Q4 2023 Liberty Media Corp Earnings Call - Q&A
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Speaker Change: Greetings and welcome to the Liberty Media Corporation, and Atlanta Braves, holding 2023 at year end earnings call.
At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
Chain Clients: Minder. This conference is being recorded it is now my pleasure to introduce your host chain clients Senior Vice President of Investor Relations. Thank you Sir you may begin.
Speaker Change: 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.
Speaker Change: Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent form Form 10-K filed by Liberty Media and Atlanta Braves holdings with the SEC.
Speaker Change: 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 statements 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.
Speaker Change: Stances on which any such statement is based.
Speaker Change: 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 one through three can be found at the end of the earnings press release issued today, which are available on Liberty media and.
Speaker Change: The brands Holdings' website, now I would like to turn the call over to Greg Maffei, Liberty's President and CEO.
Gregory B. Maffei: Shayne and good morning to all.
Gregory B. Maffei: Today speaking on the call. We will also have formula one's president and CEO Stefano Domenicali.
Gregory B. Maffei: And Liberty's, Chief accounting and principal financial Officer, Brian Wendling.
Speaker Change: Also during the Q&A, we will answer any questions related to Atlanta Braves holdings, and brakes management will be available too.
Speaker Change: So let me begin with Liberty Sirius XM.
Speaker Change: Elisa Siri transaction is on schedule.
Speaker Change: We filed the preliminary proxy.
Speaker Change: The first.
Speaker Change: January 30th Robyn, we still expect to close by early Q3.
Speaker Change: And the NAV discount, which was about 42% prior to announcement is now close to about 25% as we had hoped.
Speaker Change: We expect it will continue to close.
Speaker Change: Looking at Sirius XM itself.
Speaker Change: The strong operating and financial performance that it had in 2023 showed the durability of the business.
Speaker Change: Self pay net adds were.
Speaker Change: In the second half as expected boosted by streaming the strong margins and free cash flow generation remained largely through cost discipline.
Speaker Change: Importantly, they rebuilt their tech stack and relaunched their app in the fourth quarter and we are beginning to show positive early results from that with better personalization promising engagement and improved service quality. We believe these initiatives as well as the incremental content. They added will continue to drive long term growth.
Speaker Change: At the 2024 priorities of the business.
Speaker Change: First increasing 360, L adoption and boosting conversion and retention continuing to deliver engaging content recently, they signed quite popular smartwatch podcast with Jason Bateman will Arnett and Shawn Hayes.
Speaker Change: We do expect self pay net adds improvement throughout the year.
Speaker Change: And there was a focus on maintaining stable EBITDA margins and free cash flow.
Speaker Change: I look forward to remaining involved personally in the next evolution of the business as chairman and a shareholder.
Speaker Change: Turning to Formula One group.
Speaker Change: An amazing 2023 F. One we.
Speaker Change: We saw double digit growth across all revenue streams and adjusted OIBDA up 22%.
Speaker Change: We see a strong commercial start to the season for race promotion renewals, including Silverstone, a 10 year deal with venue upgrades.
Speaker Change: Heritage market and a new race in Madrid, beginning in 2026, which will be a partial street race with convenience and access.
Speaker Change: We do see continued growth in sandals.
Speaker Change: Recently this week F. One joined threat and $2 8 million followers were on board at the platform after half a day of use.
Speaker Change: We closed the quaint acquisition in January as we previously noted.
Speaker Change: That growing partnership opportunities for Quint with F. One LPG P and other sports properties, including the Kentucky Derby and the NBA All Star game, let.
Speaker Change: Let me turn for a minute to Vegas.
Speaker Change: It was an incredible race, we were fortunate to have such a great outcome with a record 181 overtakes.
Speaker Change: Podium came down to the final lap. It was a great result for Formula one and created new commercial opportunities and generated fantastic Global bus.
Speaker Change: A high percentage of first time F. One attendees and massive audiences tuned into this race.
Speaker Change: Through marquee brands to have one for example, American Express T mobile Moet Hennessy, Google and we think these brands and the marquee aspects of joining Vegas will continue to help us in 2024 and beyond.
Speaker Change: It was also hugely successful the local community. The total economic impact of the race was estimated at $1 $2 billion and the average visitor spending $3 six times, what a typical visitor spend for a non F. One of them.
Speaker Change: We look forward to building on the success of that'll be GP in 2024. For example, we're going to increase the GAA and expand the product offerings at various price points, we're going to optimize the cost structure.
