broadband and it could be available around the world, that's mainly I would say.

And the most important and 1 that I think it.

It will be both a festival from.

If I could add on sponsorship.

I think it's an evolving market and.

And we certainly see new categories and technology as Stephane pointed out as 1.

When we.

Bought the business nearly 5 years ago I don't think we thought about a crypto sponsorship I don't think that was really on our horizon and now it's a meaningful number. So I think new categories are created things change.

<unk>.

BW T was a team sponsor now they're 1 of our sponsors things move around so I'm not sure it's a static.

That is able to answer that is this spending or this number I think it moves around and there are lots of opportunities still out there.

And it's our challenge to go on and pursue them on.

On the question about <unk> I think we have been ramping we do have a plan. We will have more capital that comes in and I think given that our that the way to support the debt at L. S. X M is primarily with flows from.

On a serious recognizing we don't have and operating business. There we've been relatively cautious with margin debt and the like and we've been relatively constrained on how much exchangeable and we could do this X amount of liquidity. So I think youll see a plan, that's probably more aggressive recognizing what's coming but those are and some of the constraining factors.

Thank you.

And our next question will come from David Joyce with Barclays. Please go ahead.

Thank you a couple of questions 1 on Formula 1.

And I was wondering given all the fluidity and the the rescheduled this year.

Hum.

The race promotion contracts spin on it.

Renegotiated.

On the regulatory allowance of capacity and.

Or are they or have they been fixed with the presumption that you still have.

You have some normalcy coming back later.

Net.

Next year and kind of secondly on that would you be to a kind of a normal sleep period, do you think and capacity and race promotion revenue level for the fourth quarter and then.

Second question on Liberty Sirius.

It was kind of tax related in terms of your auctions.

Specifically, if you were to sell into a serious share buyback program. Once you are over 80%.

With your sales of the book from her Ob.

Tax free or is there any free cash from that thank you.

So all on lately Greg.

And the Fresno you for you.

For Stefano.

Okay. Thank you Rick and David.

As you said the fluidity is really.

The thing that we had to manage through this year and that and we are heading into the second part for the season.

And would be the topic. The good thing is that each day.

A situation we have to manage these unique different debt and because every agreement is and from the 1 that we have more country by country place by place and.

And state that's of course, the airport is always to make sure that from all the points that we need to manage and.

And of course also little bit on Ocean side is to optimize that.

As I mentioned, davita and minimize that any negative possible until we can have we.

We have agreement on.

Honestly the number of attendees doesn't mean anything to us. Some other we got working together to see what could be the benefit that we can bring home depending on the situation and we are working closely with other promoters and the authority to make sure that we can really make.

<unk> planned for the future knowing that as a regular.

And we'll see before the situation is evolving continuously and.

And the thing that we have to do is to make sure that we are able to option that I wait and and.

And the things that we can see and so far to date that we didn't have any material fashion, but on average numbers.

I agree with Stephane on his comments and obviously.

<unk>.

We worked with our promoter partners to maximize the audience allowable and.

Safely at each race and that will impact the revenues and occur.

That'll impact obviously, there is a changing market every day Delta Lambda, we'll see what happens, we're obviously designed to maximize attendance and the safest way possible.

We skipped over 1 comment about Almac and it was we were so excited about formula 1 and I think probably what happened.

Obviously, there's a limited amount I can comment.

Our observations about the stock market and probably consistent with most of the investors and.

Analysts on this call.

It's gotten a lot harder to raise back money and it's gotten harder to get combinations done because the pipe market is particularly difficult.

And the discount is expected from fair trading value, we're probably widening.

All of those have meant that weaker players.

And have probably been washed out we know of deals that were proposed at X price that didn't get done at any price. It's not just below the proposed price and I think that trend I'd like to believe favors us both because we have a very strong investor group in <unk>.

And that's back who have expressed willingness to do a pipe with us but also because unlike many sponsors who are just playing for the promote we're putting up at least $250 million into the deal and could put substantially more if we found the right opportunity and they're our willingness to effect via pipe investor alongside pipe investors.

And is a comforting thought to many.

And I have recently been approached by.

Uh huh.

Numerous firms about hey, we'd love to come along with you and partner on it on a deal et cetera. So I think there's plenty of capital available for us for the right deal.

And the right deal is likely to involve something where there is more capital required to scale.

Fair to a normal IPO or something like that and it's probably partly due to COVID-19 weighted related recovery or the like so all of those.

Our speculations about what we'll see we have seen a lot of those kind of opportunities, but have not found the perfectly priced 1 or opportunity would be like yet, but I'm confident we will.

On the question about selling into the buyback.

And our tax treatment will vary depending on whether we sell to the company.

We currently have no arrangement to do or whether we sell into the market and 1 of the first would be the latter would be taxable the former would be tax free.

Great. Thank you very much.

