Q1 2023 Liberty Media Corp Earnings Call

Operator: Welcome to the Liberty Media Corporation 2023, Q1 earnings call. During the presentation, all participants will be in a listen-only mode.

Operator: Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press star one on your telephone keypad. As a reminder, this conference is being recorded May 5th. I would now like to turn the conference over to Shane Kleinstein, Vice President of Investor Relations. Please go ahead.

Is being recorded May 5th I would now like to turn the conference over to Shane <unk> Vice President of Investor Relations. Please go ahead.

Shane Kleinstein: Thank you and good morning. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in Liberty Media's most recent Form 10-K, and 10-Q filed with the SEC. These forward-looking statements speak only as of the date of this call and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's 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 [inaudible] including adjusted OIBDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media and SiriusXM schedules one through three can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO.

As of the date of this call and Liberty media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statement contained herein to reflect any change in liberty Media's 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 Sera.

including adjusted OIBDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media and SiriusXM schedules one through three can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO.

Including adjusted OIBDA, and adjusted EBITDA, the required definitions and reconciliations for Liberty media and Siriusxm schedules one through three can be found at the end of the earnings press release issued today, which is available on Liberty Media's website now I'd like to turn the call over to Greg mistaken Liberty's President and CEO .

Gregory B. Maffei: Thank you Shane and good morning. Today speaking on the call, we will also have Formula One's President and CEO Stefano Domenicali and Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling.

Today speaking on the call. We will also have formula one's President and C E O Stefano Domenicali.

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

Gregory B. Maffei: I'm going to first update you on the split up of the Braves and the creation of the new Liberty Live tracker. We filed the amended S4 and are pleased with the speed of the SEC review. We believe we are nearing the end of that SEC process, but we are still targeting completion before the end of the second quarter.

We believe we are nearing the end of that FCC process, but we are still targeting completion before the end of the second court.

Gregory B. Maffei: Turning first to Liberty Sirius XM, we continued our efforts to delever and simplify the balance sheet there. We raised 575 million up three and three quarter [inaudible] converts and we used the proceeds to repurchase 703 principle amount of allo six subjects, including $591 million of the one and three eighths basket convert and $112 million of the two and 2.125% Siri exchangeable.

We continued our efforts to delever and simplify the balance sheet. There, we raised 575 million up three and three quarter L. S. Like some converts and we used the proceeds to repurchase seven. 703 principle amount of allo six subjects, including.

703 principle amount of allo six subjects, including.

$591 million of the one and three eighths basket convert and $112 million of the two and 2.125% Siri exchangeable.

Gregory B. Maffei: We also repaid the remaining balance of those in April. That was a reduction in gross debt just over $400 million year to date, including the April activity. The reclassification of the LSXM tracker without the life stake will simplify our structure further and we can indeed be focused on rationalizing CRE and LSXM structures in the near term.

That was a reduction in gross debt just over $400 million year to date, including the April activity.

The reclassification of the tracker without the life stake will simplify our structure further and we can indeed be focused on rationalizing CRE and <unk> structures in the near term.

Gregory B. Maffei: Let me look at Sirius XM itself. As expected, they had a challenging first quarter due to the SAR in AD market trends. We expect this is the low point of the year on self pay net adds due to the lower Q4 trial starts, the seasonal Q1 higher churn, and the pullback in marketing as we wait to rollout our new app.

As expected they had a challenging first quarter due to the SAR in AD market trends. We expect this is the low point of the year on net pay net self pay net adds.

The lower Q4 trial starts the seasonal Q1 higher churn and the pullback in marketing as we will wait to rollout our new app.

Gregory B. Maffei: Advertising did perform better than expectations and podcast and continues to be a bright spot. We saw solid progress in rolling out 360L, our revolutionary new product enhancement, which leverages the best of our content and interactivity. We expect 40% of Triptan creation, 40% penetration of new car trials by year end 2023. We see a good conversion lift in vehicles with 360L, particularly as consumers are aware of and use advanced features.

We saw solid progress in rolling out 360, L. A revolutionary new product enhancement, which leverages the best of our content and interactivity. We expect 40% of Triptan creation, 40% penetration of new car trials by year end 2023. We see a good conversion lift in vehicles with 360 L, particularly as consumers are aware of and use advanced features.

We expect 40% of Triptan creation, 40% penetration of new car trials by year end 2023. We see a good conversion lift in vehicles with 360 L, particularly as consumers are aware of and use advanced features.

We see a good conversion lift in vehicles with 360 L, particularly as consumers are aware of and use advanced features.

Gregory B. Maffei: We did take cost out of the business [inaudible] with an 8% workforce reduction in March, and we are confident we will see improvement in operating results for the year with likely positive self pay net adds in the back half of the year and the cost savings and AD revenue seasonality benefiting EBITDA. As a result, Sirius XM on their earnings announcement raised both EBITDA and free cash flow guidance $50 million each.

And we are confident we will see improvement in operating results for the year with likely positive self pay net adds in the back half of the year and the cost savings and AD revenue seasonality benefiting EBITDA.

EBITDA. As a result serious exam on their earnings announcement raised both. And free cash flow guidance $50 million each.

As a result serious exam on their earnings announcement raised both. And free cash flow guidance $50 million each.

And free cash flow guidance $50 million each.

Gregory B. Maffei: We were excited to name Tom Barry as the New CFO. He was previously our Chief Accounting Officer, who's been with Sirius XM since 2009 and has a detailed knowledge of financial and strategic elements of the business. We do wish Sean well in his new role and his success on the course.

Gregory B. Maffei: Turning to live nation, a tremendous quarter continued growth in live events across all of its segments with a great Q1, as I said, even against a pretty reasonably strong comp last year though there were some international markets that were not open in the prior period. Ticketing GTV was up 60% AOI was up a stunning 53% to $320 million and they converted 59% of the AOI into $190 million of free cash flow.

A tremendous quarter continued growth in.

In live events across all of its segments with a great Q1, as I said, even against a pretty reasonably strong comp last year. There were some international markets that we're not open.

In the prior period. Ticketing G. T V was up 60% AOR was up a stunning 53% to $320 million. And they converted 59% of the AOR into $190 million of free cash flow.

Ticketing G. T V was up 60% AOR was up a stunning 53% to $320 million. And they converted 59% of the AOR into $190 million of free cash flow.

And they converted 59% of the AOR into $190 million of free cash flow.

Gregory B. Maffei: We look forward to yet another expected record year at live with about 90 million tickets sold for Live Nation shows year to date. We expect to manage 600 million tickets globally. We will host a record number of fans even against a strong '22 comp which benefit from rescheduled shows in the prior period. We believe the AOI at Live can compound at double digits for the foreseeable future.

Spectrum managed 600 million tickets globally.

We will host a record number of fans even against a strong 22, 22 comp which benefit from reschedule chosen prior periods.

We believe the L Y at life and compound at double digits for the foreseeable future.

Gregory B. Maffei: On the legislative updates, we continue to make solid progress and hope the market will begin to recognize the momentum there. We continue to gain momentum on the air ticketing acts and the proposed bill in the Senate called the ticket act is actually a significant positive first step towards implementing initiatives we support.

Continue to gain momentum on the air ticketing acts and the proposed bill in the Senate called the ticket is actually a significant positive first step towards implementing initiatives we support.

Gregory B. Maffei: Turning now to the Formula One group. On the corporate side, we paid $202 million of cash Alice exempt to settle the intergroup interest in connection with the repurchase of the basket converts. That's an effective buyback of $3.1 million tswana shares at $65 a share proportionate to the amount of the convert repurchase.

On the corporate side.

We paid $202 million of cash Alice exempt to settle the intergroup interest in connection with the repurchase of the basket converts.

That's an effective buyback of $3 1 million tswana shares at $65 a share proportionate to the amount of the convert repurchase.

Gregory B. Maffei: The F1 season is back after several weeks off, beginning here with the exciting Miami race this weekend. We had our first F1 Accelerate Conference yesterday. It was successful. This business summit brought together leaders in sports, tech, and media and we expect we will have further iterations of that in the future. We announced format tweaks to sprint events, now a standalone event with separate points and no impact to the grid on the GP itself. I also expect we'll see continued improvements in this format, resulting in three full days on track [inaudible]

No we had our first F. One accelerate conference yesterday with successful this business summit brought together leaders in sports Tech and media. We expect we will have further iterations of that in the future. We announced format tweaks to sprint events. Now a standalone event with separate points and no impact to the grid on the G. P itself.

