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 that time, if you of 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 the call includes certain forward looking statements within the meaning of the private Securities Litigation Reform Act of the 1995 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in Liberty media is the most recent form 10-K, and 10-Q4 of Liberty media acquisitions form S..1.

Registration statements filed with the SEC. These forward looking statements speak only as of the date of this call and Liberty media and Liberty Media acquisition 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.

On today's call, we will discuss certain non-GAAP financial measures for Liberty media, and Sirius XM, including adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media and Siriusxm schedules 1 through 3 can be found at the end of the earnings press release issued today, which is available on Liberty Media's website now I would 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 I was kind of salary and.

He is chief accounting and principal financial Officer, Brian Wendling.

So beginning with Liberty Sirius XM.

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

The discount remains and we therefore repurchase at a look through price for the I'm, sorry 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 and our ownership of Sirius XM is 78, 1% as of July of 'twenty 3.

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

140 million vehicles on the road today, which are enabled for series 6 of them.

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

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

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

Courage you to get it today.

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

The 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.

Outdoor concerts in the U S and the UK with other countries come in the long test vaccination levels increase.

Festivals amphitheaters are the focus for the summer led by law of Palooza Rolling loud the 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.

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

August of 'twenty 1.

And beeps are streaming can service continues to be incremental live revenue stream for us with Bob The 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.

There was phenomenal racing.

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

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

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

We remain impressed with the way of Formula 1 as 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 can come back book.

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 and we are 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 it as on our IR homepage.

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

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

The truth.

A true as park fans are back in the Big way, we expanded the capacity of 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 in stock of high quality problem.

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

With our financial strength, we are reinvesting in on field talent before the tread 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 of the Teekay and Papa John's and the end of Covid related modified rents.

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

Confident it will be fully leased 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 the spec.

We think the trends in the stock market, which our chat.

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 of the parent level related to our series of moderation margin.

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

Based on the fair value of the liabilities 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 the.

The 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 as of 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.

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 of the corporate level.

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

But we are still in the period of the covenant waiver at F..1 target leverage of 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 of previously reported in other revenue and the primary F..1 revenue to better align with the way it currently evaluating the business.

The components reclassified in the primary iPhone revenue include F..1 TV subscriptions of 2 and half 3 related fees broadcast origination and support fees and digital advertising among others.

Additional detail, including the impact of the revenue reclassification for the years ended December $31.19 of 20 can be found on schedule 3 of our earnings press release posted to our website.

Lastly to the Braves at quarter end, the brands had attributed cash liquid investments and restricted cash of $231 million and attributed principal amount of debt of 694 libert.

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

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

Thank you Brian.

1020, when the season is exceeding the expectations across the board.

Each weekend on the planet.

Drama and the index.

Okay.

The <unk> did not disappoint a zone.

All of them playing these amazing victory and the highest first of the annuity of redundancy and all of them.

Also impressed with this expertise of holding off on in terms of pulling 1 of those labs.

The rivalry between Lewis from Max continues the building the place where the channel, which culminated with the instance of the simple and.

And with the unpredictable outcome on Sunday and the until then the thesis and for the some of the break the slightly ahead in the center.

And the Buffalo pulled the Thursday.

Between all of these bulk of some debt.

The contest among the total stock.

Just the excuse me 2 of us.

On the say the first and the collateral for Ravi.

From 1 of <unk>, leaving up to the promise and the signs are responding.

The full crowd the silver most of them 300 of each.

Sample over the weekend with the hands of inflows.

The source of the Denver is unrivaled in the schools.

Attendance was certainly aided by the type of 5 of them for the championship the now.

The X 1 springs events of produce compelling racing and the return of the public cloud.

On the strength the first of 3 events from the season, we have.

Have received overwhelming because it seems to it seems like some of the themes drivers.

And certainly these provides additional opportunities for the hour.

For most of the media and sports so part of us.

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

At this time with the expanded the 2022 and look forward to the next strength.

Cash at.

Engaging across the Oakland.

We have the data through the British Grand Prix and on the digital from unique users for the S..1 website and App the season.

The over 8 per cent compared to 2020.

Social engagements continues to growth, reaching a total of 40 million of social interaction for the biggest real quick.

And we've seen this growth reflected in our total number of dose literally as 1 of social media, which now stand at almost sports media.

<unk> of training and we have seen strong growth over 2010, and 2020 of that in many markets, notably songs, the Netherlands, Spain, Sweden, and the United States.

