Q2 2023 Liberty Media Corp Earnings Call

Speaker 1: Good morning and welcome to the Liberty Media 2020 Q2 Erning School. During the presentation, all participants will be in a listen only mode.

Good morning, and welcome to the Liberty Media in 2023 Q2 earnings calls during.

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 keypad. As a reminder, this conference will be recorded on August 4th.

Speaker 1: At that time, if you have a question, please press star 1 on your tele...

Speaker 1: reminder, this conference will be recorded on August 4th.

I'd now like to turn the call over to Shane Glenn Stevens, Vice President Investor Relations. Please go ahead.

Speaker 2: 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. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent forms 10-K and 10-Q and registration statement on Form S-4, followed by Liberty Media and Atlanta Brave Holdings with the SEC on June 8, 2023.

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 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent forms 10-K, and 10-Q and registration statement on form S. Four followed by Liberty media.

And Atlanta Braves holdings with the SEC on June eight 2023.

Speaker 2: These four-looking statements speak only as of the date of this call, and Liberty Media and Atlanta Braves holdings expressly display any obligation or undertaking to disseminate any updates or revisions to any four-looking statement contained herein to reflect any change in Liberty Media or Atlanta Braves holding expectations with regard there to or any change in events, conditions, or circumstances on which any such statement is based.

These forward looking statements speak only as of the date of this call and Liberty Media and Atlanta Braves Holdings expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statement contained herein to reflect any change in liberty media or Atlanta Braves holdings 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, Siriusxm, and Atlanta Braves holdings, including adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media, Sirius XM and Atlanta Braves Holdings schedules one through three can be found at the end of the earnings press release issued today, which is available.

Speaker 2: On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, SiriusXM, and Atlanta Braves Holdings, including adjusted OIBDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media, SiriusXM, and Atlanta Braves Holdings, Schedules 1 through 3, can be found at the end of the earnings press release issued today, which is available on Liberty Media and Atlanta Braves Holdings websites. Now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO . Thank you.

On Liberty Media, and Atlanta Braves Holdings website, now I would like to turn the call over to Greg Maffei, Liberty's President and CEO .

Thank you good morning.

Speaker 3: Today speaking in the call, we will also have Formula One's president and CEO , Stefano Domenicale, Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling.

Today speaking on the call. We will also have formula one's president and CEO Stefano Domenicali Liberum.

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

Speaker 3: Also during Q&A we will be able to answer questions related to Atlanta Brave Holding and the Braves management will be available too.

Also during Q&A, we will be able to answer questions related to Atlanta, Brave holding and embraced management will be available too.

Speaker 3: Starting with some corporate updates, Atlanta Braves holdings began trading as a C-Corp underlie 19th. We believe the split off the better highlight value at the Braves and its real estate. For example, the batter, A-shares and the K-shares are up 38% since the split announced last.

Starting with some corporate updates Atlanta Braves Holdings began trading as a C Corp. On July 19th we believe the split off will better highlight value at the Braves and its real estate for example, the batter ishares in the case shares were up 38% since the split announced last November .

Speaker 3: We also settled all of the remaining intergroup interests in connection with this split.

We also settled all of the remaining intergroup interest in connection with this split off.

Speaker 3: Today marks the first day of trading for our new trackers, and we expect more focused equities, more focused equities, and increased future flexibility will trade better and be easier for investors to follow.

Today marks the first day of trading for our new trackers, and we expect more focus back to these more focused equities and increase future flexibility will trade better and be easier for investors to follow.

Speaker 3: Beginning with Liberty Sirius XM, this simplified tracker consists only of an 83% interest in Siri, cache and DeFi.

Guinea with Liberty Sirius XM.

This simplified tracker consists only of an 83% interest in theory cash and debt.

Speaker 3: And we continue to reduce debt in the second quarter, retiring the remaining 275 million of R2 and 1-8 exchangeables for Siri. And we are having the 1.8 million new batter shares at LSXM exchange for debt retirement in the near two.

And we continue to reduce debt in the second quarter retiring the remaining $275 million of our two and one eight exchangeable for CRE.

And having the $1 8 million new batter shares at <unk> exchange for debt retirement in the near term.

Speaker 3: We reiterate the focus on rationalizing the Siri and LSXM structures in the near

We reiterate the focus on rationalizing the series and <unk> structures in the near term.

Speaker 3: Looking at Sirius XM itself, it reported strong financial resorts with an improvement over the first quarter as was expected. We had a sequential improvement in self-pay net ads and we do expect a positive back half in the aggregate in self-pay net ads.

Looking at Sirius XM itself.

<unk> strong financial resorts with an improvement over the first quarter as was expected we had a sequential improvement in self pay net adds and we do expect a positive back half in the aggregate in self pay net adds.

Speaker 3: Syria sustained a historically low churn of 1.5%.

Sirius sustained a historically low churn of one 5%.

Speaker 3: and the business is focused on improved efficiency and cost structure and that will benefit evident in the coming quarters. During there, and I- the business is focused on improved efficiency and cost structure and that will benefit evident in the coming quarters.

And the business is focused on improved efficiency and cost structure and that will benefit EBITDA in the coming quarters.

During their announcement CRE increased its full year free cash flow guidance by $50 million up to 1.15 billion.

Speaker 3: Full year free cash flow guidance by 50 million up to 1.15 billion.

During the quarter, we experienced a.

Speaker 3: continued progress on lowering the streaming cost for customer acquisition and it was down 20% over the prior year.

Continued progress on lowering the streaming cost per customer acquisition and it was down 20% over the prior year.

Speaker 3: Data shows that this app is a great accelerant for in-car conversion as well, and we are making progress on our next generation SXM mobile app which we'll launch this fall.

Data shows that this app is a great accelerant for in car conversion as well and we are making progress on our next generation, Essex and mobile App, which will launch this fall.

Speaker 3: Sirius is maintaining its focus on enhancing its in-car position. And I'd note ED manufacturers, which are a growth area, our area of new success for us is generally surrounded by agreement with Volvo.

Sirius is maintaining its focus on enhancing its in car position.

I know EV manufacturers, which are a growth area.

The area of new success for us as demonstrated by our agreement with Volvo.

Speaker 3: Turning to Formula One Group, at the corporate level, I remind you that the assets consist of F1 ownership and the motorsport related assets we have, including the Vegas property.

Turning to Formula One group at the corporate level I remind you that the assets consist of F. One ownership and the motorsport related assets, we have including the biggest property.

Speaker 3: During the quarter we effectively repurchased 1.1 million FUANA shares in settling the intergroup interest that were previously held at LSXM for $67.50 a share.

During the quarter, we effectively repurchased $1 1 million tswana shares in settling the intergroup interest that were previously held at S. R. L. S X M for $67 50 a share.

And if one itself the number of fans engaging with F. One content across the platforms is bigger than ever now ever Stefan I will give you more stats in a moment, but to name a few we continue have sellout almost all races.

Speaker 3: At F1 itself, the number of fans engaging with F1 content across the platforms is bigger than ever-no ever.

Speaker 3: Stephanie will give you more stats in a moment, but to name a few, we continue to have sell-outs almost all races. The sprint weekends are driving year-over-year growth and viewership. For example, the spa, total audience across race, sprint, shoot-up, and qualifying was up versus the Belgian VGP last year. I'd note we've seen particularly solid growth in the US. . . . . . . . . . . . . . . . . .

Sprint weekends are driving year over year growth in viewership for example, the spa total owner audience across race sprint shoot up and qualifying was up versus the Belgian B G. P last year.

No we've seen particularly solid growth in the U S viewer.

Viewership on ESPN.

Speaker 3: up season to date versus the 2022 average viewership with strong f1 tv performance as well

Is up season to date versus the 2022 average viewership with strong F. One TV performance as well.

Speaker 3: The 2023 season has already seen three of the four largest live audiences in F1 history on US TV, including Miami, Monaco, and the Canadian...

The 2023 season has already seen three of the four largest live audiences in F. One history on U S T V's, including Miami, Monaco, and the Canadian G. P's, all but two of our races have averaged more than 1.001 billion viewers huge numbers for the U S market.

Speaker 3: All the two of our races have averaged more than one million viewers. Huge numbers for the US.

Speaker 3: On the financial side, Oibito was up slightly quarter over quarter despite one less race due to improved operating leverage on team payments and freight.

On the financial side.

OIBDA was up slightly quarter over quarter. Despite one less race due to improved operating leverage on <unk> payments and freight.

Speaker 3: And now turning to LBGP, excitement for the race grows, as demonstrated by momentum across social platforms.

And now turning to L. B G. P excitement for the race grows as demonstrated by momentum across social platforms. For example, L. P. GP had over 11 million social impressions and over 1 million engagements in July .

Speaker 3: For example, LVGP had over 11 million social impressions and over 1 million engagements in July .