We announced format tweaks to sprint events. Now a standalone event with separate points and no impact to the grid on the G. P itself.

Now a standalone event with separate points and no impact to the grid on the G. P itself.

I also expect we'll see continued improvements in this format, resulting in three full days on track [inaudible]

And three full days, resulting in three full days on track.

Gregory B. Maffei: We continue to see growth in the sport, the [inaudible] sprint weekend television audience was up 7% versus the 2022 GP, in part due to the spreads. Continuing from here in Miami, we see growth in the US fandom unfold this way. The Saudi GP was on ESPN and cables for most live GP on record to date. US Social media followers are up dramatically, 43% in the first quarter versus the prior year and the US is now Formula One's biggest audience across Instagram, Youtube, Tik Tok, and Snapchat.

Continuing from here in Miami, we see growth in the U S fandom unfold this way. The Saudi G. P was on ESPN and cables most live G P on record to date.

The Saudi G. P was on ESPN and cables most live G P on record to date.

U S. Social media followers are up dramatically, 43% in the first quarter versus the prior year.

In the U S is now formula one's biggest audience across Instagram Youtube tick tock and Snapchat.

Gregory B. Maffei: Quick update on Vegas, we completed the wave one and two tickets sales with strong demand. The final wave three sales are expected later this spring. We remain confident in our sponsorship pipeline with many big deals already announced. We most recently added Virgin at hard rock.

We remain confident in our sponsorship pipeline with many big deals already announced we most recently added Virgin at hard rock.

Gregory B. Maffei: The construction of the Paddock building itself is over 60% complete. Capex is running in line with expectations modestly exceeding our original cost of land purchase. Reiterating the race specific economics for year one, we expect total revenues will approach $500 million and we do expect there will be a top five raise in profit economics.

Capex is running in line with expectations modestly exceeding.

Our original cost of land purchase.

I reiterate the robbery of reiterating the race specific economics for your one we expect total revenues will approach $500 million and we do expect there will be a top five race. Profit economics.

Profit economics.

Gregory B. Maffei: On the balance sheet, F1 leverage at quarter end was 2.2 times. This will trigger a 25 basis point permanent reduction in the margin on our existing term loan B, regardless of future leverage ratios.

This will trigger a 25 basis point permanent reduction in the margin on our existing term loan b, regardless of future leverage ratios.

Gregory B. Maffei: Turning to Braves, great start to the season. 22 in 10, best record in the NL and leading at least by six games. Ronald Cooney Junior was named NL player of the month for April. He led the major league baseball in stolen bases that runs. We had the largest home opener crowd in Truest Park history. We've seen incredible ticket demand for season to date. We stopped selling season ticket sales for the first time in franchise history and started a waitlist before opening day.

Great start to the season in 'twenty, two and 10 best record in the N L and leading you know at least by six games.

Ronald Cooney Junior was named and they will play with the month for April He led the major League baseball and stolen bases that runs we.

We had the largest home opener crowd in Truest Park history, we've seen incredible ticket demand for season to date.

We stopped selling season ticket sales for the first time in franchise history and started a waitlist before opening day.

Gregory B. Maffei: We expect to sell out over half the games this season. Baseball is clearly benefiting from MLPs rule changes. Games have more action and less downtime. Across major league baseball you've seen stolen base attempts up over 30% versus last year to the highest rate since 2012. Games are about 30 minutes shorter versus last year and dropping below three hours.

Baseball is clearly benefiting from Mlps rule changes games have more action and less downtime across major League baseball you've seen stolen base attempts up over 30%. Versus last year to the highest rate since 2012 our games.

Versus last year to the highest rate since 2012 our games.

Games are about 30 minutes shorter versus last year and dropping below three hours.

Gregory B. Maffei: Looking at the Braves themselves and innovations there, we already plan to implement a new POS system this year to enhance our fan experience and this will help mitigate any impact to concessions from shorter gains, and we are actually seeing favorable trends in concessions year to date.

Or do you plan to appoint a new Pos system. This year to enhance our fan experience and this will help mitigate any impact to concessions from shorter gains and we are actually seeing favorable trends in concessions year to date.

Gregory B. Maffei: Let me turn it over to Brian for more on our financial results.

Brian J. Wendling: Thanks Greg and good morning everyone. At quarter end Liberty SiriusXM group had attributed cash and liquid investments of approximately $377 million, which excludes $53 million of cash held directly at SiriusXM. There's also a $1.5 billion of undrawn margin loan capacity at the parent level related to our Sirius XM and Live Nation margin loans.

Theres also a $1 5 billion of Undrawn margin loan capacity at the parent level related to our Siriusxm and live nation margin loans.

Brian J. Wendling: As of May 4, the value of our Sirius XM stock held by LSXM was 11.5 billion and the value of the Live Nation stock was $4.7 billion.

L. S X M was 11 5 billion and the value of the live nation stock was $4 7 billion.

Brian J. Wendling: We have $2.7 billion in principal amount of debt against these holdings or $2.4 billion pro forma for the additional pay down that occurred after the quarter.

Brian J. Wendling: Total Liberty Sirius XM group attributed principal amount of debt is 13 billion, which includes 9.6 directly at the Sirius level.

Brian J. Wendling: In March, Liberty Sirius XM group issued 575 million aggregate principal amount of $3.75 LSXMA convertible notes due 2028. We used the net proceeds of this offering to repurchase $591 million principal amount of the 1.375 cash convertible notes and $112 million of the 2.125 Sirius exchangeable debentures.

We used the net proceeds of this offering to repurchase $591 million principal. Principal amount of the 1375 cash convertible notes. $112 million of the 2.125 series exchangeable debentures.

Principal amount of the 1375 cash convertible notes. $112 million of the 2.125 series exchangeable debentures.

$112 million of the 2.125 series exchangeable debentures.

Brian J. Wendling: In addition to the proceeds raised from the new convertible, LXSM used cash on hand, including $39 million from the proportional net settlement of the bond hedge and warrant and cash received from the Formula One group to retire $3.1 million 1A intergroup interest shares underlying the corresponding portion of the convertible repurchase.

1A intergroup interest shares underlying the corresponding portion of the convertible repurchase.

Brian J. Wendling: Subsequent to quarter end, Liberty Sirius XM settled the remaining 2.125 Sirius XM tangibles for 275 million at the April put call date. There was approximately 199 million remaining on the 1.375 cash convertible notes, which mature in October.

2.125 serious tangibles for 275 million at the April put call date.

There was approximately 199 million remaining on the 1375 cash convertible notes, which mature in October .

Brian J. Wendling: All remaining intergroup interest are expected to be settled and extinguished in connection with the Braves spin off and additional information regarding the intergroup interest is available in our press release and as well as the S4 that was filed with the SEC.

Brian J. Wendling: Formula One group had attributed cash liquid investments and monetize the whole public holdings of $1.8 billion at quarter end, which includes 1 billion of cash at the Formula One level.

bria: Formula One group purchased the $129 million of exchange traded funds in the first quarter, which we expect to attribute to the Liberty life group tracking stock in connection with the announced reclassification of the trackers.

Brian J. Wendling: Total Formula One group attributed principal amount of debt was 3 billion, which includes $2.4 billion of debt at F1, leaving 538 million at the corporate level. F1 $500 million revolver is undrawn and their leverage ratio at quarter end was 2.2 times which will trigger a 25 basis point reduction in the margin on the term loan B debt.

<unk> $500 million revolver is undrawn and their leverage ratio at quarter end was 2.2 on.

Which will trigger a 25 basis point reduction in the margin on the term loan b debt.

Brian J. Wendling: Looking quickly at the F1 operating business, given quarterly variability, we remind you to look at this business on a full year basis. But that being said, let's take a quick look at the quarter.

But that being said, let's take a quick look at the quarter.

Brian J. Wendling: Our rate count in the first quarter was consistent year over year with two races. Primary revenue grew with increases across race promotion, media rights, and sponsorship. Other F1 revenue decreased in the first quarter, primarily due to the easing of freight cost inflation versus the prior year, which was partially offset by growth in paddock club attendance.

Brian J. Wendling: On the cost side, our team payments grew in the first quarter due to the pro rata recognition of increased payments for the year. A reminder that other cost of F1 revenue and SG&A are best viewed as a percent of total revenue. Other cost of F1 revenue benefited from the easing of the freight inflation. This was largely offset by increased hospitality costs, and higher commission and partner servicing costs paid related to the growth in the primary F1 revenue streams.

