Q2 2022 Liberty Media Corp Earnings Call
Please standby.
Ladies and gentlemen, thank you for standing by welcome to the Liberty Media Corporation 22.
2022, 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 one on your telephone as a reminder, this conference is being recorded August step.
I'd now like to turn the conference over to Courtney Chun Chief portfolio Officer. Please go ahead.
Thank you.
Where we begin we'd like to remind everyone that this call includes certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in Liberty media and the most recent forms 10-K, and 10-Q or Liberty media acquisitions. Most recent Form 10-K, and 10-Q filed with the.
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 do so.
Terminate any updates or revisions to any forward looking statement contained herein to reflect any change in liberty media or Liberty media acquisition expectations with regard there to or any change in events conditions or circumstances on which any such statement is based on today's call. We will discuss certain non-GAAP financial measures for Liberty media and Siriusxm, including adjusted OIBDA.
And adjusted EBITDA, the required definitions and reconciliations for Liberty media.
Schedules, one and two can be found at the end of the earnings press release issued today, which is available on Liberty Media's website now I'll turn the call over to Greg to say Liberty's President and CEO .
Yeah.
Greg.
Sorry.
Little muting good morning today on the call. Besides myself, we'll also have formula one's president and CEO Stefan will give them the Kelly.
And Liberty's, Chief accounting and principal financial Officer, Brian Wendling.
So, let's begin with Liberty Sirius, except where we received a 70 million dollar regular dividend from Syria, and the second quarter, which was tax free.
We also repurchased $93 million across the L. S X M. A N K shares from May to July .
And it looks through price CRE up $2 88 per share.
We do understand the discount has widened and it is frustrating.
And while the decline of Atlas Exxon is in line with the overall market further widening of the discount has been very disappointing.
We still believe repurchases are attractive means to capture that discount, but it's becoming clear that not enough to collapse it on their own.
We are focused on this.
While not a fulsome list potential actions, we might consider include reducing.
Reducing debt at <unk> to enable a combination and then not overly levered CRE L. S. XM.
Steps to better illuminate the value of our lives stake.
And other potential actions.
I would remind you what liberty media in some of our various spun off entities, we have a long history of corporate actions to capture discount and these include structuring the GCI actually acquisition in such a way it was immediately an ATB.
The Directv RMT and subsequent sale to AT&T.
And the subsequent the separation of Liberty Expedia and subsequent merger with Expedia.
In summary, we have options and actions we have taken we have a history of doing so.
So let me try to Syria itself, which I believe is handling the market challenges well and maintaining their financial guidance. Despite a reduced sub guidance due to wait weeks or which has been well documented for reasons like chip supply issues.
They had robust financial results for the second quarter, including revenue up 4%.
Sure and steady at one 5%.
And new and used car penetration is up to 80, 451% respectively.
We also announced extensions with important auto maker partners, including Mazda and Mitsubishi.
We made continued progress on our connected Tvs.
TV platforms like Amazon fire, Android TV, LG and Roku.
We signed a new agreement to fully integrate.
It launched.
Sirius XM the audio experience on extending with Comcast with video to come.
And on demand music listening in the Sirius XM App is up 41% year over year, and that's partly driven by the addition of new unique and diverse content.
Overall sports listening is up in the App.
Our agreement to make Siri exclusive third party platform for NFL games is helpful and keeping the family. We also announced an extension with F. One to cover every race on the World Championship calendar.
Lastly, we're very excited about our continued work in podcasting Americans listen to audio off 9% last year podcast audio up 9% last year of our pod casting at all platform business revenues were up 50%.
We also expanded our grid with Comscore to release AI powered podcast audience targeting capabilities.
Somebody returned to live nation, which announced very strong results. It is clear why events are back on a global scale with yet another quarter of record results versus 2019, AOE is up 50% free cash flow was up 72%.
And that rose to $379 million.
At Ticketmaster itself why was up 86%.
And the transacted GTD was up 76% again over 2019.
Sponsorship was up 81% over 2019, and important new clients, including Google AWS and Hulu.
We had the highest highest quarterly attendance ever over 33 million fans.
Our onsite fan spend growth.
Continues across all venues.
We have an outlook for a record of 2022 with 100 million concert tickets already sold.
Fan attendance is up 13% of the operated venues and almost 30 new venues in the pipeline.
And the 2023 August pipeline is the largest we've ever had at this point in the year.
So exciting stuff turned.
Turning to Formula One group.
<unk> continued to see record attendance and viewership in the second quarter.
The Australia, Austria in Guam trade was our second spread that viewership was up 39% versus the 2021 Austrian qualifying.
