Q2 2021 Liberty Media Corp Earnings Call

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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 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 calling from certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in Liberty media and most recent form 10-K on 10-Q on 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 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.

And adjusted OIBDA on an adjusted EBITDA 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 kind of Sally.

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

So beginning with Liberty Sirius XM.

<unk> continued to repurchase shares purchasing 141 million across L. S. SMA and the case years from May through July.

The discount remains and we therefore were purchased at 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 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. There are 140 million vehicles on the road today, which are enabled for Sirius XM.

And the 360 L. 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.

Courage you to get it today.

And please don't forget we're 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 per talent media and social brands create and monetize audio experiences.

So turning to live nation.

The reopening accelerated led by.

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

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

Latitude in the U K.

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

<unk>.

Live nation is helping to put on the New York reopening concert in Central Park on August 21.

And beeps are streaming can service continues to be incremental life revenue stream for us with Bob Bob Dylan show later this month.

A live expect all segments to return to profitability in 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.

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 is a tight competition for third.

On 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 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.

On 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 356000 fans over the weekend, which was tremendous and.

And we remain confident in 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.

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

<unk> 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 in 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 back to sweep the Cardinals and the brands are now over 500.

It truly is.

A true as park fans are back in a big way, we expanded the capacity of 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 retails per caps are all trending very favorably.

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

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 from new tenants from 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 from 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 we.

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 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 loan capacity at the parent level related to our series La Nacion 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 end 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 from <unk>.

The live nation stake was nearly $6 billion.

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

Total Liberty Sirius XM 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 at quarter end, which excludes $537 million of cash held directly at F..1 the corporate cash balance includes.

$384 million that was received from Alice like them in Q2 related to settling out the cost growth.

Total 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 per corporate level.

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

Well, we're still on the period of a covenant waiver at F..1 target leverage for the business remains bond at 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 the primary F..1 revenue to better align with the way it currently evaluated.

Components reclassified in the primary on <unk> revenue include F..1 TV subscriptions up 2% at 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 end spreads had attributed cash liquid investments and restricted cash of $231 million.

Attributed principal amount of debt of 694 libert.

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

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

Thank you Brian So it doesn't take you when the season is exceeding expectations on support.

We can on putting.

Putting drama.

Okay.

The German GP.

As a point a zone.

Leading these amazing victory and those highest first on the newly branded team and I'm also impressed with his expertise on holding off on it from split on 1 of those bumps.

The rivalry between Lewis <unk> continues to build in that price waste for the channel, which culminated with the instances are simple.

And with the unpredictable outcome on Sunday.

So then let's see this emphasis from a great slightly ahead.

And the Buffalo was a Thursday.

I mean, all this focus on the cash.

Among the total Taco is just us.

Within the sales force first and the collateral on surrounding spoke to.

Quick 1 on 1 leaving up so the songs and the fans are responding.

We have a full ground up close to 300.

Over the weekend with the Hans moving towards 2000.

It's on.

These sorts of lufthansa's is unrivaled in sports.

Tendons was certainly aided by the type volume for the championship. The inaugural F..1 strength you've ended up against competitive racing and the return on the public.

Gross.

On the strength.

The first on 3 events in the season, we have received overwhelmingly positive feedback.

Teams drivers.

And certainly these provides additional opportunities for our from water media as possible.

We will continue to assess any lessons learned from this program as we the teams, but the fundamentals are strong.

At this time, we'd be expanded on the 2022 and look forward to the next strength.

Cash at.

Engaging across all platforms, we have data through British Columbia, Inc, and on the digital from unique users for the S..1 website and App this season.

Over 8 per cent compared to 2010.

Social engagement continues to grow reaching.

Total media and social interaction.

Okay.

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

TV <unk> opportunity and we have seen strong growth over 2012.

And 2020 net in many markets, notably, France, the Netherlands, Spain, Sweden, and the United States.

That's 1 TV remains a great ways to patents to catch all the action on the race weekend.