A reminder, that other cost of revenue F. One revenue and SG&A are best viewed as a percent of total revenue other cost is up on revenue benefited from the easing of the freight inflation.

This was largely offset by increased hospitality costs, and higher commission and partner servicing costs paid to related to the growth in the primary F. One revenue streams.

Brian J. Wendling: On SG&A, the first quarter included $6 million of cost from the Las Vegas Grand Prix. Looking at Vegas, nearly all of L [inaudible] revenue and costs will be recognized in the fourth quarter when the race takes place just a reminder on that.

Looking at Vegas, nearly all of L. P. G PS revenue and costs will be recognized in the fourth quarter. When the race takes place just a reminder on that.

Brian J. Wendling: The Paddock club building is progressing on schedule. In the first quarter, we incurred approximately $53 million of corporate level capital expenditures related to Las Vegas.

Brian J. Wendling: We will not be providing a forward-looking allocation between the F1 Op Co and the Formula One corporate Capex.

Brian J. Wendling: LBGP will pay rent and other fees out of F1 Op Co Formula One corporate for use of the building during the right spirit, which will show up in our financial statements as revenue at the corporate level in the fourth quarter, but will eliminate in consolidation.

As revenue at the corporate level in the fourth quarter, but will eliminate in consolidation.

Brian J. Wendling: Finally at the Braves group at quarter end, they had attributed cash and liquid investments of $215 million, which excludes $30 million of restricted cash. Rates group had attributed principal amount of debt of $542 million. Liberty and Arkansas subsidiaries are in compliance with our debt covenants at quarter end. And with that, I'll turn it over to Stefano to discuss Formula One.

Rates group had attributed principal amount of debt of $542 million. Liberty in Arkansas, the subsidiaries are in compliance with our debt covenants at quarter end and with that I'll turn it over to Stefano to discuss formula one.

Liberty in Arkansas, the subsidiaries are in compliance with our debt covenants at quarter end and with that I'll turn it over to Stefano to discuss formula one.

Stefano Domenicali: Thanks Brian. Good morning from Miami. We are thrilled to be back for our second Miami Grand Prix, where the excitement in the city is as vibrant as year one. These shared event feature on the extended [inaudible] now located inside the Dolphins Stadium, and our greatest Paddock club, and a fully leased [inaudible] track. We had four races into our record '22 race calendar. While Red Bull has dominated the race to date, it is still very early in the season and the races have been packed with excitement. And also fans have had much to cheer about with [inaudible] recent performance. Alonzo's first place finish in Saudi Arabia marked his hundred podium, making him one of only six drivers in F1 A3 to claim this feat.

These shared event feature on the extended power now located inside the Dolphins Stadium, and our greatest Paddock club and a fully leased Chauffeuse track, we had four races into our record 22 race calendar, while Red Bull has dominated the race to date. It is still very early in the season and the races have been packed with excitement.

Andre.

And also fans have had much to cheer about with [inaudible] recent performance. Alonzo's first place finish in Saudi Arabia marked his hundred podium, making him one of only six drivers in F1 A3 to claim this feat.

Stefano Domenicali: The Australian Grand Prix features three red flags, adding even more complexity to tie strategy and ended with only 12 of 20 drivers crossing the finish line. The newsprint Puma was unanimously approved by the teams F One and FIA [inaudible] but we all believe that the new format is the right one for our fans and the sport and increase the level of intensity and action across the weekend. Starting this season, the six sprint events, all three days of the weekend will be packed with all track excitement. The Saturday [inaudible] showdown is a shorter qualifying session to determine the sprint grid later that day. This makes the sprint standalone event with no bearing on the Grand Prix, allowing drivers to [inaudible] more aggressively without fear to race of the implications.

our fans and the sport and increase the level of intensity and action across the weekend. Starting this season, the six sprint events, all three days of the weekend will be packed with all track excitement. The Saturday [inaudible] showdown is a shorter qualifying session to determine the sprint grid later that day.

This makes the sprint standalone event with no bearing on the Grand Prix, allowing drivers to [inaudible] more aggressively without fear to race of the implications.

Brian J. Wendling: Formula one is engaging with our fans across platform. Global audiences exceed 70 million viewers for the first two races of the season with significant increases in key markets across Europe and North America. In the US, the Saudi Arabian grand prix brought 1.52 million viewers, marking ESPN and cables most viewed Grand Prix on record.

Brian J. Wendling: Across our digital channels, F1 reached 62.9 million social media followers as of Q1, up 31% year over year. Our F1 dot com website and F1 apps have launched additional content, including the new what is F1 section dedicated to new fans with videos and beginner's guide to the sport. Crowds continue to flock to our races globally. The vast majority of events are sold out for the 2022 season. [inaudible] set its new record with nearly 100,000 fans over the weekend. Melbourne topped last year record as the largest weekend sporting event in the recent Australian history. We welcomed 445,000 fans over the course of the weekend, up from 420,000 the prior year. This also marks a new record censoring [inaudible] almost total race weekend attendance.

The two new funds with videos and Beginner's guide to the sport crowds continue to flock to our races globally. The vast majority of events are sold out for the 2022 seasoned Bahrain setting new record with. Nearly 100000 fans over the weekend Melbourne topic last year record as the largest weekend sporting event in the recent Australian history, we welcomed 445000 fans over the course of the weekend. From 420000, the prior year. This also marks a new record the censoring for wanting to almost total race weekend attendance.

Nearly 100000 fans over the weekend Melbourne topic last year record as the largest weekend sporting event in the recent Australian history, we welcomed 445000 fans over the course of the weekend. From 420000, the prior year. This also marks a new record the censoring for wanting to almost total race weekend attendance.

From 420000, the prior year. This also marks a new record the censoring for wanting to almost total race weekend attendance.

Stefano Domenicali: Turning to recent updates on our commercial agreements. On race promotion, we extended our Austrian Grand Prix through 2027 following last year's sold out crowd of 303,000 fans. This sheer event will mark our 10th anniversary since F1 returned to Spielberg.

Stefano Domenicali: We also announced the extension of the Azerbaijan Gran Prix through 2026. On media rights, we entered into a multi-year extension of our partnership with ESPN [inaudible] F1 channel in Latin America and in the Caribbean. ESPN will provide live coverage of over half of the races with the full season available on the streaming service star plus. ESPN has continued to develop dedicated content across web and social platforms, allowing us to expand our global reach and attract an increasingly diverse fan base. Our proven access product continued to see solid subscriber growth this season.

Our media rights, we entered into a multi year extension of our partnership we ESPN two boroughs guest F. One channel in Latin America and in the Caribbean ESPN will provide live coverage of over half of the races with the food season available on the streaming service staff plus ESPN has continued to develop.

dedicated content across web and social platforms, allowing us to expand our global reach and attract an increasingly diverse fan base. Our proven access product continued to see solid subscriber growth this season.

Stefano Domenicali: On sponsorship, we made the [inaudible] an official partner. Our enhanced agreement includes the truck signage at the three races and digital branding 15 basis, demonstrating the opportunity for digital AD insertion within the broadcast field. We first welcomed [inaudible] as regional sponsors in 2019. We grew our relationship to official sponsor in 2023.

Stefano Domenicali: We continue to demonstrate growing value to our partners. We were thrilled to announce [inaudible] as an official partner following our successful sport and entertainment collaborations lessees. Our new multi year agreement will feature the popular series fan zone on flex side display and in digital placements. This week, we announced Puma as the official provider of F One sporting apparel in a new multi year partnership and we extended our agreement with MSC Cruises as global partner throughout 2026. As part of the extension, MSC will bring a unique hospitality experience. Our sponsorship pipeline remains strong.

A new multi year agreement will feature the populace. He has a fan zone on flex side display and in digital placements. This week, we announced Puma as the official provider of F. One sporting apparel in a new multi year partnership and we extended our agreement with MSC cruises as global partner throughout 2026.

As part of the extension, MSC will bring a unique hospitality experience. Our sponsorship pipeline remains strong.

Stefano Domenicali: Try to Survive returned for its fifth season in February. Casual and new fans alike continue to be drawn to the series. The latest season didn't disappoint. On April 14th we celebrate the topping out of our Las Vegas [inaudible] building by placing a symbolic concrete barrier on top of the structure. We are very pleased with our purpose. The efficiency of this project is a function of the incredible collaboration between the Las Vegas Grumphie team, our Atlanta design and construction crew, and local officials. We thank them all for their support. 

our purpose. The efficiency of this project is a function of the incredible collaboration between the Las Vegas Grumphie team, our Atlanta design and construction crew, and local officials.