It's 1 of television remains a great way of patents to catch all the action of.

Of the race weekend.

Peak concurrent views per race days has consistently been more than 2.5 times higher than the 2020 season average with miniscule over the race weekend by more than 2.5 times of the vessels last season.

We have now leveled basis into our plan of 23 racing season.

The last year, we had only completed tour.

2021 as presented some of.

The same channel just as 2000.

The trends along with some new ones.

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

Although the last earning calls the Canadian growth just being replaced by the sort of keeps growing.

However use of travel restriction related to Turkey, we had to compete with again and secured back to make the races in Ulster Bank moving the range from 3 of weekend.

Well, it's the mentally we with the aim of <unk>.

It's tough to of choice, enabling the Columbus I think of it.

Placements of the Singapore Grumpy.

All of these changes required great named Blizzard <unk> Tvs.

PBT in the hard work flow.

Our partners and the confidence from which we recently.

<unk> hundred 1 as the demonstrated the ability to manage the logistics of Covid. This fiction in multiple countries and the set the gold standard in the effective.

The total cost to deal with positive cases to the.

Good day from free we have conducted 56000 tests on drivers seems the questionnaire.

The produce.

Positive cases photo of positivity rate of 0.06 per se.

2 of these fine tune the operation, we've seen comfortably the and our ability to safely deliver of 'twenty 3 race season.

The non to a host of all of our ratios the season.

All of all the high as evidenced by venue, where we can be able to slow in 2021.

And we will see lots of interest from new venues at that now.

Currently the part of the 2020 calendar and the existing venues at the open to host in the several weeks.

A significant part of the world.

The stages of emerging from the combating the Governor's view <unk> as an exciting way to return to the public stage and was convinced of that.

Tremendous progress in 2021 of the sponsorship and the momentum that has continued since our last earnings call in May.

So does the Tom join Us of global partners and not 1 of the partners of the F..1 screen Stevens and will become the official notice of sponsor and Thats the NFC howerton of Epsilon.

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

We have also will come from <unk>.

Total sponsor of the Austrian double here, the last week announced that they will become 1 of the official water technology Pablo working with Epsilon the Libra single use flash the screen tablet strength.

The 25.

Good day title on the regional finals, and the HR enterprise part of and all of that's 1 of the cost of UK and Germany.

Finally, we completed a multi year of expansion of our financings the company E Commerce of manufacturing following an outstanding performance from our F..1 off price.

Sales from the official online as far as total grew by more than 40 percentage of it doesn't plant and the accelerates the triple digit growth some of the <unk>.

First 6 months of 2020 well the.

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

The increase of resolutions.

All of the sports and the country.

The thing I would go to expand our reach we are announcing the approval 1 currently but it's for all debt F..1 teams with the feature in the video game of rockets in the latest spring back.

Many of the multi year partnerships we.

We have the LIFO, how can we assume the 2021 season.

Planning from 2022 has been ongoing for some time.

As mentioned before there is the high demand from 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 the.

The non school, they think of us high moving through sales of milk officially stock.

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

<unk> growth rate beginning in 2023.

Tony will.

We will provide is coming back from.

No.

Previously discussed the foundation that were put in place over the last few years with coast GAAP, the installation and the new from quarter to the good image, we have created a sustainable and the flourishing ecosystem from the sport.

This along with the compelling products on the strike as great of interest and opportunities across the board.

This includes ongoing discussion of the highest led the way with edge among the factors we've seen the breath of 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 the <unk> 1 initiatives both of them.

British company, we deliver the carbon neutral growth.

We plan to think of these learnings as we work towards our goals for the ensuring all of that's 1 events of sustainable by 2025 and on our way to become a net zero carbon by 2013.

We've also seen great interest from Oems in our plans for the next form of 1 engine to be out of the percent of sustainable fuels and those positive discussion of continuing.

But I want to focus the increased diversity and inclusion of those 401, we have recently announced commitments relating to 10 engineers scholarships, Florida and the representative groups and the apprentice and into the ship programs within the <unk> organization.

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

The change for the general donation to funding these scholarships.

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

Indication of hard work so far this season.

The only some much deserved time off and we look forward to the human innovation in August 29.

The amount the total.

Full speed ahead.

And now with 2 of the call day.

Moving to Greg. Thank you so much bye bye.

Stefan Alan Thank you Stefano and Brian.

And very exciting news.

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.

Additional details will be provided soon.

Please note that all in person attendees will need to be fully vaccinated against the 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.