And up next we'll hear from Jason Bazinet with Citi. Please go ahead.

I think there's gonna be and easy question for you to answer, but if I just fast forward and we get to the point where.

There is some sort of equity exchange for chico's or.

Between analysts actually and Syria, where we get the 1 operating business and 1 security.

Is it is it obvious to you, which 1 of those is the surviving entity could you just talk about the pros and cons.

Thank you Jason No I don't think its and known.

And I'm not sure. It's an easy question, Jason I'm not sure. It's known that you could imagine scenarios where.

And effects here becomes a.

Good.

Operating subsidiary of Liberty.

And with its on tracking stock, where you could imagine scenarios, where there was effectively on.

RMT reverse Morris trusts, where our shares were subsequently spun out to our shareholders and Siri became a freely traded company both of those are imaginable scenario certainly.

Okay. So no real constraints to go either way from your perspective.

No.

Okay. Thank you.

Okay.

And our last question will come from Matthew Harrigan with benchmark. Please go ahead.

Thank you.

John Thanks for that.

Comscore I guess the default rate question.

Stepping back from the Fray and.

And looking at MLP overall, it's got good new TV contracts for 28, albeit pretty fast and that's correct and.

And you're having a lot of the field and the non baseball.

She has some real issues.

Longer periods of time, where we're creating for the sport and and the competition on the field you pick me up for it and the owners group overall are amenable to fairly draconian measures like maybe even moving back to the picture smell and to get more.

And then and into the game.

And I know that's kind of a fourth question, but principally for financials over a period of time as well. Thanks.

Thank you Matthew.

We remain Super excited about the Braves there are.

Continuous work led by commissions, which involve both.

Owners' representatives.

<unk> Representatives and player representative to look to make the game, even more exciting a lot of that revolves around speed.

To try and shorten the playing times.

Innovations like.

Doubleheaders.

And going to 7 innings at least for this period of time, you've seen innovations around.

During COVID-19 about starting a tie games, starting renters and second base things like that so there are certainly attempts to speed things up.

And I'm.

And I'm not convinced moving to pictures mountain is going to be happening anytime soon but on.

All things are open and possible I think people respect the tradition of the game, but also want to create as much excitement as possible and that balance will be try to be maintained.

Yeah.

Thanks, Greg.

Thank you to our listening audience and questioners.

And hope to speak with you next quarter, if not sooner and.

And at our Investor meeting in November and with any debt. Thank you very much.

That does.

On today's call. We thank you for your participation you may now disconnect.

[music].

Yeah.

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[music].

Ladies and gentlemen, thank you for standing by and welcome to the Liberty Media Corporation 2021, Q2 earnings call.

And 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 1 on your telephone as a reminder, this conference is being recorded August.

I would 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 and 1995 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned and Liberty media and its most recent form 10-K, and 10-Q for Liberty media acquisitions form S..1.

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

Are there to or any change in events conditions or circumstances on which any such statements made on today's call. We will discuss certain non-GAAP financial measures for Liberty media, and Sirius XM and when he and adjusted OIBDA and adjusted EBITDA and the required definitions and reconciliations for Liberty media and Sirius XM and schedules 1 through 3 can be found.

And at the end of the earnings press release issued today, which is available on Liberty media website now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO. Thank you Courtney and good morning to all of you.

Today speaking on the call. We will also have formula one's president and CEO, Stefano Domenicali, and Liberty's, Chief accounting and principal financial Officer, Brian Wendling.

So beginning with Liberty Sirius XM.

Continuing to repurchase shares purchasing $141 million across our <unk> and the case shares from May through July and.

And discount remains and we therefore were purchased and a look through price per I'm, sorry of just over $4 per share.

We continue to take advantage on the discount opportunity and I expect we will continue to do and going forward and our ownership of Sirius XM is 78, 1% as of July 23.

Looking now at Sirius itself, they had an outstanding results for the quarter, another beat and raise with record low churn at 1.5% and.

EBITDA also set a new quarterly record and new car penetration increased to 82%.

We have a continued focus on growing the already strong presence and the car.

140 million vehicles on the road today, which are enabled for Sirius XM and.

And the 360 <unk> enhanced feature set and will continue to evolve based on data received from from users.

We're also growing engagement outside of the car and the rebranded SSM App.

Is gaining traction the variable margins are as good or better than satellite I encourage you to get it today.

And please don't forget we are growing our advertising platform with 150 million listeners the largest digital audio AD platform and North America.

All of these combined platforms and capabilities, we believe Sirius XM presents a compelling comprehensive offering for talent media and social brands create and monetize audio experiences.

So I'm trying to live nation.

The reopening accelerated led by.

Outdoor concerts, and the U S and the UK with other countries coming along and vaccination levels increase.

Festival and amphitheater and are the focus for the summer led by Lollapalooza Rolling Loud Hip Hop Festival in Miami.