Speaker 3: The Las Vegas team is pulling together an event of unprecedented complexity and scale. It will be the largest and our argument would be the most premium sporting event of 2023 and it's a view that's a testament to our Super Bowl aspirations for all our Grand Prix fans are talking to each other now.

The Las Vegas team is pulling together and event unprecedented complexity and scale.

It will be the largest in our argument would be the most premium sporting event of 2023, and it's a view that's a testament to our Super Bowl aspiration for all our Grand Prix events.

Speaker 3: I am pleased to say preparations are running on schedule.

I am pleased to say preparations are running on schedule.

Speaker 3: And despite inflationary cost pressures, we expect no change in revenue and profitability in the assumptions that were laid out previously.

And despite inflationary cost pressures, we expect no change in revenue and profitability assumptions that we laid out previously.

Speaker 3: Our increasing CAPEX estimates for the PADC building at track work, and Brian will go into that in more detail in a moment. We remain confident in the return profile of this incredible project, which will support the incremental capital investment that we are making.

Our increase in Capex Capex estimates for the past building a track work and Brian will go into that in more detail in a moment.

We remain confident in the return profile of this incredible project, which will support the incremental capital investment that we're making.

Speaker 3: I'd note we've also been already receiving inbounds with attractive economics for use of the paddock building within the next year. And we look forward to sharing those commercial plans once they are final.

I would note. We've also been already receiving inbounds with attractive economics for use of the paddock building within the next year and.

And we look forward to sharing those commercial plans once they are finalized.

Speaker 3: We expect to learn a lot from our inaugural race and look forward to racing in Las Vegas for many years to come.

We expect to learn a lot from our inaugural race and look forward to racing in Las Vegas for many years to come.

Turning now to Liberty Lie group.

Speaker 3: Live Nation experienced its strongest second quarter ever, and they're confident in continued growth into the balance of the year in 2024. The annual revenue for the quarter was up 27% and AOI was up 23% over the prior year.

Live nation experienced the strongest second quarter ever and they're confident in continued growth into the balance of the year in 2020 for revenue for the quarter was up 27% and AOI was up 23% over the prior year.

Speaker 3: Growth was driven by an international man a real opportunity for life. International fans were up 46% and more artists are touring global.

Growth was driven by international man, a real opportunity for life.

National fans were up 46% and more artists are torn globally.

Speaker 3: And lastly, on the international front, our assess acquisition in Mexico is outperforming expectations.

And lastly on the international front, our assess acquisition in Mexico is outperforming expectations.

Speaker 3: Overall, attendance and per fan profitability were both up double digits for the quarter overall at Live Nation.

Overall attendance and per fan profitability were both up double digits for the quarter overall at live nation.

Turning now to the Braves.

Speaker 3: now a separate public company, but business as usual is continuing.

Now a separate public.

Public company, but business as usual is continuing and Braves country. We.

Speaker 3: We've seen continued momentum and demand having sold 56% of our ticket capacity season to date tied for M.O.B. Special.

We've seen continued momentum in fan demand, having sold 56% of our ticket capacity season to date tied for <unk> best.

Speaker 3: We've made it to 40 cell outs already, the fastest we've ever hit this milestone in the season of truest. And concession revenue was up season to date despite shorter gain time.

We've made it to 40 sellouts already the fastest we've ever hit this milestone in a season of truest and.

Concession revenue was up season to date, despite shorter game times.

Speaker 3: We announced the jersey patch sponsorship with QuickReek in a multi-year deal. And most importantly on field, the Braves lead the NL East in the entire MLB. A franchise record eight players were in the All-Star game including our entire...

We announced the Jersey patch sponsorship with quickly and a multi year deal.

And most importantly on field the Braves lead the in at least in the entire MLP a franchise record eight players where in the all star game, including our entire Enfield.

Speaker 3: All eight of these players are locked up through 2023 and most even longer. Excuse me, 2025 with most even longer. The battery

All eight of these players are locked up through 2023, and most even longer excuse me 2025 with most even longer.

The battery is also seeing continued growth adjusted OIBDA for the mixed use development was up 18% in the first six months versus the prior year.

Speaker 3: adjusted OIBA to the mixed-use development was up 18% in the first six months versus the prior

Speaker 3: and with that, I will turn it over to Brian for more on our

And with that I will turn it over to Brian for more on our financial results.

Speaker 4: Thank you, Greg, and good morning, everyone. My remarks will focus the 630 balance sheet figures adjusted for the split off that was completed July 18th and the reclassification of our tracking stocks that was completed yesterday.

You, Greg and good morning, everyone.

My remarks will focus mainly on the 630 balance sheet figures adjusted for the split off that was completed July 18th and the reclassification of our tracking stocks that was completed yesterday.

Speaker 4: At quarter end and adjusted for the split-off and reclassification, Liberty Series XM group had a tributated cash and liquid investments of approximately $331 million, which excludes 51 million of cash held at Series XM. There's also 1.1 billion of undrawn, marginal and capacity at the parent level related to our Series XM.

Quarter end and adjusted for the split off and reclassification Liberty Sirius XM group had attributed cash and liquid investments of approximately $331 million, which excludes $51 million of cash held at Siriusxm.

There's also a $1 1 billion of Undrawn margin loan capacity at the parent level related to our Sirius XM margin loan.

Speaker 4: As of August 3rd, the value of our Sirius XM stock was 16 billion. We have 1.5 billion in principal amount of debt against these holdings.

As of August 3rd the value of our Sirius XM stock was $16 billion, we have $1 5 billion in principal amount of debt against these holdings total Liberty Siriusxm group attributed principal amount of debt is $11 7 billion, which includes $9 5 billion of debt held directly at Sirius XM.

Speaker 4: Total Liberty Series 6M group attributed principal amount of data is 11.7 billion, which includes 9.5 billion of data held directly at Series 6.

Speaker 4: In April , Liberty Series XM settled the remaining 275 million of its 2.125% series changeables. Due to the net paydown at both Series XM and Liberty Series XM during the quarter, total attributed Liberty Series XM group debt was down 360 million from 331. This is exclusive of the debt reduction.

And April Liberty Sirius XM settled the remaining $275 million of its 212, 5% CRE exchangeable.

Due to the net paydown at both Sirius XM and Liberty Sirius XM during the quarter total attributed Liberty Sirius XM group debt was down $360 million from 331.

This is exclusive of the debt reduction due to the reclassification.

Speaker 4: 1.375 basket convertible notes mature in October and 199 million principal remains.

The $1 375 basket convertible notes mature in October and $199 million principle remains on these notes.

Speaker 4: Liberty Serious XM plans to exchange its 1.8 billion batter shares with one or more third-party lenders to pay down debt in this case.

Liberty Sirius XM plans to exchange its $1 8 billion batter shares with one or more third party lenders to pay down debt in the near term.

Speaker 4: Turning to the Formula One Group, a quarter-and adjusted for the split-off and reclassification, Formula One Group, had attributed cash, liquid investments, and monetized well public holdings of 1.4 billion, which includes 1.1 billion of cash at up.

Turning to the Formula One group at quarter end adjusted for the split off and reclassification Formula One group had attributed cash liquid investments and monetize well public holdings of $1 4 billion, which includes $1 1 billion of cash it up one.

Speaker 4: We connect with the reclassification of approximately 100 million of cash as well as certain private and public assets. Previously held at Formula One Group were attributed to the Liberty Live Track.

In connection with the reclassification of approximately $100 million of cash as well as certain private and public assets previously held at Formula One group were attributed to the Liberty live tracking stock.

Speaker 4: This includes 33 million of ETF and public assets that were liquidated prior to the reclassification and made up a portion of the $100 million of cash that was contributed.

This includes $33 million of ETF and public assets that were liquidated prior to the reclassification and made up a portion of the 100 million of cash that was contributing over <unk>.

Speaker 4: Total formula one group attributed principal amount of debt was 3 billion, which includes 2.4 billion of debt at F1, leaving 536 million at the core.

Total Formula One group attributed principal amount of debt was $3 billion, which includes $2 4 billion of debt at up one leaving $536 million at the corporate level.

Speaker 4: F1's $500 million revolvers on drawn and their leverage at quarter ends 2.2 times. As we mentioned last quarter, the margin on F1's term will be permanently set down to 3% from 3.25 effective at the beginning.

<unk> $500 million revolver is undrawn and their leverage at quarter end was two two times and as we mentioned last quarter. The margin on everyone's term loan b permanently stepped down to 3% from $3 two five effective at the beginning of May.

Speaker 4: The F1 business is best analyzed on an annual basis given variability in the year over year race calendar. But I will make a couple brief remarks.

They have one business is best analyzed on an annual basis, given variability in the year over year race calendar.

But I'll make a couple of brief remarks on their quarterly results.

Speaker 4: During the quarter F1 recognized a lower proportion of season-based income due to 6 out of 22 races occurring during the period compared to 7 out of 22 that occurred in the prior year.