We are also benefiting from the return of coverage on CCTV boosting our audience in China.
Similarly, we've had record in person attendance four races. This year I've had over 300000 attendance with incredible demand for the Paddock club.
The Hungarian weekend attendance for example, with <unk> 290000 was the largest ticketed sporting event in history and hungry.
So we've seen strong ticket sales in sell out demand for the rest of the year.
The calendar as well.
The new regulations.
Part of the Concorde agreement are succeeding at enable closer racing and demonstrably more overtaking.
We are continuing to pursue trail appraising work around sustainable drop in fuel and regenerative engine development and we think these will have implications across the entire transportation district.
Turning to our most recent work in Las Vegas, we completed the land purchase at the corporate level. We're excited about the potential for this property, we do expect to have year round Activations. This site.
The main paddock building, which is estimated to be 900 feet long with like the three football fields will be exciting and we're actively working with potential commercial partners to expand our opportunities there.
We are building out the F. One team in Vegas across sales marketing race operations and more.
We're leveraging local expertise and talent as well, including the L. B C D E and our partners at live nation.
We're still working through the specifics on capacity.
But I'd note that our founding partners in Vegas, Caesars Wynn at MGM are seeing incredible demand.
And we haven't even announced a formal date.
We will obviously share more details on Vegas overtime.
While some of you were excited you don't have to wake up early for races over the summer break.
Here at Liberty and look forward to restarting formula one at Spa on August 28.
Turning to the Braves, they've been playing excellent baseball over the past couple of months.
As of today, we're just under 600.
A record for the season and since June 1st we have the best record in baseball. Despite our sad lots of them that's last night.
It's an exciting team and the world's Halo is still driving fancy choice Park.
Fraser tenants is up 23% compared to an already strong 2019 season.
We've had 24 sellouts to the all star break.
And training to roughly 50% sell out for the year.
Tickets parking concessions in concert the Roxy are all performing well.
We've had six all stars name this year most of the team since 2011.
And double the amount from last year, we just signed an extension with Austin Riley a 10 year deal at $212 million the largest in franchise history. After outstanding performance by Austin This season, including a historic July .
Alex Anthophilous once again deserves credits for the moves he took to strengthen the team before the trade deadline.
Do remember how well that's worked out last year.
Grossman at Love field, and <unk> picture.
Both insurance to our lineup.
Adding also bullpen capacity.
I congratulate our snip.
Five hundred's career win it's always last week.
And again, we encourage you to tune in to the Mets Tonight.
We have nothing to report today Almac, but we do continue to review opportunities and look at the.
The environment was difficult prospects as an opportunity for us and with that I'll turn it over to Brian for more on our financial results.
Thanks, Greg and good morning, everyone at quarter end Liberty Siriusxm group had attributed cash and liquid investments in liquid public debt and equity securities of approximately $368 million.
Each excludes $126 million of cash held directly at Sirius XM.
There was also $1 3 billion of Undrawn margin loan capacity at the parent level related to our Sirius XM and live nation margin levels.
As of August 4th the value of our Sirius XM stock held at Liberty Sirius XM Group was $21 5 billion and evaluate the value of the live nation stock was $6 8 million.
$2 8 billion in principal amount of debt against these holdings.
Total Liberty Siriusxm group attributed principal amount of debt is $13 7 billion, which includes 10 billion of debt at Sirius XM.
Formula One group had attributed cash liquid investments and monetize public holdings of $1 1 billion at quarter end, which excludes $935 million of cash held directly at Formula one.
Formula One group attributed.
Attributed principal amount of debt was $3 2 billion, which includes the $2 9 billion of debt at Formula One.
Leaving $306 million of corporate level.
During the quarter, we repurchased 146 million face value of 1%, while cash convertible notes.
Due in 2023 for approximately $240 million.
Hirings $95 million underlying walk shares at an average price of 50 988.
F. One $500 million revolver is undrawn and formula one leverage at the end of the quarter was three times.
As we discussed last quarter under the current Concorde agreement team payments now take the form of an entirely variable Prize fund, which is calculated with reference to a measure of F. Once adjusted EBIT rather than the adjusted EBITDA measure used in previous agreements such that the calculation now takes into account capex incurred by <unk>.
<unk> depreciation cost.
There is an immaterial difference today between formula one's adjusted EBIT and adjusted EBITDA for purposes of this calculation.
Note that our reported F. One depreciation of amyloid.
<unk> purchase accounting amortization related to the acquisition that is excluded for purposes of the price on calculations.