Concurrent viewers per race days has consistently been more than 2 points.

It's higher than the 2020 season average with minimum skew over race weekend by more than 2.5 times versus last season.

We are now level basis into our planned 23 races season. This time last year, we had only completed tour.

2021 as presented some of the same channel just as 2020, although with some new ones.

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

On our last earning calls the Canadian group. He has just been replaced by the <unk> growth.

However, due to travel restrictions related to turnkey, we have to compete with again and secured back to macro leases in Ulster Bank moving the range from Korea weekend.

Yeah.

Fortunately, we were able to secure the slots with silicon natively on the calendar as a replacement for the Singapore Company.

All of these changes require great named Blizzard.

PBT and hard work from our partners and the confidence in which grew a solid flow.

101, as a demonstrated ability to manage the logistics of COVID-19 restrictions in multiple countries and that set the gold standard in testing and effective total cost to deal with positive cases.

Good day free we have conducted 56000 tests on drivers Siemsen questionnaire that produce.

Positive cases total positivity rate on 0.06 per se.

So at least find tuned operation, we've seen comfortably in our ability to safely deliver a 23 race season.

The non to host moving up on <unk>.

<unk> per season.

All on high as ever.

Evidenced by vertical.

To be able to slow in 2021.

And we wouldn't see lots of interest from new venues that now currently part of the 2020 volume callender and existing venues debt that's open to hosting a separate ways.

From a part of the world.

On the stages of emerging from the competitive Governor's view <unk> as an exciting way to return to the public stage and was convinced look back.

It makes tremendous progress in 2021, the sponsorships and the momentum has continued since our last earnings call in May.

Joining us on global partners and other partners of the <unk> status and will become the official simple photos to sponsor and NFC howerton of Epsilon.

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

We have also will come from BMW D. As the title sponsor of the Austrian double Heather on last week announced that they will become everyone's on facial water technology Pablo working with Epsilon can deliver a single use plastic free pad look by 2025.

Good day, Tyler on the regional finals, and HR Enterprise pardon me in on that 1 across the UK and Germany.

Finally, we completed a multiyear extension of our financing is deemed company e-commerce on manufacturing flow.

Let me outstanding performance on our FY <unk>.

Sales on the official online as far as total grew by more than 40% in 2020 and like slitting some triple digit growth from the first 6 months of 2021.

The U S market.

The largest in terms of sales on the F..1 site.

<unk> decreased revenue of the sports and the country.

1 thing I would go on to expand our reach we announced in doubtful on currently but it's we're on.

All debt and F..1 teams will feature in.

The video game, where rocket on these latest strength beginning on multi year partnership.

Have a nice on how can we assume that 2021 season.

From 2022 has been ongoing for some time.

As I mentioned before there is a high demand from 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.

Guidance will they think of it as high income 2 sales have not sufficiently stock.

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

It seems like total city will.

We will provide as coming back joke formula what we have.

Previously discussed the foundation that were put in place over the last 2 years with coast GAAP net installation and then you can quote on the good image, we have created a sustainable and a flourishing ecosystem for the sport.

These along with a compelling products on the track as greater interest and opportunities across the board.

These include ongoing discussion on the highest lead them with engine manufacturers, who has seen the bread daily with Formula 1 as well as opportunities for the new engine and development of sustainable Phillips.

Along these lines, we continue to develop programs on the tumor once we address this 1 initiatives.

But it is growing free we delivered a carbon neutral growth.

We plan to take these learnings as we work towards our goals, ensuring all that fun events are sustainable by 2025 and on other ways to be net zero carbon by 2030.

We are also seeing great interest from Oems in our plans for the next from a 1 engine.

Sustainable fuels and those discussions are continuing.

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, Florida.

On the representative groups and apprentice and into the ship brokers within the <unk> organization.

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 communities as the communities we serve around the world.

Thank you changed for these channel donation to funding these other shoes.

