Q4 2023 Liberty Media Corp Earnings Call - Q&A

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.

Operator: Greetings and welcome to the Liberty Media Corporation and Atlanta Brave Holding 2023 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.

Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Shane Kleinstein, Senior Vice President of Investor Relations. Thank you, Shane.

Minder. This conference is being recorded it is now my pleasure to introduce your host train quantity senior Vice President of Investor Relations. Thank you Sir you may begin.

Shane Kleinstein: You may begin. Thank you. Good morning.

Train Quantity: 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.

Shane Kleinstein: 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. However, actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Form 10-K filed by Liberty Media and Atlanta Breeze Holdings with the SEC. 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 thereto, or any change in events, conditions, or circumstances on which any such statement is based.

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 <unk> Form 10-K, followed 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.

Shane Kleinstein: On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, Sirius XM, and Atlanta Braves Holdings, including adjusted OIBD and adjusted EBITDA. The required definitions and reconciliations for Liberty Media, Sirius XM, and Atlanta Braves Holdings, Schedules 1 through 3, can be found at the end of the earnings press releases issued today, which are available on Liberty Media and Atlanta Bra Now I would like to turn the call over to Greg Maffei, Liberty's President and CEO. Thank you, Shane, and good morning to all.

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 releases 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, and Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling. Also, during the Q&A, we will answer any questions related to Atlanta Braves Holdings, and Braves Management will be available too. So let me begin with Liberty Sirius XM. The LSXM Sirius transaction is on schedule. We filed the preliminary proxy on.

Gregory B. Maffei: Today speaking on the call. We will also have formula one's president and CEO Stefano Domenicali.

Speaker Change: 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 brace 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.

Gregory B. Maffei: January 1st, January 30th, rather. We still expect to close by early Q3. And the NAV discount, which was about 42% prior to the announcement, is now closed to about 25%, as we had hoped, and we expect it will continue to grow. Looking at SiriusXM itself, the strong operating and financial performance that it had in 2023 shows the durability of the business. Self-pay net ads were up in the second half as expected, boosted by streaming. The strong margins and free cash flow generation remained, largely through cost discipline.

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: And we expect it will continue to close I'm looking at Sirius XM itself.

Speaker Change: The strong operating and financial performance than 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.

Speaker Change: The strong margins and free cash flow generation remained largely through cost discipline.

Gregory B. Maffei: Importantly, they rebuilt their tech stack and re-launched their app in the fourth quarter, and we're 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. Looking at the 2024 priorities of the business, first, increasing 360L adoption and boosting conversion and retention, while continuing to deliver engaging content. Recently, they signed on to the quite popular Smart List podcast with Jason Bateman, Will Arnett, and Sean Hayes.

Speaker Change: Importantly, they rebuilt their tech stack and relaunched their app in the fourth quarter and we're 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 looked.

Speaker Change: At the 2024 priorities of the business first increasing $3 60, how 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.

Gregory B. Maffei: We do expect self-pay net add improvement throughout the year, and there is a focus on maintaining stable dividend margins and free cash flow. I look forward to remaining involved personally in the next evolution of the business as chairman and a shareholder, turning it into a Formula One group. It was an amazing 2023 at F1. We saw double-digit growth across all revenue streams and adjusted OIBA to up 22%. We see a strong commercial start to the season, four race promotion renewals, including Silverstone, a 10-year deal with venue upgrades in our important heritage market, and a new race in Madrid beginning in 2026, which will be a partial street race with convenient fan access. We do see continued growth in fandom.

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 to one.

Speaker Change: We saw double digit growth across all revenue streams and adjusted OIBDA up 22%.

Speaker Change: We see strong commercial start to the season for race promotion renewals, including Silverstone, a 10 year deal with venue upgrades.

Speaker Change: Horton heritage market.

Speaker Change: And a new race in Madrid, beginning in 2026, which will be a partial street race when convenient fan access.

Speaker Change: We do see continued growth in sandals.