We've quantified it quantified this purchase accounting amortization in our earnings release to assist and calculations.
Also at Formula one other F. One revenue was running materially higher than the prior year up about $80 million in the second quarter and $130 million year to date compared to 2021.
Increased freight and hospitality income accounts for 98% of the quarter over quarter increase.
Note that the Paddock club didn't run until July of last year, while year to date through the second quarter at one is welcomed over 35000 gas seven events, where we will rebrand Arvada club.
Other cost of F. One revenue was higher primarily due to the same factors. These costs were up 76 million in the second quarter, approximately 75% of which is due to freight and hospitality cost variances.
Finally at up one at last year's Investor Day, We included an appendix slide detailing up one foreign exchange exposure. These percentages are still accurate with approximately 80% of that once revenue and cost denominated in U S dollars.
Finally at the Braves group at quarter end, they had attributed cash and liquid investments of 207 $207 million, which excludes 66 million of restricted cash.
Branch group had attributed principal amount of debt $602 million.
The Atlanta Braves also announced several new construction projects for 2020 to a new office building will be constructed known as five ballpark center that will house the national headquarters for <unk> Securities under a 15 year lease construction is expected to begin in the second half of 2022.
The Braves estimate their cash contribution will be approximately $20 million.
The raise we're also working on a new project with Goldenrod development company called the Henry a luxury apartment building.
If completed the brands would have a minority equity stake in exchange for two acres of contributed land with no additional cash contribution.
From the bras. Additionally, the Braves are evaluating a phase II project and goldenrod to build an adjacent hotel and condominium complex.
This is still in the evaluation phase, but would be another minority investment with a modest cash investment.
Our real estate projects have individually and collectively performed ahead of our expectations.
The battery is generating healthy cash flow, which was partially used to support the operations of <unk>.
And future investments in the battery and partially to support Braves baseball Libert.
Liberty and our consolidated subsidiaries are in compliance with our debt covenants at quarter end.
That I will turn it over to Stefano to discuss Formula one.
Thanks, Brian .
For the last earning calls we let in Miami for the inaugural Miami Grand Prix.
It's an incredible weekend as full one was welcome to the city with open arms.
Celebrities came out in full force and much of the coverage and health of the subs establishment of pool, one in the U S. It was wonderful to see so many of you endorse.
We are now over halfway through the 2022 race season, and we have seen them predictable outcomes and lots of we'll do with embracing especially in the mid field.
As a testament to the new regulation, that's everything that's good points already this is Kevin.
<unk> Securities first F. One Korea these wind up silver some loose hammertoe Mark. He is 300 <unk> talked with a second place finish the first double podium. Although this is a form of say this is Ross.
Trump multiple stopping currently leads the drivers championship over Charlotte.
So Robert Yes, shown incredible speed and the battle between these two is intense.
We haven't seen the fight between the Gladden out thing and it is great to see <unk> beginning to move forward. Currently has 70 of the perspective.
And as we said <unk> continues to fight that with Luis and Georgia Board you look at.
These action on the track has drawn in defense, we have set out crowds at our events with the 420000. Another 400000 that servicer. So he has a thousand in Austria, 300000, hungry and 338000 for Canada.
But the club has experienced record sales will come in over 35000 people across 90 beds this year, including a record breaking attendance of silver some well we have 7500 guests.
The TV audience is also Q&A and with the average order spoken a brief sort of perhaps up to 9%. That's 2000 why don't season average.
We continue to see tremendous drove an old platforms, we were thrilled to announce that they're highly popular and lets see this drive to survive has been renewed for the fifth and sixth season.
<unk> is still attracting new fans and Susan for broke into the weekly top 10 in 56 countries.
Building on the mass media rights, we reached a renewal agreement with bank branches in Brazil throughout 2025, which would cover all while he five session and go to please all alive frequent basis.
Additionally, we secured a strategic partnership with collateral proceeds to be the exclusive distributor of F. One TV pro in the country.
F. One TV pro has proven to be a compelling product for our fans. So it's worth a brief overview.
If once you blow office coverage of every F. One C session lives on demand as well as live access to old plants, you onboard drivers cameras and seems radio channels seizure session replays and highlights live streaming of every as to re enforce supercut obsession in the library spending.
Over 2000 hours of archives and feature programming.
The platform was revamped in 2021 and is now more accessible than ever before with the release of the services across may you'll be stream platform enhancing the viewing the screens performed one fans around the world.
Also the recent promotional side, we were pleased to reach a long term agreement with them that but that will have aspiration there through 2035.
These new agreements will bring <unk> three to the track for the first time ever.