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 signal the return equipment. Once again, everyone to ask the question Press Star 1 on your telephone keypad and we'll pause for a quick moment to assemble the queue.

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

Yeah.

Hey, good morning, everybody.

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

November 18th of I'd say August.

You did yes.

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

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

Liberty broadband I know this isn't of Liberty broadband call, but I think it's relevant for Liberty Siri that discount has not improved it's probably widened even since.

The that buyback kicked in the substantial levels and I'm just wondering what you take from that as we think about the opportunity the sort of go after the discount at Liberty Sirius since youre going to in theory of of 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 the business to sort of fading and now I'm sort of wondering.

Given COVID-19 and just the 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 the kind of the core rights and may be a driver of engagement. Just maybe you can update us on how you're thinking about the OTT streaming product at this point.

Sure.

Thank you Ben.

The first on the discounts.

Well.

It happened to be well aware since we have of Liberty broadband simple.

What's going on there and we actually.

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 are actually driving the NAV of.

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

The 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 <unk> D on the.

Compared to the underlying charter.

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

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

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

I think just the sheer heft.

The amount of content we have.

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

An enhanced way I would it be of the deep.

Primary way of an enhanced way and I think it still is going to be enhanced way and how much of it becomes incremental revenue how much of it becomes a weighted to join with our customers that will evolve, but you've seen what's happened for example, 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 step it up.

No Greg I think the.

First of all of them and I think Ben if I may ask him what the Vega 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 our promoters to give the real and lots of content, we can of clock.

In the specialty could be shipped to the to the.

The ones that that attended the event.

And then the extended the appetite of adding the unique content.

Our capital.

We know that the experience because that's media, an incremental way of adding more and more of it.

I think comfortable with people that the level of about 1 of the T V right.

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

Which when we can really see the evolution of the TV right because of this is something that is not uniformly ctrip from.

Region to region and the OTT development Force.

Should have a big hit in the future. So we are in the Cleveland position of I think the biggest problems of.

Really revenue all of that then the habits of splits.

Florida. The work we are positioned to day, though this will be ready at the right time to maximize the fact of the pool, what he's really great shape today.

That makes sense. Thanks for your day supposed to.

And up next we will take the 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.

Could it 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 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.

But 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 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.

CRE I guess, if you think about gray.

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

The rest of the businesses Formula 1 the Braves.

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

Both opportunities there in terms of increasing <unk>.

Customer.

The supply of of 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 in that Bill I would say from the perspective of 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 have been initially proposed about preferences for fiber over coax preferences for overbuild the preferences from unis.

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

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

We are working together, but the as you know the idea of Betsy seasonality of with a lot of be should depending from the region of the country and we need to make sure that everything is it really killed them debt side for sure the ease of big opportunity, but could that be exposed in the future. So once again working with brokers to make sure that the next day both out of poverty.

Would be the right..1 example of dimension of opportunity that could be good pull in front of the sport.

Okay. Thank you.

Yeah.

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

Alright, thank you.

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

Progress on the 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 formats. The idea was to offer something different that in order to make sure that the was something new that we cannot book.

To all the stakeholder in the summer.

From a 1 we had the sad that we wanted to do 3.3 tests 1 that has been done the soup. The other 1 would be.

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

At the end of this.

Complete cash we're going to have a plan with the C. What would be the next steps what I kind of let me say that after the first of the sprint the event and the Superstorm the the respond but we have both from the drivers from the teams. The media has been the really positive and also for the for the promoter because if you think that the every day, we have something to say.

The people who come out of the truck on Friday June <unk>.

For the first 1 of your final regimen Friday, so the cause of the person kind of has been dramatically positive non they see and it's great. Because that's really what the pension interest of TV and also partners because of the types of food that you built in for example, the dot com and the so we have already see the financial Inc.

The port that has been the if I may say good the good sign of very very very positive sign and we worked to restore what we said we gonna have a full of the briefly if I may say the I forget the season, we have a plan for the future of of course, we have the benefit that we have the fine tuning some of the comments that with the C and what I can say that.

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

In that direction of the future for sure there would be not every range, we have ideas to create the space.

The Puma core of certainly as part of the Rumford and certain of the special awards, but we want to offer and add the 2 the elevated incredible problem for 1.1 so very very positive the covenants up to the first of the.

It's the size and ready to tap at the end of the of the of the 3 events of proposal that's been the home what we can see hopefully would be.

The big step of bets at least from the future.