Gregory B. Maffei: Recently, this week, F1 joined Threads, and 2.8 million followers were on board the platform after half a day. We closed the Quint acquisition in January, as we previously noted, and that growing partnership opportunities from Quint with F1, LBGP, and other sports properties, including the Kentucky Derby and the NBA All-Star Game. Let me turn to Vegas for a minute.

Speaker Change: Recently this week F. One joined threat and $2 8 million followers were on boarded the platform after half a day of use.

Speaker Change: We closed the Quinta acquisition in January as we previously noted and it's that growing partnership opportunities from quaint with F. One L. B G P and other sports properties, including the Kentucky Derby and the NBA All Star game.

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 of 181 overtakes. The 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.

Gregory B. Maffei: It was an incredible race. We were fortunate to have such a great outcome with a record 181 overtakes. The podium came down to the final lap.

Gregory B. Maffei: It was a great result for Formula One, it created new commercial opportunities, and generated fantastic global buzz. A high percentage of the first-time F1 attendees and massive audiences tuned in to this race. It drew marquee brands to F1, for example, American Express, T-Mobile, Mot Hennessy, and Google. And we think these brands and the marquee aspects of joining Vegas will continue to help us in 2024 and beyond. It was also hugely successful for the local community.

Speaker Change: A high percentage of first time F. One attendees and massive audience is tuned into this race.

Speaker Change: It drew marquee brands to have one for example, American Express T mobile Moet, Hennessy, Google and we think these brands and the <unk>.

Speaker Change: Marquee aspects of joining Vegas will continue to help us in 'twenty 'twenty four 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.

Gregory B. Maffei: The total economic impact of the race was estimated at $1.2 billion, and the average visitor spent 3.6 times what a typical visitor spends for a non-F1 event. We look forward to building on the success of LBGP in 2024. For example, we're going to increase the GA and expand the product offerings at various price points. We're going to optimize the cost structure.

Speaker Change: 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 L. B G. P. In 'twenty 'twenty. Four for example, we're going to increase the G eight and expand the product offerings at various price points, we're going to optimize the cost structure.

Speaker Change: The year round commercial it from.

Gregory B. Maffei: The year-round commercialization efforts at Grand Prix Plaza are developing, but we will expect only a modest contribution from those in 2024. Corporate events at that site kicked off around the Super Bowl this year. In summary, the Vegas race exceeded our expectations on many levels, even though year one costs came in higher than we had anticipated. We do not intend to disclose race-specific details on this race, consistent with our practice across all races. I would note that we are kicking off the F1 season with testing in Bahrain, which has already taken place, and look forward to the first race in Bahrain this weekend. Turn to Live Nation.

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 costs 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.

Gregory B. Maffei: 2023 was the biggest year ever, where there were all-time highs for attendance, ticket sales, and sponsorship. Concert attendance grew 20% with 145 million fans. Global demand for concerts continues to grow. The top 50 tours did sold 50% more international acts in 2023. We have an incredible pipeline for 2024 with no sign of a consumer slowdown. We're seeing strong demand across all price points. For example, large venue shows are up double digits, and 65% of full-year large venue shows are already booked versus only 50% last year at this time. The number of shows at amphitheaters and other operated venues will also increase in 2024. Let me turn to the Braves.

Speaker Change: 2023, with the biggest year ever.

Speaker Change: They were all time highs for attendance ticket sales and sponsorship concert attendance grew 20% with 145 million fans glue.

Speaker Change: Global demand for concerts continues to grow the top 50 towards do 50% more international acts in 2023.

Speaker Change: We have an incredible pipeline for 2024 with no sign of consumer slowdown, we're 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.

Gregory B. Maffei: Obviously, there was an incredible team performance in 2023. So much to highlight. I'd note one, the 947-run score was the first in MLB, and it tied an MLB home run record as well. The Braves also experienced great financial growth for the year. Baseball revenue was up 9%. We've seen continued success result in higher payments under MLB's revenue-sharing plan, so that is the one negative about our continued revenue growth. But I'd also note battery revenue is up 10 percent, and not just at OYO, but it was up 11 percent. We clearly benefit from the strengths of the Braves territory.

Speaker Change: The 947, who runs scored with the first and MLB and entitled MLP Homerun record as well for the team.