We were also thrilled to announce home that as the title sponsor of the Joplin has gone very well with its soon to Japan in October .
We are focused on the calendar for 2023 and expect to have more of these things around early October .
On disposal ship from we announced perhaps one of the key is the first ever official Tequila Plaza of the F. One part of the.
We're also focused on licensees opportunity importantly, with around room. So just for the first official exhibition in for one history.
States, including venues on the same statesville wheel will be announced this fall.
We also extended our agreement with the momentum group through the 2055 season.
These already covered authentic certified the license from them more immediately and now includes the right to sell excess one race and the show cause the recently completed the option to pull the 90 90, Laythan House C. G 901, which placed second in the first row. Please so well over 500000 pounds.
<unk>.
We continue to push to Heath, our net zero carbon by 2030 target.
If one is developing a 100% sustainable fuel that will be used in former ones cost for 2026.
<unk> with the introduction of the next generation I prevention.
A few of these purposely designed to dropping for both internal combustion engine and hybrids.
It is already in development with support from our key stakeholders.
And from the F. One global partners, who will provide this and therefore the pizza manufacturer.
While recent fuel represents only 0.7% a level emission we believe sustainable fuels, where we can have a greater impact on the global transportation sector.
While we have already instituted the significant changes to create the most sustainable sport. We have now what was it on the phone with Arris exploring capital reduction measure for fast revenue is two fold one events sharing the cover infection the activities from across our sports and community.
Taking steps continued to investigate that with the measures to deliver more efficient logistics and travel arrangements from C.
C L.
Firstly, our commitment to the environment. We are partnered with Banco sense of Theyre to amplify the sense of the global challenge comes out to zero, a competition that challenges and some printers to create a sustainable solution for the future.
We continue to promote diversity and Eden Esport and hosted the F. One is food woman why codex fetus day at the Mclaren technological set.
First launched in 2021 the woman the wildcard represents another route into F. One esports pulse we made participants.
The initiative was born from the desire to create the space that encourage more females to take part in soup in the time trials via the official and therefore, we do games with a path to securing this sport in the F. One esport prohibition for the chance to be selected by a team for the Pro Championship later this year.
We also know that is in a year I would extend that funding commitment to the full one and Judy and the scholarship program for Unrepresented group until 2025 continually strive to increase diversity within the sport.
We hope everyone has enjoyed the first parts of the season.
While the teams and the drive is enjoying a much deserved break we will continue to capitalize on the growing popularity of us one and convert this into opportunities to drive the business forward a multitude of full speed ahead, and now I will turn the call back over to Greg. Thank you Bye bye.
Yeah.
Thank you, Brian and Stefano.
Our annual Investor Day will be Thursday November 17th in New York. Please save the date additional details will be provided soon we hope to see many of you there.
We appreciate your continued support of and interest in Liberty media and with that operator, I'd like to open the line for questions.
If you'd like to ask a question today. Please signal by pressing star one on your telephone keypad, if you're joining us using a speaker phone. Please release to mute feature from your phone to allow your signal to reach our equipment. Once again that star one if you'd like to ask a question today.
First to Ben Swinburne with Morgan Stanley .
Thank you good morning.
Greg a couple a couple of things on the structural side wanted to ask you about you mentioned separating live nation I think he mentioned I mentioned in that context with Oh.
CRE can you just talk about sort of the frozen if you'd like to be but just to be just to be crisp I said highlights the value I didn't say separate but go ahead. Okay highlights the value. Okay. Yeah. I guess my question was sort of how do you highlight the value.
And I'll, let you add to that as you see fit and then I wanted to you know like we get the question quite a bit I'm sure you do too about hard spin of the Braves I was just curious if you could just comment on kind of the puts and takes and pros and cons to that thought process.
And then I wanted to ask you and then Stefan or whoever wants to take it on on Vegas, What do you guys do in second half of this year in terms of of both staffing up.
And on the Capex side with the track in the Paddock club or any way to help frame sort of the investment.
Size here as you look into the back half of the year as you get ready for next year's race. Thanks.
So you know, we all try and hence the structural questions and then touch on Vegas, and let others as well.
So on the structural side look we're not here to announce anything today.
You'll know when we do.
And you know the advantages of our structure had been.
With the trackers have allowed us to have flexibility to move assets around have allowed us to have a flexibility to.
Align things in the most.
Attractive way to manage our taxes in the most efficient manner.
There are.
Our reasons to want to keep things together until we have ATB flexibility.
Around all of them are that's just more optionality.
As far as how we might highlight.