Speaker Change: The year round commercial.
Speaker Change: From a commercialization efforts at Grand Prix Plaza are developing but we will expect only a modest contribution from those in 2024.
Speaker Change: Corporate events at that site kicked off around the Super Bowl this year.
Speaker Change: In summary, the Vegas rates exceeded our expectations on many levels, even though year one cost came in higher than we had anticipated we do not intend to close disclose race specifics on this race consistent with our practice across all races.
Speaker Change: I would note that the kit, we are kicking off the F. One season with testing in Bahrain, which occurred and look forward to the first race in Bahrain. This weekend.
Speaker Change: Turning to live nation.
Speaker Change: 2023, with the biggest year ever.
Speaker Change: They were all time highs for attendance ticket sales and sponsorship.
Speaker Change: Attendance grew 20% with 145 million fans.
Speaker Change: Global demand for concerts continues to grow the top 50 towards 50% more international acts in 2023.
Speaker Change: We have an incredible pipeline for 2024 with no sign of consumer slowdown.
Speaker Change: Seeing strong demand across all price points.
Speaker Change: For example, large venue shows were up double digits and 65% full year large venue shows are already booked versus only 50%.
Speaker Change: Last year at this time.
Speaker Change: The number of shows at amphitheaters and other operated venues will also increase in 2024.
Speaker Change: Let me turn to the Braves, obviously, there was incredible team performance in 2023, so much to highlight I don't want. The 947 runs scored was the first in MLP and entitled MLP Homerun record as well for the team.
Speaker Change: The Braves also experienced great financial growth for the year baseball revenue was up 9%.
Speaker Change: We see continued success, resulting in higher payments under Mlps revenue.
Speaker Change: Sharing plans so that is the one negative about our continued revenue growth.
Speaker Change: But I'd also note the battery revenue was up 10% and adjusted OIBDA was up 11%.
Speaker Change: We clearly benefit from the strength of the Braves territory.
Speaker Change: In a recent study by you Gov.
Speaker Change: The Braves had $8 4 million fans in the South region number one and MLB.
Speaker Change: And over 65% of all other local sports teams fan support the Braves, which is the highest crossover of any bandwidth in Atlanta.
Speaker Change: We've seen encouraging early season trades, including for.
Speaker Change: For seven time all-star Crisil and outfielder Jared Kalinic, we are well positioned for future commercial and unfilled success.
Speaker Change: For example, 2020 for season tickets already sold out and there is a 16000 person waitlist.
Speaker Change: We are looking forward with bated breath to the home opener against the D backs on April 5th.
Speaker Change: And with that let me turn it over to Brian for more on our financial results.
Brian J. Wendling: You, Greg and good morning, everyone at year end Liberty Sirius XM group had attributed cash liquid investments and monetize it will public holdings of $90 million.
Brian J. Wendling: This excludes $216 million of cash held directly at Sirius XM.
Brian J. Wendling: During the quarter Liberty Sirius XM repaid the remaining 199 million outstanding principal of its one 375 basket convertible notes using cash on hand also during Q4 Liberty Siriusxm paid down $80 million under the margin loan 61 million of which was from the monetization of its one point.
Speaker Change: $8 million better case shares.
Speaker Change: Quarter end Theres $1 1 billion of Undrawn margin loan capacity at the parent level related to our <unk>.
Speaker Change: Sirius XM margin level.
Speaker Change: As of February 27th the value of our Sirius XM stock was $10 15 billion.
Speaker Change: We have $1 3 billion in principal amount of debt against these holdings total Liberty Sirius XM group attributed principal amount of debt is $11 1 billion, which includes $9 3 billion of debt held directly at Sirius XM.
Speaker Change: Turning to the Formula One group at quarter end Formula One group had attributed cash and liquid investments of $1 4 billion, which includes $1 billion of cash held directly at Formula. One note. The Quin acquisition closed in January which will be a use of formula One group cash totaled.
Speaker Change: Total Formula One group attributed principal amount of debt was $2 9 billion, which includes $2 5 billion of debt at Formula one, leaving $533 million at the corporate level and.
Speaker Change: In F. One $500 million revolver remains undrawn and leverage at the end of the year was one nine times.
Speaker Change: As we've said in the past we have one business is best annualized on an annual basis. So we'll only be speaking to full year results.
Speaker Change: Total revenue grew 25% in 2023 with double digit growth across all primary revenue streams year over year revenue increases include the significant revenue generation from self promoting the Las Vegas Grand Prix, including ticketing revenue, which is included in rates promotion sponsorship revenue, which is recognized accordingly.