During the quarter F. One recognized a lower proportion of season based income due to six out of 22 races occurring during the period compared to seven out of 22 that occurred in the prior year period F. One also.

Speaker 4: F1 also recognized proportionately less team payments given one less race, which was partially offset by expected increased team payments for the full year compared to 2012.

Recognized proportionately less team payments, given one less race, which was partially offset by expected increases in payments for the full year compared to 2022.

Speaker 4: Our team payments are best viewed on a year-to-date basis and represented 63% of pre-team EBITDA in the first half.

Our team payments are best viewed on a year to date basis and represented 63% of pre teen EBITDA in the first half of the year.

Formula one generated modest OIBDA growth in the quarter. Despite one less race held and incremental investments in growth initiatives that were not in the prior year period like the Vegas rates and F. One academy as well as costs associated with the canceled MLR race <unk>.

Speaker 4: Formula one generated modest boy bit of growth in the quarter, just fight one last race, held and incremental investments in growth initiatives that were not in the prior year period, like the Vegas rates and F1 Academy, as well as costs associated with the canceled immolary.

Speaker 4: Given MLO's canceled on the Wednesday of race week, the majority of the race related costs with regard to planning, logistics, and setup had already been incurred.

Given MLR was canceled on the Wednesday of race week. The majority of the race related costs with regard to planning logistics and setup had already been incurred.

Speaker 4: On a four-year basis, we estimate the impact to adjust the droid that are from the cancellation of AMOLED is modest that less than 20%.

On a full year basis, we estimate the impact to adjusted OIBDA from the cancellation of envelope.

Is modest at less than $20 million.

Speaker 4: Reminder that other costs of F1 revenue in SG&A are best viewed as a percent of total revenue. Other costs of F1 revenue in the quarter was 24% of total revenue consistent with our historical average.

Reminder, that other cost of F. One revenue and SG&A are best viewed as a percent of total revenue.

Other cost F. One revenue in the quarter was 24% of total revenue consistent with our historical average.

Speaker 4: Note that the LVGP related revenues and other cost of sales will largely be incurred in the fourth quarter when the rates occurs. But for the quarter on S-GNA, we had 7 million of costs associated with LVGN.

Note that the <unk> related revenues and other cost of sales will largely be incurred in the fourth quarter when the race occurs.

But for the quarter on SG&A, we had $7 million of costs associated with L. B G P.

Speaker 4: On Vegas's Greg already noted there's no change to our revenue and profit expectations for the race in Europe .

On Vegas as Greg already noted Theres, no change to our revenue and profit expectations for the race in year one.

Our product building is now in the 85% complete we expect capex related to the Vegas rates, including both the paddock building structure and track related capex to be close to $400 million.

Speaker 4: Our paddock building is now 85% complete. We expect CAPX related to the Vegas race, including both the paddock building structure and track related CAPX to be close to 400.

Speaker 4: of which approximately 155 million was incurred in the first half.

Of which approximately $155 million was incurred in the first half of the year the.

Speaker 4: The majority of the cap expense will be incurred at the corporate level related to the paddock building. As the landed building, both sit within F1 or F1 separate from 4.

The majority of the Capex spend will be incurred at the corporate level related to the <unk> building at Atlanta building, both sit within F. One or flan separate from Formula one.

Speaker 4: Track-related cap-backs has and will be incurred at the F1 up.

Frac related Capex has and will be incurred at the F. One opco level.

Speaker 4: Our team has managed this project on a compressed timeline and in an inflationary environment. Much of our cost increase is attributed to track related expenses incurred to the response of the concerns of the local community. Such as minimizing disruption.

Our team has managed this project on a compressed timeline and in and in an inflationary environment much of our cost increase was attributed to track related expenses incurred to be responsive to the concerns of the local community such as minutes minimizing disruption to businesses along the strip.

Speaker 4: We have also invested in security enhancements and expenses incurred to ensure the quality of the fan experience with infrastructure changes to improve silence.

We have also invested in security enhancements and expenses incurred to ensure the quality of the fan experience with infrastructure changes to improve sidelines.

Speaker 4: We are working closely with our local Vegas partners and the speed and efficiency with which we have completed this project as a testament to these relations.

We are working closely with our local Vegas partners and the speed and efficiency with which we have completed this project is a testament to these relationships. We are excited about our investment in Las Vegas, and the associated opportunities for both the Grand Prix and year round activities of the facts of it.

Speaker 4: We are excited about our investment in Las Vegas and the associated opportunities for both the Grand Prix and your round activities of the past.

Speaker 4: At the Liberty Live Group, adjusted for the re-classification, there is a attributed cash, liquid investments, and monetizable public holdings of 204 million, which includes the ETF assets contributed from formula one.

At the Liberty Live group adjusted for the reclassification, there is attributed cash and liquid investments and monetize will public holdings of $204 million, which includes the ETF assets contributed from Formula One group in connection with the reclassification of the Formula. One group also has contributed private assets with a fair value of approximately 380 million.

Speaker 4: In connection with the reclassification, the Formula One Group also has contributed private assets with a fair value of approximately $380 million, measured at the time of our definitive S-4.

Measured at the time of our definitive S. Four filing we do not anticipate providing ongoing updates to the value of these private assets.

Speaker 4: We do not anticipate providing ongoing updates to the value of these products.

Speaker 4: Additional disclosure on the composition of these assets can be found in the asset list posted to our website.

Additional disclosure on the composition of these assets can be found in the asset was posted to our website.

Speaker 4: There's 400 million of undrawn Margelon capacity at Liberty Live Group related to our Live Nation.

There's $400 million of Undrawn margin loan capacity at Liberty Live group related to our live nation March alone and as of yesterday the value of our live nation stock held at Liberty Live was 6 billion we have nine.

Speaker 4: And as of yesterday, the value of our live nation stock held at Liberty Live was six billion. We have 920 million of principal monodept.

$920 million of principal amount of debt against these holdings.

Speaker 4: Liberty and our Consolidates subsidiaries are in compliance with their debt covenants at court.

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

Speaker 3: Looking quickly at the braids, let me interrupt you for one sec, Brian , as we turn to the braids. I think I misspoke.

Looking quickly at the brain, let me interrupt you for one SEC Brian .

As we turn to the brain, so I think I Miss spoke to.

Speaker 3: too early in the morning here, and said it was a 56% capacity, the Braille Stadium is actually at 96% capacity. Sorry, go ahead. Thank you Greg for clarifying that. So looking at the Braille's revenue growth reflects that 96% capacity in the quarter with more regular season home games in the period as well as increased game attendance, the growth in related revenues, including ticket and concession.

Too early in the morning here instead of was it 56 capacity of 56% capacity. The Braves Stadium is actually at 96% capacity sorry go ahead.

Greg for clarifying that.

So looking at the Braves revenue growth reflects that 96% capacity in the quarter with more regular season home games in the period as well as increased game attendance growth and related revenues, including ticket and concession revenue a.

Speaker 4: Battery mixed use revenue also grew due to increased rental income from existing and new...

Battery mixed use revenue also grew due to increased rental income from existing and new tenants.

Speaker 3: Baseball operating costs grew in the second quarter, primarily due to increased player payroll, as well as increased payments under MLB's revenue sharing plan and higher variable stadium operating costs due to the increase.

Baseball operating costs grew in the second quarter, primarily due to increased player payroll as well as increased payments under Mlps revenue sharing plan and higher variable stadium operating costs due to the increased attendance at.

Speaker 3: At quarter end and adjusted for the split off, they had attributed cash and liquid investments of $131 million, which excludes 52 million of her streak.

At quarter end and adjusted for the split off they had attributed cash and liquid investments of $131 million, which excludes $52 million of restricted cash and Atlanta Braves holdings had attributed principal amount of debt of $543 million and with that I'll turn it over to Stefano to discuss formula one.

Speaker 3: and Atlanta Braves holdings had attributed principal amount of debt of 543 million. And with that, I'll turn it over to Stefano to discuss Formula One.

Thanks, Brian and good morning to everyone.

Speaker 5: We are already over halfway through the 2033-141.

We are already over halfway through the 2023 <unk> hundred one season.

Speaker 5: I would first like to congratulate Red Bull and Max Verstappen on their incredible performance decision. Breaking an all-time record on Consecutum wins.

The first like to congratulate Red Bull and Maximus tapping on their incredible performance. This season, breaking all time record on concerns of them wins, they type of field behind them is producing credible action for oil with fans and I believe the gas will continue to close over time for all of the teams in.

Speaker 5: The title field behind them has produced incredible action for all our fans. And I believe the gas will continue to close over time for all the teams.

Speaker 5: In Silverstone, the top six finishers cross the line within 13 seconds of one another.

And silver some of the top six finishers crosses the line within 13 second on off one another hungry had one of the most leading qualifier routes to date with the top six all within three tenths of a cycle Mcleod as performance improvements following recent upgrades as the lights of plans with Lanza cycling.