You know value.
There are ways from spinning to creating another tracker to to other kinds of actions we could take.
We haven't obviously decided and it does that we'd be announcement today.
The.
The.
The history of Liberty is as we've tended to over time take these business to where we thought they were we could add value keep them internally and then at some point.
Spin them out.
We thought that they would be more attractive as independent entities over the long term not just in the short term.
And.
We will monitor all that for all of our entities. So obviously I've given you as much of a non answer as I can Ben but that's just with our history. Brexit you should look at our history and say we have taken corporate actions to spin things off I went through a few of them and the subsequent disposition of those companies.
On Vegas, it's a little hard to forecast the capex because we are still putting together the program that we will undertake there and I mentioned our goal is to have a facility, which is not only magnificent for the race, but has the opportunity to be an ongoing.
Activation.
Have ongoing activations and events at that facility when people when the races got underway.
You know I think you should be thinking we can well manage this within the capital we have.
It's not going to drain us in any way and it's talking to forestall us from doing other actions, including you know potentially a.
Investments around this back purchases that management and the like I don't know if.
Brian or Rene or Stefano I want to add anything on the Vegas question.
Yeah, Tony if I can.
If I can Greg just to add on the fact that of course, the capex the deals and the tight drove him. He's dead. We just the almost six months 16 months ago, but it's important that we are working very hard and drive user engagement and getting the new city excited before one so we're going to come back.
Utah with all the plans that we have you know the to make sure that we want to bring to life with emotional passion, but these really important too to increase the level of engagement there'll be other spectrum Vegas city.
Thank you everybody.
Thanks.
We'll take our next question from Bryan Kraft with Deutsche Bank.
Oh. Thank you good morning, I guess Gregg also had a <unk>.
Structural question I guess, it you know in eliminating or narrowing the NAV discount a L. S X M.
It sounds like you alluded to an RMT spin merge I guess another option that you have would be to distribute Sirius XM shares the liberty shareholders.
The former though would you know basically make the combined company, there's still a liberty company with Liberty Board of management.
And the Liberty the ability for Liberty management and board to make strategic investments and acquisitions, you know the ladder would sort of.
Be an exit.
From that as a management team, so I guess or both of those on the table or do you really want to kind of still control serious and be able to use it strategically and then I also wanted to ask a question on Formula one cost how should we think about the higher SG&A level. This quarter in the context of future quarters. It seems as though there.
[noise] made have been some temporary impacts and there are some legal and advisory fees.
I guess is that the right way to think about it.
Or is or is that a meaningful or is there kind of a reset in the SG&A run rate going forward and maybe that has to do something let's say I guess thanks.
So on the first point I think.
Brian There's a wide range all the way from.
Distribution of shares which would probably not would be you know.
Unless you can figure out some way to get compensated for a control position probably got optimal there are things that are halfway in the middle you know like as you may.
Remember with the media, where we did where we spun our Directv shares, but we still had and the poor about call. It the b shares having influence.
Two took to heart spends that are just fully away where even some subsequent spin mergers like the GCI example, or like effectively what we get in Expedia. So there's I don't think there's any anything off the table.
Based on either what we might do there or our history I think theres, a full range of opportunities and we'll try and do the one that we think maximize long term value.
Uh huh.
<unk>.
On the AR side of expenses.
I'll, let others comment as well, but will note. We did have some increased expenses increased investment to start up around the Vegas.
Including some some.
Issues there so.
As far as the longer term I think we're not at an elevated level, but I'll, let others add their views.
Yeah. This is Brian I I'd say, we had some higher personnel and other cost to support the.
The large increase in revenues and higher activities that we had in 2022 versus the prior year. There were some minor one time professional fees that we wouldn't expect too.
Repeat and I would say pretty minor Vegas expenses at this point in time.
Okay. Thank you very much.
Okay.
We'll go next to Vijay Jayant with Evercore.
Evercore.
Thanks.
Formula One obviously, Greg that'd be equity is is is like because there was a contractual nature of the business, but obviously there are numerous macro headwinds.
Inflation higher rates, obviously, you gave some color on the impact of Forex and you know would be S gave us can you help us really think about you know what the.
The variability of outcomes Zog given all of those are you know.
Sort of pressures out there given your contractual nature of the business is sort of the budget and expectations pretty much in line with what you thought are expected at the beginning of the year kind of thing for what the performance could be at Formula One operation.
So I think a couple of things I think you're right to note that P. J the highly contracted nature of the business.
And which manages downside obviously, there's FX downside and there's cost potential downside, but in general we've seen demand.