Also in the sporting proposition.

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

Thanks, I want on the SEC salmon 1 of them from me I Wonder if I could first of all on Formula 1.

Couple of weeks of sponsorship deals can you just give us an update on how many meanings of verticals you think of really available to you in our attractive opportunities and secondly on Liberty Formula..1 you bought back 100 excuse me on the Liberty Sirius you brought back of 140 million Bucks in stock in the quarter.

Presumably you're 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.

Got.

The $1 billion in debt or what are the more than that directly in margin loans.

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

Ramping up now rather than waiting until you have.

The ability to get the cash tax free.

Definitely.

The first yeah, Yeah, I know you want to comment on.

Thank you Greg of the James.

From my perspective, we have seen already a great the momentum to be sharing in the sponsorship the growth of debt is connected to all of what we have season in the championship that theyre going to the better question regarding to the how many book because you believe that could be.

We'll open in the us.

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

That's the sub could relate the 2 hour possible.

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

The most important 1 that I think.

It would be both of the rest of World Cup.

If I could add on sponsorship.

I think it's an evolving market and we certainly see new categories and technology as Stephane pointed out as 1.

When we.

Bought the business nearly 5 years ago I don't think we thought about of crypto sponsorship I don't think that was really on the horizon I know, it's a meaningful number so I think new categories of created things change.

The.

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

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

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

On the question about West Texas.

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.

The 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 the does 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 of in 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 of Formula 1.

I was wondering given all of the fluidity in the the the rescheduled this year.

Hum.

The race promotion contracts spin.

The renegotiated.

On the regulatory allowance of capacity.

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

You have some normalcy coming back later.

Yeah, but see the next year and kind of secondly on the would you be too of kind of a normal sleep period do you think of capacity and race promotion revenue level by the fourth quarter.

And then the second question on Liberty Sirius.

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

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

With your sales of the sport.

From her Ob.

Tax free or is there any leakage from the thank you.

So all of that mainly Greg.

The first of all of you for your first Stefano.

Okay. Thank you really are the baby.

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 wagging the dog.

Would be the topic of the group.

Is that.

The situation we have to manage these unique different the end because of every agreement is different from the 1 that we have a country by country place take place at the state that the of course the of thought is always to make sure that the from all of the point of we need to leverage and of course also the selection side is to optimize the the demur.

The rates of minimize the any negative possible until we can have.

The agreement, where the honestly the number of attendees doesn't mean anything to us from other we got working together to see what could be the benefit that we can bring home of depending on all of the situation and we are working closely with all of the promoters and the authority to make sure that we can really make the right plan for the future knowing that the.

The Redwood city before the situation is of all the continuously and the thing that we have to do is to make sure that we have a bill.

So the options that I wait and the things that we can see so far to date that we didn't have any material fashion.

All of those numbers.

I agree with Stephane comments and obviously.

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

The fleet at each race and that will impact the revenue that occur that'll impact. Obviously, there is the changing market every day Delta Lambda, we will see what happens. We're obviously designed to maximize attendance of the safest way possible.

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

Look obviously there is limited amount of 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 discounts 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 and I think that trend I'd like to believe favors us both because we have a very strong investor group in <unk>.

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

<unk> is a comforting thought to many.

Yes.

I have recently been approached by.

The.

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

The right deal is likely to involve something where there is more capital required the 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'll see we have seen a lot of those kind of opportunities, but have not found the perfectly price point of opportunity would be like yes 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 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 of the former would be tax free.

Great. Thank you very much.

And the 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 we get to the point where.

There is some sort of equity exchange or takeover.

Between all of us 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 the pros and cons.

Thank you Jason No I don't I don't think it's 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.

The operating subsidiary of Liberty.

With its own tracking stock or you could imagine scenarios, where there was effectively no.

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

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

No.

Okay. Thank you.

Okay.

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

Thank you.

John Thanks for that.

The Comscore I guess the default rate question.

Stepping back from the grades look.

Looking at the MLP overall, Scott the good news <unk> contracts of 28, albeit the pretty fast track.

Many of you having a lot of the fuel even the non baseball.

She has the real issues.

Longer periods of time, where we're trading for the sport and the competition in the field. He took the math for the owners group overall or.

Notable too fairly draconian measures like maybe even moving back into the picture smell of them to get more.

Tightening in end of the game.

I know that's kind of the fourth question, but kind of places the nationals 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 the.

Owners' representatives.

<unk> Representatives of 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.