As we head into August break I want to thank everyone on the total loan, including all of our drivers teams and business partners for this indication on hard work. So far this season and Joyce unless the zone and we look forward to the human Racine in August 29.

Full.

Full speed ahead.

And now I will turn the call day.

Moving to Greg. Thank you so much bye bye.

Stefano and thank you Stefano and Brian.

And very exciting news on.

Our investor meeting will be held on Thursday August 18th the full experience will be operating 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 lender signaled 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 I say August.

You did yes.

I thought you meant November so thanks for clarifying any other exciting for 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 call, but I think it's relevant for Liberty Siri that discount has not improved it's probably why didn't even since that 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 after the discount at Liberty Sirius since you're going to end.

They have 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 you know 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 the core rights. It 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.

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

Her 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're actually driving NAV of.

Charter excuse me up L BRD up substantially faster than charter itself.

Look I think it will have its desired result.

Good things come to those who wait.

Not necessarily hoping or 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 Covid.

What's happened to the NAV per share of L. B R D on the comp.

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.

On.

I think just the sheer heft.

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 or an enhanced way I would it be.

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 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 being much higher than us I think it's very difficult from 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.

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 Stefano.

No Greg I think that you are.

Thoughts on that and I think Ben if I may ask on what I just said.

<unk> Tvs the huge potential to make sure that we can enhance the experience with more and more content to our customers and we are exploring relative together with other promoters to geese, but real life content, we can offer.

And especially to be shipped to the ones that that attended to debt to the event and then extend to other type of adding unique content for indeed in our capital.

So that's experience because that's really on incremental wheel, but adding more and more appetizing comfortable with people that didn't level for momentum.

On the TV rights.

Generally talking I mean, we have the privilege of debt and many of our major deals have been oh that'd be complete with them. So we are not in that situation. When we can really see the evolution on the T V. Right. Because this is something that is not units when we see from from region to region and the otp the balance should happen in the future.

We had on the Cleveland position of I think the biggest comfort really revenue on.

And then the hasn't been.

Flow from what we are positioned to day, though this will be ready at the right time to maximize the fact that pool, what he's really great sit today.

That makes sense, thanks, Keith I spoke to you.

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.

From the infrastructure legislation.

It could be an opportunity or risk for liberty that you're 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 sports betting was 1 of the opportunities that the chase that 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 or activity that.

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 L. B R. 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 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. It's just the continuation or acceleration from ongoing trends.

<unk>.

The rest of the businesses Formula 1 the Braves.

Not as 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 funds to buy broadband increasing money around broadband probably helping us expense from a bar 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 the perspective on charter.

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've been initially proposed about preferences for fiber over coax preferences for overbuild preferences from Unis beauty.

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

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

We are working together.

No.

The idea is that idea with a lot of issue depending on the region on the country and we need to make sure that everything is really keyed 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 that would probably you would be the right..1 example, I mentioned opportunity.

That could be good pull from a sport.

Okay. Thank you.

Yeah.

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

Alright, Thank you from me.

On the 1 Stefano can 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 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 in the stock market overall.

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

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

What we have said that we wanted to do 3.3 tests, 1 that has been done super some the other 1 would be.

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

At the end of this.

Complete cash you're going to have a plan to see what would be the next steps what I can really say that after the first of our strength the event on the superstorm they respond but we have both from the drivers from the teams. The media has been really positive and also put up for the promoter because if you think that the April day, we have something to say.

The people from the other truck on Friday June <unk>.

For the first what do you find religion on Friday, so the odd people as opposed to depend on has been dramatically positive on this thing and it's great because that's real attention interest with TV and also partners because of the.

We have built in for example people dot com and net so we have already seen on financial Inc.

The port that has been that if I may say good sign a very very very positive sign and we worked to restore what we said we're gonna have a full day briefly if I may say I forget but the season, we have a plan for the future of course, we have the benefit that we have fine tuned on 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.

That direction in the future for sure there will be not every race, we have ideas, especially Puma for certainly is part of it from free and certain especially on the worst, but we want to offer and attitude deal that didn't go on.