Latitude and the U K.

Between them. They all had 750000 fans, which is back to pre COVID-19 levels.

Live nation is helping to put on the New York reopening concert in Central Park.

August 21 and.

And <unk> our streaming can service continues to be an incremental live revenue stream for us with Bob for Bob Dylan show later this month.

A live expect all segments to return to profitability and the second half of 'twenty 1 and.

And all signs continue to point to a great 2022, and we expect 2022 activity and financial results will exceed 2019.

Turning now to the Formula 1 group.

That was phenomenal racing.

For the first half of the season up until the summer break with appears balance between Louis and Max.

Among the rest of the drivers there is a tight competition for third.

And the Constructors Championship is also highly competitive with Mercedes and Red Bull going wheel to wheel and Macquarie Mclaren and Ferrari battling for the third spot.

We remain impressed with the way and Formula 1 has continued to navigate the continued challenges from the pandemic.

I have lost count of how many times, we have made changes to the 2021 calendar, but we continue to move forward and.

And the Formula 1 team continues to plan for the known and unknown variables that come at them.

We did welcome a full crowd at Silverstone and 356000 fans over the weekend, which was tremendous and.

And we remain confident and our ability to have a full 23 race season.

We also had our first sprint event, there, which was a resounding success.

We made meaningful progress on sponsorship we continue on and we're consistently announcing new partners.

You haven't already I encourage you to tune into the business breakdown podcast with Stefano.

And he's quite articulate about the future of the business the linked to it as on our IR homepage.

The Braves baseball fans nationwide, but particularly in Atlanta and year and certain parts of Colorado were devastated so you're killing it and his season early we do wish him a speedy recovery.

The team has been battling despite setbacks and we had an impressive comeback last night to sweep the Cardinal and the brands are now over 500.

And truth and.

<unk> Park fans are back and a big way, we expanded the capacity of 100% and early may.

<unk> revenue per home game is up and the second quarter compared to 2021, despite only partial capacity and Oems.

And ticket sales concessions and retail per caps are all trending very favorably were having trouble keeping jerseys and stock and high quality problem.

For the Braves do lead major League baseball and total attendance and over $1.5 million and average attendance debt over 29000 per game.

With our financial strength, we are reinvesting and on field talent before the tread deadline, you saw us do that rebate and that the battery development revenue continues up and the quarter due to rental income from new tenants for the Teekay and Papa John's and the end of Covid related modified rents.

You'll also see the phase III office tower work.

Confident it will be fully leased and the near term and.

And just and crop will move into their new headquarters later this month.

Finally, we continue to make good progress on Almac. This back we think the trends and the spec market which are.

<unk> for many actually play to the benefit of Liberty.

With that I will turn it over to Brian for more on our financial results.

Thank you, Greg and good morning, everyone Liberty Sirius XM group had attributed cash restricted cash and liquid investments of approximately $418 million.

Excluding $1.1 billion of cash and restricted cash held at Sirius XM.

We also have $1.1 billion of Undrawn margin on capacity at the parent level related to our series and live nation margin loans.

Note that a portion of our cash will be used later in 2021 to repay our 225% 5 nation exchangeable bonds.

Based on the fair value of the liability at quarter and the amount of cash use would be $517 million.

As of August 5th the value of our Sirius XM stock held at Liberty Sirius XM group was over $20 billion.

And the value for live nation stake was nearly $6 billion.

We had $3.2 billion and principal amount of debt against these holdings.

Total Liberty Siriusxm group attributed principal amount of debt was $14.1 billion, which includes the $9.9 billion of debt that's held directly at Sirius XM.

Formula 1 group had attributed cash and liquid investments of $1.7 billion, a quarter, and which excludes $537 million and cash held directly at F..1 the corporate cash balance includes.

$384 million that was received from Alice XM and Q2 related to settling out for cost growth.

On a formula 1 group attributed principal amount of debt was $3.4 billion, which includes $2.9 billion of debt and F, 1, leaving $546 million and corporate level.

F 1 and 500 million $500 million revolver remains undrawn.

While we are still on this period of a covenant waiver at F..1 target leverage for the business remains 5% to 5.5 times.

Please note that during the 3 months ended March 31, 2021 F..1 began reclassifying certain components previously reported and other revenue and the primary F..1 revenue to better align with the way it currently evaluated for.

Opponents reclassified and the primary on <unk> revenue include F..1 TV subscriptions up 2 and half 3 related fees broadcast origination and support fees and digital advertising among others.

Additional detail, including the impact of the revenue reclassification for the years ended December 31, 19, and 20 and can be found on schedule 3 of our earnings press release posted to our website.

Lastly to the Braves at quarter, and Brian had attributed cash liquid investments and restricted cash of $231 million and attributed principal amount of debt of 690 for libert.

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 1.

Thank you Brian the 2020, when the season is exceeding expectations across the board.

