Q2 2021 Liberty Media Corp Earnings Call

[music].

Ladies and.

And thank you for standing by 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're a a question. Please press star 1 on your telephone as a reminder of 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 within the meaning of the private Securities Litigation Reform Act of Thanks for 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 on 10-Q for Liberty media acquisitions form S..1.

<unk> 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 in 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 statement is made.

On today's call, we will discuss certain non-GAAP financial measures for Liberty media and series excess liquidity on adjusted OIBDA and adjusted EBITDA of the required definitions and reconciliations for Liberty media on Sirius XM 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 would like.

I 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 a formula one's president and CEO Stefan on kind of colleagues and Liberty's Chief accounting and principal financial Officer, Brian Wendling.

So beginning with Liberty Sirius XM.

<unk> continued to repurchase shares purchasing a 141 million of cross Ellis ex M&A as the case shares for May through July.

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

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

Looking now at serious 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 in the car or a 140 million vehicles on a road today, which are enabled for Sirius XM.

And a $3.60 L. Enhanced feature set we continue to evolve based on data received from users.

We're also growing engagement outside of the car on 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're growing our advertising platform with a 150 million listeners the largest digital audio AD platform in North America.

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

So turning to live nation.

The reopening accelerated led by a <unk>.

Outdoor concert in the U S and the U K with other countries coming along <unk> vaccination levels increase.

A festival and amphitheater are the focus for the summer led by Lollapalooza.

In a loud a hip hop festival in Miami.

<unk> in the U K.

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

A.

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

August 21.

<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 in the second half of 'twenty 1.

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

Turning now to a formula 1 group.

That was phenomenal racing.

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

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

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

We remain impressed with the way Formula 1 is continues to navigate the continued challenges for 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 a formula 1 team continues to plan for the known and unknown variables that can come out of them.

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

And we remain confident of 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 it we're consistently announcing new partners.

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

For us 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 in a year in certain parts of Colorado were devastated so you're calling you 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 Cardinals and our brands are now over 500.

A true it's.

A tourist park fans are back in a big way, we expanded the capacity of a 100% in early may.

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

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

We're having trouble keeping jersey in stock a high quality problem.

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

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

Youll also see the phase III office tower work.

Confidence it will be fully leased in the near term.

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

Finally, we continue to make good progress on Almac this back.

The trends in 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 a more on our financial results.

Thank you, Greg and good morning, everyone Liberty Siriusxm 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 loan capacity of the parent level related to our series <unk> 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 a liability at quarter end of 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 with over $20 billion net.

A live nation stake was nearly $6 billion.

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

Total Liberty Sirius XM group attributed principal amount of debt of $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 end, which excludes $537 million of cash held directly at F..1 the corporate cash balance includes.

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

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

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

Well, we're still on a period of a covenant waiver at F..1 target leverage for the business remains a bond of 5.5 times.

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

Components reclassified in the primary of 1 revenue include F..1 TV subscriptions of 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 and can be found on schedule 3 of our earnings press release posted to our website.

Lastly to the Braves at quarter end <unk> had attributed cash liquid investments and restricted cash of $231 million and attributed principal amount of debt 690 for liver.

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

With that I'll turn it over to Stephane to discuss Formula 1.

Thank you Brian the 2021 of the season is exceeding expectations on support.

We can on putting drama and the index.

Then Gavin did not disappoint a zone.

Blayne This amazing victory and the highest first then you wouldn't blended fee and I'm also impressed with his expertise of holding off on in terms of a number of those labs.

The rivalry between Lewis for next Consignors for building the types of waste for the championship, which culminated with the instance of that simple and we.

On the unpredictable outcome on Sunday and until then let's say this and for the start of a break of slightly ahead.

And the bulk of it puts a thursday.

I mean, all of these bulk of some bad debt.

The confidence among the dose.

Just a few significant growth.

1 of them, let's say, they're still first and makes a lot of that's for Ravi.

For 1 on 1 leaving up to the promise and defense of responding.

We have a full crowds of silver posting a 300 of.

Sample over the weekend with a hospital.

Uh huh.

These sorts of of Denver is on volume.

Holdings Corp.

Attendance was certainly aided by the type of items with a championship.

Ex 1 spring event, a produce compelling innovation and a it turned it off of the public cloud.

On the strength.

First of all 3 events of this season, we have received overwhelming losses seems it seems like some of the themes drivers incentives and certainly these provides additional opportunities for our for mobile media as opposed to a pause when.

We will continue to assess any lessons learned from this problem is with a themes of the fundamentals a strong.

We believe these kind of may be expand on 2022 of them and look forward for the next strength.

Paris.

Engaging across the Oakland.

We havent data through to a British Grand Prix and on the digital phone unique users for the S..1 website and App this season.

Over 8 per cent compared to 2002 on.

Social engagement continues to grow reaching a total of a 14 million of social interaction for the business.

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> of tuning and we have seen strong growth over 2010, and 2020 net in many markets, notably songs, the Netherlands, Norway, Spain, Sweden, and the United States.

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

The race weekend.