Speaker Change: In hospitality and experienced income which is included in other F. One revenue.
Speaker Change: Race promotion revenue also benefited from the mix of events held compared to 2022 with two additional flyway races. This year with Qatar and Las Vegas.
Speaker Change: Versus MLR in France in the prior year and sponsorship and media rights revenue grew due to increased fees under new and renewed commercial agreements.
Speaker Change: Other <unk> revenue grew 42% or $196 million driven by hospitality and experiences largely attributed to the Las Vegas Grand Prix as well as growth in the Paddock club and other events, partially offset by reduced freight income due to easing of freight cost inflation.
Speaker Change: Same payments as a percent of pre team adjusted OIBDA as reported was 63% in 2023 down from 66% in 2022.
Speaker Change: Other cost of Epsilon revenue increased from 23% of total revenue in the prior year to 32% of total revenue. This year, primarily driven by promoting organizing and delivering to Las Vegas Grand Prix as well as increased cost servicing additional hospitality offerings.
Speaker Change: SG&A at 7% of total revenue was in line with historic averages.
Speaker Change: Corporate and other adjusted OIBDA was a loss of $39 million in 2023, which includes the $15 million of revenue for use of the pit building during the Las Vegas race weekend Formula one incurs a fixed monthly rent payment that approximates depreciation plus a variable rent component during the race weekend.
Speaker Change: Note that the fixed rent payment in 2023 reflects only a portion of the year as the building wasn't occupied.
Speaker Change: <unk> closer to the race weekend.
Speaker Change: Corporate level expense at Formula One group was also elevated due to the split off and reclassification costs in 2020 for Formula One group corporate and other adjusted OIBDA will benefit from the <unk> acquisition that closed in January as well as a full year of the rent payments.
Speaker Change: Looking to 2024 F. When will those 24 races, with the return of China, and MLR compared to 22 races. In this past year.
Speaker Change: Quickly looking at a few cash items F. One estimated cash tax rate and 24 to be a high single digit percent of F. One adjusted OIBDA, increasing towards low double digits in future years as a result of the U K tax rate increase.
Speaker Change: Total capex incurred at the Formula One group in 2023 was 420 $26 million, approximately 390 million of which related to the development of a L. P. GP.
Speaker Change: With the majority of incurred at the Formula One group corporate level.
Speaker Change: At the Liberty Life group Theres attributed cash liquid investments and monetize with public holdings of $418 million, which includes ETF assets.
Speaker Change: There's $400 million of Undrawn margin loan capacity related to our live nation margin loan.
Speaker Change: And as of February 27th the valuable admission stock was $6 5 billion.
Speaker Change: We have $1 2 billion in principal amount of debt against these holdings.
Speaker Change: Liberty and our consolidated subsidiaries are in compliance with our debt covenants at quarter end and then quickly looking at the Braves the.
Speaker Change: <unk> business is also best analyzed on an annual basis due to fluctuations in game count.
Speaker Change: Baseball revenue increased 9% in 2023, primarily due to increased ticket demand in attendance, leading to a 14% growth in baseball event revenue, an 8% growth in retail and licensing revenue.
Speaker Change: Other baseball revenue declined primarily due to fewer concerts held compared to the prior year.
Speaker Change: <unk> had another great year with mixed use revenue increasing 10%.
Speaker Change: Total adjusted OIBDA decreased for the year, primarily due to <unk>.
Speaker Change: Increased player payroll expense as braised management continues to invest in is on field success, including a number of trades and accelerated player signings in December of 2023.
Speaker Change: Adjusted OIBDA for the mixed use development increased 11% in 2023.
Speaker Change: A reminder, that SG&A was elevated for the full year due to the split off costs, we would anticipate a $10 million to $15 million.
Speaker Change: Annual run rate for corporate overhead at the Atlanta Braves Holdings.
Speaker Change: With that I'll turn it over to Stefano to discuss Formula one.
Stefano Domenicali: Thanks, Brian.
Stefano Domenicali: 2023 seasons deliberate incredible raising a record financial results.
Stefano Domenicali: On the track, we want to recognize the Mexico stuff.
Stefano Domenicali: Once again on this before.
Stefano Domenicali: The rest of the Greek baffles enthusiasts.
Stefano Domenicali: At least through the cycle in the construct of <unk>.