Speaker 5: Hungary had one of the most thrilling qualifying rounds to date with the top six all within three tenths of a second. McLaren's performance improvements following recent upgrades has delighted fans with London's second place podiums at Sylvester and Hungary and strong drive from Piastra. Our fans are accessing F1 content across multiple media platforms. Global audience averaged 68 million through the first eight races.

<unk> poses a superstar and Hungary and strong drive for.

Yes.

Our funds have access and therefore constant across multiple media platforms global audience averaged $68 million through the first eight races and growth market like the U S. Viewership over the same period is up 5% on ESPN and events like mono quite grown of 29% compared to last year U S.

Speaker 5: In growth market like the US, viewership over the same period is up 5% on ESPN and events like monocled grown of 29% compared to last year, US viewership.

Speaker 5: The Sprint Series has continued to both generate excitement on the track and drive viewership growth. At the Z by Giant, our first Sprint of the season, total weekend viewership across the Race and Sprint events was up 10% vs 2022. We recognize that sport fans today engage with content across a variety of platforms, including linear, digital and social media.

The spring season continued to both generate excitement on the track and drive viewership growth.

Led by John our first Greenfield the season total weekend viewership for close to these subsequent events was up 10% versus 2022.

We recognize that support plans today engaged with Thomson across a variety of platforms, including lean digital and social.

Speaker 5: Across our social media channels, F1 reached 64.6 million followers as of Q2, up 29% year over year. F1 continues to adapt and expand our counter to gather to different platforms and serve old segment of fans.

Our social media channels F. One reached $64 6 million followers as of Q2 up 29% year over year and continuously.

Continues to adapt and expand our counter to gathered to different platforms and serve old segmental fabs.

Speaker 5: For example, at the Hungarian Grand Prix, we piloted our first ever F1 broadcast for kids in partnership with SKUK in Germany. In just one day, social media coverage for the announcement of the KitCast and the presentation that drivers Avata's reached more than 45 million users with 93 million impression and huge deposit centers.

For example, let them get on Grand Prix, we piloted our first ever <unk> broadcast for kids in partnership with Sky UK and Germany.

Just one day social media coverage.

The announcement of the kit Kat and the presentation of the drivers avatars reaches more than 45 million users with 93 million impression and huge positive sentiment.

Speaker 5: Everyone's celebrity presence continues to be a large role of fans.

I have one celebrity presence continues to be a large draw of four patents. For example, if one social posts featuring a shaky that the Spanish Grand Prix generated over 15 million impressions and over 2 million engagement a steam in the for the Apple TV movie began the path of Silverstone with breadth and depth.

Speaker 5: For example, F1 social post featured in Shakira at the Spanish Grand Prix generated over 50 million impressions and over 2 million engagements.

Speaker 5: As filming for the Apple TV movie began, the post of Silverstone with Brad Pitt and Damson, Idris lining up at the back of the great generated 2.8 million engagement and over 7,000 come.

I addressed lending up at the back of the grid generated $2 8 million engagement and over 7000 comments the social Condon wind you can sooner than these all fatality teammates helped the community after the floods in plains generated almost 15 million social impressions.

Speaker 5: The social conduct when the Yucatsunodani is a alpha-towery teammates helped the community after the flooding planter generated almost 15 million social impressions.

Speaker 5: F1 is considering how to advance our approach to audience measurement of consumer behavior, evolve to better capture, have a wider viewership and engagement for the future.

If one is considering how to advance our approach to audience measurement as consumer behaviors evolve to better capture of a wider viewership and engagement for the future.

Speaker 5: Our discussion with commercial partners successfully focused on these broader engagement methods.

Our discussion with commercial partners successfully focus on these broader engagement metrics.

Speaker 5: The promoters continue to improve the quality of Rampris events and invest in enhancing the overall panic speeders. We have seen the result of these efforts with continued cell out races, many had increased capacity.

Promoters continue to improve the quality of them, please events and invest in enhancing the overall client experience. We have seen the result of these efforts with continued sellouts races, many as increased capacity.

Speaker 5: The Canadian and Sylvester Grumprey both set new attendance records with a cross of 345,000 and 4800,000 respectively.

Canadian <unk> run pretty both set new attendance records with <unk> of $3 45000, <unk> thousand respectively.

Speaker 5: Silverstone attendance was up 20% compared to last year, in part due to cultivating fun experiences across the entire race weekend, including a Calvin Harris conference on Thursday evening before OnTrack activity started. We will continue to work with our promoters on these efforts. The success of their events is beneficial to the entire F1 ecosystem.

Silver some attendance was up 20% compared to last year in part due to cultivating funds experienced across the entire race weekend, including like <unk> covenants on Thursday evening before on track activities. We.

We will continue to work with our promoters on these imports.

The success of their events is beneficial to the entire F. One ecosystem.

Speaker 5: There are growing ways to engage with F1 outside of race weekends. Our F1 Arcade licenses announced further expansion plans. We new site open in Birmingham in the UK this December .

There are growing ways to engage with F. One outside of race weekend. Our F 100, <unk> licensees announced further expansion plans, we new sites opening in Birmingham in the UK. These December .

Speaker 5: and Boston in May 2024. Football and flagship London location grew 16% in YouTube compared to the prior quarter with an average of over 7,000 visitors per week.

And Boston in May 2020 for football a flagship London location grew 16% in Q2 compared to the prior quarter with an average of over 7000 visits per week.

June .

Speaker 5: I launched the F123 video game. In its first week, the game ranked number two and number three in UK games and global team sales chart respectively. And finally, F12 related postcards are increasingly providing other content to engage our fans. A new formal Y-pop...

<unk> launched the F 123 video game in its first week the game ranking number two and number three in UK games and Globus team same chart, respectively, and finally F. One related post pivot increasingly providing other content to engage our fans.

New form worldwide podcast launch in May.

Speaker 5: It reached number one in the US, a new case for the podcast channel. Performing particularly well among a newer fan cohort with 35% of its audience in the US and 30% of its audience's female. Tuning out to recent updates on our commercial agreement.

It reached number one in the U S and UK support Postal's channel, performing particularly well among newer final cohort with 35% of its audience in the U S and 30% <unk> female.

Tuning towards.

So as an update to on our commercial agreements.

Speaker 5: On race promotion, recently announced a fuller extension of an ocean grump re through out 2013.

On the race promotion recently announced a total essential novel Ocean Grand Prix throughout 2013.

Hungary also extended through 2032, we call maintenance made by the promoter to invest significantly in their physical infrastructure, including a new building and make it add some by 2026.

Speaker 5: through 2032, with commitments made by the promoters to invest significantly in their physical infrastructure, including a new-pit building and May Grandstand by 2026. We announced a record-breaking 24-races championship calendar for 2024, with the return of the race in China for the first time since 2019. F1 is for the progress in on-journ to worse greater regionalization of the calendar were including back-to-back races in Japan and China as well as Abu Dhabi and Qatar. This improves the efficiency of our operations and reduce unnecessary legs in our travel, particularly from a free perspective.

We announced a record breaking 24 races championship calendar 2024, with a return of the race in China for the first time since 2019.

And finally as further progress in our journey towards greater of a regionalization of the kolenda, where possible, including back to back races in Japan, and China as well as it will dilute in Qatar. This improves the efficiency of our operations and reduce our necessity legs in our travel, particularly from a fee perspective.

Speaker 5: On the right, we enter into a multi-year agreement with a tension to stream F1 event across its digital platform. The, this complements our existing coverage in China on a CCTV. Additionally, we continue to grow F1 TV Pro and access subscribers with particular strength in the US Marks.

Amit you are right, we enter into a multi year agreement with Tencent to stream F. One event across digital platforms.

This complements our existing companies in China on the CCTV. Additionally, we continue to grow our F. One TV pro and <unk> subscribers with particular strength in the U S market.

Speaker 5: sponsorship, Heineken extended their global partnership in a new multi-year deal.

On sponsorship Heineken extended the global partnership in a new multi year deal as politically announced they will also be the official title partners. Other form of online consumer less Vegas Grand Prix the relevance of hope one brands continues to generate the infancy and sponsorship opportunities, including leveraging our sustainability.

Speaker 5: As preliminary announced, they will also be the official title partners at the Formula One I, and it can serve as Vegas Grand Prix. The relevance of Elf One brands continue to generate interest in sponsorship opportunity, including leverage in our sustainability strategy in the new inventory like Las Vegas. We are focused on delivering incremental values to our existence sponsors and further developing our strong pipeline of new commercial partners. We are just over three months away from the inaugural Las Vegas Grand Prix. Las Vegas Grand Prix will provide an imperial guest speedist.

Strategy in new inventory like Las Vegas.

We are focused on delivering incremental value to our existing sponsors and further developing our strong pipeline of new commercial borrowers. We have just over three months away from the inaugural Las Vegas Grumpily Las Vegas Romp will provide unparalleled guest experience combine the thrill of Puma racing with premium live into that.