Peak concurrent viewers for a staged has consistently been more than 2.5 times higher than the 2020 season average with miniscule over a race weekend also up by more than 2.5 times of vessels last season.

We are now level basis into our planned 23 races season.

Last year, we had only completed for.

2021 as presented some of.

The same challenges 2020.

Along with some new ones.

I am proud of our team and our partners as we continue to another gate.

On our last earning calls the Canadian royalty of just being replaced by that sort of gives Grubhub, Inc. However use of drug administration related to turnkey, we have to compete with again and secure a back to make lasers in Ulster Bank moving the transfer of them free of weaker.

Ultimately, we were able to secure a software turnkey needs of into Columbus as a replacement for the Singapore growth.

All of these changes required a great named blenders credit.

On PVC and hard work on our partners and the confidence in which grew a solid.

For 201, as a demonstrated ability to manage the logistics of of Covid restrictions in multiple countries and a set the gold standard in testing of effective protocols to deal with positive cases.

It was a good discipline on free we have conducted a 56000 tests on drivers themes of personnel that book.

It was a positive.

A positive cases for.

So a positivity rate of 0.06 per se.

2 of these fine tuning of operation, we feel confident in our ability to safely deliver a 23 of AC.

The non to a host of all of them on races of the season up all on high as evidenced by a venue.

April seems slow.

Interesting well.

And we will see that the ethos of slow new venues that now currently part of the 2020 volume callender and existing venues open to hosting a separate ways.

A simple and part of the world.

On the stages of emerging from the competitive Governor's view on inflow of race.

Type of waste tuned to the public stage and was convinced look back well.

We have made tremendous progress in 2021, a sponsorship and the momentum that has continued since our last earnings call in May.

For those join.

Joining us on a global partner and not 1 of a partners of the influx of green status and will become the official pizza photos to sponsor and net.

And it's a.

Howerton of echelon.

They will present, a brand New award would be announced a handful of the budget growth.

Also will come on BMW D. As a title sponsor of the Austrian double Heather on last week announced that they will become 1 of us on facial water technology partner working with Epsilon to deliver a single use flash between pad look by 2025.

Good day.

On the regional finals, and a chart enterprise part of it all of that 1 of course, the UK on Germany.

We completed a multiyear extension of our financing is deemed a company e-commerce on lending sector. Following an outstanding performance on our FY more kind of school.

Sales on the official online Expo sort of grew by more than a 40% of it doesn't plan and accelerates a triple digit growth some of the first 6 months of 2021.

The U S market is the largest in terms of sales on the Epsilon side highlights the increasingly a resolution of the sports and the country.

For the thing I would go on to expand our reach we are announcing the approval on policy, but it's for all debt and Epsilon teams with a feature in the video game a rocket and these latest strength back beginning of a multi year partnership.

Have a nice on how can we assumed a 2021 season a plenty for 2022 has been ongoing for some time.

As mentioned before there is a high demand for day to make 2022 calendar and we hope to announce the provision of a calamity in September.

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

Non school, they think of as high moving through sales of milk efficiently.

We also look forward to our move to some theaters for the Russian growth rate beginning in 2023.

He is a currency will provide us coming back just for formula 1.

We have previously discussed the foundation of web.

Put in place over the last few years with costs GAAP regulation and then you quoted a good image, we have created a sustainable and a flourishing ecosystem for this book.

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

This includes ongoing discussion on the highest lead them a with edge of money sectors.

On the breadth of daily with Formula 1 as well as opportunities for the new engine and development of a sustainable fuels.

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

With a British company with a levered a carbon neutral growth.

We plan to think of these learnings as we work towards our goals for ensuring all of that fun events of sustainable by 2025 and on our way to become net zero carbon by 2030.

We have also seen a great interest from Oems in our plans for the next form of 1 engine to be as a percent of.

A sustainable fuels and those positive discussion of a completely.

But I'm going to focus to increase diversity and inclusion of those from a 1 we have recently announced commitments relating to 10 engineers scholarships for underrepresented groups and apprentice and eaten the ship brokers within the ex 1 organization.

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

Thanks for change for these channel a donation to funding these scholarships.

We had things of logos break I want to thank everyone on a total of 1 including all of our drivers teams and business partners for this.

As an indication of hard work so far this season and joy some much deserved time off and we look forward to assume a innovation in August of Tonight.

Multitude of.

Full speed ahead.

And now with 2 on the call back over to Greg. Thank you so much bye bye.

As Stefano and thank you Stefano and Brian.

And very exciting news on.

Our investor meeting will be held on Thursday August 18th a full experience will be offered in 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 attendees will need to be fully vaccinated against COVID-19.

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

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

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 a lot of your signaled a 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 of I say August.

You did yeah, which.

I saw you a bit November so thanks for clarifying and yet exciting for a for in person.

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

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

The rate of access to a lot more capital.

At some point over the next quarter or 2.

And then you know.

You guys commented in the release about Formula 1 TV contributing to revenue growth 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 in.

And do you see that as a big revenue opportunity or is it more of an enhancer of kind of a 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.

It happened to be well aware since we have a liberty broadband simple.