Stefano Domenicali: It came down to define the lap of the season between the savings and survivor.
Stefano Domenicali: Mclaren Aston Martin Buffalo full force with.
Stefano Domenicali: With Mclaren intensify the competition after a solid mid season that great.
Stefano Domenicali: I'll skip yesterday at the stellar rukia season, securing 97 points.
Stefano Domenicali: Two projects in the sprints basically.
Stefano Domenicali: Album fence as much to cheer about as these core points and the number of races in 2000, and secondly, helping Williams thinks the seventh showing good progress on the James <unk> leadership.
Stefano Domenicali: Across the entire it doesn't put the pre season six themes were represented on the board a reflection of the talent up and down.
Stefano Domenicali: The new regulation.
Stefano Domenicali: But if you think competition across the steel and we believe these will continue into 2024.
Stefano Domenicali: That is of the cost cap and the technical regulations continue to mature.
Stefano Domenicali: Financially the business generated record revenue and adjusted OIBDA.
Stefano Domenicali: Our.
Stefano Domenicali: Our primary revenue stream grew benefiting from new and renewed commercial agreement.
Stefano Domenicali: Furthermore, our public cloud as an incredibly strong year with hospitality experiences revenue growing nearly 100%.
Stefano Domenicali: <unk> year on year.
Stefano Domenicali: These were driven by the extensive suite of hospitality mosquitoes offerings at Las Vegas, Grumpy as well as growth in our core public blood product with a bubble clips allowed 10 of 19 events.
Stefano Domenicali: Towards the end of the season, we had this spectacular and I go to the Las Vegas roughly.
Stefano Domenicali: It was a formidable undertaking moving the project from start up planning to raise delivered in little more than one year. We added reasonably crowd of the Las Vegas team worked with multiple stakeholders in the CD.
Stefano Domenicali: The wider the F. One community to deliver an incredible event on on and off the track.
Stefano Domenicali: <unk> sales were 316000 for the weekend that as we're cleaning from the start to finish Charlotte passive Pat us on the last lap to securities second place finish.
Stefano Domenicali: The raise generated fund, reaching multiplatform bus and doing new viewers, who hasn't engaged old season there.
Stefano Domenicali: The local economic benefit generated by these waste is remarkable local casino partners have the breakup of revenue with mostly gaming revenue for Clark County at all time high for the month of November.
Stefano Domenicali: Stepping back to the broader calendar 2023 season overall delivered another year of record attendance 6 million total fans attended the race weekend.
Stefano Domenicali: <unk>, 5% compared to the 2022 seasoned <unk> promoted with both the new <unk>, including 480440 5000, the mobile well under the <unk> 5000 in Mexico, and three out of the 8000 in Belgium.
Stefano Domenicali: Recent tenders remain strong through the end of the season with record crowds and somehow in Abu Dhabi.
Stefano Domenicali: <unk> Q in the cross platform last season, we worked closely with our media Plaza and create new tools to estimate these the viewership on platforms and channels not covered by Nielsen I would've finding suggests an additional 29% of orders have not currently covered by traditional measurement globally representing.
Stefano Domenicali: Almost $20 million on average per race weekend. This.
Stefano Domenicali: The share of digital viewership is much higher for markets like the U S.
Stefano Domenicali: Rely more on video on demand as premium class is the worst races, especially those with less convenient times full live viewing we will keep working with Nielsen this year to incorporate more of these digital audiences into their standard reporting to provide the most accurate picture of our total orders.
Stefano Domenicali: Looking at brokers television cumulative <unk> orders for 2023 season, excluding digital viewership was $1 5 billion and average viewership per race was approximately $70 million.
Stefano Domenicali: In the U S cumulative viewership was up 44% compared to the prior year setting a new season cumulative <unk> orders record importantly, viewership among the under 35. He made the mobile graphics grew across all of our markets. Our sprint Sirius continues to draw.
Stefano Domenicali: <unk> increased engagement throughout the season, which boosted television audience as a race weekend the businesses.
Stefano Domenicali: Our sponsor there was an over 50% increase in average Brent exposure during the spring.
Stefano Domenicali: We look forward to the 60 beds in 2010 before.
Stefano Domenicali: One more one was once again the fastest growing major sport legal social media for the fourth the eating at all with the highest growth rate compared to the 11th the other global sports, including NBA NFL Enchantingly.
Stefano Domenicali: We grew to 71 5 million followers on social media up 17% from the prior year with continued growth, especially in the U S with social media followers.