Speaker 5: Combined the 3 love Fumua racing with premium live entertainment, musical acts, work-class culinary offering and more.

Statements musical acts World class culinary offering them more.

Speaker 5: We continue to grow our fund offering with new partnership, ensuring all partner venues meet the quality standards our fund experts deserve. Most recently we were excited to announce additionally hospitality expeditions, including the Hanuken House, Club SI and Club Paris, as well as a partnership with Hilton Grand Vacation to host a Hospitality Centre.

We continue to grow our final offering with new partnerships, ensuring all partner venues meet the quality standards. Our final spasms deserve. Most recently we were excited to announce additionally cost vitale tickets fitness included the Heineken House club, ESI and Clos parties as well as our partnership with <unk>.

10 Grand vacation to wholesale plan, they're on track hospitality suites musical.

Speaker 5: Musical acts including J. Belving, Major Laser, Mark Robson with the headline with the theme of IZONE at the Sphere stage, with many high-profile music and BJA acts still to be announced. The beverage brand, Liquid Death, was named as official event partner and will provide fans with a more sustainable tenant with the single-use plastics through their beverage offering.

Musical acts, including J building major Lazer, Mark Robson with the headlines with the T Mobile zone at this stage with many high profile music and Vijay Act still to be announced the beverage Brown linked with depth was named official event Barton and will provide fans with a most sustainable tenant with a single use.

<unk> through their beverage offerings.

Speaker 5: for one a liberty have made a long term commuter to rise in Las Vegas and have invested many food capital to make it happen. The team led by René Wilm has built incredible partnership with the local community, all of whom stand to benefit from the tremendous economic value we believe for one would bring. The Las Vegas team worked with third parties in gathering market-based data and estimated the economic impact tool Las Vegas in the year one of the race will be over 1.2 billion.

For one our Liberty have made a long term commitment to rise in Las Vegas, and have invested meaningful capital to make that happen. The team led by Renee will has been an incredible partnership with the local community all of whom we stand to benefit from the tremendous economic value. We believe for one would break the law.

As Vegas team work with third parties and gathering market. These data and estimated economic impacts to Las Vegas in the year one of the race with the over one 2 billion.

Speaker 5: This is an additional to meaningful community effort focused on puts in security, water conservation and access to education in southern Nevada. We are proud of the work our team is doing and are confident that Las Vegas Grand Prix will away the global sporting community this November .

This is an additional two meaningful community efforts focus on foods in security water conservation and access to education in Southern Nevada. We are proud of the work our team is doing and I am confident that Las Vegas Grand Prix will away the global Sporting community. This November .

Speaker 5: Finally, F1 continues to progress our sustainability and diversity and inclusion efforts. F1 Academy began its inaugural season in Austria in April and is now through six of seven races. The season finale will take place in Austin, alongside the F1 race weekend with Marta Garcia leading the championship. Last week, we announced that all 10 Formula 1 teams will have F1 Academy drivers and the Liberian Sport in 2024.

Finally F. One continues to progress our sustainability and diversity and inclusion efforts F. One Academy began its inaugural season in the North Sea and Apple and he is now through six of 700 basis. The season finale would take place in Austin alongside the <unk> race weekend with Martha Garcia, leading the championship last week, we announced that.

All 10 Formula one teams will have FY <unk> Academy drivers and leverage for the 2024 season. This demonstrate the depth of support across the <unk> community for the importance of Epsilon Academy grassroots initiatives.

Speaker 5: This demonstrates the death of support across the F1 community for the importance of one academy in grassroots industry.

Speaker 5: Building the next generation of young women in races tends to provide tremendous benefit for the entire F1 ecosystem. F1 has also progressed initiative this season in environmental sustainability. In Austria, we piloted an energy efficient power system that delivered a 90% reduction in carbon emissions from operation the part of pit lane and F1 broadcast area.

Within the next generation of young women and racist tends to provide tremendous benefits for the entire <unk> ecosystem.

If one has also progressed initiatives this season in environmental sustainability in Austria, we piloted that in the energy efficient power system that delivered a 90% reduction in carbon emissions from operating the pit Lane Nf one broadcast area. Additionally, a new fleet of <unk> fuel trucks operated by DHL all delivered an hour.

Speaker 5: Additionally, a new fleet of B.O. Fuel trucks operated by DHL are delivering our broadcast production Technical and other equipment for the European events of the 2023 series

Broadcast production technical and other equipment for the European events of the 2023 seasonal which we expect will reduce our road freight emissions by a minimum of 60% compared to traditional fuel vehicles. The formula two and Formula three cars are successfully running on 55% advanced sustainable fuels.

Speaker 5: which we expect will reduce our road freight emission by a minimum of 60% compared to traditional field vehicles.

Speaker 5: The Formula 2 and Formula 3 cars are successfully running on 55% advanced sustainable fuel decision and we remain on track to introduce 100% advanced sustainable fuel to Formula 1 in Performance

The season, and we remain on track to introduce 100% of advanced sustainable field to form a one in 2026.

Speaker 5: We are also encouraged by the increase the awareness and openness of governments to include advanced sustainable fuels in their policy road maps to net zero. Something F1 will continue to be at the forefront of push.

We are also encouraged by the increased awareness and openness of governments to include advanced sustainable fuels in the policy Roadmaps to net zero something F. One will continue to be at the forefront of pushing.

Speaker 5: We look forward to an exciting rest of the season. And of course, a well-deserved summer break for our teams. The season would assume in another month, later this month before going to Monza. The gaps are getting increasingly closer within the pack on the grid. We have three months, spring series to come in Austin, Qatar, and Brazil. Our business is in a position of incredible strength, both financially and commercially. And I look forward to updating you on our progress.

We look forward to an exciting rest of the season and of course, a well deserved summer break for our teams the seasonal wood, assuming Netherlands later this month before going to monitor the gaps are getting increasingly closer within the back of the grid. We are three months between Cds to come in Austin, Qatar in Brazil, our <unk>.

Business is in a position of incredible strength, both financially and commercially and I look forward to updating you on our progress of antidote that full speed ahead, and now I will turn the call back over to Greg. Thank you Bye bye.

Speaker 5: Avanti tuta full speed ahead and now I will turn the cold back over to Greg. Thank you. Bye bye

Thanks, Stefano and Brian .

Speaker 4: Our annual investment day will be Thursday, November 9th, in New York. Please save the day.

Our annual Investor Day will be Thursday November 19 in New York. Please save the date additional details we provided soon we hope to see many of you there.

Speaker 4: additional details we provided soon. We hope to see many of you there.

Speaker 4: You appreciate your continued interest in Liberty Media and Atlanta Braves holdings. And with that operator, I'd like to open the line for questions.

We do appreciate your continued interest in Liberty media, and Atlanta Braves holdings, and with that operator, I'd like to open the line for questions.

Speaker 1: Thank you. We will now be conducting a question and answer session.

Thank you we will now be conducting a question and answer session.

Speaker 1: like to ask a question, please press start one on your telephone keypad. A confirmation tone will indicate your line isn't a question.

We'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.

Speaker 1: You may press start cue if you would like to remove your question.

You May press Star two if you would like to remove your question from the queue.

Speaker 1: bans using speaker equipment used most steps before pressing its parties, plead hold. Why?

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Please hold while we poll for questions.

Yeah.

Thank you Mark.

Speaker 1: Our first question comes from Stephen Gogola with Cohen.

First question comes from Steven <unk> with Cowen and company.

Alright, thanks for the question.

Speaker 6: All right, thanks for the question. Greg, can you help us better understand monetization of the Las Vegas paddock outside of the Grand Prix in 2024 and beyond? So what type of events do you plan on holding? You know, any early indicators on sponsorship interests outside of the Grand Prix? And do you expect this EBITDA contribution match, you know, to match or exceed the Vegas Grand Prix over time? Thank you.

Can you help us better understand monetization of the Las Vegas pilot outside of the Grand Prix in 2024 and beyond.

Type of events do you plan on holding any early indicators on sponsorship interest outside of the Grand Prix.

And do you expect this OIBDA contribution match to <unk>.

Match or exceed the Vegas Grand Prix over time, Thank you.

Speaker 4: I will manage expectations first and say I do not expect it will exceed the amount we'll make in the ground free over time. But with that, we have Renee Wilm here who's running our Las Vegas effort. I'll let her comment on some of the things we're thinking about outside the race.

I will manage expectations first and say I do not expect it will over it will exceed the amount we will make in the Grand Prix over time, but with that we have Renee welcome here, who is running our Las Vegas effort I'll, let her comment on some of the things we're thinking about outside the race.

Speaker 7: Thanks, Greg. Happy to. So we are just beginning to really scratch the surface on what is available for us on a go-forward basis with the building. We have had a number of inbound requests. Think about Super Bowl parties. Think about something related to racing, maybe carding, high-end supercars.