Sure.

Going on there and we actually are.

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

Per share of Liberty broadband of 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're actually driving NAV of.

<unk>.

Charter of excuse me up a L BRD up substantially faster than charter itself. So look I think it will have its 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 in terms of.

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

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 will see how it how it responds.

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

I think just a sheer heft of.

The amount of content, we have caused us to think about whether that was going to be a meaningful way to connect with our customers for it.

Enhanced way I would it be a.

Primary way on enhanced way and I think it still is going to be enhanced way on how much of it becomes incremental revenue how much of a 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 being much higher than us I think it's very difficult for a point service.

I think youre going to replace what we have currently with scaled aggregated services, whether those are linear or whether those are a.

Scaled aggregated digital services, so 1 way or another I think that is.

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..1 TV, sorry, I hope I didn't steal your Thunder there step it up.

No Greg I think that you are.

Can you spot on and I think Ben if I may ask on what the biggest said he's a F.

F..1 Tvs a huge potential to make sure that we can enhance the experience with more of a more content to our customers and we are exploring relative together with our promoters to give a real life constant a weekend of Clos in the special provision to do the ones that that attempted to debt.

Event, and then extended the appetite of adding a unique content for India.

Capex in order to grow.

All of that experience, because thats really an incremental way of adding more and more appetizing contract with peoples at that level for a while.

On the TV rights.

Generally talking I mean, we have the privilege of a and many of our major deals have been a already complete with them. So we have to.

Wage when we can really see the evolution of the T V right. Because of this is something that is not uniformly different from region to region and the otp developed for should have a big hit in the future. So we hadn't a cleveland position of I think the biggest problem for.

Really revenue all of them and then a habit that sense of what's flowing for what we are positioned to day, though this would be ready at the right time to maximize the fact that for what he's been a great fit today.

That makes sense. Thanks for your time.

It's supposed to.

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

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

Greg just curious if there's anything from.

On the infrastructure legislation that could be an opportunity or risk for liberty that you're watching whether it's something for an existing portfolio of 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 sports betting was 1 of the opportunities that the chase had identified when we first became CEO.

Wondering if you could give some perspective on that opportunity for formula 1 going forward and any plans for activity that.

Do you have going on in the sports betting area. Thank you.

So touching first on the infrastructure Bill I think where we're full on L. B R. A D questions in a way that today already in the <unk> call, but that's alright.

I think there are some opportunities that will arise most of them are going to a rise 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 greater 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 a just a continuation of our acceleration of of ongoing trends.

A.

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 on GCI.

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

Customer.

A supply of a funds to buy broadband increasing money of 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 on that Bill I would say from a perspective of charter.

A.

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

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

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

Debt.

We are working together, but as you know the idea of.

That's a nascent area with a lot of issue depending on the region of the country and we need to make sure that everything is a really good on that side for sure. There is a big opportunity, but could that be exposed in the future. So once again working on brokers to make sure that the next debt book that would probably you would be that I want a double as I mentioned a opportunity that could be.

Good for front of the sport.

Okay. Thank you.

Okay.

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

Alright, Thank you for.

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

Good progress on Almac I know you're somewhat limited in what you can say on this but is there any.

Any more color you can provide on it or your position in <unk>.

Market overall.

Thanks, David for the question well first of all of what we talked about with the sprint for months.

D. A was to offer something different but in order to make sure that there was something new that we cannot book to all the stakeholders.

And from a 1 we have said that we wanted to do a 3.3 tests 1 that has been done in soup. The other 1 would be.

And a monster and the other 1 of them would be at the end of the season in Brazil.

At the end of this.

A complete cash we've done a have a plan of a placebo will be the next step 1 of the kind of let me say that after the first day.

During the event on the Superstorm they respond, but we have both from the drivers for the teams that media is bigger.

Really positive and also for the for the promoter because if you think that the April a day, we had something to say.

People come out of a truck on Friday.

For.

For for the first for a final video on Friday, So the outcome as opposed to kind of has been dramatically positive if I may say and it's great. Because that's really a pension interest of TV and also partners because of the types of would that be a built in for example, sleep for dot com and so we have already seen on a financial into a positive.

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

If we move on do we should that I do believe so.

That direction for the future for sure there would be not for every race, we have ideas to create a special Puma for a certainly as part of a lumpy and certain a special a worst but we want to offer an attitude of already incredible problem for 1 on ones. So a.

Very very positive comments on the first.

A exercise and ready to prepare at the end of the of the of the 3 events a preferred.

Most of that's been a home what we can see hopefully would be a big step for vets as a differentiation for 1 of them.

Hopefully not a sporting proposition.

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

Thanks, I want on a hell of a sex Sam on 1 of them for me on 1 if I could first of all on Formula 1.

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

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

Got.

On a $1 billion in debt or was it more than that directly in margin loans.

And you know, it's a massive value of a serious stake why not take that buyback activity up to now.

Ramping up now rather than waiting until you have it.

Did you get the cash tax free.

Definitely.

Yeah, Yeah you.

Do you want to comment on.

Thank you Greg good a James I mean for them.

My perspective.