Been able to outstrip those and while we make budget conservatively with contingencies as our nature.
We've been able to outperform those contingencies, even lighter the cost structures.
So I remain you know I believe the demand that we have and the strength of the business on.
On top of the contracted nature will allow us to power through most of that but obviously, we can't foresee every.
Inflationary impact, but in general I think we've been able to work through those and the FX.
Brian Stefano anyone else wants to add.
I think that I'd add Greg.
And if I could follow up obviously.
Maybe a little early on the race calendar for next year, but there's a bunch of European races that comes sort of end of contract it looks like France, Belgium Monaco.
And obviously you have a couple of new races next two coming you know Qatar coming back in Shanghai coming back can you just talk about you know what what the sort of race outlook can be next year is obviously going to have more than 22 races, and I'm going to get more sort of higher dollar value races versus you know some that are not as lucrative.
I'll, let if I may Greg where Stefano.
Please okay. Thank you actually I mean, that's.
As I've stated before you know we will come back to the early October due to the process of of course had been to clear for the World Motor Sport Council allowed cleanser.
Of course, a lot of discussion to make sure that the Columbia is robust. It's following also the fact that we would like to keep the right. So in terms of efficiency.
Around the world that could see the needs over to Linda to be spread out from March to November all around the world and of course are the effect that you would see before that the on the choice between the European and the elderly European races has an effect on the on the on the on the revenue side, but I would say the main.
The main point is to whether on the cyclical under the demand is very very high and they were supposed to be to put the basic landed that is available to our stakeholders buddle sabbatical to respond to the request that we got a little about the world. So Oh, we cannot spot anything more than what we are saying because we are of course finalizing all of that.
But we for sure expect why but I would say a couple of races more than this year, but less than 25 that's for sure.
Thanks, so much.
Next up is David Karnofsky with J P. Morgan.
Hi, Thank you for Stefano we've seen in the press the possibility of some auto Oems entering if one either on the manufacturer engine side and a question. We sometimes get is what's the potential benefit to formula one either from a commercial standpoint or to the product itself. So I wanted to put that question to you and then separately with us.
Other F. One revenue I know theres a lot of noise in there because of the freight cost.
Wondering if you could speak to the performance outside of the pass through revenues in particular areas like Paddock club for licensing and maybe how that looks relative to the pre pandemic period. Thanks.
Okay.
I mean, we'll do that so the two new Oh, yeah, I'm coming in as you can imagine there's not enough for us to say anything that would be let's say.
We shouldn't say, it's it's too bad we adding pumps, we bought the manufacturer then hopefully we have other inflammation soon I think that intermodal, but what is the benefit the bezeq push real credibility the better it is showing that our strategy of the future will help the manufacturer to have another route.
That's really allowed them not to be all these fully electric the offer to the mobility side, but also using the expertise. It's only for one through the thick knows that we have can help them in order to find new wheel, but being the president of the muck with every day and you would state who feel that we'll be able to be much more effective novel opinion all.
Around the World if you want to achieve the Google, but cut when you tried to do and all the other hand from the supporting point of view the more money we have the more structure in terms of having manufactured with other teams will enable you know the sport inside the web.
But I would see more teams that could be seen even in the moored independent input into the support so I think that would be to read the news, let's see how the situation will evolve, but no matter what will be the <unk>.
The season, but that the Oems will will will will will provide to the market hopefully very soon we are strongly believers that our technological platform for the future.
He is the lifeblood into them over that and see and this is something that the facts will prove that.
And if I can just add.
If I could just add on.
Stephen I'd, just add you know, obviously and Stefan I would touch on is its a great validation.
To have these Oems want.
Want to enter or are reportedly want to enter if they were they're both the once discussed or both.
Enormous.
Engines of innovation and enormous engines of promotion and all of those are only seem to be good for our sport.
And of course, it would mean to erupt.
No no I was just trying to briefly touch base on the second question, we see and this is what's be able that'd be seen the it for the sheer incredible numbers with regard to public club with regard to new licenses that will that would be seen as an effect on our balance sheet and we see already.
A number of a boat that despite the kolenda has not been announced already come over to us that they should put their for the for the devices that would be in any case. It definitely the collateral next year. So do they get the attention that it needs the attention.
On our platform is to be the cubes today.
Yeah, and just just to add to that David.
And the other F. One category, 98% of what we're seeing on the increases all coming from.
Paddock club in freight as we talked about in our prepared remarks, where we did not raise last year and we weren't traveling as much so big increases there, but within primary revenue.