The big problem for 1 on ones, so very very positive cash.

That's up from the first exercise on ready to prepare at the end of the of the other 3 events a proposal that's been home what we've been seeing hopefully would be a big step from <unk> differentiation.

Differentiation from 1 also on 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 to on a SEC salmon 1 on from me on 1 if I could first of all on Formula 1.

A couple of recent sponsorship deals can you just give us an update on how many meetings or verticals. You think are really available to you and are 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 in the quarter, presumably youre going to.

Are you able to get the cash flows from Sirius tax free zone 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 the massive value of the Sirius stake why not take that buyback activity up to now.

Wrapping up now rather than waiting until you have it.

Ability to get the cash tax free.

Definitely.

First I know you.

Do you want to comment on spot.

Thank you Greg James I mean from my perspective, we have seen already a great momentum to be shedding in the sponsorship growth.

So that is connected to all what we have seen in the championship that theyre going to the other question with regarding to how many growth because you believe that could be still open in the other.

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

That is something related to our possible.

The promotional offer but we want to exploit what grade low band could be available around the world, that's mainly I would say.

The most important 1 that I think it.

It would be both the price to book up.

If I could add on sponsorship.

I think it's an evolving market.

And we certainly see new categories and technology as Stefano 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 that now it's a meaningful number. So I think new categories are created things change.

Sure.

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 many or this number I think it moves around and there are lots of opportunities still out there and.

And it's our challenge to go on to pursue them on the question about what 6.7 I think we have been ramping we do have a plan. We will have more capital that comes in I think given that our that the way to support the debt at L. S. X M 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. So we can do is X amount of liquidity. So I think we'll you'll 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 1 on Formula 1.

Wondering given all the fluidity in the the rescheduled this year.

Hum the race promotion contracts been renegotiated.

Based on the regulatory allowance of capacity.

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

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 free period do you think on capacity and race promotion revenue level by the fourth quarter.

And then a second question on Liberty Sirius.

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

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

With your sales book from her will be tax free or is there any free cash from that thank you.

So all I'm only Greg.

On the Fresno area for you.

Stefano.

Okay. Thank you.

As you said the fluidity is really.

The thing that we had to manage through this year and that we are heading into the second half of the season, we have on that would be the topic de growth.

Is that.

A situation, we have to manage as unique different and.

Because every agreement is different from the 1 that we have more country by contemplated by bleach sales.

That's of course, the fourth is always to make sure that from all the points that we need to leverage on.

Of course also on the financial side is broke demise.

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

We have agreement on.

Honestly the number other than this 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 on the authority to make sure that we can really make.

<unk> planned for the future knowing that other.

Greg will see before the situation is evolving continuously on.

On the thing that we have to do is to make sure that we are able to.

Absent that I wait and on and the things that we can see so far to date that we didn't have any material cash income on our numbers.

I agree with Stephane on his comments on obviously.

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

Safely at each race and that will impact the revenue 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 1 comment our about Almac and it was we were so excited about formula 1.

It's probably what happened look.

Look obviously, there is limited amount I can comment.

Our observations about the spec market are 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 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 probably been washed out we know of deals that were 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 <unk>.

Mac Thats 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.

<unk> is a comforting thought to many.

I have recently been approached by.

<unk>.

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 COVID-19 weighted related recovery or the like so all of those are.

Our speculations about what we will see we have seen a lot of those kind of opportunities, but have not found the perfectly price on our opportunity would be like yet, but 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 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 going to be an 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 or takeover.

Between Alex actually in Syria, 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.

And effects here 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 theory 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.

Yeah.

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

Thank you.

So on fingers that day.

Comscore I guess the default rate question.

Stepping back from the phrase.

Looking at MLP overall, you've got you know good new turnkey contracts, you're 28, albeit pretty fast on track.

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

She has some real issues.