I've seen a that'd be a great momentum in the sponsorship for good.

Growth of debt.

As a connected to all what we are achieving in the championship that theyre going to deal a better question for you got into how many book because you believe that could be a 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.

That is something related to our possible.

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

The most important 1 that I think.

It would be both a for us to work on.

If I could add on sponsorship.

I think it is an evolving market.

And we certainly see new categories and technology is Stefan a 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 a horizon of now it is a meaningful number so I think new categories of created things change.

A.

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.

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

And it's our challenge to go on a pursue them on a question about a less X M I.

I think we have been ramping we do of a plant we will have more capital that comes in I think given that our that the way to support the debt at a L. S. Ex <unk> is primarily with flows from a.

Serious recognizing we don't have an operating business there we've been relatively cautious with margin debt and the like and we've been relatively constrained in how much exchangeable. We could do is ex amount of liquidity.

I think youll see a plan, that's probably more aggressive recognizing what's coming but those have been 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 a 1 on formula 1.

I was wondering given all of a fluidity and B a.

Reschedule this year.

Hum.

He brings a promotion contracts spin.

Renegotiated based on a regulatory allowance of capacity.

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

You have some normalcy coming back later.

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

Second question on Liberty Sirius.

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

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

With your sales of the book from her Ob.

Tax free or is there any free cash flow.

For you.

So all of them lately Greg.

At the present value for you.

For a stepping up.

Okay. Thank you.

As you said the fluidity is really a.

The thing that we had to manage through this year and that we are heading into the second half of the season will have on that.

Would be seen a copy of the good thing is that a.

The situation, we have to manage a unique different and.

Because of every agreement is decent for 1 that we have a country by country place by place and.

That's of course, the a fourth is always to make sure that from all of the points of weeds.

And of course also on the financial side is to optimize that debt.

As I mentioned a bit that minimize that any negative possible until we can have we.

We have agreement on.

Honestly the number of a time this doesn't mean anything to us some of it we got working together to see what would be the benefits of we can bring a home depending on the situation and we are working closely with all of the promoters on the authorities to make sure that we can really make.

Right plan for the future knowing that as a regular sales before the situation is evolving computers, but on a.

On the things that we have to do is to make sure that you've got a bill.

So absent that I wait and and.

The things that we can see so far to date that we didn't have any material cash input on our numbers.

I agree with Stephane on his comments on obviously.

<unk>.

We work with a promoter partners to maximize the audience allowable.

Safely at each race and that'll impact of the revenues that occur.

It'll impact obviously, there it's a changing market every day Delta Lambda, we'll see what happens we're obviously designed to maximize attendance in the safest way possible.

We skipped over a 1 comment about Almac and it was we were so excited about formula 1 of our I think it probably would happen a.

Look obviously, there's a limited amount I can comment.

Our observations about the stock market of 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 of the pipe market is particularly difficult and the discount is expected from <unk>.

Their trading value of probably widening.

All of those have meant that weaker players.

Have a probably been washed out we know of deals that were proposed at ex 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 L. A.

Mac this back who have expressed a 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 affect be a pipe investor alongside pipe investors.

<unk> is a comforting thought to many.

Yes.

I have recently been approached by a.

Yeah.

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

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

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

Our speculations about what we will see we have seen a lot of those kind of opportunities, but have not found a perfectly price 1 of our opportunity, we like yet, but I am confident we will.

On a question about selling into the buyback.

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 to form a would be tax free.

Great. Thank you very much.

And up next well hear from Jason Bazinet with Citi. Please go ahead.

I think there's going to be an easy question for you to answer, but if I just fast forward a bit and.

We get to the point where the.

There is some sort of equity exchange or takeover.

Between all of a section of M series, where we get to a 1 operating business in 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 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.

In effect series becomes a.

Operating subsidiary of Liberty.

With its own tracking stock or you could imagine scenarios, where there was effectively on a.

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

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

No.

Okay. Thank you.

Yeah.

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

Oh, Thank you a.

On paper.

Comscore I guess a default rate question.

Stepping back from the appraised for.

On looking at MLP overall, it's got a good new turnkey contracts of 28, albeit a pretty fast that's correct.

Tani, having a lot of appeal even on the non baseball.

She has a real issues over a law.

Longer periods of time waiting for the for and the competition on the field. He took a man for it in a owners group overall are amenable to a fairly draconian measures like maybe even moving back the pictures now on to get more.

Tightening and end of the game.

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 represent is a M.

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

To try and shortened of playing times.

Innovations like.

Doubleheaders.

Going to <unk> at least for this period of time, you've seen innovations around.

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

And I'm.

I'm not convinced of moving to pitchers mountain is going to be happening anytime soon but.

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 a try to be maintained.

Okay.

Thanks, Craig.

Thank you to our listening audience on the questioners.

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

At our Investor meeting in November if there was any of that.

Thank you very much.

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

[music].

[music].

[music].

Ladies and gentlemen, thank you for standing by 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're a a question. Please press star 1 on your telephone as a reminder of 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 is calling for a certain forward looking statements within the meaning of the private Securities Litigation Reform Act of a 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 on 10-Q for Liberty media acquisitions form S..1.