We're seeing increases across the board as Stefano just mentioned so licensing to your point and at one TB as well as the main three categories promotion sponsorship media rights.
And if you look at some of these things like Paddock club, Yeah, I'd just add Brian I mean, if you look at some of these things like Paddock club, we've never seen more demand.
And we've not only seen demand we've been able to in some cases promoters who are able to increase the size of the paddock club areas and still manage that at a higher number at higher prices. So a lot of positives there.
Thank you.
Alright.
Rosenblatt Securities has our next question.
Alright, thanks for taking the question.
Greg.
Just count at a liberty Sirius versus serious.
It's so much larger than that just how you would see what's at Liberty broadband charter.
Why do you think that is why is there such a disconnect there.
Does that inform it anyway, you know what some of the solutions might be for that.
Barton, it's a great question I think.
You could argue a little more complexity you could argue.
Investor fatigue, you could argue the relative scale and size of the two entities compared to a broadband entity.
Hard to attribute.
You know any certainty to any of those but those are probably all factors.
You know.
Fear that we're not going to act on it in some way, whereas at broadband and maybe it's more crisp, where the futures going all of those are potential factors.
You know I think as you said was we said before.
I said earlier on this call, we're going to take advantage of that through the.
The discount and at some point, we're going to take an action and we're looking at those actions to do to tighten that discount but in the interim we're gonna buy that stock and take advantage of it and drive our NAV would be relevant.
Relevant to the underlying NAV would be up.
I don't know anybody else on the team done or somebody else wants to add something but I think it's hard to be determined about which of these factors is driving the difference.
Okay, and if I could ask one other kind of separate question.
I'm just interested in your perspective on.
Streaming at this point as it pertains to kind of baseball.
We have the direct to consumer.
Watches that knutsen and at Diamond sports.
Brakes are not participating at this point.
Spent some roll up of rights that some of the big.
Big platform players like Apple.
And.
Do you think that this is the time to move in an and.
Restructure.
The streaming rights.
For baseball or do you think God, it's not ripe yet you don't know what to do yet.
Okay.
Well I think baseball has a more complicated situation he talked about the regional sports network situation then.
The other sports in particular.
Cleanup comparisons or the complete absence of football.
And certainly my understanding is the MLP would love to find a structure where they could deliver.
More national rights.
Which is willing out available or difficult today on some kinds of games.
M D.
Streaming interest has been high for people like Apple, which is a good sign.
Obviously, there are some weakness is going to create an opportunity whether that happens this year or next.
Do think there will be some change in that given where diamond appears to be headed.
Looking just at the Braves.
We're blessed as we've said before with a lot of demand.
And good audience in our territory, we're also blessed with the largest <unk>.
Broadband.
Household territory among baseball teams.
So we remain optimistic about our relative position on any kind of streaming.
Deal and we feel good that.
We have a product which people want in a big territory and probably what some people estimate may be the most profitable Rs and where we're getting paid pretty well, but the R. S. At all or is also making money. So that seems to create some opportunity where there'll be somebody who wants to something interesting in our space.
But stay tuned.
Yeah.
Okay. Thank you.
Thank you.
Mr. David Joyce with Barclays.
Thank you I guess, some more clarifications on the structural opportunities.
Greg I think you mentioned in response to Ben's question something about.
You know the reasons to keep things together until you have full ATB flexibility, Oh, maybe I misheard or misunderstood, but I thought that everything was.
I was just wondering if there were any of what restrict all either store I think where we are if I could just interrupt David I said, that's one of the factors, we love to have as much flexibility and atvs as possible as Betty.
So that's a factor.
That's not the only reason I think I mentioned to keep the corpus together or to keep things as I mentioned some of the other reasons around ability to move assets tax advantaged tax lexical et cetera, So I'm glad I didn't.
Just wanted to check before you set the question I wanted to make a car that's not.
No that's fine.
No. That's fine that's the clarification is was part of my question and then the other aspect is are there any other further gating factors on the on the separation of the equities.
As you know you do need to prioritize getting something done with almac, the spec or is or is that.
It is a completely separate path.
Yeah, I don't I can't I don't not only of top of my head, but I'll. Just note. The one you called out I don't think anything we're going to do around Almac stack is likely to be impacted by structural changes because you know, it's generally getting funded by the excess cash and any incremental would be fun.
But by the other further excess cash at four so I don't I don't think that's a that's the driver.
Okay I appreciate it thank you.
Thank you.
Yeah.
Next up is Jason Bazinet with Citi.
I just had a high level question you guys over the years have done such a good job improving the finances financials with the Braves and Formula one.