Longer periods of time, where we're trading for the sport and the competition on the field do you think Manfred owners group overall are amenable to fairly draconian measures like maybe even moving back to the pictures now on to get more.

5 minutes into the game.

And the other kind of a fourth question, but it translates the 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 and play a 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.

Double headers.

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 at second base things like that so there are certainly attempts to speed things up.

And I'm.

I'm not convinced 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 try to be maintained.

Okay.

Thanks, Greg.

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 debt. Thank.

Thank you very much.

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

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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 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 within the meaning of the private Securities Litigation Reform Act of 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 on Liberty media acquisitions form.

S..1 registration statement filed with the SEC. These forward looking statements speak only as of the date of this call and Liberty Media and Liberty Media acquisition expressly disclaim any obligation or undertaking.

Any updates or revisions to any forward looking statement contained herein to reflect any change in liberty media or Liberty media acquisition corporations expectations with regard thereto or any change in events conditions or circumstances on which any such statements made.

On today's call, we will discuss certain non-GAAP financial measures for Liberty media and Siriusxm.

On an adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media on Siriusxm 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 from an accounting and Liberty's Chief accounting and principal financial Officer, Brian Wendling.

So beginning with Liberty Sirius XM.

Continued to repurchase shares purchasing $141 million across our <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 of the 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 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% day.

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. There are 140 million vehicles on the road today, which are enabled for serious exam and.

And the 360 L. Enhanced feature share will continue to evolve based on data received from us.

We're also growing engagement outside of the car on the rebranded <unk> 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 in North America.

While 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 turning to live nation.

The reopening accelerated led by <unk>.

Outdoor concert 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 Lollapalooza.

Rolling Loud 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.

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

August 21.

<unk> Deeps are streaming can service continues to be an incremental live revenue stream for us with Bob 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 the Formula 1 group.

That was phenomenal racing.

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 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 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 356000 fans over the weekend, which was tremendous.

And we remain confident in 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.

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 adhere in certain parts of Colorado were devastated so you're cooling you enter season early we do wish him a speedy recovery.

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

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

Baseball 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 jerseys and start a high quality problem.

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 and 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 from new tenants 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 Almac this back.

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 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 loan capacity at the parent level related to our series La Nacion 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 end 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 from the value of the live nation stake was nearly $6 billion.

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

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

384 million net was received from Alex like them in Q2 related to settling out the cost growth.

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 at the corporate level.

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

While we are still on the period of a covenant waiver at F..1 target leverage for the business remain 5 to 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 <unk> revenue to better align with the way it currently evaluated.

Components reclassified in the primary up on revenue include F..1 TV subscriptions up 2 and half 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 694 liver.

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

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

Thank you Brian 2000, Jacob on the season is exceeding expectations across the board.

We can on the plant.

Putting drama.

Thanks.

Dean Gehring GP did not disappoint a zone.

On claim these amazing victory and the highest first on the newly branded team and I'm also impressed with this expense holding off on in terms of all in 1 of those labs.

The rivalry between Lewis from X continues to build and debt by police for the channel, which culminated with the instances of tumors and we the predictable outcome on Sunday and rentals on the pieces.

And for the standard grades slightly ahead in the standard.

And the bubble to the surface between novice bulk was embedded.

Among the total Doctor is just those tiers.

Sales are still first and Mclaren on for Ravi.

From 1 while leaving up to the promise and those plans are responding.

We have a full cloud.

Posting 300.

Over the weekend with the hands of inflows.

It's on.

These sorts of attendance is unrivaled in schools.

<unk> was certainly aided by the high volume for the championship the inaugural F..1 strength events produced compelling racing and the return on the public cloud.

On the strength there.

First on 3 events from this season, we have received overwhelmingly positive feedback from that.

These drivers.

And certainly these provides additional opportunities for the hour per module media as possible problems when.

We will continue to discuss any lessons learned from the farmers with the themes of the fundamentals are strong.

We believe discount maybe expand on 2022 and look forward to the next strength.

Cash app.