<unk> 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 in liberty media or Liberty media acquisition of 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 on Sirius XM.

Adjusted OIBDA and adjusted EBITDA of the required definitions and reconciliations for Liberty media on Sirius XM 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 to all of you.

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

So beginning with Liberty Sirius XM.

Continuing to repurchase shares purchasing a $141 million across Allice ex M&A and the case years from May through July.

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

We continue to take advantage of a discount opportunity and I expect we will continue to do it going forward on our ownership of Sirius XM is 78, 1% as of July of 2013.

Looking now at serious 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 in the car or a 140 million vehicles on the road today, which are enabled for series exam.

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

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

Is gaining traction the variable margins are as good or better than satellite on.

Courage you to get it today.

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

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

So turning to live nation.

Rio opening accelerated led by a.

Outdoor concerts in the U S and the UK with other countries coming along <unk> vaccination levels increase.

Festivals amphitheaters are the focus for the summer led by law of Palooza Rolling Loud, a hip hop festival in Miami.

Latitude in the UK.

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

A.

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

'twenty 1.

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

A lot of expect all segments to return to profitability in the second half of 'twenty 1.

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.

The first half of a seasoned up until the summer break with appears a balance between Louis and Max.

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

The Constructors championship is also highly competitive with Mercedes and Red book going wheel to wheel and Macquarie Mclaren and Ferrari battling for the third spot.

We remain impressed with the way Formula 1 is 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 a formula 1 team continues to plan for the known and unknown variables that come out of them.

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

And we remain confident of 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 it we're consistently announcing new partners.

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

Where it'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 in a year in certain parts of Colorado were devastated so you're cooling of NTS season early we do wish of a speedy recovery.

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

A tourist park fans are back in a big way, we expand the capacity of a 100% in early may.

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

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

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

For the Braves do lead major League baseball and total attendance at 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 trade deadline, you saw a to do that rabbit and at the battery development revenue continues up in the quarter due to rental income for a new tenant teekay and Papa John's and the end of Covid related modified rents.

Youll also see the phase III office tower.

We are confident it will be fully leased in the near term.

Just on crop will move into their new headquarters later this month.

Finally, we continue to make good progress on <unk>.

We think the trends in 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 Siriusxm 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 loan capacity of 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 a liability at quarter end of 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 net.

A live nation stake was nearly $6 billion.

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

Total Liberty Sirius XM group attributed principal amount of debt of $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 end, which includes $537 million of cash held directly at up 1 of the corporate cash balance includes.

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

A little Formula 1 group attributed principal amount of debt was $3.4 billion, which includes $2.9 billion of debt at up 1, leaving 546 million of a corporate level.

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

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

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

Opponents reclassified in the primary up on revenue include F..1 TV subscriptions up 2 and a 3 related fees broadcast origination and support based on 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 end brands had attributed cash liquid investments and restricted cash of $231 million and attributed principal amount of debt 690 for libert.

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

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

Thank you, Brian there's a thousand.

Thank you for the season is exceeding expectation of those before.

Each weekend on the plant.

The drama and the unexpected.

In Germany, we did notice is a point a zone.

On a plane this maintenance activity on those highest first kind of the newly branded <unk>.

And I was also impressed with his expertise of holding off on in terms of a number of those labs the.

Of the rivalry between Lewisville ex Consignors for building debt by police for the championship, which culminated with the instances of simple and predictable outcome on Sunday and rentals on the Caesars and for the similar grades of slightly ahead.

And the bulk of the surface pipe between all of this focus on debt.

A content among the gross type 2 is just a few.

On a savings for first and with a lot of that's for routing sort of it.

For 1 is moving up.

Thomas and the fans are responding.

Of those 4 grams of silver posting a 300 of.

Sample over the weekend with the hands of inflows.

Tom.

These sorts of of Denver's is unrivaled in schools.

Attendance was certainly aided by the type of room for the championship. The inaugural ex 1 strength you've ended up against a competitive racing and the return off of a public cloud.

On the strength the first of 3 events of the season, we have received overwhelmingly positive feedback on the themes drivers on sentence.

And certainly these provides additional opportunities for our for mobile media and a spot so part of us.

We'll continue to assess any lessons learned from the farmers with a themes.

Fundamentals are strong.

We believe this kind of a day.

Under the 2022 and look forward to the next strength.

For us.

Engaging across all of them.

We have data through British Columbia, Inc, and on the digital strong unique users for the S Y on the website and App this season.

Over 8 per cent compared to 2010.

Social engagements continues to growth, reaching a total of 40 million social interaction for the vintage loans.

A quick.

And we've seen this growth reflected in our total number although it's literally a as well on social media, which now stands at almost $42 million.

<unk> of tuning and we have seen strong growth over 2012.

And 2017 in many markets, notably songs, the Netherlands, Norway, Spain, Sweden, and the United States.

As 1 of television remains a great ways for patents to catch all of the actions of the race weekend.

Peak concurrent viewers for risk based has consistently been more than 2 points higher.