The innovations like.

The doubleheaders.

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

During the Covid about starting of 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 moving the pictures of 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.

Yeah.

Thanks, Greg.

Thank you to our listening audience and 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 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 the 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 that this call includes certain forward looking statements in the meaning of the private Securities Litigation Reform Act of bank of 95 actual events or results could differ materially due to a number of risks and uncertainties.

Net as mentioned and Liberty media at the most recent form 10-K, and 10-Q4 of 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 the descent.

The need any updates or revisions to any forward looking statement contained herein to reflect any change in Liberty Media Liberty Media acquisition Corporation, the expectations with regard thereto or any change in events conditions or circumstances on which any such statements.

On today's call, we will discuss certain non-GAAP financial measures from Liberty media and Siriusxm, particularly the adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media and 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.

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.

We continued to repurchase shares of purchasing 141 million of cross Ellis SMA and the case years from May through July the.

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 of the discount opportunity and I expect we will continue to do it going forward and 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 of 140 million vehicles on the road today, which are enabled for series of exam and.

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 and 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 the 150 million listeners of 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 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.

Festival and amphitheater are the focus for the summer led by Lollapalooza.

In the allowed the hip hop festival in Miami.

Platitude in the UK.

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 AGA.

August 21.

<unk> our streaming can service continues to be an incremental live revenue stream for us with Bob The 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, the up until the summer break with the ear is balanced 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 book going wheel to wheel and.

The Macquarie Mclaren and Ferrari battling for the third spot.

We remain impressed with the way of Formula 1 as 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 out of it.

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 and we are consistently announcing new partners.

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

The <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 you're cooling of NTS season early we do wish him a speedy recovery.

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

Truth of tourists Park fans are back in the Big way, we expanded the capacity of 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 in stock the 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 for the Teekay and Papa John's and the end of Covid related modified rents.

You'll also see the phase III office tower.

We are confident 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 the stack.

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 of the parent level.

2 our Syrian La Nacion margin alone.

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 liabilities at quarter end of the amount of cash use would be $517 million.

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

The 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 Sirius XM.

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

$384 million that was received from Alex like them in Q2 related to settling out of 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 of the corporate level.

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

We are still in the period of the 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 previously reported in other revenue and the primary of 1 revenue net to better align with the way it currently evaluating the business.

Components reclassified in the primary iPhone revenue include F..1 TV subscriptions at 2% of 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 of 20 can be found on schedule 3 of our earnings press release posted to our website.

Lastly, the the Braves at quarter end, the brands had attributed cash liquid investments and restricted cash of $231 million and attributed principal amount of debt of 694 Liberty.

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

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

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

We can on the plans of putting.

Putting drama and the end of.

Thanks.

The German GP did not disappoint a zone.

Playing these amazing victory and the.

First kind of the annuity brand the team and I'm also impressed with his expertise of holding of I mean first of all.

The number of those labs the.

The rivalry between Lewis from Max continues to build and the price lease for the channel, which culminated with the instance of the simple.

And we the unpredictable outcome on Sunday and until then the Caesars and the the similar grades of slightly ahead in the.

And the bulk of the Thursday.

Between all of these bulk of some of it.

The content among the total Doctor is Jeff of Skus.

Let's say the first and the collateral of those for routing software.

From 1.1 leaving up to the promise and the fans are responding.

We have the full crowd of the Super Bowl.

300 of sample over the weekend with the hands of insulin <unk>.

Uh huh.

The sorts of of Denver's is unrivaled in the schools attend.

Attendance was certainly aided by the type of volume for the championship the NAV.

The X 1 spring prevented the produce compelling racing and the return of the public cloud.

On the strength the first of 3 events in the season, we have received overwhelmingly positive feedback from the teams drivers.

And certainly these provides additional opportunities for the hour for multiple media and sports hope all of us.

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

The discount with the expanded the 2022 and look forward to the next strength.

Cash at.

Engaging across the Oakland.

We have the data through due to the British Crown brink and on the digital from unique users for the S..1 website and App the season.

Over 80 per cent compared to the thousand trails.

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

And we've seen this growth reflected in our total number of dose literally as 1 of the social media, which now stands at almost sports media.

<unk> opportunity and we have seen strong growth over 2010.

And 2017 in many markets, notably songs, the Netherlands, Norway, Spain.

In Sweden, and the United States.

<unk> remains a great ways of patents to catch all of the actions of the race weekend.