Engaging across all platforms, we have data through to a British Graham Creek and on the digital from unique users for the S..1 website and App this season.

Over 88 per cent compared from China.

Social engagements continues to growth, reaching a total of 14 media and social interaction for the business.

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

<unk> opportunity and we have seen strong growth over 2020.

And 2020 net in many markets, notably songs that Netherlands, Norway, Spain, Sweden, and the United States.

If 1 TV remains a great ways for clients, who cash all the actions on the race weekend.

Concurrent viewers per race days has consistently been more than 2 points higher than the 2020 season average with minimum skew over race weekend also by more than 2 books on time.

On the vessels last season.

We are now on lateral basis into our planned 23 races season. This time last year, we had only completed tour.

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

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

On our last earning calls the Canadian royalty adjusted being replaced by the sort of EPS growth.

However, useful drug administration related to turnkey, we have to compete with again and secure a back to back leases in Ulster Bank moving the transfer on premium.

Ultimately, we were able to secure the slots with Cherokee natively on the calendar.

<unk> for the Singapore growth rate.

All of these changes require great named blenders 3 on.

PBT and hard work from our partners and the confidence in which new ratio lead flow.

<unk> hundred 1 as a demonstrated ability to manage the logistics on appropriate restrictions in multiple countries and then set the gold standard testing an effective total goes to deal with positive cases.

So on free we ask from that 56000 tests on drivers themes on personnel that produced sales gains.

Positive cases, total positivity rate of 0.06 per se.

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

The non to host 1 on low races persists.

All on high as evidenced by the web.

Be able to move things slow in 2021.

And we wouldn't see net interest from new venues that now currently part of the 2020 volume Callender and existing venues does that open to host in a separate release.

As different on part of the World.

On the stages of emerging from the from that.

On those new <unk> has an exciting way to return to the average stage and welcome back.

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

Join us our global partners and non partners of the <unk> status and will become decisional keeps us on us to sponsor.

On the.

Howerton of echelon.

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

Also will come with <unk> as the total sponsor of the Austrian double Heather on last week announced that they will become everyone's on facial water technology partner working with Epsilon to deliberate on single use plastic free tablet.

Thank you Scott.

Good day.

On the regional finance and HR enterprise partnering on Thats, 1 of course, the UK on June 5.

Finally, we completed a multiyear extension of our financing companies E Commerce on manufacturing following outstanding performance on our FY more price.

Sales on the official online excellent total grew by more than 40% in 2020 and accelerates with triple digit growth from the first 6 months of 2021.

The U S market is the largest in terms of sales on the <unk> side, highlighting the increased revenue.

Sports on the crunchy.

Pumping our goal to expand our reach we are announcing debut on Liberty is for all debt F..1 teams will feature in the video game, where rocket needs maintenance from pack.

Beginning on a multi year partnership.

We have a nice on how can we assume that 2021 season.

Revenue from 2022 has been ongoing for some time.

As I mentioned before there is a high demand from day 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.

The non school they think it is high.

He is now sufficiently stock.

We also look forward to our move to some feet on the Russian growth beginning in 2023.

Tony will.

We will provide you is coming back from Formula 1.

Previously discussed the foundation that were put in place over the last few years with costs GAAP regulation, and then income quarter. Good image, we have created a sustainable and a flourishing ecosystem flow this quarter.

These along with a compelling products on the.

Created incentives and opportunities across the board.

These include ongoing discussion on the highest led but with engine manufacturers, who see the brand's annually 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 Puma once we get a sense 1 initiatives.

But it is growing free we delivered on a carbon neutral growth.

We plan to take these learnings as we work towards our goals for on ensuring all Thats why <unk> been self sustainable by 2025 and on other ways to become net zero carbon by 2030.

We are also seeing great interest from Oems in our plans for the next boom on 1 engine to be on.

Sustainable fuels and those positive discussion on completely.