Thanks, Greg happy too. So we are just beginning to really scratched the surface on what is available for us on a go forward basis with the building. We have had a number of inbound requests think about Super Bowl parties and think about something related to raising maybe carding high end Supercars of course, Las Vegas is the convention center of the world lots of interest in our state.

Speaker 7: Of course Las Vegas is the convention center of the world. Lots of interest in our state of the art LED certified, I'm sorry, these certified building. Many of our partners in the F1 ecosystem are very interested in working with us throughout the year. So all I could say is a lot more to come over the next few months.

The art lead certified LEED certified building.

Many of our partners in the ecosystem are very interested in working with us throughout the year. So all I can say is a lot more to come over the next few months.

Thanks.

Thank you and if I could.

Speaker 6: Thank you. And if I could squeeze in one more, how should we interpret what appears to be some recent conflicting comments from the FIA, you know, with regards to an early renewal, and then the concrete agreement, and then the appetite of new team insurance. And maybe just like more high level, Greg, do you see any conflicts of interest with your vision of the sport long term versus what the FIA views?

Squeezing one more how should we interpret what appears to be some recent conflicting comments from the FAA.

With regards to an early renewal and then the Concord agreement and then the appetite of new team entrance.

And maybe just more high level, Greg do you see any conflicts of interest with your vision of the sport long term versus what the FIA views.

Speaker 4: Thank you. I'll make a comment or two and then I'll let Stephanie add. I think there's little daylight between Stephanie and my view, which

Thank you.

I'll make a comment or two and then I'll, let Stefano ad.

I think theres little daylight between Stefan My view, which is.

Speaker 3: We have 10 great teams. We're very excited about what they're doing. We are, there is a process to add more teams, but the bar is very high and it's unclear what an 11 team value they would add. And there is a lot of uncertainty among the other teams about having 11.

We have 10, great teams, we're very excited about what they're doing.

We are there is a process to add more teams, but the bar is very high and it's unclear what 11 17 value. They would add in there is a lot of uncertainty among the other teams about 11 17.

Speaker 3: the FIA and we have had productive discussions about all this.

The FIA and we have had productive discussions about all of this.

Speaker 3: Do we agree on everything every moment? No, we discuss it and we hopefully work things out. Stephanie, what would you add?

Do we agree on everything every moment no we discuss it and we hopefully work things out Stefan what would you add.

I think Greg you said it perfectly I mean.

Speaker 8: I think Ruggie has said perfectly, I mean, the FA start the process in their possibility who are waiting for the final conclusion, but as always, in this discussion, we'll find agreement together because as you said, the value of the team and the value of the business today is very, very strong. So bad decisions, that information will come very, very soon. I would say within the amount of September . Summer November .

Absolutely.

Proteins.

Is there a possibility right.

Waiting for the final conclusion, but as always in this discussion we will find the agreement together because as you said the value of the team and the value based pricing.

Strong so.

But the season that information will come very very soon I would say within the months of September .

Alright, Thank you both.

Speaker 1: Thank you. Our next question comes from Ben Swinburne with more.

Thank you. Our next question comes from Ben Swinburne with Morgan Stanley .

Speaker 9: Thank you. Good morning. On F1.

Thank you and good morning.

On F. One.

Speaker 9: Any, what's your sense of optimism about potentially signing a concred agreement with the teams this year, which would be a couple years early? And

<unk>.

What's your sense of optimism about potentially signing a concrete agreement with the teams this year, which would be a couple of years early.

Speaker 9: Stephanie, when you look at the product this year, obviously being dominated by one team, how do you look at that relative to all the...

Sure.

Stefan when you look at the product this year honestly being dominated by one team.

How do you look at that relative to all of the changes you guys have made around driving more parity into this sport do you see this as a step backwards or just sort of the natural way the sport evolves unpredictably overtime.

Speaker 9: changes you guys have made around driving more parity into the sport. Do you see this as a step backwards or just sort of the natural way the sport evolves, you know, unpredictably over time? And then I just had one Braves question for you guys. You know, there's been some teams that have left Diamond and gone on to new business models in different sports.

And then I just had one Braves question for you guys. There's been some teams that has left diamond and gone on to new business models and different sports.

Speaker 9: What does that tell you if anything about how you think about the brave opportunity over the next couple of years as this diamond process plays out? Thanks a lot. I'll let Stephanie take the first two and I'll take a shot at the diamond question and obviously Derek, if you have things to add, but Stephanie, why don't you speak first?

What does that tell you if anything about how you think about the Braves opportunity over the next couple of years as this diamond process plays out. Thanks, a lot I'll, let Stefan I will take the first two.

And I'll take a shot at the.

Diamond question, and obviously, Derek if you have things to add but Stefan why don't you speak first.

Speaker 8: yeah thanks ragna man i would say first of all i think you're the right moment to celebrate the incredible job of this company's doing that car because if you see the other car and the word the odds are in some of gap is just incredible how mac is uh... doing an incredible job

Yeah. Thanks, Greg I mean, I would say first of all I think is the right moment to celebrate the incredible job that this company is doing that probably because you can see the other car and the web Dr. Zhao and from a GAAP is just incredible all matches.

Speaker 8: But that has been always part of formal wine, you know, and I would say this is part of the game. I'm pretty sure that in the next couple of years is the term of technical doubts we've been reduced, but if someone is greater, we need to see the great what it's doing. And sometimes I have to say that it's also the need to confirm the legacy of someone that is doing some spectacular stuff.

Good job, but that has been always part of the formal one you know I would say that this is part of the game I'm pretty sure that in the next couple of years.

Thank you Bill.

If someone is great, but we need to see the great what he's doing and sometimes that to see the results of the need to confirm the legacy office, although somewhat.

Spectacular yourselves and in certain markets and many of the new one you can say you can see that these also.

Speaker 8: And in certain markets, maybe the new one, you can say that he's also put in an incredible legacy because that means something. If you're able to win so many races, I mean, you're really a great leader. So nothing negative in that perspective.

Legacy because you know that means something.

To win so many reasons I mean, they are really a gatekeeper so nothing negatives in that respect that.

Speaker 8: And if you look back, I would say this has something, this has been always part of our history. We've got the comfort agreement, I would say today, conversation are really going ahead because the momentum of the sport is really great. Of course, we are not in a rush, but I would say that the whole thing has had to have positive conclusion for this discussion, both with the team and the FIA.

And if you look back I would say this that something does happen.

No reports of Epsilon.

And with regard to cope with the agreement I would say today compensation are really going ahead, because the momentum sports is really great of course, we are not in a rush, but I would say that all things are heading to a positive conclusion for this discussion both with the teams and the FIA.

Thank you on the Braves.

Speaker 3: On the braves, I'll give my view, and Derek, please feel free to add.

I'll give my view and Derek please feel free to add.

We're blessed to have an incredibly strong territory.

Speaker 3: We're blessed to have an incredibly strong territory.

Speaker 3: 14 million broadband households, a fan base, which is very appreciative of a very successful team. And with a reasonable deal on what we are paid by Diamond or a Valley,

14 million broadband households.

Fan base, which is very appreciative of a very successful team.

And with a reasonable deal on what we are paid by diamond or valley.

<unk>.

Speaker 3: We think we are probably the most profitable RS and they have.

We think we are probably the most profitable RSM. They have some of the other ones were less attractive either territories or less attractive fan basis or relatively less attractive revenue versus cost to Bali and that's why in the bankruptcy proceedings. They were terminated as executor contracts by valley.

Speaker 3: Some of the other ones were less attractive either territories or less attractive fan bases or relatively less attractive revenue versus cost to Bali. And it's why in the bankruptcy proceedings, they were terminated as executory contracts by Bali.

Speaker 3: I don't anticipate that will happen for us because we have for all the reasons I started above. But I do think if it does happen, there will be other alternatives because of the strength of our product and the demand in our territory for that will generate us positive returns.

I don't anticipate that will be that what happened for us because we have for all the reasons I cited above but I do think if it does happen there will be other alternatives because of the strength of our product and the demand in our territory for.

That will generate positive returns Derek do you want to add anything.

Speaker 10: Greg, thanks. You said it very well. I would just comment that, first of all, we and Bally's are both adhering to the terms of our agreement as we currently stand. We are being paid in full and we are delivering our rights in full. So we don't see that changing anytime soon. And then just generally, I would just tell you, last-forged content continues to be very desirable. So we take long-term, and this is a good position, regardless of what happens.

Greg you said it very well I would just comment first of all we.

Values are both are adhering to the terms of our agreement as we currently stand.

We are being paid in full and we are delivering our rights in full so we don't see that changing anytime soon and then just generally.

You live sports content continues to be very desirable. So we think long term this is a.

A good position regardless of what happens.

Speaker 9: You guys want to comment on the next season today? Just kidding. A few days. No, thank you. You guys want to comment on the next season?

Hey, guys wanted to comment on them that season to date.

Good day.

No. Thank you.

Next question.