Each weekend on the plan.

Drama and the unexpected.

And Gary.

As a point a zone.

And these maintenance activities and those highest first on the annuity and blended peak and <unk>.

Also impressed with this expense is holding off on in terms for the meadows ups.

The rivalry between Lewis and <unk> continues to build and debt by choice for the challenge, which culminated with the incentives I assume and we.

And the predictable outcome on Sunday and Windows on the pages and for the stellar grade slightly ahead and the standard.

And the Buffalo for the pipe between now and this bulk was embedded.

Among the trust factor is just a few.

Savings for first and the collateral on for Robyn.

For 1 on 1 leaving up to the promise and the signs are responding.

We have a full cloud.

Most and 300.

I'll go over the weekend with the housing and housing.

It's on.

These sorts of Denver is unrivaled and sport.

<unk> was certainly aided by the highest volume for the championship and the inaugural Exelon Springs events.

And integration and the return on the public cloud.

On the strength.

The first on 3 events and this season, we have received overwhelmingly positive feedback from that.

<unk> drivers and <unk>.

And certainly these provides additional opportunities for the hour for multiple media and sports so buses when.

And we will continue and to discuss any lessons learned from the farmers with the themes on the fundamentals are strong we believe discount on them.

2022, and look forward to the next strength.

Cash and.

Engaging across the Oakland, we have and data throughput for the British Grand Prix and on the digital from unique users for the S..1 website and App this season.

Over 8 per cent compared to 2000 and.

Social engagements continues to growth, reaching 14 media and social interaction for the brick and timber.

Great.

And we've seen this growth reflected in our total number although it's literally and as well on social media, which now stand at almost sports to media.

Disney and <unk> opportunity and we have seen strong growth over 2000 and.

And so in many markets, notably songs that Netherlands, Norway, Spain, and Sweden, and the United States.

And that's 1 TV remains a great ways for patents to catch all the action of the race weekend.

Concurrent views for race days has consistently been more than 2.5 times higher than the 2020 season average with minimum skew over or at least we can also buy more than 1.5 times and vessels last season.

We have now and level of patients into our plans and 23 rates and seasonal this time last year, we had only completed for.

2021 as presented some of the same challenges as 2012, although we have some new wells and <unk>.

Proud of our team and our partners as we continue to navigate the landscape.

On our last earning calls the Canadian growth, we are just being replaced by the <unk> growth rate.

However, useful drug administration related to turnkey, we had to we compete again and secure back to regulators and Ulster Bank moving the strength from Korea weekend.

Good day mentally we list and able to secure a software product and Nathan and the commended us for a replacement for the Singapore Grumpy.

All of these changes required great named Glenn Greene and PVC.

PBT and hard work flow.

Our partners and the confidence and which new ways for them.

<unk> hundred 1 as a demonstrated ability to manage the logistics on profit. This fiction in multiple countries and then set the gold standard and testing and effective relative to deal with positive cases.

And I'm pleased we have conducted 56000 tests on drivers themes and question and that produced positive cases photo positivity rate of 0.06%.

And at least fighting tooth and operation, we've seen comp COVID-19 and our ability to safely deliver a 23 race season.

The non to host 1 on non res expenses.

After all on high as evidenced by the web.

We've been slow in 2021 and.

And we wouldn't see net interest from new venues and that now currently part of the 2020 volume calendar and the existing venues does that open to host in the state for weeks.

As different and part of the World.

Various stages of emerging from the from that in the.

Governments view.

<unk> has an exciting ways from attuned to the public stage and was convinced OPEC.

We have made tremendous progress in 2021 and sponsorship and the momentum has continued since our last guidance all in May.

Simple does.

Joining us and global partners and non partners on the F..1 screen Stevens and will become decision and picked up.

And sponsor and Thats, the NFC howerton of echelon.

They will present the brand New award would be announced ahead of the budget growth rate.

We are also well coming and being WCS and title sponsor of the Austin and double Heather and last week announced that they will become 1 is on facial water technology partners working with Epsilon and deliver a single use plastic screen and look by 2025.

What day title on the regional and finance and HR and please pardon me and I'll have 1 across the UK and Germany.

Finally, we completed a multiyear and expansion of our financing companies E Commerce and manufacturing following an outstanding performance on our <unk>.

Same on the official online Epsilon for grew by more than 40% and it doesn't 'twenty and accelerates and triple digit growth.

First 6 months of 2020, well for you.

S market is the largest in terms of sales on the <unk> side.

Lightning decreases with resolution of the sports and the country.

For the thing I would go on to expand our reach we have announced and doubtful 1 partner and leveraged for all debt and excellent teams will feature and the videogame and rockets and these latest guidance.

Beginning on multi year and partnerships we.

We have less on how can we assume that 2021 season, our planning for 2022 has been ongoing for some time.