Stefano Domenicali: The paddock buildings spans 1000 feet long, 100 feet wide, and three stories told with a rooftop deck. It will be the largest paddock building on the race calendar and will host the largest paddock club. On the roof, we have a 28,000 square foot LED screen in the shape of our F1 logo that provides unparalleled branding opportunities. When you flyover Las Vegas, you will note that F1 has established a permanent home in the US. We can monetize the LED screen and display third party brand into the future use. The building itself has advanced [inaudible] capabilities. Temporary Our [inaudible] of Las Vegas Rose began last month and the second phase is scheduled for July. Once complete, these trucks surface can last six to 10 years.

People of our F. A law that provides unparalleled branding opportunities when you flyover Las Vegas, you will note that the F. One that has established a permanent home in the U S. We can monetize the Leds screen and displace third party brand into the future use the bidding itself has advanced a D campus capabilities temporary.

walls between themed carriage as an additional features and ensures ample flexibility to convert the entire space for a broad range all year round uses. Future year round activation are under development and we hope to have more to share in the coming months. I encourage you to visit the Las Vegas Grand Prix website for the time lapse video of

the extraordinary construction progress.

Our [inaudible] of Las Vegas Rose began last month and the second phase is scheduled for July. Once complete, these trucks surface can last six to 10 years.

Stefano Domenicali: The team also recently announced the addition to the sponsorship lineup. Vision Hotel Las Vegas was named an event park and will have entitlement to the east [inaudible]. Hard Rock International was named a presenting partner and will build a grandstand in front of the mirage on the strip.

Stefano Domenicali: In March, we announced an event partnership with Switch, the technology infrastructure company who will supply LDGP with its sustainable goals and establish a bunch of them in conscious practice for the race weekend. Finally, touching on our brother F1 sustainability and inclusion afford, the European Union recently recognized the role that sustainable fuel needs to play as part of the automotive solutions alongside electric vehicles after 2035. This cements the future of sustainable fuels following the F1 extensive work with policymakers. Our F2 and F3 cars are running 55% sustainable fuels this season. Current F1 cars are running on 10% sustainable fuels and we are on track to introduce 100% advanced sustainable fuels in 2026.

Conscious practice for the race weekend and beyond finally, touching on our brother F. One sustainability and inclusion afford European Union recently recognize the role that sustainable fuel needs to play as part of the automotive solutions alongside of that electric vehicles. After 2035.

This is cement the future of sustainable fuels following the F. One extensive work with policymakers our F. Two and Thats three cars are running 55% sustainable fuels. This season.

Current F1 cars are running on 10% sustainable fuels and we are on track to introduce 100% advanced sustainable fuels in 2026.

Stefano Domenicali: The F1 Academy, our new ultimate series began its season in Austria last weekend following two testing session in Barcelona, and [inaudible] in France. Congratulations to Martha Garcia from prima racing on winning two of the three races on opening weekend with just 0.2 seconds separating her and the second place finisher in the third race.

Congratulations to Martha Garcia from primary icing on winning two of the three races on opening weekend, we just zero points recycled separating her and the second place finisher in the third the third race.

Stefano Domenicali: The season will have seven race weekends with the final race alongside us in Austin in October. I am pleased to say that in 2024 season, we'll have all F1 academy racers join the F1 weekend.

Stefano Domenicali: The creation of F1 Academy is an important step forward towards increasing opportunity for female participation in motorsport. It is the start of a journey and we hope it will be inspirational for young female drivers aspiring to reach professional motorsport will now have the F1 academy to aim for. I believe we are creating the best possible structure to find and nurture female talent, including those already in the series and those yet to come through from the grassroots level. We are looking forward to the season.

<unk>, we are creating the best possible structure to find them and nurture female talent, including those already in the Cds and those yet to come through from the grassroots level. We are looking forward to the season.

Stefano Domenicali: Yesterday, F1 partnered with custom events from Wall Street Journal to host our first F1 accelerate summit. We brought together trailblazer from the worlds of sports, entertainment, and business to discuss how they can make a significant impact on the future of technology performance diversity and sustainability, not only in their own business but the [inaudible] culture. We welcomed familiar faces from the F1 grid and management alongside marquee sports figures, including Maria Sharapova and Liz [inaudible.]

only in their own business but the [inaudible] culture. We welcomed familiar faces from the F1 grid and management alongside marquee sports figures, including Maria Sharapova and Liz [inaudible.]

Stefano Domenicali: Jay Leno was our host as business executives traveled from across the country into the Jerry Bruckheimer, Jocose Maverick Carter, Sada Harden, and Borg Magnus, and we hope to continue to leverage the F1 brand to drive innovation and commercial success for the sporting and entertainment world. 

It is an exciting time for Formula One on the track and in the commercial operation. Our unusual early season spring break didn't have a mandatory shut down like summer break, meaning [inaudible] were hard at work with their [inaudible]. I believe competition will intensify as the season progresses. Miami will close out the first double header to of the season before we head to Europe for the first triple header. There is plenty of action to come [inaudible] full speed ahead. And now I will turn the call back over to Greg. Thank you.

For the first Triple Heather that is planned field action to come of Antitumor foods. Full speed ahead.

Full speed ahead.

And now I will turn the call back over to Greg. Thank you.

Gregory B. Maffei: Thank you Stefano and thank you Brian. And to our listening audience, we appreciate your continued support of and interest in Liberty Media. We hope you will all turn into see the Miami Grand Prix this weekend and the start of our Brave series against the Orioles tonight.

To our listening audience. We appreciate your continued support of and interest in Liberty media.

We hope you will all turn into see the Miami Grand Prix This weekend and the start of our Brave series against the Orioles Tonight.

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

Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

Operator: Once again that's star one for questions. The first question is coming from David Karnofsky of JP Morgan. Please go ahead.

David Karnovsky: Oh, thanks. Stefano just on the new sprint format, I'm interested to know what their response has been from your partners on the promotion side. How are they thinking about the potential lift to their own ticket sales? And then what's the process you have to determine what [inaudible] get that format and is that something you can build into your contracts?

Stephane just on the new sprint format.

They know what their response has been from your partners on the promotion side.

How are they thinking about the potential lift to their own ticket sales.

And then what's the process you have to determine what <unk> got.

That format and is that something you can build into your contracts.

Stefano Domenicali: Well, thanks David. Of course, [inaudible] in accordance with the teams and with the SIA because, as you know, our idea is to make sure that we're doing [inaudible] there's always action on the track. Actually, the results of the first one of this year has been very encouraging and every one of our partners, promoter, media partners, and also teams are very positive about that. Of course there is something that we want to take as we listen and learn to see at the end of summer there is something that we can learn to do even something better. But in the general the first weekend of the sprint pool, but there has been great and it seems that there's always when you want to do something different in a very standardized ecosystem the reaction of let's say the traditional fans is the one that needs to be awaited for a longer term, but nobody with the new fans that we have seen a very, very positive reaction. But I'm always pushing for that and I would say the real thing is that we don't want to go in a situation where in the future we're going to have all the races with a sprint focus. We want to keep a limited number of these, maybe walk through the calendar number and create something especially with regard to the competition that we can keep them supporting value with trophies and of course commercial opportunity to these things, but I think that's the right way to go. 

<unk> deep does seem to in accordance with the teams and with the S. I E. Because as you know our idea is to make sure that we're doing the leasing we kept that he's always action on the track.

The results of the first one of this year has been very encouraging and every one of our partners promoter media partners. It also team are very positive about that.

So that is something that we want to take as we listen learn to see it.

the end of summer there is something that we can learn to do even something better. But in the general the first weekend of the sprint pool, but there has been great and it seems that there's always when you want to do something different in a very standardized ecosystem the reaction of let's say the traditional fans is the one that needs to be awaited for a longer term, but nobody with the new fans that we have seen a very, very positive reaction. But I'm always pushing for that and I would say the real thing is that we don't want to go in a situation where in the future we're going to have all the races with a sprint focus.

One of the let's say the traditional fans that he is the one that needs to be a.

Wait for the for a longer term, but nobody with the new Fabs that we have seen a very very positive reaction, but almost always pushing for that and I would say the real thing is that we don't want to go in a situation where in the future we're going to have all the.