But I'm going to focus to increase diversity and inclusion of gross 401, we have recently announced commitments relating to 10 engineers scholarships, Florida underrepresented groups and apprentice and Eaton the ship brokers with India as 1 organization.

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 changed for these general donation to funding these scholarships.

I think the logos great I want to thank everyone on the total 1 including all of our drivers teams and business partners.

Indication on hard work so far this season.

Some much deserved time off and we look forward to assume innovation in August in C&I.

Full speed ahead.

And now I will turn the call day.

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 the 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. 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 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.

Okay.

Hey, good morning, everybody.

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

November 18th I say August.

You did yes.

I thought you meant November so thanks for clarifying any other exciting for 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 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 after the discount at Liberty Sirius since youre going to end.

Do we have access to a lot more capital.

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 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 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.

First on the discounts.

Well.

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

Sure.

Going on there and we actually.

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

Her 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 of.

Charter excuse me up lbid 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 or 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 them.

What's happened to the NAV per share of L. B R D on the comp.

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.

Yes.

I think just the sheer heft.

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.

<unk> I would it be as the 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 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 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.

<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.

No, Greg I think that new debt.

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

<unk> Tvs the huge potential to make sure that we can enhance the experience with more and more content to our customers and we are exploring relative together with other promoters true.

But really on live content, we can offer.

And especially condition to do the ones that that attended to debt.

And then extended the other type of adding unique content in these in our Catherine.

We love that experience, because that's really on 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 many of our major deals have been already complete with them. So we are not in that situation. When we can really see the evolution on the TV right. Because this is something that is not uniformly different from region to region and the OTT development should happen in the future.

We had an accretive position of I think the biggest.

Really revenue on and then the habit that says let's flow into what we are positioned to day, though that will be ready at the right time to maximize the fact that pool, what he's really great shape today.

That makes sense. Thanks for your thanks, both of you.

And up next we will 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.

From the infrastructure legislation.

It 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.

On open ended question, but Im 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 and I'm. Just wondering if you could give some perspective on that opportunity for formula 1 going forward and any plans or activity.

That you have going on in the sport spending 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 were 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. It's just the continuation or acceleration of ongoing trend.

The rest of the businesses Formula 1 the Braves.

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

There are growth opportunities there in terms of increasing customer.

The supply of funds to buy broadband increasing money around broadband probably helping us extend from a bar 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 prospect from charter.

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've 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.

Okay. If I may Brian on the on your question with regards to debt first of all with enough to put debt because we have already won partner is <unk> 88 debt.

Debt.

We're working together as you know.

The idea of bad news on that area with a lot of issue depending on the region on the country and we need to make sure that everything is 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 the net debt both our partners who will be the right 1.

Mentioned opportunity that could be good pull product will sport.

Okay. Thank you.

Yeah.

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

Alright, thank you on form.

<unk> revenue could you discuss in more detail 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 the range promotion and TV side and I think you mentioned, maybe expanding the format next year any sense for how many races. You could growth 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 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 talked about with the screen format.

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

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

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

The end of this.

A complete cash we're going to have a plan and the receivable will be the next step, but again, let me say that's after the first day.

Strength event in Superstorm the day respond, but we have both from the drivers from the teams. The media has been really positive and also goes up for the promoter because if you think that the every day, we have something to say.

People from the other tuck on Friday.

<unk>.

For the first for the final revenue on Friday, so the outcome as opposed to venmo has been dramatically positive EBITDA and they say and it's great because that's roadmap pension interest with TV and also partners because the types of crude that we have built in for example paper dot com and so we have already seen on financial income.

The port that has been that 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 after the end of the season, we have a plan for the future of course, we are developing 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.

That directly in the future for sure there will be no every race, we have ideas to the range, especially with Puma, Florida, certainly has probably been grumpily and certain especially on the worst, but we want to off growth and add to the already incredible proppant per well on so very very positive cash.

So from the first.

The size and ready to tap at the end of the of the other 3 events.

Total debt can be home, what we've been seeing hopefully would be a big step from <unk> differentiation from <unk>.