Concurrent viewers per race days have consistently been more than 2.5 times higher than the 2020 season average with minimum skew over the race weekend also by more than 1.5 times of the vessels last season.

We are now level basis into our planned 23 races season. This time last year, we had 1 of the complete tour.

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

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

On our last the earning calls the Canadian crop the adjusted being replaced by the tune of case growth.

Great.

However, due to drug administration related to turnkey, we had to compete with again and secured back from regulators in Ulster Bank moving the transfer on the weekend.

Once the mentally we with the aim to secure the software turnkey needs of in the calendar.

The replacement for the Singapore Grand Prix.

All of these changes require great nimbleness creativity and hard work from our partners and the confidence in which the race of elite.

<unk> hundred 1 as of demonstrated the ability to manage the logistics of Covid restrictions in multiple countries and the set the gold standard effective throughout the course to deal with positive cases.

I'm pleased we ask from that 56000 cash from drivers themes of personnel that produced the.

Positive cases photo of positivity rate of 0.06 per se.

Some of these fine tune the operation, we've seen comp because of the ability to safely deliver of 23 of AC.

The non to host all of them.

This is the season.

At all all the high as evidenced by vertical.

We've been slow in 2021.

We wouldn't see that the ethos of slow new venues at that now currently part of the 2020 volume calendar and the existing venues does that open to host in the sector weights.

As the full impact of the world.

Various stages of emerging from the from that in the.

The Governor's view.

<unk> has an exciting way to return to the public stage and was convinced the OPEC.

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

Please.

Joining us of global partners and not 1 of the partners of the philosophy of Stephens.

The Stevens and <unk>.

Will become the official kick the photos.

The sponsor and at the end of seat Howerton of echelon.

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

We are also well coming being done and do you see the types of sponsor of the Austrian double here the last week announced that they will become 1 of the official water technology Pablo.

Working with Epsilon the lever of single use lastly screen patent book by 'twenty 'twenty from.

What day, Thailand, the regional finals, and the chart as the place partnering 1 of course, the UK and Germany.

Finally, we completed a multi year of expansion of our financings the impulse.

E Commerce of manufacturing following the outstanding performance of our F..1 of online school.

Sales from the official online as well as total grew by more than 40% of it doesn't planting and the accelerated some triple digit growth some of the.

The first 6 months of 2020 well the.

The us markets the.

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

The increase with resolution of the sports and the country.

The thing I would go to expand our reach we are announcing the pool, 1 policy bodies or all debt F..1 teams with the feature in the video game of rocket the latest spring back beginning of the multi year partnerships.

We are of LIFO, how can we assume the 2021 season, our planning for 2022 has been ongoing for some time.

As I mentioned before that is the high demand from day needs to make 2022 calendar and we hope to announce the provision of the calamity in September.

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

The mine will be taken as high moving through phase I of Melco efficiently stock.

We also look forward to our move to some peters from the Russian growth beginning in 2023.

Tony will.

We will provide this coming backdrop of formula 1.

Previously discussed the foundation that were put in place over the last few years with costs GAAP regulation and the new current quarter. Good image. We have created the are sustainable and the flourishing ecosystem for the sport.

These along with the compelling products on the drag of as greater interest and opportunities across the board.

This includes ongoing discussion at the highest led the way with edge among the sectors. We've seen the brand value with formula 1 as well as opportunities for the new engine and development of sustainable fuels.

Along these lines, we continue to develop programs and the full months of <unk> 1 initiatives.

The British company, we deliver the carbon neutral growth.

We plan to think of these learnings as we work towards our goals for the ensuring all of Thats, 1 events of sustainable by 2025 and on our way to become net zero carbon by 2030.

We are also seeing great interest from Oems in our plans for the next form of 1 engine to be out of the percent of.

Sustainable fuels and those positive discussion of continuing.

But I want to focus the increased diversity and inclusion of those 401, we have recently announced commitments relating to 10 engineers scholarships, Florida and the representative groups and the apprentice and intend the ship brokers within the F..1 organization.

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

Thanks changed for these channel donation to funding of these policies.

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

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

The amount of people.

Full speed ahead.

And now I will turn the call net.

Moving to Greg. Thank you so much bye bye.

Stefan Alan Thank you Stefano and Brian.

And very exciting news of.

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 the 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 your signal to reach our equipment. Once again, everyone to ask the 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 the exciting for for in person.