As mentioned before there is a high demand for payments to make 2022 calendar and we hope to announce and provision will commence during September and October.

We can confirm that the much anticipated and Miami Grand Prix will happen and the first half of May day.

And non school they think it is high and some states have now sufficiently stock.

We also look forward to our move to some theaters for the <unk>.

Cash and growth rate beginning in 2073.

Currency will provide is coming back from them.

And what.

We have previously discussed the foundation that we have.

Growth in place over the last few years with coast GAAP net income.

And the new Concorde agreement, we have created a sustainable and a flourishing ecosystem for this pool.

These along with a compelling products on the strike as greatest interest and opportunities across the board.

And this includes ongoing discussion and the highest lead them and with edge human and sectors, we've seen the brand value and formula 1 as well as opportunities for the new engine and development of sustainable fuels.

Along these lines, we continue to develop programs on the tumor and once we get a sense 1 initiatives.

For the British company, and we delivered a carbon neutral growth.

We plan for things these learnings as we work towards our goals for ensuring all thats..1 events are sustainable by 2025 and on our way to become net zero carbon by 2000 and uncertainty.

We are also seeing great interest from Oems and our plans for the next form on 1 engine to be on the percent sustainable fuels and those positive discussion on continuing.

But I wouldnt focus too increased diversity and inclusion of those from a 1 we have recently announced commitments relating to 10 engineers and scholarship for Florida, and the representative groups and apprentice and Internet she programs within the F..1 organization and.

We believe that that's a truly global sport, we can make a difference by ensuring that we are diverse and inclusive in our own community as the communities we serve around the world.

Thanks for change for these general donation to funding these scholarships and.

I think logos right I want to thank everyone on October 1, including all of our drivers teams and business partners for this.

Indication and hard work so far this season and <unk>.

And some much deserved time off and we look forward to assume innovation and August and Tonight.

And the total.

Full speed ahead.

And now with 2 and the cold.

Moving to Greg. Thank you so much bye bye.

Stephane and thank you Stefano and Brian.

And very exciting news.

Our investor meeting and will be held on Thursday August 18th for fall experience will be offered and person at the New York Times Center and virtually please save the date.

<unk> details will be provided soon.

Please note that all in person and attendees will need to be fully vaccinated against COVID-19.

We appreciate your continued interest and Liberty media and hope you all stay safe and healthy and with that operator I'd like to open the line for questions. Thank you.

Absolutely and if you would like to ask a question. Please signal by pressing star 1 on your telephone keypad, if using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to return equipment. Once again, everyone to ask a question press star 1 on your telephone keypad and we'll pause for a quick moment to assemble the queue.

Alright, and our first question will come from Ben Swinburne with Morgan Stanley. Please go ahead.

Hey, good morning, everybody.

Greg just to clarify is it August 18th on November 18th.

November 18th and I would say August.

You did yes.

Yes.

And I heard you mid November so thanks for clarifying and yet exciting for for in person.

2 actual questions if I could Greg just looking at the discounts.

Liberty broadband I know this isn't a liberty broadband and call, but I think it's relevant for Liberty Siri that discount has not improved probably widened even since that buyback kicked into substantial levels and I'm. Just wondering what you take from that as we think about the opportunity to sort of go out for the discount at Liberty Sirius since youre going to and theory.

And access to a lot more capital.

And at some point over the next quarter or 2.

And then.

As commented and the release about Formula 1 TV contributing to revenue growth and I feel like that.

<unk> went from something we were really focused on as a business to sort of fading and now I'm sort of wondering.

Given COVID-19 and just the popularity of the sport increasing what's the vision there or is that something that you guys are investing more and do you see that as a big revenue opportunity or is it more of an enhancer of kind of the core rights and may be a driver of engagement. Just maybe you can update us on how youre thinking about the OTT streaming product at this point.

Sure.

Thank you Ben for.

First on the discounts.

Well.

It happened to be well aware since we have on Liberty broadband and Paul.

And what's going on there and we actually.

During the quarter for example, charter was up about 15% and R and Z.

Per share of Liberty broadband charter was up about 17%, because we were able to buy it.

As much as we were able to buy this year at a discount.

We are actually driving the NAV.

Charter excuse me of <unk> substantially faster than charter itself. So look I think it'll habits desired result.

Good things come to those who wait.

Not necessarily hoping for suggesting everyone's going to wait forever, but we believe that ultimately pay to our benefit and we can already see those results mathematically from debt.

And what's happened to the NAV per share.

L B R D on the.

Compared to the underlying charter.

So I think we'll go at it and as you point out we're going to have more capital we would expect in the coming months.

And we'll see what how it how it responds.

On the vision for F..1 TV and I think it has evolved I'll, let stefano comment as well but.

I think just the sheer half of what the amount of content we have.

Cause us to think about whether that was going to be a meaningful way to connect with our customers for it.