We want to keep a limited number of these, maybe walk through the calendar number and create something especially with regard to the competition that we can keep them supporting value with trophies and of course commercial opportunity to these things, but I think that's the right way to go. And if I may summarize another thing that I think

Stefano Domenicali: And if I may summarize another thing that I think is important, I see a big trend today in all sport not to be stable, let's say not to to stay consistent with your regulation. Just following what the Batesville date, they just following what the NBA is done so that means that the older professional sport needs to listen to the request and to the new input that the past promoters and partners are asking who have more exciting things about the game. So we're positive and looking forward to keep working on this.

People, let's say not to to stay consistent with your regulation.

Just following what the Batesville date, they just following what the NBA is done so that means that the older professional sport needs to listen to the request to the new input that the past promoters and partners Atlassian, who have more exciting things about the game, so positive and looking forward to keep working on this.

David Karnovsky: Got it. And then you've called out F1 TV in your releases for a few quarters now, just wanted to see if you could update us on product where do you see it in terms of the growth trajectory. And then just for Brian, to the extent someone buys an annual plan at the start of the season, is that all booked in the first quarter with the partner cost or is that proportional to the races? Thanks

Okay. You've called out F. One TV in your releases for a few quarters now just wanted to see if you could update us on product where do you see it in terms of the grille trajectory and then just for Brian .

You've called out F. One TV in your releases for a few quarters now just wanted to see if you could update us on product where do you see it in terms of the grille trajectory and then just for Brian .

We extend someone buys an annual plan at the start of the season is that all booked in the first quarter with the partner cost or is that proportional to the races.

Stefano Domenicali: So if I may, the first part of it, F1 TV is really working very well. We know that we are not providing any numbers on that but what I can tell you in terms of quality and in terms of attention, it's also an opportunity to select new markets, where there is not really a strong broadcast provider and we're doing that with certain countries and the effect is really good. We have a new plan also to update some of the content that we want to give to our fans. And as I said, after a couple of years of very high investment, now we are paying back what has been a great decision taken a couple of years ago. Brian, you want to progress with the other question?

Numbers on that but what I can tell you in terms of quality and criminals.

I need some little attention is also look between two to select new markets, where there is not really a strong. Broadcast a provider and we're doing that with certain countries and the effect is really good we have a new plan also to update some of the content that we want to give to our offense. Set up to a couple of years of their high investment now we are paying back what has been a great decision taken a couple of years ago. Brian you want to progress we got a question.

Broadcast a provider and we're doing that with certain countries and the effect is really good we have a new plan also to update some of the content that we want to give to our offense. Set up to a couple of years of their high investment now we are paying back what has been a great decision taken a couple of years ago. Brian you want to progress we got a question.

Set up to a couple of years of their high investment now we are paying back what has been a great decision taken a couple of years ago. Brian you want to progress we got a question.

Brian you want to progress we got a question.

Brian J. Wendling: Yeah, David on your second question, it's proportional over the season.

David Karnovsky: Great. Thank you.

Operator: Thank you. The next question is coming from Bryan Kraft with Deutsche Bank. Please go ahead.

Bryan D. Kraft: Hi, good morning, Greg, I wanted to ask you how should we think about the capital needs of the Liberty Live tracker, both initially and over time, particularly as the business side of Liberty Live evolves and begins to invest in owning and operating venues? I assume that's still part of the plan and then it seems like it's capital intensive so just wanted to understand how you might go about funding those endeavors. Thank you.

Understand how you might go about funding those endeavors. Thank you.

Gregory B. Maffei: Thanks Bryan for the question. As we've outlined we expect to capitalize Liberty Live with a decent amount of cash, but candidly to the degree we go out and do something large there we'll have to find other sources of cash capital. So I don't think it will be a massive generator of cash as you would expect looking what's in the asset base there. But we have some ideas that involve leveraging Liberty Live itself, not reliance as much on other trackers  if that's your fear Bryan.

Thanks, Brian for the question.

As we've outlined we expect to capitalize.

Liberty live with.

A decent amount of cash, but candidly to the degree we go out and do something large there will have to find other sources of capital.

The other source of cash capital so.

So I don't think.

It will be a massive generator of cash as you would expect looking what's in there and the asset base there but.

But we have some ideas that involve leveraging liberty live itself not reliance as much on other trackers. If that's your for you Brian .

Bryan D. Kraft: Yeah, that was an answer to the question. Thank you.

Gregory B. Maffei: I might regret that subject a little bit.

Bryan D. Kraft: Well a lot of people are asking about it so you know I think it's good to get the message out there. 

Gregory B. Maffei: You get to ask it straight upfront.

Bryan D. Kraft: If I could ask you also maybe related on the F1 side, I mean, it seems like what you're doing in Vegas is really exciting, do you see other opportunities to invest in F1's business by taking on the promoter role in other markets and investing in facilities to drive that longer term growth?

markets and investing in facilities to drive that longer term growth?

Gregory B. Maffei: Look, I think Vegas was unique in the opportunity and also the geography and a bunch of other factors, which made it the place where we should be the promoter first. We'll try not to have too much hubris and assume that we need to prove we can be a good promoter first. I don't look at a lot of other places where it is obvious. I have mentioned in the past that I do think in some cases some of our partners in the promoter space are not necessarily as capital rich as Formula One and so there may be opportunities for us to participate alongside them, maybe not in a full co promotion role but to take elements of the the chain of value being created and further it for both of our benefits. So we will certainly look at that and talk to partners to a degree that's available.

And the opportunity and also the geography in a bunch of other factors, which made it the place where we should be the promoter first.

We'll try not to have too much hubris and assume that we need to prove we can be a good promoter first. I don't look at a lot of other places where it is obvious. <unk> mentioned in the past that I do think in some cases some of our <unk>. Partners in the promoter space are not necessarily as capital rich as formula one and so there may be opportunities for us to participate alongside them. Not a full co promotion role, but to take elements of the the chain of value being created and further it for both of our benefits. So we will certainly look at that and talk to partners to a degree that's available.

I don't look at a lot of other places where it is obvious. <unk> mentioned in the past that I do think in some cases some of our <unk>. Partners in the promoter space are not necessarily as capital rich as formula one and so there may be opportunities for us to participate alongside them. Not a full co promotion role, but to take elements of the the chain of value being created and further it for both of our benefits. So we will certainly look at that and talk to partners to a degree that's available.

<unk> mentioned in the past that I do think in some cases some of our <unk>. Partners in the promoter space are not necessarily as capital rich as formula one and so there may be opportunities for us to participate alongside them. Not a full co promotion role, but to take elements of the the chain of value being created and further it for both of our benefits. So we will certainly look at that and talk to partners to a degree that's available.

Partners in the promoter space are not necessarily as capital rich as formula one and so there may be opportunities for us to participate alongside them. Not a full co promotion role, but to take elements of the the chain of value being created and further it for both of our benefits. So we will certainly look at that and talk to partners to a degree that's available.

Not a full co promotion role, but to take elements of the the chain of value being created and further it for both of our benefits. So we will certainly look at that and talk to partners to a degree that's available.

Stefano Domenicali: And if I may add another comment Greg, that there is a quality team is that the investments we are pushing also the quality of the promoters that are very important for us. So now the game is to have unique events that are working very, very well of course, commercially viable, but I would say that that would affect us even through the system that uplift in the quality of [inaudible].

Is that fair.

The investments we are pushing also.

The quality of the promoters. To be very important for us for what so now the game is to have unique events that are working very very well of course, a commercially viable, but I would say that that would affect us even through the system that uplift in the quality of muscle Shoals everything for you.

To be very important for us for what so now the game is to have unique events that are working very very well of course, a commercially viable, but I would say that that would affect us even through the system that uplift in the quality of muscle Shoals everything for you.

Bryan D. Kraft: Okay. Thanks, Greg, thanks, Stefano, I appreciate it.

Operator: Thank you. The next question is coming from Vijay Jayant of Evercore. Please go ahead.

Vijay A. Jayant: Hi, good morning. I have a couple on formula one. Greg, the $112 million of team payments in the quarter implies little less than I think $1.3 billion for the year. Can you just sort of talk about how team payments are being communicated to the team given the fact that this year you have something sort of different with the Vegas rates that is not contractual? And is that something we should look at as a proxy and what's your sort of thinking on the full year EBITDA number?

The Greg the.

$12 million of team payments in the quarter implies little less and I think $1 3 billion for the year.

Can you just sort of talk about how you know the team.