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

Liberty broadband I know this isn't of Liberty broadband call, but I think it's relevant for Liberty Siri that discount has not improved it's probably widened even since the that buyback kicked into the substantial levels and I'm. Just wondering what you take from that as we think about the.

The opportunity the sort of go after the discounted Liberty Sirius since youre going to in theory of of access to a lot more capital.

At some point over the next quarter or 2.

And then.

<unk> 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 is the business to sort of fading and now I'm sort of wondering give.

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 the 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 of Liberty broadband the call.

What's going on there and we actually.

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

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

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

We are actually driving the NAV of.

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

The 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 in terms of what's happened to the NAV per share of <unk>.

Compared to the underlying charter.

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

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

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

I think just the sheer heft of.

The amount of content we have.

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

Hence way I wouldn't be as the Pri.

Primary way or an enhanced way and I think it still is going to be enhanced way and how much of it becomes incremental revenue how much of it becomes a weighted to join with our customers that will evolve, but 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.

The 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 step it up.

No Greg I think the.

But all of them and I think Ben if I may ask him what the Vega said.

<unk> Tvs the 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 to get the wood that will promote the is to give the re in the large content of weekend all.

And the special provision to the to the ones that that attended to the to the event.

And then extended the appetite of adding the unique content in these in our capital.

Note that the experience because thats really an incremental way of adding more and more appetizing comfortable with people that the level of 4.1.

On the TV rights.

Generally talking I mean, we have the privilege of the and many of our major deals have been the already completed so we had net.

2 of which 1 we can really see the evolution of the TV right. Because this is something that is not uniformly different from region to region and the OTT development Force.

Should have a big hit in the future. So we are in the Cleveland position of having the biggest come true.

Really revenue all of that then the hasn't been slowing from what we are producing.

To date of the to be ready at the right time to maximize the fact the pool, what he's really great 6 day.

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

And up next we'll take the 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.

Could it 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 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 sports betting area. Thank you.

So touching first on the infrastructure Bill I think we're 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.

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 of just the continuation of our acceleration of ongoing trend.

The rest of the businesses Formula 1 of the Braves.

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

There are both opportunities there in terms of increasing customer.

The supply of of 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 in that Bill I would say from the perspective of 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 have been initially proposed about preferences from fiber over coax preferences for overbuild of preferences from Unis Muni.

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

Okay. If I may Brian on the on your question with regard to debt first of all we do not to forget the Diablo that'd be my partner is 1 of that.

Debt.

We're working together as you know.

The idea of vestiges of added with a lot of issue depending from the region of the country and we need to make sure that everything is it really came from that side for sure the keeps a big opportunity, but could that be explicitly in the future. So once again work in progress to make sure that the next step of our deposits will be the right 1 of doubles I mentioned the opportunity.

That could be good pull front of the sport.

Okay. Thank you.

Yeah.

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

Alright, thank you.

It'll 1 revenue could you discuss in more detail of your takeaways on the spring race format. Both in terms of how you think of it was received by the fans, but also by our partners on a range of promotion and TV side and I think you mentioned, maybe expanding the format next year any sense for how many races. You could grow this 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 stock market overall.

Thanks, David for the question well first of all the 1 we talked about with the screen formats. The idea was to offer something different that in order to make sure that the was something new that we cannot book.

To all the stakeholders.

Once we add the said that we wanted to do 3.3 tests 1 that has been done the soup. The other 1 will be.

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

At the end of this.

Complete cash we're going to have a plan of the placebo will be the next steps what I kind of let me say that after the first of our strength the event and the superstorm the the respond but we have both from the drivers from the teams. The media has been really positive and also for the for the promoter because if you think that the every day, we have something to say.

The people who come out of the truck on Friday June.

For the first 1 of your final revenue on Friday, So the outcome of the person panel has been dramatically positive if I may say and that's great. Because that's wrote the pension interest of TV and also partners because of the types of crude that we have built in for example, the dot com and net so we have already see the financial income.

The port that has been the if I may say look the good sign of very very very positive sign and we want to restart what we said we gonna have the.

Full of the briefly if I may say the I forget the the season, we have a plan for the future of of course, we of development that we have.

Fine tuning some of the comments that we the seats and what I can say that the if we move how do we show that I do believe so.

The direction in the future for sure there will be not the ABR rates whereby he is the great, especially the Puma core of certainly as part of the Grumpy and symptom of special awards that we want to off growth and add to the already the incredible platform for 1 of them. So very very positive the call.

Elements of the first the.

The exercise and ready to prepare at the end of the of the of the 3 events.