And enhanced way I wouldn't be as the primary way on enhanced way and I think it still is going to be enhanced way and how much of it becomes incremental revenue how much of it becomes a weighted to join with our customers that will evolve, but you've seen what's happened for example, and with WWE going into Peacock and obviously the scale of content being much higher than us.

I think it's very difficult for a point service to think Youre going to replace what we have currently with scaled and aggregated services, whether those are linear or whether those are <unk>.

Scaled aggregated digital services, so 1 way or another I think that is that those are going to be the primary way, we get paid but we will find other ways to add value and revenue through things like F. On TV, sorry, I hope I didn't steal your Thunder there Stefano.

And now Greg and I think that's new.

Hopefully spot on and I think Ben if I may ask on what Greg has said.

<unk> potential to make sure that we can and have the experience with more and more content to our customers and.

And then we are exploring relative together with our promoters to give the real and lives.

And we can also and especially provision to the ones that that attended to debt.

You bet and then extended the appetite of ads and unique content for in these in our capital in order to grow.

And that experience.

Media and incremental way of adding more and more appetite and comfortable with people's at that level for a while.

On the TV rights.

And generally talking I mean, we have the privilege of and many of our major deals have been already completed and so we are not in that situation. When we can really see the evolution on the TV rights. Because this is something that is not uniformly and ctrip from region to region and the OTT development for should have a big hit and the future.

So we are and the Cleveland position of I think the biggest COVID-19 relief revenue and then having the chance to explore and for what we are positioned to day, though this will be ready at the right time to maximize the fact that for what is really a great fit today.

That makes sense. Thanks for your day spoke to.

And up next we'll take a question from Bryan Kraft with Deutsche Bank. Please go ahead.

Hi, Thanks, Good morning, and I have 1 for Stefano and 1 for Greg.

Greg just curious if there's anything from.

From the infrastructure legislation.

Could it be and opportunity or risk for liberty that you're watching on whether it's something for an existing portfolio company or a new opportunity for liberty to invest behind.

Sort of an open ended question, but I'm curious on your thoughts there and then Stefano and sports betting was 1 of the opportunities that the chase had identified when we first became CEO and I'm. Just wondering if you could give some perspective on that opportunity for formula 1 going forward and any plans for activity that.

You have going on and the sports betting area. Thank you.

So touching first on the infrastructure Bill I think we're full on LDR day questions and a way that today already and the LFC call, but that's alright.

I think there are some.

Opportunities that will arise most of them are going to arise at charter for GCI.

And if you look at our businesses.

I don't think were going to see a massive change.

CRE I guess, if you think about greater connectivity and general that's probably a plus for our 360 L. But it's on the margin it's not like a massive opportunity I think in and of itself and just the continuation or acceleration of ongoing trends.

The rest of the businesses Formula 1 and the Braves.

Not as live nation, not as obvious to me how the infrastructure Bill is helpful. Obviously, a broadband and charter and GCI.

Our growth opportunities there in terms of increasing <unk>.

And the supply of funds to buy broadband increasing money around broadband probably helping us extend some of our.

Our broadband footprint, but there are also some threats there were new entrants.

May be encouraged so pluses gives and takes and that bill I would say for perspective and charter and.

GCI could have been far worse for some of the initial proposals I think the ones in terms of the threat level are way down from what might have been initially proposed about preferences for fiber over coax preferences for overbuild preferences for munis.

Muni builds all of those things are muted compared to what might have debt.

If I may Brian on the on your question with regard to debt first of all we don't have to put debt because we have already more partner. These 1.8.

And Thats.

We are working together as you know the idea of better news and added with a lot for <unk>, depending on the region on the country and we need to make sure that everything is really good on that side for sure and it's a big opportunity, but could that be exposed in the future. So once again working on programs to make sure that debt.

The next debt both our deposits you will be the right why on examples I mentioned opportunity that could be good for product support.

Okay. Thank you.

Yeah.

Up next we'll hear from David Karnofsky with J P. Morgan. Please go ahead.

Alright, Thank you for.

The middle 1 definitely could you discuss in more detail your takeaways on the sprint race format. Both in terms of how do you think it was received by the fans, but also by our partners on the race promotion and TV side and I think you mentioned, maybe expanding the format next year any sense for how many races, you could roll this out to and then maybe 1 for Greg you mentioned.

Progress on Almac I know you're somewhat limited in what you can say on this but is there any more color you can provide on it or your position and <unk>.

Market overall.

Thanks, David for the question well first of all when we talk about the screen formats.

Was to offer something different in order to make sure that there was something new that we can offer to all the stakeholders and promo.

And from what we have said that we wanted to do 3.3 tests, 1 that has been done Silverstone and the other 1 would be.

And the Monza and the other 1 would be at the end of the season in Brazil.

At the end of this.

Complete cash we're going to have a plan and see what will be the next steps what again and let me say that after the first day.