Speaker Change: The Braves also experienced great financial growth for the year of baseball revenue was up 9%.

Speaker Change: We see continued success, resulting in higher payments under Mlps revenue 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.

Gregory B. Maffei: In a recent study by YouGov, the Braves had 8.4 million fans in the South region, number one in MLB, and over 65% of all other local sports team fans support the Braves, which is the highest crossover of any fandom in Atlanta. We've seen encouraging early-season trades, including for seven-time All-Star Chris Sale and outfielder Jared Kalenic. We are well-positioned for future commercial and on-field success. For example, 2024 season tickets are already sold out, and there is a 16,000 person wait. We are looking forward with bated breath to the home opener against the D-backs on April 5th. And with that, let me turn it over to Brian for more on our financial... Thank you, Greg, and good morning, everyone.

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.

Speaker Change: And I feel or Jared Kalinic, we are well positioned for future commercial and unfilled success.

Speaker Change: For example, 2024 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 Russo: Thank you, Greg and good morning, everyone at year end Liberty Siriusxm group had attributed cash liquid investments and monetize both public holdings of 90 million.

Brian Russo: At year-end, Liberty Sirius XM Group had attributed cash, liquid investments, and monetizable public holdings of $90 million. This excludes $216 million of cash held directly at SiriusXM. During the quarter, Liberty repaid the remaining $199 million outstanding principal of its 1.375 basket convertible notes using cash on hand.

Brian: This excludes $216 million of cash held directly at Sirius XM.

Brian: During the quarter Liberty Sirius XM repaid the remaining 199 million outstanding principal of its 137 five basket convertible notes using cash on hand also during Q4 Liberty Sirius XM paid down 80 million under the margin loan 61 million of which was from the monetization of its one point.

Brian Russo: Also, during Q4, Liberty Sirius XM paid down $80 million under the margin loan, $61 million of which was from the monetization of its $1.8 million better cashier. At quarter end, there was $1.1 billion of undrawn margin loan capacity at the parent level related to our SiriusXM margin loan. As of February 27th, the value of our SiriusXM stock was $15 billion, and we have $1.3 billion in principal amount of debt against these holdings. The 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.

Brian Russo: 8 million better case shares.

Brian Russo: Quarter end Theres $1 1 billion of Undrawn margin loan capacity at the parent level related to our <unk>.

Brian Russo: Sirius XM margin level.

Brian Russo: As of February 27th the value of our Sirius XM stock was 10 15 billion.

Brian Russo: 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.

Brian Russo: Turning to the Formula One Group, at quarter end, the Formula One Group had attributed cash and liquid investment, which includes $1 billion of cash held directly at Formula One. Note the Quinn Acquisition closed in January, which will be a use of Formula One Group cash. 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. NF1's $500 million revolver remains undrawn, and leverage at the end of the year was $1.9 billion. As we've said in the past, the F1 business is best analyzed on an annual basis, so we'll only be speaking to full year results.

Brian Russo: Turning to the Formula One group at quarter end Formula One group had attributed cash and liquid investments of $1 4 billion, which includes a $1 billion of cash held directly at Formula One now with the Quin acquisition closed in January which will be a use of formula One group cash totaled.

Brian Russo: 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.

Brian Russo: In F. One 500 million dollar revolver remains undrawn and leverage at the end of the year was one nine times.

Brian Russo: As we've said in the past you have one business is best analyzed on an annual basis. So it will only be speaking to full year results.

Brian Russo: Total revenue grew 25% in 2023 with double-digit growth across all primary revenue. 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 race promotion, sponsorship revenue, which is recognized accordingly, and hospitality and experience income, which is included in other F1 revenues. Race promotion revenue also benefited from the mix of events held compared to 2022, with two additional flyaway races this year, with Qatar and Las Vegas versus Imola and France in the prior year. And sponsorship and media rights revenue grew due to increased fees under new and renewed commercial agreements. Other F-1 revenue grew 42%, or $196 million, driven by hospitality and experiences, largely due 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 the easing of freight cost inflation. Team payments as a percent of pre-team adjusted OIVD, as reported, were 63% in 2023, down from 66% in 2020. Other costs of F-1 revenue increased from 23% of total revenue in the prior year to 32% of total revenue this year.