Speaker 1: Thank you. Our next question comes from VJJN with...

Thank you. Our next question comes from Vijay Jayant with Evercore.

Speaker 8: Hi, good morning. A couple for me on Liberty Live, Greg.

Hi, Good morning, a couple for me.

On Liberty live Greg.

Speaker 8: Some of those private assets that were moved from Formula One are there any ATBs there and then just broadly is you know you have some liquidity as Liberty Life is any business strategy of

Some of those private assets that move from Formula One are there any etb's that and then just broadly.

Do you have some liquidity.

Is there any business strategy.

Speaker 8: buying venues or doing some stuff with Live Nation directly and growing sort of a real estate portfolio or anything, or is it purely to tackle any discount if that sort of remains.

<unk> venues or doing some stuff with live nation directly and growing set of our real estate portfolio anything or is it purely to tackle any discount.

Remains and.

Speaker 8: And on Formula One, you know, don't need to want a nific particularly, but you know, the team payment.

Formula one don't need to want to nitpick, particularly but.

<unk> payments again seem to be a little lower than I would've thought.

Speaker 8: again seem to be a little lower than I would have thought.

Speaker 8: and sort of implies like a 1.3 billion. I don't know you said in the past that you are conservative. I know there's one less race. Is there any top in the numbers that sort of impact the two?

And sort of implies like a $1 3 billion and I know you said in the past that you are conservative, but I know there was a.

One less waste.

Is there any tough in the numbers that startup impact that's an estimate.

Okay P J a lot to unpack there, but thank you on on Liberty Live look I think we are looking for there is no ATB currently in that business.

Speaker 3: Okay, VJ, a lot to unpack there, but thank you. On Liberty Live, look, I think we are looking for, there is no ATB currently in that bit.

Speaker 3: We are looking for businesses in there which we think will be accretive and fit well potentially with the live nation strategy. And we'd like to do things which were additive to us and potentially to them in the future. That gives us a wide latitude but real estate certainly is on the list of things we think could be attractive particularly real estate which is anchored by live nation events.

To start we are looking for businesses in there, which we think will be accretive and fit well potentially with the live nation strategy.

And we'd like to do things, which were additive to us and potentially to them in the future.

That gives us a wide latitude, but real estate certainly is on the list of things, we think could be attractive, particularly real estate, which is anchored by live nation events.

We are liquidity there is relatively light so we'll have to be creative about the ways, we do that but we have some ideas.

Speaker 3: You know, our liquidity there is relatively light, so we'll have to be creative about the ways we do that, but we have some ideas.

Speaker 3: Turning to Formula One, I'd note a couple of things. I think in general, how we look at the rest of the year, we feel good about where things stand, very good. But some of the analysis about how payments were done and where it would flow between the third and fourth quarters, I think in general, we looked at analysts as being slightly optimistic on three and slightly pessimistic on four.

Turning to Formula one I'd note a couple of things.

I think in general.

How we look at the rest of the year, we feel good about where things stand very good.

But some of the analysis about how payments were done and where it would flow between the third and fourth quarters I think in general we looked at our analysts as being slightly optimistic on three and slightly pessimistic on four.

Speaker 3: The nature of the path, as you rightly noted, is it's conservative.

The nature of the payouts as you rightly noted is it's conservative.

Speaker 3: and the timing of how the race is fall impacts the payouts. Brian , what would you add? Yeah, I would just say the other thing that there's noise in the second quarter because of the refaizing and the impact of MLU. So I would just have you look at the first two quarters together and look at that percentage as we said in our remarks, we're at 63%.

And the timing of how the races fall impacts the payouts, Brian would you add I would just say the other the other thing that there is noise in the second quarter because of the re phasing and the impact of MLR.

So I would just have you look at the first two quarters together and look at that percentage as we said.

In our remarks, we're at 63%.

Alright, Thank you Bob.

Thank you Vijay.

Speaker 1: Thank you. Our next question comes from Brian Crafts.

Thank you.

Our next question comes from Bryan Kraft with Deutsche Bank.

Speaker 11: Greg, I had a couple for you on Liberty Serious. I guess first, a question that many investors often ask is why Liberty hasn't made its serious shares available for borrow so that the market can be more efficient around that spread. So we'd love to hear if you wouldn't mind sharing the rationale behind your decision not to do that.

Greg I had a couple for you on Liberty Sirius I guess first a question that many investors often ask us why Liberty Hasnt made at Sirius shares available for borrow so that the market can be more efficient around that spread so we'd love to hear if you wouldn't mind sharing the rationale behind.

Your decision not to do that.

Speaker 9: And then the second question is, I understand that leverage is a sensitivity in a potential margin of Liberty Serious with Sirius XM. Would it make sense for Liberty Serious to sell some of its Sirius shares down to get closer to the 80% level so you kind of stay above the 80, but bring some cash in and then use that to reduce debt of Liberty Serious.

And then the second question is I understand that that leverage is a sensitivity and a potential merger of Liberty Sirius Sirius XM would it make sense for Liberty Sirius to sell some of its series shares down to get closer to the 80% level. So kind of stay above the 80, but bring some cash in and then use that to reduce debt at Liberty Sirius.

Speaker 9: Are there any restrictions or considerations preventing you from doing that are discouraging for doing that?

Are there any restrictions or considerations, preventing you from doing that or discourage you from doing that thank you.

Speaker 3: Yeah. I will let Ben Orin, if you're on Ben, I think you are, answer the first one after I'll answer the second first.

Yes.

I will let Ben Oren, if you're on Ben I think you are answered the first one after I'll answer the second first.

Speaker 3: I think that strategy, you know, we are concerned, or not concerned about the leverage. I think Siri could support the leverage of the combined businesses to be clear. It might depend on how that was executed in terms of who bought whom, but I think in general, Siri can support that leverage. I don't like the idea, and I think.

I think that strategy, we are concerned or not concerned about the leverage I think Syria could support the leverages the combined businesses to be clear it might depend on how that was executed in terms of who bought home, but I think in general So we can support that leverage.

Don't like the idea and I think.

Speaker 3: We at Liberty don't like the idea of trying to sell some shares because we have very low tax basis in those. It would be very tax inefficient. And as I said, I think we can support the combination. We are continuing to look at ways to manage our leverage. We do get dividends out of serious exam and from time to time they have paid special dividends. And in general over the last year plus, we've been applying that to reducing levels.

We at Liberty don't like the idea of trying to sell some shares because we have very low tax basis in those it would be very tax efficient and as I said I think we can support the combination we are continuing to look at ways to manage our leverage we do get dividends out of Sirius XM and from time to time, they have paid special dividends in general over.

Last year, plus we've been applying that to reducing leverage.

Speaker 3: But I don't like the tax inefficient. We have very low basis in those shares.

But I don't like the tax and efficient we are.

Very low basis in those shares.

Ben do you want to address the borrow issue.

Speaker 12: Yes, sure. While we're very sympathetic to the borrow issues, because it does create a lot of volatility, we're going to a lot of work internally and with lawyers on the ability to actually lend out our shares. I think at this time, I'll probably just summarize to say there are legal, there are different tax considerations.

Yes sure.

While we're very sympathetic to the borrowers.

It's created a lot of volatility.

We've done a lot of work internally and with lawyers on the ability to actually lend out our shares I think at this time.

I'll, probably just summarize to say there are legal or different tax considerations.

Speaker 12: to how any borrow facility or borrow of our shares would have to be structured.

Two how any borrow facility in New York borrow if our shares would have to be structured.

Speaker 12: that would make it relatively inefficient.

That would make it grow.

Relatively inefficient or currently.

Speaker 10: or potential user. So for now, that coupled with the optics that they sent that we were going to lend out our shares, what would the borrower be doing with those shares is probably why we will, we'll not lend our shares for the time being, but we'll continue to look at it. And if any of the...

I'm torn user so for now that coupled with.

Opex that could.

To the extent that we were going to lend out our shares what would good borrowers are doing with those shares.

Yeah.

Probably why we will reluctantly not lend or chairs for the time being but we'll continue to look at it.

And if any of the legal or tax considerations.

Speaker 10: legal or tax considerations, I'll leave you a, you know, never say never.

Yeah.

Ever.

Jonathan Thanks to you both appreciate it.

Okay.

Okay.

Speaker 1: Thank you. Our next question comes from David Carnovsky with D-

Thank you. Our next question comes from David Karnofsky with J P. Morgan.

Speaker 8: Hi, thank you. On the increased cap-backs for Vegas, can you just remind us what the original projection was for Patek and maybe expand a bit on the drivers to increase spend and then just on race promo, I'm curious, revenue was up versus last year in Q2. That's the same mix of races, minus Ebola. It's worth to see if you could comment on the drivers there, whether they're any one-offs or kind of material step-ups that we could be aware of.

Alright, thank you.

On the increased Capex for Vegas can you just remind us what the.