A higher than the 2020 season average with minimum skew a bit or at least we can also buy more than 1.5 times of vessels last season.

We are now in level of maintenance into our planned 23 racing season. This time last year, we had only completed for.

2021 as presented some of the same challenges as 2012, although with some new ones.

Although a team and our partners as we continue to navigate.

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

However, Youtube drug administration related to a turnkey we have to compete with again and secure a back to back leases in Ulster Bank moving the strength of them.

Ultimately, we were able to secure a slot for sort of you need within.

The comment I think of it.

Placement for the Singapore growth rate.

All of these changes required a great name blenders credit TVT.

PBT and hard work from our partners and the confidence of which we raised on elite.

1 is a demonstrated ability to manage the logistics of COVID-19 restrictions in multiple countries and a set the gold standard in cash.

Of course to deal with positive cases.

I'm pleased we have conducted.

<unk> thousand tests on drivers themes of personnel that produced a positive cases put on.

Positivity rate of 0.06 per se.

2 of these fine tune the operation, we feel confident in our ability to safely deliver a 23 of a season.

The non to a host of all of a ratio. It's been a ceased up on on high as evidenced by vertical a web we can be able to slow in 2021.

And we will see lots of interest for new venues.

Now currently part of the 2020 volume callender and existing venues open to hosting a simple ways.

As a part of the world.

Various stages of a merchant from Depomed.

The government's view on <unk> has an exciting way to return to the average stage and was convinced OPEC.

We have made tremendous progress in 2020 whopping sponsorship and the momentum that has continued it seems that 1 last thing on in May.

Joining us on a global partners and not 1 of a partners of the <unk>.

On screen Stevens and will become decision on picked up bonus of sponsor and Thats the LSD horizontal for Epsilon.

They will present, a brand New award would be announced a handful of the budget growth.

We are also well coming being W. D. As a title sponsor of the of still in double hit on last week announced that they will become 1 of the essential water technology Pablo working with Epsilon the Levered on a single use lastly screen patent book by 2025.

What day time on the regional finance and HR enterprise, partly on the left 1 of course, the UK on Germany.

Finally, we completed a multi year of expansion of our financing is deemed companies E. Commerce on manufacturing following a strong performance on our ex 1 off high school.

Sales on the official online as well as for grew by more than 40% of 2020, and let's let a triple digit growth.

First 6 months of 2020, well for you.

Mark It is.

The largest in terms of sales on the <unk> side.

<unk> decreased revenue of this sport in the country.

Our goal is to expand our reach we announced in doubtful on policy, but it's for all 10 F..1 teams will feature in the video game, a rocket and these latest for impact beginning.

Beginning of a multi year partnership.

Have a nice on how can we assumed a 2021 season a plan.

For 2022 has been ongoing for some time.

As mentioned before there is a high demand for day needs to make 2022 calendar and we hope to announce the provision of a cleansing September.

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

So they think of as high and some of the pace of Melco efficiently stock.

We also look forward to our move to some theaters for the Russian growth rate beginning in 2023.

These a coding city will provide is coming back but for me.

While we have previously discussed the foundation that we have put in place over the last few years with costs GAAP regulation and then you quoted a good image, we have created a sustainable and a flourishing ecosystem for this book.

These along with a compelling products on the drag of estimated interest and opportunities across the board.

This includes ongoing discussion on the highest led them a with edge among the sectors. We've seen the breadth of value with formula 1 as well as opportunities for the new engine and develop a hell of a sustainable fuels.

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

We just don't believe we delivered a carbon neutral growth.

We plan to think of these learnings as we work towards our goals for ensuring all of Thats, 1 events of sustainable by 2025 and on our way to become net zero carbon by 2000 until it.

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

But I want to focus to increase diversity and inclusion of those 401, we have recently announced commitments relating to 10 engineered a scholarship for Andrew.

Representative groups and apprentice and eaten a ship brokers within the ex 1 organization.

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

Thanks for change for these general of the nation to funding these scholarships.

I think of logos, great I want to thank everyone on a total of 1.

Including all of our drivers teams and business partners for this indication on hard work. So far this season and join US on much deserved time off and we look forward to assume innovation in August of denied a multitude of task force.

Speed of head.

And now with 2 of them before.

Moving to Greg. Thank you so much bye bye.

Stefan Alan Thank you Stefano and Brian.

And very exciting news on.

Our investor meeting will be held on Thursday August 18th a full experience will be offered in 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 attendees will need to be fully vaccinated against COVID-19.

We appreciate your continued interest in 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 a lot of you signaled a return of 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 of November 18th.

November 18th of I'd say August.

You did yes.

I thought you meant November so thanks for clarifying and yet exciting for a for in person.

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

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

Great of an access to a lot more capital.

At some point over the next quarter or 2.

And then.

You guys commented in a release about formula 1 TV contributing to revenue growth 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 is that something that you guys are investing more in do you see that as a big revenue opportunity or is it more of an enhancer of kind of a 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 Brent first on the discounts.

Well I happen to be well aware since we have a liberty broadband simple.

Okay.

What's going on there and we actually.