Stefano Domenicali: 28%.
Stefano Domenicali: The U S continues to make up of our largest audience on Youtube.
Stefano Domenicali: Those.
Stefano Domenicali: <unk> dot com at Epsilon platforms over hundred million unique visitors viewing over <unk> 1 billion pages I think diesel will have 10% over 2022.
Stefano Domenicali: <unk> highlight videos on mobile web and App also grew by 35%.
Stefano Domenicali: And we made greater commercial progress in 2023, securing conflicts that will underpin our continued future success.
Stefano Domenicali: As of year end, we had over $12 billion in future revenue under multiyear contracts our momentum continued during the off season and into 2024.
Stefano Domenicali: Our race promotion, we are prioritizing the quality and the value of every race slots have you reached what we believe is a comfortable near term Max are plentiful races.
Stefano Domenicali: Earlier this month, we announced that he is extension with Silverstone and look forward with enhancements to the public cloud and other physical infrastructure upgrades of the circuit.
Stefano Domenicali: We're excited to welcome the mother.
Stefano Domenicali: 10 years agreement and a brand new stupid with both suites that no sweet segment from 2006 that Asos plan driven by the 110000, initially and that has potential to expand to over 140000 over several years.
Stefano Domenicali: Also announced five years are essential for our Japan, and Brazil races, with these announcements we have now finalized all kinds of negotiations for the 2025 season, and we turn our attention to optimize the release calendar for 2026 Npls.
Stefano Domenicali: Additionally, our media right. We are delighted to have recently secured a long term part of regional deal I suppose the Mena region with its biggest port platform Bein sports. This is on the heels of over half of those renewals signed in 2023.
Stefano Domenicali: <unk> continues to benefit from the demand for large global premium content.
Stefano Domenicali: We are broke cast in 200 territories.
Stefano Domenicali: Have a well diversified portfolio of media rights contracts across markets typically ranging from three to five years.
Stefano Domenicali: As we have said alternative bidders included digital players I think visually show an interest in live sports and it could even as competition, So Scotts media rights.
Stefano Domenicali: Our F. One TV product has grown significantly since launch with <unk> TV pro subscribers growing 37% in 2023 compared to 2022.
Stefano Domenicali: <unk> has been boosted by growing in the F. One calendars and for sprint races, new in depth chose all plenty onboard cameras team radios and continuously adding live programming around every season plus have revamped mobile friendly design.
Stefano Domenicali: We believe it delivers the best in class product for fans and is now available in 20 countries.
Stefano Domenicali: This year, we had all of our price increase in the cross market for the first time since product launch in 2018 to bring the pricing in line with the market waits for the qualifying all of the offering.
Stefano Domenicali: Turning to sponsorship, we a successful 2033 and growing the existing partnership while securing new brands, including leveraging new assets like Las Vegas N F. One academy to generate incremental demand.
Stefano Domenicali: <unk> told me recently announced as official partners also have won Academy and will have designed liberty for the season and beauty brands like Charlotte Tilbury also became a official father, though that's what I can.
Stefano Domenicali: Marking the first E ever global support partnership, we also announced an attractive multi year renewal with Alba goober powered with DHL.
Stefano Domenicali: Going forward, we are optimizing all with existing inventory to maximize input exclusivity and value for our partners. We are also actively creating new assets to capitalize on our growing demand as both sort of preface for Taylor opportunity and a lot of debates.
Stefano Domenicali: There are targets vertical where we are.
Stefano Domenicali: Exposed, including financial services and betting to name a few.
Stefano Domenicali: Our funnel engagement activities off the track.
Stefano Domenicali: Continued to gain momentum and 400 <unk> first location in London are recorded for hundreds of thousands of digital in these first tier and second UK location opening in Birmingham. The first U S venue will open in Boston and D. C. This year with 20 venues targeted over the next five years. The F. One exhibition move from a dream wedding welcomed 100.
Stefano Domenicali: <unk> thousand visitors. It's opened its second location, Indiana early this month and will continue touring iconic global seating to inspire the next generation of fans.
Stefano Domenicali: Sustainability remains a large priority for pool, one across our organization commercial buffer and therefore more that they will be provided in the coming weeks detailing our progress towards reaching the sustainability strategy, we laid out in 2019.
Stefano Domenicali: That is a number of sustainability accomplishment to highlight from from last year to name a few progress continuing to develop over 100% sustainable library.