Both of that in the home.

Hopefully it would be a big step from <unk> at the front of tissue from Milan.

Also in the sporting proposition.

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

Thanks, I want an Elisa salmon 1 on from me I Wonder if I could first of all of Formula 1 in the 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 more attractive opportunities.

Secondly on Liberty Formula 1 and you bought back 100 excuse me on the Liberty Sirius back of 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 you've got.

The $1 billion in 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 this.

Ramping up now rather than waiting until you have.

The ability to get the cash tax free.

Definitely.

The first yes.

You want to comment.

Thank you Greg the James.

From my perspective, we have seen already a great the momentum to be sharing in the sponsorship the growth is.

To all of what we are achieving in the championship that theyre going to the of better question with regarding to how many book because you believe that could be.

The open in the us.

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

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

That's the subsidy related to our possible.

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

The most important 1 that I think.

It will be both of the rest of World Cup.

If I could add on sponsorship.

I think it's an evolving market and we certainly see new categories and technology as Stephane pointed out as 1.

When we bought.

Bought the business nearly 5 years ago I don't think we thought about of crypto sponsorship I don't think that was really on the horizon I know, it's a meaningful number so I think new categories of created things change.

The.

The PWT was the team sponsor now the 1 of our sponsors things move around so I'm not sure it's the 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 to pursue them on.

On the question of <unk>.

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.

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 the does X amount of liquidity.

Youll see a plan thats, 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 of the fluidity in the or the.

Reschedule this year.

Hum.

The race promotion contracts spin.

Renegotiated.

On the regulatory allowance of capacity.

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

You have some normalcy coming back later.

So net net.

Next year and kind of secondly on that would you be 2 of kind of a normal sleep period do you think of capacity and race promotion revenue level by the fourth quarter.

And then the second question on Liberty Sirius.

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

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

With your sales of the book somehow Obi you tax free or is there any free cash from that thank you.

So all of the moly Greg.

The present value for your first Stefano.

Okay. Thank you.

Good day.

You said with the EBIT is really.

The thing that we had to manage through this year and that we are heading into the second kind of part of the season, we have 1 that would be the topics.

Well the thing is that since the.

The issue we have to manage the unique different.

And because of the every agreement the decent from the 1 that we have more country by country place by place.

The state that the of course the of course is always to make sure that the from all of the points of we need to manage.

And of course also of the financial side is to optimize the.

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

We have the agreement.

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

<unk> planned for the future knowing that the Redwood city before the situation is evolving continuously.

And the thing that we have to do is to make sure that we are able to re asking the right way.

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 comments and 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.

It 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 of our I think it probably would happen.

Obviously, there is 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 fair trading value of probably widening.

All of those have meant that weaker players.

The half.

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 Almac Thats back who of.

<unk> willingness to do of 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 the our willingness to effect via pipe investor alongside pipe investors I think is.

Comforting thought to many.

I have recently been approached by.

The numerous firms about hey, we'd love to come along with you and partner on it at 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 the 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 not found the perfectly price 1 of our opportunities like yet.

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 of the former would be tax free.

Great. Thank you very much.

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

I think the significant easy question for you to answer, but if I just fast forward.

Get to the point, where.

There is some sort of equity exchange or takeover.

Between our section of M series, where we get the 1 operating business and the 1 security.

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

Thank you Jason No I don't think its of 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 the effects here becomes a.

The operating subsidiary of Liberty.

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

<unk> reverse Morris Trust, where our shares were subsequently spun out to our shareholders in CRE became a freely traded company both of those of our 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.

Sean.

The Comscore I guess the default rate question.

Stepping back from the Fray, but looking at the MLP overall.

The good news <unk> contracts of 28, albeit the pretty fast track in a tiny having a lot of the fuel even day.

Non baseball.

Chris do you have some real issues over a longer period of time, we're waiting for the sport and the competition in the field you think man threat and the owners group overall are amenable to fairly draconian measures like maybe even moving back into the picture now and to get more excitement in end of the game.

The kind of the fourth question, but the financials over a period of time as well. Thanks.

Thank you Matthew.

The.

We remain Super excited about the Braves there are.

The continuous work led by commissions, which involve both.

Owners' representatives.

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

To try and shortened the playing times.

You've seen innovations like <unk>.

Double headers.

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

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

And I'm.

I'm not convinced moving the 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, Craig.

Thank you to our listening audience and the questioners we.

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

At our Investor meeting in November if 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.