Brian Russo: Total revenue grew 25% and 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 race promotion sponsorship revenue, which is recognized accordingly.

Brian Russo: In hospitality and experience income, which is included in other F. One revenue.

Brian Russo: 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.

Brian Russo: 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.

Brian Russo: Other F. One 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.

Brian Russo: Same payments as a percent of pre team adjusted OIBDA as reported was 63% in 2023 down from 66% in 2022.

Brian Russo: Other costs about one revenue increase from 23% of total revenue in the prior year to 32% of total revenue this year.

Brian Russo: Primarily driven by promoting, organizing, and delivering the Las Vegas Grand Prix, as well as increased costs of servicing additional are, SG&A at 7% of total revenue was in line with historic averages. Corporate and other adjusted OIVD was a loss of $39 million in 2023, which includes the $15 million of revenue for use of the Pitt 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. Note that the fixed rent payment in 2023 reflects only a portion of the years the building wasn't occupied until closer to the race.

Brian Russo: Merrily, driven by promoting organizing and delivering to Las Vegas Grand Prix.

Brian Russo: As increased cost servicing additional hospitality offerings.

Brian Russo: SG&A at 7% of total revenue was in line with historic averages.

Brian Russo: 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 approximate depreciation plus a variable rent component during the race weekend.

Brian Russo: Note that the fixed rent payment in 2023 reflects only a portion of the year as the building wasn't occupied.

Brian Russo: Until closer to the race weekend.

Brian Russo: Corporate level expense at Formula One Group was also elevated due to the split off and reclassification. 2024 Formula One Group Corporate and other... Quinn Acquisition that closed in January as well as a full year. Looking to 2024, F1 will host 24 races with the return of China and Imola compared to 22 races in this past year. Quickly looking at a few cash items, F1 estimates its cash tax rate in 2024 to be a high single digit percent of F1-adjusted OEBD, increasing towards low double digits in future years as a result of the U.K. Total CapEx incurred at the Formula One Group in 2023 was $426 million, approximately $390 million of which related to the development of LVG, with a majority incurred at the Formula One Group Court.

Brian Russo: 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.

Brian Russo: Looking to 2024 F. One will those 24 races with a return of China and M. A lot compared to 22 races in this past year.

Brian Russo: 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.

Brian Russo: 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. G. P. <unk> with the majority of incurred at the Formula One group corporate level.

Brian Russo: At the Liberty Life group Theres attributed cash liquid investments and monetize it with public holdings of $418 million, which includes ETF assets.

Brian Russo: At the Liberty Live group, there's attributed cash, liquid investments, and monetizable public assets of $15 million, which includes ETF assets. There's $400 million of undrawn margin loan capacity related to our Live Nation market, and as of February 27th, the value of the Live Nation stock was $6.5 million. We have $1.2 billion in principal amount of debt against which Liberty and our consolidated subsidiaries are in compliance with their debt covenants at quarter end.

Brian Russo: There's $400 million of Undrawn margin loan capacity related to our live nation margin Mark.

Brian Russo: And as of February 27th the valuable admission stock was $6 5 billion.

Brian Russo: We have $1 2 billion in principal amount of debt against these holdings.

Brian Russo: Liberty and our consolidated subsidiaries are in compliance with our debt covenants at quarter end and then quickly looking at the Braves are the.

Brian Russo: And then quickly looking at the Braves, the Braves business is also best analyzed on an annual basis due to fluctuation. Baseball revenue increased 9% in 2023, primarily due to increased ticket demand, leading to a 14% growth in baseball event revenue and 8% growth in retail and licensing. Other baseball revenue declined primarily due to fewer concerts held compared to the prior year. However, the Battery had another great year with mixed-use revenue increasing 10%. Total adjusted OEBD decreased for the year primarily due to increased player payroll expense as Braze Management continues to invest in its on-field success, including a number of trades and accelerated player signings in December.