The original projection was for Patrick and maybe expand a bit on the drivers of the increased spend and then just on rates promo curious revenue was up versus last year in Q2, that's what the same mix of races minus Ebola.

See if you could comment on the drivers there were there any one offs or kind of material step ups.

Be aware of thanks.

Brian do you want to take the Capex, Yes, I would say on the Capex. We never officially gave a number we said it approximated or was slightly higher.

Speaker 3: Brian , do you want to take the capex? Yeah, I would say on the capex, we never officially gave a number. We said it approximated or was slightly higher than the land purchase value.

Then the.

The land purchase value.

Speaker 3: So we still have not given a firm number. We just told you that we now think it will be larger than the amount that we're spending on the land. Yeah, approximating 400 is what we said.

So we still have not given a firm number. We've just told you that we now think it will be larger than the amount that we're spending on the land.

<unk> 400 is what we said.

Okay.

Can you repeat the second question is just to make sure I followed it.

Speaker 8: Yeah, sure. And just with the capex, if you could expand on just the drivers of the increase, that'd be great. But on the second question, do you want to comment on the drivers? Yes, I'm happy to. So we've entered into a couple of challenges as we've uncovered asphalt cables under the ground that needed to be addressed. There have been wires overhead that have needed to be moved.

Yeah, sure and just with the Capex if you could expand on just the drivers of the increase that would be great, but on the second question.

All right.

Greg do you want to comment on the drivers, yes, I'm happy to do so.

We've entered into a couple of challenges as we've uncovered asphalt cables under the ground that needed to be addressed there've been wires overhead that it needed to be moved a lot of this is driven by the request and quite honestly requirements of the local stakeholders. As we began this process of <unk>.

Speaker 7: A lot of this was driven by the requests and quite honestly requirements of the local stakeholders as we began this process of preparing the track for actual usage.

Hearing the tractor actually usage.

Speaker 7: We've also encountered some additional requests from the local stakeholders such as the Casino properties.

We've also encountered some additional requests from the local stakeholders such as the casino properties.

Speaker 7: around enhanced security, around open and closing the track. So this is led to additional equipment that was needed as well as additional actual road work. Of course with regards to the paddock building, it is being built at lightning speed in an inflationary environment. So if you can imagine there have also been some additional costs along the way in that route.

Around enhanced security around opening and closing the tracks. So this is led to.

Equipment that was needed as well as just additional actual road work.

Of course with regard to the paddock building is being built at lightning speed.

An inflationary environment. So as you can imagine they've also been.

<unk> costs, along the way in that regard.

Speaker 3: Great, thanks, Renee. And to your second question about timing and revenue recognition, maybe you've repeated.

Great. Thanks, Renee and to your second question about timing and revenue recognition, maybe you could repeat it please.

Speaker 8: Sure, it was just on race promo, the press release had noted it was up year of a year and to get the same number, sorry, same mix of races, minus Molla. So just wanted to see if you could come in on the drivers there. There were any one offs or material step ups to be aware of.

Sure. It was just on rates promo the press.

Press release had noted it was up year over year and to get the same number I'm, sorry, you're saying mix of races minus Mueller. So just wanted to see if you could comment on the drivers there are.

Any one offs or a material step ups to be aware of.

Speaker 4: No, it's just regular contractual increases there offset by the impact of the immolary going away.

No I mean, it's just it's just regular contractual increases they're offset by the impact of the MLR going away.

Thank you.

Speaker 1: Thank you. Our next question comes from Steven Lozetski.

Thank you. Our next question comes from Steven <unk> with Goldman Sachs.

Speaker 8: Hi, great thank you. Maybe for Greg and Renee on Las Vegas. I appreciate the focus for your one is just an experience, but maybe thinking into years two and beyond, are there any opportunities around the GP that have come more in the focus over the last six months that you're particularly excited about? But might not be able to fit in time for this November , just trying to think through the long-term vision and the profitability opportunity around Las Vegas compared to what we might see in your one.

Hi, great. Thank you maybe for Gregg and Renee I'm must say, yes, I appreciate the focus for your one is this fan experience maybe thinking.

There is two and beyond are there any opportunities around the GP that had come more into focus over the last six months that you're particularly excited about.

It might not be able to fit in time for this November I'm, just trying to think through the long term vision and the profitability opportunity around let's say, yes, compared to what we might see in your long. Thank you, yes, I think we touched on some of this I think both on the revenue side and the cost side, there will be opportunities.

Speaker 3: Thank you. Yeah, I think we touched on some of this. I think both on the revenue side and the cost side, there will be opportunities.

Speaker 3: both around the GP and outside the GP as we go into year two. We moved with lightning speed, the F-1 team, Renee's team.

<unk> around the GT and outside the GP as we go into year two.

We moved with lightning speed.

The F. One team when as team to put this in place.

Speaker 3: And that's probably led to increased costs. And it's also meant that there are opportunities we had to not capitalize on, whether it be fan festivals, whether it be...

And that's probably led to increased costs and it's also meant that there are opportunities we had to not capitalize on whether it would be.

Fan festivals, whether it would be.

Speaker 3: sporting events, whether it be music events, all of those things that are potentially can grow around the second and beyond GP. So those are all GP related items and I think we already touched on the fact, Renee touched on some of the things outside the GP that people are interested in, but I don't think we have more to talk about today in terms of...

Sporting events.

Whether it be music events all of those things that are potentially can grow around the second.

And beyond <unk>.

So those are all GP related and I think we already touched on the fact Rene touched on some of the things outside the GP that people are interested in but I don't think we have more to talk about today in terms of numbers.

Speaker 3: Thank you. Thank you. This is our last question operator.

Got it thank you.

Thank you. This is our last question operator.

Speaker 1: Thank you. Our last question comes from our lane career with Bank of America.

Our last question comes from <unk> <unk> with Bank of America.

Yeah.

Speaker 13: Hi, thank you for taking my question. Just quickly on, you know, liberty-serious sex sum, is there, you know, sort of a target or, you know, an amount of debt you're looking to get down over the next year?

Hi, Thank you for taking my question just quickly on Sirius Liberty Siriusxm is there.

Have a target or you know what amount of debt you're looking to get down over the next year.

Well I think I touched on this a little earlier.

Speaker 4: We are, you know, have looked at many perturbations and potential combinations with serious XM. All of them would involve in one form or another adding the debt that's at LSDXM to the SSDXM debt. And in some cases, taking on incremental debt. So there is no particular target because we don't know exactly what path it will follow.

We are.

I've looked at many proto patients and potential combinations with Sirius XM all of them would involve in one form or another adding the debt that's at <unk> on that and in some cases, taking on incremental debt. So there is no particular target because we don't know exactly what path that will follow.

Speaker 3: Sirius XM is a massive cash flow generator. One of the reasons why we're not, another reason why we're not particularly interested in selling our stock, we're bullish on the prospects for the business and its continued ability to generate that cash. So any combination though it might have for a short period of time, a relatively high leverage amount or leverage, you know, four to five times, we know that that cash flow generating capabilities are allowed.

Sirius XM is a massive cash flow generator.

One of the reasons why we're not another reason why we're not particularly interested in selling our stock we're bullish on the prospects for the business and its continued ability to generate that cash so when a combination though it might have for a short period of time, a relatively high leverage.

Mount or leverage 4% to five times.

We know that that cash flow generating capabilities would allow.

Speaker 3: the combined entity to pay that debt down back to the three and a half target relatively quick.

The combined entity to pay that debt down back to the three and a half target relatively quickly.

Speaker 13: And are there any factors for the most part of the combination?

Got it and are there any factors I mean, I think you know for the most part most of our combination with occur and you know perhaps makes sense, but are there any factors to consider as to why maybe a combination wouldn't happen.

Speaker 13: are there any factors to consider as to why maybe a combination wouldn't happen?

Speaker 3: Well, I think you'll have a...

Well I think you've got a youll.

You'll have a.

Speaker 3: Independent committee at Syria 6M, which will negotiate on behalf of their shareholders and their considerations and you'll have liberty Representing LSXM and hopefully they'll be a meeting of the minds But there's always the potential that that there is not an agreement between the two parties

Independent Committee at.

Sirius XM, which will negotiate on behalf of their shareholders and their considerations and youll have liberty, representing <unk> and hopefully there'll be a meeting of the minds, but theres always the potential that that there is not an agreement between the two parties.

Got it I'll leave it there thank you.

Speaker 3: Thank you very much to our questioners. Thank you very much for all of you on the line for your interest in Liberty Media. And we look forward to speaking with you again next quarter if not soon. And I think we're done operator. Thank you.

Thank you very much to our questioners. Thank you very much for all of you on the line for your interest in <unk>.

Liberty Media and we look forward to speaking with you again next quarter, if not sooner and I think we are done operator. Thank you.

Yeah.

The conference has now concluded. Thank you for attending today's conference call. You may disconnect. Your lines at this time.

Speaker 14: The.

Okay.

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Speaker 15: you

Yeah.