Payments are being communicated to the team given the fact that this year you have something sort of different with the Vegas rates that is not contractual. And is that something we should look at as a proxy and what's your sort of thinking on the full year EBITDAR number.

And is that something we should look at as a proxy and what's your sort of thinking on the full year EBITDAR number.

Vijay A. Jayant: And second, obviously the free cash flow was very, very strong in Formula One's quarter, and I'm assuming that has to do with the tickets sales for I think wave one and wave two. Any way you can help us think about what some of the underlying free cash flow is exactly excluding the ticket sales if possible?

Very very strong. No one's Florida, and I'm, assuming that has to do with the. Tickets out.

No one's Florida, and I'm, assuming that has to do with the. Tickets out.

Tickets out.

Well I think way one way to on big It any way you can help us think about what some of the underlying free cash flow is exactly it's excluding the the ticket sales is it possible.

Gregory B. Maffei: So I'll comment on the first and second and if Brian you want to add anything on the free cash flow when I'm done that would be great. Looking at the team payments, I think if you look at our history we try to manage that conservatively, particularly in the first quarter of the year. And as you rightly note, probably even more conservatively this year given we've added some volatility to the payroll are out, rather to the possibility of having Vegas. We think its positive volatility, it's going to be a great event, but it is unknown, it is not as well experienced as some of the other events that we have. So I think you should look at that as a conservative proxy for how we expect the year will go. The last thing we want to do is have teams overspending in anticipation of monies that don't show up towards the end of the year.

The free cash flow when I'm done that would be great.

Looking at the team payments I think if you look at our history. We try to manage that conservatively. Particularly in the first quarter of the year. And as you rightly note, probably even more conservatively this year given. We've added some volatility of the payroll are out and rather to the. <unk> and.

We try to manage that conservatively. Particularly in the first quarter of the year. And as you rightly note, probably even more conservatively this year given. We've added some volatility of the payroll are out and rather to the. <unk> and.

Particularly in the first quarter of the year. And as you rightly note, probably even more conservatively this year given. We've added some volatility of the payroll are out and rather to the. <unk> and.

And as you rightly note, probably even more conservatively this year given. We've added some volatility of the payroll are out and rather to the. <unk> and.

We've added some volatility of the payroll are out and rather to the. <unk> and.

<unk> and.

By having Vegas, we think its positive volatility it's going to be a great event, but it is unknown it is not as well. Experienced some of the other events that we have so I think you should look at that as a conservative proxy for how we expect the year will go. The last thing we want to do is have teams. Overspending in anticipation of monies that don't show up towards the end of the year.

Experienced some of the other events that we have so I think you should look at that as a conservative proxy for how we expect the year will go. The last thing we want to do is have teams. Overspending in anticipation of monies that don't show up towards the end of the year.

The last thing we want to do is have teams. Overspending in anticipation of monies that don't show up towards the end of the year.

Overspending in anticipation of monies that don't show up towards the end of the year.

Gregory B. Maffei: On the free cash flow, you rightly note because of the wave one and two sales a lot of cash has been brought to us its deferred collection, but it has generated that free cash flow line. So it has probably overstated the true impact of the operating business for Q1, but we do expect to recognize that as free cash flow as the year progresses. I don't know, Brian if you want to comment on can comment a little on a more normalized level without providing Vijay too much clarity because gosh knows we wanted to do some real work.

Because of the wave one and two sales. A lot of cash has been brought to us its deferred collection, but it has generated that free cash flow line. So it has probably overstated the true impact of the operating business for for Q1, but we do expect to recognize that as free cash flow as the year progresses I don't know, Brian if you want to comment on can comment a little on a more normalized level without providing vijay too much clarity because gosh knows we wanted to do some real work.

A lot of cash has been brought to us its deferred collection, but it has generated that free cash flow line. So it has probably overstated the true impact of the operating business for for Q1, but we do expect to recognize that as free cash flow as the year progresses I don't know, Brian if you want to comment on can comment a little on a more normalized level without providing vijay too much clarity because gosh knows we wanted to do some real work.

So it has probably overstated the true impact of the operating business for for Q1, but we do expect to recognize that as free cash flow as the year progresses I don't know, Brian if you want to comment on can comment a little on a more normalized level without providing vijay too much clarity because gosh knows we wanted to do some real work.

Brian J. Wendling: Yeah, I mean to help the efforts I guess I would say if you look at our tracking stocks schedules you can see the deferred revenue as of March 31, 2023, and you can go back and look at our first quarter from last year, you can see the deferred revenue related to Formula One at 2022 it's roughly a $130 million give or take and you could think of that largely being related to Vegas, although there are other puts and takes.

Yeah, I mean to to help the efforts I guess I would say if you look at our tracking stocks schedules you can see the deferred revenue.

As of March 31, 2023, and you can go back and look at the you look at our first quarter from last year, you can see the deferred revenue related to formula one.

At 2022. You know roughly a $130 million give or take and you could think of that largely. Being related to Vegas, although there are other puts and takes.

You know roughly a $130 million give or take and you could think of that largely.

Being related to Vegas, although there are other puts and takes.

Stefano Domenicali: And I may add one comment, sorry, Brian.

Sorry, Brian .

Brian J. Wendling: No go ahead. Stefano, please add.

I'm pleased that.

Stefano Domenicali: Sorry, no Vijay, I just want to add two comments that I think is important to consider that at the end of the day it's important to remember the teams are benefiting from what we are doing so far. I mean, investing in Vegas for them is an incredible opportunity and directly also tend to develop their business. And then these will get our position even stronger as an ecosystem in Formula One. So I think that is really something that's worth mentioning. We have a prudential approach, but that gives you the magnitude of what we need to do and need to deliberately discuss that would be very, very important for all of us.

It's important to remember the teams the teams are benefiting from what we are doing so far I mean, they invest in Vegas for them is it is an incredible opportunity and directly also tend to develop this. And then that these will get our position even stronger as an ecosystem. It for a while so I think that is really something that's worth mentioning we have a a prudential approach, but that gives you the magnitude of what we need to do and need to deliberate and discussed that would be very very important for all of us.

And then that these will get our position even stronger as an ecosystem. It for a while so I think that is really something that's worth mentioning we have a a prudential approach, but that gives you the magnitude of what we need to do and need to deliberate and discussed that would be very very important for all of us.

Gregory B. Maffei: Thanks Vijay.

Vijay A. Jayant: Thank you.

Operator: Thank you. The next question is coming from Peter Supino of Wolfe Research. Please go ahead.

Thank you. The next question is coming from Peter Zaffino of Wolfe Research. Please go ahead.

Peter Lawler Supino: Hey, good morning, and thanks. On the Concorde agreement, Greg or Stefano, I wondered if you could comment on how you'd like investors to think about the timing of that renegotiation. And then a second question, Greg if you would talk about Live Nation, your view of both the risks posed by the DOJ investigation, and then separately the bare case that the business ought to slow down a lot in 2024 after this post pandemic surge of supply. Thank you.

Hey, good morning, and thanks.

On the Concorde agreement Gregg I wondered or Greg once the final I wondered if you could comment on how you'd like investors to think about the timing of that renegotiation and then a second question. Greg If you would talk about live nation. Your view of both the risks posed by the Doj investigation, and then separately the bare case that the business ought to slow down a lot in 2024. After this post pandemic surge of supply. Thank you.

Your view of both the risks posed by the Doj investigation, and then separately the bare case that the business ought to slow down a lot in 2024. After this post pandemic surge of supply. Thank you.

Gregory B. Maffei: Look, we have several years left to run on the Concord agreement, but I think there's a consensus among the teams and the FIA and ourselves that now might be a good time to try and strike while the iron is hot and renew and extend the Concord agreement. There is certainly no obligation to do that and there is certainly no risk if that doesn't get done. As you may recall, we went right to the end and historically, in many cases, the teams have operated without a Concord agreement. They basically got a handshake and then completed the deal post the period when the new Concord agreement  was supposed to start. Our hope is that this time we'll be able to change that dynamic and because of the way that Chase and Stefano have changed the dynamic with the teams in particular, I hope we have a more positive relationship and everybody sees the benefit of going early and providing certainty for all involved. Stefano, what would you add?

Look we have several years left to run on the cockpit agreement, but.

I think there's a consensus.

Among the teams and the FIA and ourselves that.

Now it might be a good time to try and strike while the iron is hot and renew.

And the Concord agreement there is certainly no obligation to do that and there is certainly no risk if that doesn't get done as you may recall, we went right to the end and historically.