Brian Russo: <unk> business is also best analyzed on an annual basis due to fluctuations in game count.

Brian Russo: Baseball revenue increased 9% and 2023, primarily due to increased ticket demand and attendance leading to a 14% growth in baseball bat revenue, an 8% growth in our retail and licensing revenue.

Brian Russo: Other baseball revenue declined primarily due to fewer concerts held compared to the prior year.

Brian Russo: Battery had another great year with mixed use revenue increasing 10%.

Brian Russo: Total adjusted OIBDA decreased for the year, primarily due to our increased player payroll expense as braised management continues to invest in its field success, including a number of trades and accelerated player signings in December of 2023.

Stefano Domenicali: The adjusted OEBDF for the mixed-use development increased 11% in 2023. And just a reminder that SG&A was elevated for the full year due to the split-off costs. We would anticipate a $10 to $15 million annual run rate for corporate overhead at SG&A. With that, I'll turn it over to Stefano to discuss Formula 1. Thanks, Brian.

Brian Russo: Rested OIBDA for the mixed use development increased 11% in 2023.

Brian Russo: And just 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.

Brian Russo: Annual run rate for corporate overhead at the Atlanta Braves Holdings.

Brian Russo: With that I'll turn it over to Stefano to discuss Formula one.

Brian Russo: Yeah.

Brian Russo: Yeah.

Stefano Domenicali: Thanks, Brian the 2023 seasons deliberate incredible racing our record financial results.

Stefano Domenicali: The 2023 season delivered incredible racing and record financial results. On the track, we want to recognize Max Verstappen and Red Bull once again for their superb performance, leaving the rest of the grid baffled until the end.

Stefano Domenicali: On the track, we want to recognize and Mexico is tough and were once again on their superb performance.

Stefano Domenicali: The Greek baffled until yet.

Stefano Domenicali: The race for second in the Constructor Championship came down to the final lap of the season between Mercedes and Ferrari. McLaren and Aston Martin battled for fourth, with McLaren intensifying the competition after a solid mid-season upgrade. Oscar Piastri had a stellar rookie season, securing 97 points, including two podiums and a sprint race victory, and album fans had much to cheer about as he scored points in a number of races in 2033, helping Williams finish in seventh, showing good progress under James Doll's leadership. Across the entire 2023 season, six teams were represented on the podium, a reflection of the talent up and down. The new regulations are increasingly benefiting competition across the field, and we believe this will continue in 2024 as the benefits of the cost cap and the technical regulations continue to mature.

Stefano Domenicali: So at least for the second in the construct of temporary she came down to define the lap of the season between let's say this that's about it.

Stefano Domenicali: Mclaren Aston Martin Saputo.

Stefano Domenicali: With Mclaren intensify the competition after a solid mid season not great.

Stefano Domenicali: I was kept yesterday at the teller rukia season, securing 97 points included two proteins in the sprints basically.

Stefano Domenicali: Album fence as much to cheer about as these core points and a number of bases and so it doesn't seem to be helping William schemes to seventh showing good progress on the James Dolls leaderships.

Stefano Domenicali: Across the entire it doesn't see season six themes were represented on the board.

Stefano Domenicali: Reflection of the talent up and down quickly.

Stefano Domenicali: The new regulation.

Stefano Domenicali: But if you think competition because the steel and we believe this will continue in 2024.

Stefano Domenicali: That is all of the cost cap and the technical regulations continue to mature.

Stefano Domenicali: Financially, the business generated record revenue and adjusted OEB debt for the All-Primary Revenue Stream Group, benefiting from new and renewed commercial agreements. Furthermore, our Paddle Club had an incredibly strong year, with hospitality and experiences revenue growing nearly 100% year-on-year. This was driven by the expansive suite of hospitality and experience offerings at Las Vegas Grand Prix, as well as growth in our core Paddle Club product, with the Paddle Club selling out at 10 of 19 events. Towards the end of the season, we had the spectacular Inaugural Las Vegas Grand Prix. It was a formidable undertaking, moving the project from start-up planning to race delivery in little more than one year. We are incredibly proud of the Las Vegas team, who worked with multiple stakeholders in the city and within the wider F1 community to deliver an incredible event on and off the track. Total ticket sales were $316,000 for the weekend. The race was thrilling from start to finish. Charlotte Clare passed Paris on the last lap to secure a second place finish, and the race generated fan-riching multi-platform buzz and drew in new viewers who hadn't engaged all season.