I would just be curious as you sort of look at the landscape would you describe both of those are sort of one off you know rare exceptions unique unique opportunities.
Or do you think you're sort of building a competency that might be applicable to other potential assets [laughter] experience.
Yeah, I don't know.
I don't know if we have a competency I'd like to think that a credit to the teams at both the Braves and Formula one.
For what they've done with those assets I think they've taken attractive businesses and only made them better.
And I credit that so if.
If we deserve any credits for finding the right management teams and packing them in doing the great work that they've done.
I'm not sure we can take much beyond that.
Okay. Thank you.
Yeah.
Now, we'll move to Matthew Harrigan with benchmark.
Oh, thank you.
Firstly getting more specific on the Sim fuels the answers there's a report in the European knee Porsche is something down in Chile with their testing, that's basically carbon capture synthetic methanol and the store. He also alluded to Saudi Aramco building plants in Saudi Arabia.
Spain.
Yes, it probably wouldn't be that specific but have you nail down a path.
On the technology or looking at a lot of different things in it.
What sort of capital commitment just big we would go into having that that's sort of playing out because it sounds a little more real as well as aspirational.
At this point.
And then secondly on.
On the denser.
Master did with snapshot and now what with Tic Toc is that something that you really see you know pushing the advent demand as well as you know People's propensity you just need to get out.
The house right now and then I had one Super quick follow up if you don't mind.
Stefano do you want to take the synthetic fuel question.
Yep Yep. Thank you. Thank you Greg. Thank you Michael I think that you know all these technologies Catholic capture and other things that are related to the passive technology is related to the transition.
That's what they will do that and the beauty of what I believe we are doing with that tremendous effectiveness is the fact that the you know we have just pushing the system toward towards the future in the right way. So all that the commitment that we have taken on our site to go through two zero Campbell if you will.
It's a short term needs because we do believe that's it that's about a week ago and the good news is that the other side the investment on our side is not relevant because we didn't we don't own any capex in that respect. So we adjust the enabler who the oldest stakeholders all visa to push for the future and this is something we do bill.
But he said I'll wait to go and the and that we don't have to forget or one other important elements of the equation that we are not talking about them not only about the manufactured that.
First of all with peaks, but without with the our system. We are promoters, we are but a lot of the people that they have to invest a lot because what we are talking about.
Big events were talking places, where the needs of energy.
Hosting are going to be worth it up more than 400000 people needs to have a path all the evolution of this technology and this is also where we have a push of the season, we group it toward this direction. So I think we should be very very proud of this idea of push and pull with these technologies through our leadership on that respect.
Okay.
And Matthew on the second point I'm not sure exactly what you're referring to maybe you can help.
I know it sounds like you're hesitant to comment on the operating companies, but yeah.
They do that.
The arrangement with snapshot of a number of months ago to push basically ticketmaster pushing up tickets on one snapshot and I've just a couple of days ago, and now something similar with chip talk.
Is that something that you really see as being a nice.
The demand and I'm, particularly sorry, do you think it's just deeper stir crazy go bad and they just wanted to get outside outside the house.
Well I think.
It's part of live nation strategy to be ubiquitous as possible, making by ticket tickets as simple as possible and the technologists they'd get dealt to distribute their ticket buying capabilities are unique advantage I think compared to most in the industry and they want to be where buyers are and if buyers are on tick backwards.
Increasingly are looking for music and that's a place which would they originate the logical place for them to be and the same thing I think about staff, which has obviously had music aspirations as well so I think it's an important.
The element of continuing to grow the strategy, but I'm not sure. It's it's uniquely different than anything else. We've done it's just a continuation.
And then lastly, if you don't mind do you have a secular you want sports teams valuations going up even higher that makes you want to wait for that.
In terms of doing something.
I think its facts and circumstances will dictate obviously these have been trophy assets that are that people have wanted to buy the best of we certainly looked at purchasing in lots of cases other sports assets and been.
Surprised that some of the prices Nonetheless, they continue to move upwards and I think for the right kind of trophy assets, probably the valuations are kind of continue to rise.
Thanks, Greg.
Thank you.
And with that well conclude with a question and answer session.
I'll now turn the call back over to the speakers.
Yes.
No I just wanted to say thank you to all our listening audience for your questions and your attention on your I. Appreciate your interest in Liberty Media Hope to see you next quarter, if not sooner and again I don't November meeting for many of you.
Have a great rest of your summer. Thank you.
Thank you bye bye.
With that we'll conclude today's conference. Thank you everyone for your participation you may now disconnect.
Yeah.
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Yeah.
Yeah.