In many cases the teams have operated without a concrete agreement. They basically got a handshake and then completed the deal post.

The period, when the Concord, new copper and he was supposed to start our hope is that this time will be able to change that dynamic. Because of the way that chase and Stefano will change the dynamic with the teams in particular I hope we have a more positive relationship and everybody sees the benefit of going early and providing certainty for all involved definitely what would you add

Because of the way that chase and Stefano will change the dynamic with the teams in particular I hope we have a more positive relationship and everybody sees the benefit of going early and providing certainty for all involved definitely what would you add nothing because I think that you can sympathize personally the situations and I think that would be a restricted stock.

Because of the way that chase and Stefano will change the dynamic with the teams in particular I hope we have a more positive relationship and everybody sees the benefit of going early and providing certainty for all involved definitely what would you add

Stefano Domenicali: Nothing because I think that you sympathize exactly the situation and I think that would be our strategy.

Gregory B. Maffei: On Live Nation, I would not say it's a DOJ investigation, you could always say that but look we've had a DOJ consent decree and monitor now for several years and it was renewed and there is a hotline that anybody can report what they perceive as violations of that consent decree and the DOJ has a monitor who is investigating continuously proceed or alleged violations of the consent decree.

You know I would not say that the Doj investigation, you could always say that but look we've had a doj consent decree and monitor now for several years and it was renewed and there is a hotline that anybody can report what they perceive as violations of that consent decree and the Doj has a monitor who is investigating.

Gregory B. Maffei: There obviously is another track which is our legislative potential. We've talked about some of those, I mentioned the couple of bills that are being considered. I am not sure those bills will get done but in the main we view those bills as positive. And frankly, I think anything that moves forward and ends the negative speculation about the regulatory side is positive because we do not perceive it nearly as big a risk as the market perceives it to be. On the business itself, hard to project what the consumer will do when you can imagine recession scenarios and the likes but we see none of that. We see strong demand and we see it going forward with upcoming tours and our expectations as I noted our the business is going to continue to grow.

Or alleged violations of the consent decree there obviously is another track which is.

Our legislative potential.

Talked about some of those I mentioned.

A couple of bills that are being considered I am not sure those skills will get done but in the main we view those bills is positive.

And frankly, I think anything that moves forward and ends the negative speculation about the regulatory side is positive because we do not perceive it nearly as big a risk is the market proceeds to be. On the dock on the business itself. You know hard to project, what the consumer will do when you can imagine recession scenarios and alike. But we see none of that we see strong demand. And we see it going forward with upcoming tours and our expectations as I noted our the business is going to continue to grow.

On the dock on the business itself. You know hard to project, what the consumer will do when you can imagine recession scenarios and alike. But we see none of that we see strong demand. And we see it going forward with upcoming tours and our expectations as I noted our the business is going to continue to grow.

On the dock on the business itself. You know hard to project, what the consumer will do when you can imagine recession scenarios and alike. But we see none of that we see strong demand. And we see it going forward with upcoming tours and our expectations as I noted our the business is going to continue to grow.

You know hard to project, what the consumer will do when you can imagine recession scenarios and alike. But we see none of that we see strong demand. And we see it going forward with upcoming tours and our expectations as I noted our the business is going to continue to grow.

But we see none of that we see strong demand. And we see it going forward with upcoming tours and our expectations as I noted our the business is going to continue to grow.

And we see it going forward with upcoming tours and our expectations as I noted our the business is going to continue to grow.

Peter Lawler Supino: Thanks a lot Greg.

Gregory B. Maffei: Thank you Peter.

Operator: Thank you. The next question is coming from Stephen Laszczyk of Goldman Sachs. Please go ahead.

Stephen Neild Laszczyk: Great, good morning. Maybe one on F1 sponsorship for Stefano, it seems like you're finding a fair amount of success in stepping up some sponsors into more comprehensive packages. You had Paramount plus MSC and [inaudible] this past quarter, I was wondering if you could maybe talk about how much opportunity you think there is as you look out across your sponsorship portfolio to step more sponsors up and if there's any constraints, especially with there being 10 global partners already that could limit this?

how much opportunity you think there is as you look out across your sponsorship portfolio to step more sponsors up and if there's any constraints, especially with there being 10 global partners already that could limit this?

Stefano Domenicali: Well thanks, Stephen for the question, I think that we always need to look behind so that you understand what we're doing. I mean, we're talking about four official partners just two years ago, now we have are heading to 10 official partners. I have an incredible group of people that could go with [inaudible]. I think that our main goal is for sure to connect with the potential business partner that are interesting  together, but in any case, we don't have to overcrowd our grouping those into also what they need and it's up to us to prepare for them different packages with different countries with different experiences, different opportunities.  This is what we are doing and the fact that we are so strong in this moment that the pipeline is still very solid both for the future it is giving us the tool to work on the digital landscape to have different proposition, different markets for example.

We always need to look behind that you understand what we're doing. I mean, we're talking about Boulder for official Department, just two years ago now we have it. Head into 10 official partner plus. I have an incredible group of people that. That could go with partners. What is the thought of it. I think that's where our main goal is to for sure to connect with the potential business parts of that.

I mean, we're talking about Boulder for official Department, just two years ago now we have it. Head into 10 official partner plus. I have an incredible group of people that. That could go with partners. What is the thought of it. I think that's where our main goal is to for sure to connect with the potential business parts of that.

Head into 10 official partner plus. I have an incredible group of people that. That could go with partners. What is the thought of it. I think that's where our main goal is to for sure to connect with the potential business parts of that.

I have an incredible group of people that. That could go with partners. What is the thought of it. I think that's where our main goal is to for sure to connect with the potential business parts of that.

That could go with partners. What is the thought of it. I think that's where our main goal is to for sure to connect with the potential business parts of that.

What is the thought of it. I think that's where our main goal is to for sure to connect with the potential business parts of that.

I think that's where our main goal is to for sure to connect with the potential business parts of that.

 together, but in any case, we don't have to overcrowd our grouping those into also what they need and it's up to us to prepare for them different packages with different countries with different experiences, different opportunities. 

This is what we are doing and the fact that we are so strong in this moment that the pipeline is still very solid both for the future it is giving us the tool to work on the digital landscape to have different proposition, different markets for example.

To have different proposition different markets for example.

Stefano Domenicali: There's one opportunity that we have today or including the other categories that are adding to that it could come back in Formula One. So I would say now the real thing is not to work only on adding more, but making sure that each of them receive the right answer to their question. And the other thing that I think is really relevant that gives in another way the fact that we really see this on the sustainability [inaudible] because no one will invest today in the business that is not the critical of this landscape. Therefore that this is another push we are receiving from our partners to make sure that our goals with this sustainability [inaudible] will be achieved. So let's see a constructive push that we are working together in order to be stronger and stronger together.

The answer to that question and the other thing that I think is really rather than that gifts.

In another way the fact that we really see this. On the sustainability of. That's one because no one will invest today in the business that is not the critical of this landscape. Therefore that this is another state where they seem to fall off is to make sure that that would've goals with this sustainability led coupling try 30 has been achieved so let's see a constructive push that we are working together in order to be. Longer. Stronger together.

On the sustainability of.

That's one because no one will invest today in the business that is not the critical of this landscape. Therefore that this is another state where they seem to fall off is to make sure that that would've goals with this sustainability led coupling try 30 has been achieved so let's see a constructive push that we are working together in order to be. Longer. Stronger together.

Longer. Stronger together.

Stronger together.

Stephen Neild Laszczyk: Great, thanks for that. And then maybe one for Greg, could you just update us on the way you're thinking about capital allocation at Formula One now that you have to trigger on your term loan this quarter. Should we expect this to give you some more flexibility from this point going forward to ramp leverage back to more historical levels? Thank you.

Gregory B. Maffei: Well, thank you Stephen. I think look we are pleased to have triggered the reduction. Honestly, that's a nice benefit but it has not been what's driving our thinking about capital allocation. We are looking for and believe we will find attractive opportunities for our cash and our cash flow generation. I've talked about some of those in the past, including the Vegas effort, which I think is going to generate a good return, ancillary businesses around, which are synergistic around our existing business and the potential for return of capital versus share repurchase. As I noted, we effectively did that this quarter for just over 3 million shares for the intergroup interest settlement, so I expect you'll see us look at all of the alternatives above. Again, it was nice to click off a 25 bip reduction, but that wasn't what drove our thinking. It's really the strength of the business, which is generating the capital.