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

For share of Liberty broadband of 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 of.

<unk>.

Charter a excuse me a L BRD up substantially faster than charter itself. So look I think it will have a 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 in terms of what's happened to the NAV per share of <unk> D.

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 will see how it how it responds.

On the vision for F. On television I think it has evolved I'll, let Stefan a comment as well but.

I think just a sheer heft of.

The amount of content we have.

Caused us to think about whether that was going to be a meaningful way to connect with our customers for an enhanced way I would it be a primary way on enhanced way and I think it still is going to be enhanced way on how much of it becomes incremental revenue how much of a becomes a weighted to join with our customers that will evolve, but it's <unk>.

<unk> seen what's happened for example, 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 aggregated services, whether those are linear or whether those are.

A 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..1 TV, sorry, I hope I didn't steal your thunder there except for them.

No Greg I think that.

Both of you spot on and I think Ben if I may ask on what Greg has said.

<unk> potential to make sure that we can enhance the experience with more of a more content to our customers and then we had a exploring relative together with other promoters.

Give a real and lives constant a weekend all.

And a special provision to book the ones that that attended to debt.

Events, and then extended the appetite of adding a unique content in these in our platform.

We want that experience, because thats really an incremental way of adding more and more appetizing contract with peoples at that level for 1.

On the TV rights.

Generally talking I mean, we have the privilege of a and many of our major deals have been a already complete with them. So we are not in a.

<unk>, we can really see the evolution of the TV right. Because of this is something that is not uniformly from region to region and the OTT development for should have a big hit in the future. So we hadn't of Cleveland position of I think the biggest calling for really revenue all of that then there hasn't been a chance to what's.

Florida for what we are positioned to day, though this will be ready a right time to maximize the fact that for what is really a great fit today.

That makes sense. Thanks for your day as supposed to.

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

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

Greg just curious if there's anything from.

On the infrastructure legislation that could be an opportunity or risk for liberty that youre watching whether it's something for an existing portfolio of 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 sports betting was 1 of the opportunities that the chase had identified when we first became CEO.

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 in the sports betting area. Thank you.

So touching first on the infrastructure Bill I think we are full on LDR day questions in a way that today already in the <unk> call, but that's alright.

I think there are some.

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

And if you look at our businesses.

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

On CRE I guess, if you think about greater 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 a just a continuation of our acceleration of ongoing trends.

<unk>.

The rest of the businesses Formula 1 of the Braves.

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

There are both opportunities there in terms of increasing customer.

The supply of a funds to buy broadband increasing money of 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 on that Bill I would say with respect for charter.

GCI could have been far worse for some of the initial proposals I think the ones in terms of a 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 debt.

Okay. If I may Brian on the on your question with regard to debt first of all we don't have to put debt Diablo that'd be more partner of these 100 gig debt.

Debt.

We're working together as you know.

The idea of vestiges of added with a lot of issue depending on the region of the country and we need to make sure that everything is a really good on that side for sure that it's a big opportunity, but could that be an explosion in the future. So once again working on brokers to make sure that there's.

The next step of our partners, who will be the right..1 example, as 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.

A little 1 can you discuss in more detail of your takeaways on the sprint race format. Both in terms of how you think of it was received by the fans, but also by our partners on a raise promotion and TV side and I think you mentioned, maybe expanding a format next year any sense for how many races. You could grow this how 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 in the stack.

Stock market overall.

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

EBITDA was to offer something different that in order to make sure that there was something new that we cannot book to all the stakeholders.

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

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

None of these are.

A complete cash we're going to have a plan as a placebo will be the next steps what are kind of let me say that after the first day.

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

People will comment on the truck on Friday.

June.

For for the first for a final ready on Friday, so the outcome as opposed to them has been dramatically positive if I may say and it's great because of that road a pension interest of TV and also partners because of a claims could that be a built in for example, sleep for dot com and so we have already seen on a financial interest.

The port that has been a if I may say look a good sign a very very very positive sign.

And we want to respect what we said we're going to have a full day briefly if I may say that for the end of the season, we have a plan for the future of of course, we have developed a debt. We are fine tuning some of the comments that we've received and what I can say that debt. If we move how do we show that I do believe so.

The rest of the future for sure there will be no every race, we have ideas to create a spectrum of Puma for certainly as part of a lumpy and certain a special a worst but we want to off growth and attitude deal that didn't read the book platform for 1 on ones, So very very positive.

Elements of the first.

If you're a site and ready to put a tab at the end of the of the of the 3 events.

Both of them that's been a home.

Hopefully it would be a big step for vessels of differentiation for <unk>.

Also in a sporting proposition.

Yeah.

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

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

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

Presumably youre going to be able to get the cash flows from Sirius tax free zone at the end of the year why not accelerate the buyback now you've got quite a.

A billion dollars in debt or a little bit more than that directly in margin loans.

And it's a massive value of the Sirius stake why not take that buyback activity up to this.

Ramping up now rather than waiting until you have it.

Your ability to get the cash tax free.

Definitely.

Yes, yes.

On a common on sponsored.

Thank you Greg James.