Also on a sporting proposition.

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

Thanks, 1 on.

It looks like salmon went on from me on 1 if I could first of all on Formula 1.

Recent sponsorship deals can you just give us an update on how many meetings or verticals. You think are really available to you in our 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 the quarter.

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.

Got.

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

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

Ramping up now rather than waiting until you have it.

Your ability to get the cash tax free.

Definitely.

Yes, yes.

You want to comment on sponsored.

Thank you Greg good James.

From my perspective, we have seen already a great momentum share.

In the sponsorship the gross debt is connected to all what we are achieving in the championship that theyre going to the other question with regarding to how many birth because you believe that could be.

We'll open in the other.

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

Maybe the 1 on which we are working on debt is very important but actually the technological provider.

That's the sub debt related to our possible.

The promotional offer but we want to exploit through a great broadband could be available around the world. That's made me.

I'd say that the most important 1 that I think it.

It will be both the price to book.

If I could add on sponsorship.

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

When we bought.

Bought the business nearly 5 years ago I don't think we thought about crypto sponsorship I don't think that was really on our horizon I know, 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.

The April 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 to 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 I think given that our that the way to support the debt at <unk> is primarily with flows from.

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 X 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 1 on Formula 1.

I was wondering given all the fluidity in the.

Reschedule this gear.

Hum.

The race promotion contracts spin.

Renegotiated.

On the regulatory allowance of capacity.

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

You have some normalcy coming back later.

Yeah, Let's say next year and kind of secondly on that would you be to a kind of a normal free period do you think on capacity and race promotion revenue level by the fourth quarter.

And then a second question on Liberty Sirius.

It was kind of tax related in terms of your options hypothetically if you were to sell into.

On a serious share buyback program once you are over 80%.

With your sales book from her Ob your tax free or is there any free cash from that thank you.

So all on moly Greg.

Your first step now.

Okay. Thank you.

Good day.

You said the food is really.

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

Good thing is that <unk>.

To ensure we have to manage these unique different debt.

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

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

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

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

We have agreement on.

Honestly the number other than this 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 on the authorities to make sure that we can really make.

Plans for the future knowing that.

Greg will see before the situation is evolving continuously on.

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

So we are asking the right way and the things that we can see so far to date that we didn't have any material cash any thoughts on other numbers.

I agree with Stephane on his comments on obviously.

<unk>.

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

Safely at each race and that will impact the revenue that occur that will 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 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 are 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 the pipe market is particularly difficult.

And the discount is expected from fair trading value of probably widening.

All of those have meant that weaker players.

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.

I think that trend I'd like to believe favors us both because we have a very strong investor group in Almac. This 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.

On.

I have recently been approached by.

Uh huh.

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.

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 COVID-19 weighted 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 the perfectly price point, our opportunity, we like yet, but I am 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.

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 this is going to be an easy question for you to answer, but if I just fast forward and.

And we get to the point where there.

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

Between Alex actually in Syria, where we get the 1 operating business and 1 on 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.

And effects here becomes a.

Operating subsidiary of Liberty.

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

RMT reverse Morris trusts, where our shares were subsequently spun out to our shareholders in theory 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.

So on tankers.

Comscore I guess the default rate question.

Stepping back from the Fray.

Looking at the MLP.

We're all.

Good news <unk> contracts to 28, albeit pretty fast on track.

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

Do you have some real issues over a longer period of time, where we're trading for the sport and the competition on the field do you think Manfred owners group overall are amenable to fairly draconian measures like maybe even moving back the pictures now on to get more excitement in the game.

Any other kind of a fourth question, but it translates the 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 represent as a 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.

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 at second base things like that so there are certainly attempts to speed things up.

And I'm.

I'm not convinced 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 try to be maintained.

Okay.

Thanks, Greg.

Thank you to our listening audience on the questioners.

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

<unk>.

At our Investor meeting in November if there was any debt. Thank.

Thank you very much.

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