Stefano Domenicali: To us that we'll be introducing doesn't 36 and that will be a drop in usable in both cost without modification, which provides broader global benefits to the automotive industry well beyond the post approval world. The non European events of the 2023 seasonal use of freight transportation by DHL on the new fleet of Biofuels.
Stefano Domenicali: Reducing.
Stefano Domenicali: Related logistic carbon emission by 83% the first cohort of students from F. One in Geneva scholarship embarked on their first award placement with the F. One teams we will welcome the third cohort. This year finally, we launched <unk>, Kevin the old thing they've driver category to developing preferred young female drivers too.
Stefano Domenicali: Get to higher levels of competition. The second season in 2024, we see F. One Academy race as a support Cds of seven at 40 bps.
Stefano Domenicali: The F. One teams are getting more involved in supporting to see this in 2024 old 10 will have that lever is displayed on one F. One academy car each and each nominate that was the main driver to lease in the cities.
Stefano Domenicali: We look forward to beginning to our 2024 season next month.
Stefano Domenicali: The 24 race calendar has greater digitalization and more efficiently flows of races, which we use the distance our brace Keith travel globally in support of our 2013 net zero commitment.
Stefano Domenicali: China returned to the calendar for the first time since 2019. This explains cedars will take place in Miami, Austria, Austrian Brazil, Qatar in China.
Stefano Domenicali: We made small changes to the form of the seasonal with sprint qualify on Friday Sprint race, followed by re qualified on Saturday and the Grand Prix is normally on something.
Stefano Domenicali: And much to the life of our fence. These out seasonal certainly deliver the exciting young it's related to secured seats for years to come with Charlotte class committing to this good idea at least through 2020 fiber London Lloyd's remaining Macleod at least through 2036 capture the headlines Lewis Hamilton <unk>, let's say this fall.
Stefano Domenicali: <unk> 2025, after an incredible 12 seasons with the silver arrows and Clos.
Stefano Domenicali: <unk>.
Stefano Domenicali: I'm incredibly proud of the accomplishments in 2023 and eager to begin our 24 season.
Stefano Domenicali: We have a solid financial foundation and an attractive growing fan base. Our team is focused on deepening these fund them with optimized content and platforms to boost engagements, while capturing more data. So we can better tailor our commercial outreach.
Stefano Domenicali: These efforts are spread across protecting our establishes fat neutering newly acquired fast and growing into new cohorts, especially younger audiences and underserved growth markets like Asia, We will continue to invest in our support to capitalize on our incredible momentum.
Stefano Domenicali: He took the full speed ahead.
Stefano Domenicali: And now I will turn the call back over to Greg Bye-bye Joe.
Stefano Domenicali: Yeah.
Gregory B. Maffei: Thank you Stefano and thank you Brian.
Gregory B. Maffei: To the listening audience. We appreciate your continued interest in Liberty media and the Atlanta Braves Holdings.
Speaker Change: And with that operator, I'd like to open the line for questions.
Speaker Change: Thank you.
Speaker Change: Ask your question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star two.
Speaker Change: Our first question is from Brett.
Speaker Change: Ben Swinburne with Morgan Stanley. Please proceed with your question.
Ben Swinburne: Thanks, Good morning, and congratulations to Renee and the Las Vegas team on a great race, an outcome that was a lot of work.
Ben Swinburne: Greg I had a couple for you and maybe one for Brian if he's willing to entertain it.
Ben Swinburne: You mentioned optimizing the cost structure in Las Vegas for a year or two I, just maybe you could spend a minute on what the opportunities are.
Ben Swinburne: And even if you're willing to tell us where we are in the P&L that might show up between kind of G&A that F. One versus our direct costs.
Ben Swinburne: Any thoughts on a new concrete agreement that had been something you guys had talked about trying to execute last year. I'm. Just curious have you had any update there and then Brian I didn't know if you had any guidance for us on Capex at F. One in 'twenty four and.
Ben Swinburne: Now that everything is sort of built but you probably have some maintenance costs on all these new assets. So that was it. Thanks so much.
Speaker Change: Well, then I'm going to touch on the optimizing the cost structure, then let renee add to it.
Brian J. Wendling: And on the Cochrane agreement I'll, let Stefano cover where we stand so on the optimizing cost structure look because we moved with real speed.
Speaker Change: To try and get.
Speaker Change: Las Vegas up in a record time.
Speaker Change: Many things were done to accommodate a great fan experience and make sure. We got done on time and with the benefit of more time. There are many things we can optimize their for example, there is a temporary structure or Brexit.