Stefano Domenicali: Financially the business generated record revenue and adjusted OIBDA.

Speaker Change: Well, yes.

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 and experiences revenue growing nearly 100%.

Stefano Domenicali: And year on year.

Stefano Domenicali: These were driven by the expansive suites almost fatality mosquitoes, all things at Las Vegas lumpy as well as growth in our core public blip problem with a bubble clips allows a 10th 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 reach to leave it in a little more than one year, we added reasonably crowd of the Las Vegas team worked with multiple stakeholders in the city.

Stefano Domenicali: Did the why do the F. One could lead to deliver an incredible event on on and off the track.

Stefano Domenicali: Total ticket sales with three out of the 16000 for the weekend that Ace was trading from the start to finish Charlotte passive Paris on the lost lots of Securities second place finish.

Stefano Domenicali: The raise generated funds, which in multiplatform bus and doing new viewers, who hasn't engaged old season.

Stefano Domenicali: The local economic benefit generated by this race is remarkable; local casino partners had record revenue, with monthly gaming revenue for Clark County at an all-time high for the month of November. Stepping back to the broader calendar, the 2023 season overall delivered another year of record attendance. 6 million total fans attended the race weekend, up 5% compared to the 2022 season. 12 races promoted reported a new attendance record, including 480,000 at Silverstone, 445,000 at Melbourne, 405,000 in Mexico, and 308,000 in Belgium. Race attendance remains strong through the end of the season, with record crowds in So Paulo and Abu Dhabi.

Stefano Domenicali: The local economic benefit generated by these waves is remarkable local casino partners had to break up the Avenue 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 sense attended the race weekend.

Stefano Domenicali: 5% compared to the 2022 seasons.

Stefano Domenicali: He was promoted with both the new attendance records, including 480440, 5000 up mobile well under the <unk> 5000 in Mexico and three out of the 8000 in Belgium.

Stefano Domenicali: At least it then does remain strong through the end of the season with record crowds and somehow and Abu Dhabi.

Stefano Domenicali: F1 fans tuned in across platforms. Last season, we worked closely with our media partners and created new tools to estimate digital viewership on platforms and channels not covered by Nielsen. Our findings suggest an additional 29% of voters are not currently covered by traditional measurement globally, representing almost 20 million on average per race weekend.

Stefano Domenicali: It's one SKU in the cross platform last season, we worked closely with our media partners and create new tools to estimate these the viewership on platforms and channels not covered by Nielsen I would've findings suggest an additional 29% of orders have not currently covered by traditional measurement globally represented.

Stefano Domenicali: Almost 20 million on average per race weekend.

Stefano Domenicali: The share of digital viewership is much higher for markets like the U.S., because fans rely more on video-on-demand and streaming platforms to watch races, especially those at less convenient times for live viewers. 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 audience. Looking at broadcast TV, the cumulative TV audience for the 2023 season, excluding digital viewership, was 1.5 billion, and average viewership per race was approximately 70 million. In the US, cumulative viewership was up 4% compared to the prior year, setting a new season cumulative TV audience record. Importantly, viewership among the under 35 and female demographics grew across all of our markets. Our Spring Series continued to drive increased engagement throughout the season, which boosted TV audiences and raised weekend attendance. For our sponsor, there was an over 50% increase in average brand exposure during the spring weekend. We look forward to the sixth event in 2024.

Stefano Domenicali: The share of digital viewership is much higher for a market like the U S.

Stefano Domenicali: Rely more on video on demand as premium fastest dwarfs 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 audience Luke.

Stefano Domenicali: That broke STV cumulative <unk> orders for 2023 season, excluding digital viewership was $1 5 billion and average viewership. The race was approximately $70 million in the U S. Cumulative viewership was up 44% compared to the prior year setting a new season cumulative.