For my perspective.

That'd be a great momentum free shipping.

In the sponsorship for growth that is connected to all of what we are achieving in the championship that theyre going to the old set of question with regarding to how many book because you believe that could be.

We'll open in a.

Our global partners I would say, maybe 1 or 2.

Maybe the 1 on which we are working on debt is very important for actually for technological provides.

That is something related to our possible.

A promotional offer but we want to a slow through a great broadband could be available around the world that's mainly.

I'd say that.

The most important 1 that I think.

It will be both a for us to walk up.

If I could add on sponsorship.

I think it is an evolving market and we certainly see new categories and technology as Stefan a pointed out as 1.

When we bought.

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 a horizon of now it's a meaningful number so I think new categories of 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 as of this many of this number I think it moves around and there are lots of opportunities still out there.

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

On the question of <unk> I.

I think we have been ramping we do of a plant we will have more capital that comes in I think given that our that the way to support the debt at <unk> is primarily with flows from a.

Serious recognizing we don't have an operating business there we've been relatively cautious with margin debt and the like and we've been relatively constrained in how much exchangeable is we can do is ex amount of liquidity.

I think youll see a plan, that's probably more aggressive recognizing what's coming but those have been 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 a 1 on formula 1.

I was wondering given all of a fluidity in B a.

Reschedule this year.

Hum.

He brings a promotion contracts spin.

Renegotiate a lease on the regulatory allowance of capacity.

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

You have some normalcy coming back later.

Let's see.

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

Second question on Liberty Sirius.

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

Specifically, if you were to sell into a.

A series of share buyback program. Once you are over 80% a.

With your sales of this book.

From her Ob.

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

So all of the moly Greg.

On the <unk> you for stepping up.

Okay. Thank you.

David.

You said the fluidity is really a.

On the things that we had to manage through this year and that we are heading into the second kind of part of the season, we'll have a that would be a topic.

Good thing is that sort of sit.

To ensure we have to manage these unique incident.

And because of every agreement is decent for 1 that we have a country by country place by place.

On the state that is of course, the a fourth is always to make sure that from all of the points of we need to manage.

And of course also all of this on auction side is to optimize.

The dimension of it and minimize any negative possible until we can have a we have.

Agreement, where honestly the number of a 10 this doesn't mean anything to add some of them. We got working together to see what would be the benefits of we can bring home of depending on all of a situation and we are working closely with all of the promotions on the authorities to make sure that we can really make the right plan for the future knowing that for us.

Greg will see before the situation is evolving continuously on.

I think that we have to do is to make sure that we have a bill.

I've seen that I wait and the things that we can see so far to date that we didn't have any material fashion, but on that.

All of those numbers.

I agree with <unk> comments on obviously.

We work with a promoter partners to maximize the audience allowable.

<unk> at each race and that'll impact of the revenues that occur that will impact. Obviously, there is a changing market every day Delta Lambda, we'll see what happens we're obviously designed to maximize attendance in the safest way possible.

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

Look obviously, there is a limited amount I can comment.

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

Analysts on this call, it's gotten a lot harder to raise back money and it's gotten harder to get combinations done because of the pipe market is particularly difficult and the discount is expected from a fair trading value of probably widening.

All of those have meant that weaker players.

Have a probably been washed out we know of deals that were proposed at ex 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 L. A.

Mac this back who have expressed a 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 affect be a pipe investor alongside pipe investors.

<unk> is a comforting thought to many.

I have recently been approached by a.

Yeah.

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

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

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

Our speculations about what we will see we have seen a lot of those kind of opportunities, but have that balance of perfectly price 1 of opportunity, we like yet, but I am confident we will.

On a question about selling into the buyback.

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.

1 of the first would be the latter would be taxable a 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 going to be an easy question for you to answer, but if I just fast forward a bit and we get to the point where.

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

Between L. A a section of a M series, where we get the 1 operating business in 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 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.

In effect series becomes a.

Operating subsidiary of Liberty.

With its own 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 in series became a freely traded company. Both of those are a imaginable scenario certainly.

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

No.

Okay. Thank you.

Yeah.

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

Thank you.

Don fingers that Comscore, I guess, a default rate question.

Stepping back and.

And looking at MLP overall, it's got a good new TV contracts of 28, albeit a pretty fast on track.

Tani, having a lot of a fuel even under non baseball.

She has a real issues over a law.

Longer periods of time waiting for the for and the competition on the field do you think man for the owners group overall or for me.

Notable to a fairly draconian measures like maybe even moving back to the pictures now on to get more.

5 minutes into the game.

I know that's kind of a fourth question, but kind of places financials over a period of time as well.

Thank you Matthew.

We remain Super excited about the Braves there are.

Continuous work.

Led by commissions, which involve both.

Owners' representatives.

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

To try and shortened of playing times.

Innovations like.

Doubleheaders.

Going to 7% earnings at least for this period of time, you've seen innovations around.

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

And.

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

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 a try to be maintained.

Thanks, Greg.

Thank you to our listening audience on the questioners.

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

At our Investor meeting in November if there was any of that thank.

Thank you very much.

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