Well, thank you Steven I think.

Look we are pleased to have triggered the reduction.

Honestly, that's a nice benefit but it has not been whats driving our thinking about capital allocation.

We are looking for and believe we will find attractive opportunities.

For our cash and or generate cash flow generation I've talked about some of those in the past, including the Vegas effort, which I think is going to generate a good return.

Ancillary businesses.

Round, which are synergistic in and around our existing business and the potential for return of capital versus share repurchase as I would as I noted, we effectively did that this quarter for just over 3 million shares for the intergroup interest settlement. So I expect you'll see us look at all of the alternatives above. Again, it was nice to click off of 25, bip reduction, but that wasn't what drove our thinking it's really the strength of the business, which is generating the capital.

Again, it was nice to click off of 25, bip reduction, but that wasn't what drove our thinking it's really the strength of the business, which is generating the capital.

Stephen Neild Laszczyk: Great, thanks, Greg. 

Yeah.

Operator: Thank you. The next question is coming from David Joyce of Seaport Research Partners. Please go ahead.

David Carl Joyce: Thank you. A couple of questions, first on Formula One, what's the current view of Formula One the league FIA and F1 teams related to potential additional teams, what are the gating factors from here? And then secondly, if you could provide any update on your views of what's happening with the regional sports networks as it pertains to our Atlanta Braves? Thanks.

And but if one team related to potential additional work teams are what are the gating factors from here.

And then secondly, if you could provide any update on your views on what's happening with the regional sports networks as it pertains to our.

Atlanta, Atlanta Braves. Thanks.

I'll let Stefano handle the first part and I'll handle the second question. Thank you, Greg. I mean with regard to the situation of new team potentially entering [inaudible] someone that is quite vocal, some of them are quite silent.

Gregory B. Maffei: I'll let Stefano handle the first part and I'll handle the second question.

Stefano Domenicali: Thank you, Greg. I mean with regard to the situation of new team potentially entering [inaudible] someone that is quite vocal, some of them are quite silent. As you may know David there is a process in place that's inactivated by the regulator to see and collect the interest from other partners to be part of [inaudible] and the first step would be to finish I think within the middle of May and then there will be the analysis done properly, a check in the technical visibility. We're going to have the discussion to see if there's any kind of potential to enter it will fit into the equation of the [inaudible] sports and that's something that will take the decision at the right time. We think the end of the year that's the plan, but of course that is once again showing the growth of Formula One. I mean, just a couple of years ago the team was very small, actually almost none, but today the value of the franchise is very high so we have the duty to protect the business and they can do that and this is something we're going to do within the end of this year.

As you may know David there is a process in place that's inactivated by the regulator to see and collect the interest from other partners to be part of [inaudible] and the first step would be to finish I think within the middle of May and then there will be the analysis done properly, a check in the technical visibility. We're going to have the discussion to see if there's any kind of potential to enter it will fit into the equation of the [inaudible] sports and that's something that will take the decision at the right time. We think the end of the year that's the plan, but of course that is once again showing the growth of Formula One. I mean, just a couple of years ago the team was very small, actually almost none, but today the value of the franchise is very high so we have the duty to protect the business and they can do that and this is something we're going to do within the end of this year.

Basically by the regulator.

C to collect the interest from other partners to be part of what the first step would be.

<unk> finished I think within the middle of May and then there will be the analysis is done properly a check in the technical visibility yet.

The discussion to see if there's any kind of potential enter it will fit into the equation of the creek in both sports and Thats something that will take the decision.

My time with at the end of the year. That's the plan, but of course that is once again showing the growth of all of what I mean.

Just a couple of years ago that they deal with people with very small.

Actually almost none.

The value of the franchise is very high so we have the duty to protect the business and they can do that and this is something we're going to do within the end of this year.

Gregory B. Maffei: And regarding the RSN, look obviously, it's a difficult situation given diamonds filing. That having been said, we continue to receive payments from our sports style contract. That is not true for some other RSNs out there. With my understanding it's three or four that's not received payments from diamond. And that I think reflects the fundamental strength of the territory we have and the strength of our interest in the Braves such that our understanding is we have a profitable RSN so it's unlikely that diamond will view us as an executory contract, which they wish to reject. Even if they would have reject it, which again, don't expect, I think there are other alternatives, we could construct in the marketplace that would enable us to get paid and have our products shown to our fans, which is really the most important thing. And we're certainly prepared if we have to go out and exercise those alternatives.

Look obviously, it's a difficult situation given diamonds.

Milling.

That having been said we continue to receive payments from.

Our sports style contract.

That is not true for some other or a sense out there with my understanding is three or four it's not received payments from diamond.

And that I think reflects the fundamental strength of the territory, we have and the strength of our interest in the Braves such that our understanding is we have a profitable or a sense. So it's unlikely.

That diamond will view us as an executor, we contract, which they wish to reject.

Uh huh. Even if they would have rejected which again don't expect I think there are other alternatives, we could talk a construct in the marketplace. That would enable us to get paid and have our products shown to our fans, which is really the most important thing. And. We're certainly prepared if we have to go out. Exercise those alternatives.

Even if they would have rejected which again don't expect I think there are other alternatives, we could talk a construct in the marketplace. That would enable us to get paid and have our products shown to our fans, which is really the most important thing. And. We're certainly prepared if we have to go out. Exercise those alternatives.

That would enable us to get paid and have our products shown to our fans, which is really the most important thing. And. We're certainly prepared if we have to go out. Exercise those alternatives.

And. We're certainly prepared if we have to go out. Exercise those alternatives.

We're certainly prepared if we have to go out. Exercise those alternatives.

Exercise those alternatives.

David Carl Joyce: Great. Thanks, Greg and Stefano.

Operator: Thank you. The next question is coming from Matthew Harrigan of Benchmark Company. Please go ahead.

Thank you. The next question is coming from Matthew Harrigan with Benchmark Company. Please go ahead.

Matthew J. Harrigan: Thank you live nation ammonia southern merits of it. You know a homerun acquisition. Mexico, and Colombia, I think we said that in Asia were like 50% of NOI growth in the quarter year over year. I mean do you see there are many other targets out there to expand internationally is music business. Now unbelievable way globalized, given the cross market appeal hardest as Michael talked about yesterday. Thank you.

You know a homerun acquisition.

Mexico, and Colombia, I think we said that in Asia were like 50% of NOI growth in the quarter year over year. I mean do you see there are many other targets out there to expand internationally is music business.

Now unbelievable way globalized, given the cross market appeal hardest as Michael talked about yesterday. Thank you.

Gregory B. Maffei: Thank you Matthew. You're right, [inaudible] is a great deal and it's nice that Alejandro Sebarone's business, who is also our partner in the Formula One Mexico City Grand Prix is acting so successfully. There are other targets out there. Probably not as many with the scale of [inaudible] that we could get done because of potential regulatory issues, but Live Nation has a long history of successfully adding primarily promoters into the fold usually in some form of a partnership agreement where the management stays involved but we take some ownership interest as well, and I expect you'll continue to see that either in venues or promoter relationships where we continue to take advantage of the strength of our business and our ability to try and offer both fans and artists the global product. And the more we can fill in our global footprint, the better for both of them.

Youre right <unk> is a.

Great deal and it's nice that.

Our 100 somewhere around business, who is also our partner in the Formula one.

Mexico City Grand Prix is acting so successfully.

There are other targets out there.

Probably not as many with the scale of a setup that we could get done.

Cause a potential regulatory issues, but live nation has a long history of successfully adding primarily promoters into the fold usually in some form of a partnership agreement, where the management stays involved but we take some ownership interest as well and I expect you'll continue to see that either.

promoter relationships where we continue to take advantage of the strength of our business and our ability to try and offer both fans and artists the global product. And the more we can fill in our global footprint, the better for both of them.

The promoter relationships, where we continue to to take advantage of the strength of our business and our ability to try and offer both fans and artists the global product. And the more we can fill in our global footprint to better for both of them.

And the more we can fill in our global footprint to better for both of them.

Matthew J. Harrigan: That's good.

Gregory B. Maffei: Operator, I think we're done. And to our listening audience, again, thank you for your interest in the Liberty Media companies. We look forward to speaking with you next quarter, if not sooner, and have a great weekend.

We look forward to speaking. Speaking with you next quarter, if not sooner and have a great weekend.

Speaking with you next quarter, if not sooner and have a great weekend.

Operator: Ladies and gentlemen, this concludes today's event. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

[music].