And then and Superstorm respond, but we have both from the drivers from the teams. The media has been really positive and also for the for the promoter because if you think that for April day, we have something to say.

And people from another check on Friday.

For the first 1 final ready on Friday, so the outcome as opposed to them has been dramatically positive if I may say and that's great. Because that's roadmap mentioned interest for TV and also partners because our claims for that built in for example say per Doctor.

And so we have already seen on financial Inc.

The port that has been that if I may say look a good sign and very very very positive sign and we want to respect what we said we're going to have.

For the briefly if I may say I forget for the season, we have a plan for the future and of course, we have developed and that we are fine tuning and some of the comments that we've received and what I can say that debt to move how do we show that I do believe so.

And in that direction and the future for sure there would be not for every race, we have ideas for special Puma for certainly starting from Rumply and certain especially on the worst, but we want to offer and add to the already and incredibly profitable for 1 on ones. So very very positive comments on the first.

Exercise and ready to tap at the end of the of the of the 3 events.

Proposal, that's been the home what we can see hopefully would be a big step for vessels at the current and future for 1.

Also in our sport and proposition.

Alright, and moving on we are taking a question now from James Ratcliffe with Evercore ISI. Please go ahead.

Thanks, I want on Saks, Sam and went on and for me I Wonder if I could first of all on Formula 1 and a couple of weeks and sponsorship deals can you just give us and update on how many remaining sort of verticals. You think are really available to you and more attractive opportunities and.

And secondly on Liberty Formula 1 and you bought back 100 excuse me on Liberty Sirius you brought back a 140 million Bucks and stock in the quarter.

And I, presumably youre going to be able to get the cash flows from Sirius tax free rent at the end of the year why not accelerate the buyback now and you've got.

$1 billion and debt or was it more and that directly and margin loans.

And you know the massive value of the Sirius stake why not take that buyback activity up to this.

Ramping up now rather than waiting till you have the ability.

And you get the cash tax rate.

Definitely.

Yes, yes.

You want to comment on spot and thank you.

Thank you, Greg and James domain and for me.

The perspective, we have seen already a great momentum.

And in the sponsorship for growth.

Both the debt is connected to all what we are achieving and the championship that theyre going to the question regarding to how many growth because you believe that could be still open.

Our global partners I would say, maybe 1 or 2 and maybe the 1 on which we are working on debt is very important for actually the technological provider.

And that is something related to our possible.

And the promotional I'll flip and we want to exploit through a great broadband and it could be available around the world, that's mainly I would say that.

And the most important and 1 that I think it.

It will be both the festival.

If I could add on sponsorship.

I think it's an evolving market.

And we certainly see new categories and technology as Stephane pointed out as 1.

When we.

Bought the business nearly 5 years ago I don't think we thought about a crypto sponsorship I don't think that was really on our horizon and now it's a meaningful number. So I think new categories are created things change.

<unk>.

PWT was a team sponsor now they're 1 of our sponsors things move around so I'm not sure it's a static.

That is able to answer that is this many or this number I think it moves around and there are lots of opportunities still out there.

And it's our challenge to go on and pursue them on.

On the question about <unk>.

I think we have been ramping we do have a plant we will have more capital that comes in and I think given that our that the way to support the debt at L. S. X M is primarily with flows from.

On a serious recognizing we don't have and operating business. There we've been relatively cautious with margin debt and the like and we've been relatively constrained on how much exchangeable and we can do for this X amount of liquidity. So I think youll see a plan, that's probably more aggressive recognizing what's coming but those are and some of the constraining factors.

Thank you.

And our next question will come from David Joyce with Barclays. Please go ahead.

Thank you a couple of questions 1 on Formula 1.

And I was wondering given all the fluidity and be the rescheduled this year.

Hum.

The race promotion contracts spin on it.

Renegotiated.

On the regulatory allowance of capacity.

Or are they or have they been fixed with the presumption that you still have.

And you have some normalcy coming back later.

Yeah, let's see next year and kind of secondly on that would you be to a kind of a normal sleep period, do you think and capacity and race promotion revenue level for fourth quarter.

And then a second question on Liberty Sirius.

It was kind of tax related in terms of your auctions.

This vertically if you were to sell into.

A serious share buyback program once you are over 80%.

With your sales of the book from her Ob.

Thanks for you or is there any leakage from them.

For you.

So I'll try and mainly Greg.

For your first Stefano.

Okay. Thank you.

David.

You said the fluidity is really.

And the things that we had to manage through this year and that and we are heading into the second half of the season, but that would be the topic.

1 thing is that since <unk>.

To ensure we have to manage these unique incident.

And because every agreement is different from the 1 that we have more country by country place by place.

And state that's of course, the effort is always to make sure that from all debt point the ability to leverage.

And of course also notice on auction site is broke demise that.

And the dimension of it and minimize any negative possible until we can have.

We have agreements where honestly the number of attendees doesn't mean anything to us. Some other we got working together to see what could be the benefit that we can bring home depending on the situation and we are working closely with all the promotions and the authority to make sure that we can really make.

<unk> planned for the future knowing that as a regular.

Greg will see before the situations and boldly continuously and.

And the thing that we have to do is to make sure that we have.

So absent that I wait and and and the things that we can see and so far to date that we didn't have any material cash but on average numbers.

I agree with Stephane on his comments and obviously.

Yes.

We worked with our promoter partners to maximize the audience allowable and.

Safely at each race and that will impact the revenues and occur.

That'll impact obviously, there is a changing market every day Delta Lambda, we'll see what happens, we're obviously designed to maximize attendance and the safest way possible.

We skipped over 1 comment our about Almac and it was we were so excited about formula 1 and I think probably what happened.

Obviously, there is limited amount I can comment.

Our observations about the stock market and probably consistent with most of the investors and.

Analysts on this call.

It's gotten a lot harder to raise back money and it's gotten harder to get combinations done because the pipe market is particularly difficult.

And the discount is expected from fair trading value, we're probably widening.

All of those have meant that weaker players.

Have a probably a bit and what yields.

The proposed at X price that didn't get done at any price not just below the proposed price and I think that trend I'd like to believe favors us both because we have a very strong investor group in Almac, that's back who have expressed willingness to do a pipe with us but also because.

Unlike many sponsors who are just playing for the promote we're putting up at least $250 million into the deal and could put substantially more if we found the right opportunity and our willingness to effect via pipe investor alongside pipe investors I think is a comforting thought to many.

And.

And I have recently been approached by.

Numerous firms about hey, we'd love to come along with you and partner on it on a deal et cetera. So I think there's plenty of capital available for us for the right deal.

And the right deal is likely to involve something where there is more capital required to scale.

<unk> to a normal IPO or something like that and it's probably partly due to COVID-19 weighted related recovery or the like so all of those.

Speculations about what we will see we have seen a lot of those kind of opportunities, but have not found the perfectly priced on our opportunity would be like yet.

And I'm confident we will.

On the question about selling into the buyback.

Our tax treatment will vary depending on whether we sell to the company.

We have no arrangement to do or whether we sell into the market and 1 of the first would be the latter would be taxable to former would be tax free.

Great. Thank you very much.

And up next we'll hear from Jason Bazinet with Citi. Please go ahead.

I think this is gonna be and easy question for you to answer, but if I just fast forward a bit.

And we get to the point where.

And there is some sort of equity exchange for chico's or.

Between now and what's actually and series, where we get to 1 operating business and 1 security.

Is it is it obvious to you, which 1 of those is the surviving and Turkey could you just talk about the pros and cons.

Thank you Jason No I don't think its a known.

I'm not sure. It's an easy question, Jason I'm not sure it's known that you could imagine scenarios where.

And effects here becomes a.

Operating subsidiary of Liberty.

And with its on tracking stock or you could imagine scenarios, where there was effectively on.

<unk> reverse Morris trusts, where our shares were subsequently spun out to our shareholders and CRE became a freely traded company. Both of those are imaginable scenario certainly.

Okay. So no real constraints to go either way from your perspective.

No.

Okay. Thank you.

Okay.

And our last question will come from Matthew Harrigan with benchmark. Please go ahead.

Thank you.

John.

Comscore I guess the default rate question.

Stepping back from the Fray and looking at MLP overall.

Got you know good new TV contracts for 28, albeit pretty fast track and <unk>.

And you're having a lot of fuel and the non baseball.

Because you have some real issues over a longer period of time waiting for the for and the competition and the field do you think man for it and the owners group overall are amenable to fairly draconian measures like maybe even moving back the pitchers now and to get more excitement and into the game and.

And that's kind of a fourth question, but principally for financials over a period of time as well. Thanks.

Thank you Matthew.

We remain Super excited about the Braves there are.

Continuous work led by commissions, which involve both.

Owners' representatives.

MLB Representatives and player representative to look to make the game, even more exciting a lot of that revolves around speed.

To try and shorten the playing times.

And the innovations like.

Doubleheaders.

Go into 7 innings at least for this period of time, you've seen innovations around.

During COVID-19 about starting a tie games, starting renters and second base things like that so there are certainly attempts to speed things up.

And.

I'm not convinced moving to pictures Mt is going to be happening anytime soon but on.

All things are open and possible I think people respect the tradition of the game, but also want to create as much excitement as possible and that balance will be try to be maintained.

Thanks, Greg.

Thank you to our listening audience and the questioners we.

Hope to speak with you next quarter, if not sooner and.

At our Investor meeting in November if and when any debt. Thank.

Thank you very much.

That does conclude today's call. We thank you for your participation you may now disconnect.