Stefano Domenicali: T V orders record importantly, viewership of moldy under 35, and he made the medical graphics grew across all of our markets.

Stefano Domenicali: Print Sirius continues to drive increased engagement throughout the season, which boosted television audience as a race weekend looked at this as well.

Stefano Domenicali: The sponsor there was an over 50% decrease in average Brent exposure during this peak weekends.

Stefano Domenicali: We look forward to the 60 beds to 2010 before.

Stefano Domenicali: Furthermore, one of them 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 and Chantilly.

Stefano Domenicali: Formula One was once again the fastest-growing major sports league on social media for the fourth year in a row, with the highest growth rate compared to the 11 other global sports, including NBA, NFL, and Champions League. We grew to 70.5 million followers on social media, up 17% from the prior year, with continued growth, especially in the U.S., where social media followers were up 28%. The U.S. continues to make up our largest audience on YouTube and TikTok social media.

Stefano Domenicali: We grew to 71 5 million followers on social media.

Stefano Domenicali: 17% from the prior year with continued growth, especially in the U S, where social media followers were up 28%.

Stefano Domenicali: The U S continues to make up of our largest audience on Youtube social vessels.

Stefano Domenicali: For our F1.com and F1 app platforms, over 100 million unique visitors viewed over 3.1 billion pages, an increase of plus 10% over 2022. Construction of highlight videos on our web and app also grew by 35%. And we made greater commercial progress in 2023, securing contracts that will underpin our continued future success. As of year-end, we have over $12 billion in future revenue under multi-year contracts; our momentum continues during the off-season and into 2024. On race promotion, we are prioritizing the quality and the value of every race slot having reached what we believe is a comfortable near-term maximum of 24 races. Early this month, we announced a 10 year extension with Silverstone and look forward to enhancements to the Paddock Lab and other physical infrastructure upgrades at the Circus.

Stefano Domenicali: Excellent I'll call them, an excellent platforms over hundred million unique visitors viewing over people one medium pages I think these are plus 10% over 2022.

Stefano Domenicali: Inception of highlight videos or novel Web and App also grew by 35%.

Stefano Domenicali: And we made greater commercial progress in 2023, securing conflicts that will underpin our continued student 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 to a Max of 24 races.

Stefano Domenicali: Early 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 are excited to welcome the Madrid Grand Prix under a 10 years' agreement in a brand new circuit with both street and non-street segments from 2026. The race has plans to invite 110,000 fans initially and has the potential to expand to over 140,000 over several years. We also announced a five-year extension for our Japan and Brazil races. With this announcement, we have now finalized all contract negotiations for the 2025 season and will turn our attention to optimizing the risk calendar for 2026 and beyond. Additionally, on MediaRite, we are delighted to have recently secured a long-term pan-regional deal across the MENA region with its biggest sports platform, BEIN Sport. This is on the heels of over half a dozen renewals signed in 2023. F1 continues to benefit from the demand for live global premium content. We are broadcasting in 200 territories and have a well-diversified portfolio of media rights contracts across markets, typically ranging from 3 to 5 years. As we have said, alternative bidders, including digital players, are increasingly showing an interest in live sport and increasing competition from scarce markets.

Stefano Domenicali: I'm excited to welcome the mother.

Stefano Domenicali: 10 years agreement and a brand new stupid with both sweetened know St segment from 2006 that Asos plan driven by the 110000 sense 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 the old contract negotiation for the 2025 season, and we turned our attention to optimized at least calendar for 2026 and beyond at.

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.

Stefano Domenicali: Is on the heels of over half of those renewals signed in 2023.

Stefano Domenicali: That's one continues to benefit from the demand pull live global premium cold.

Stefano Domenicali: We are broke us in 200 territories and have a well diversified portfolio of media rights contracts across markets typically ranging from three to five years.

Stefano Domenicali: We have said alternative bidders included digital players I think visually show an interest in live sports and increases competition, So Scotts media rights.

Stefano Domenicali: Oh, that's one PD product has grown significantly since launch with T. F. One television pro subscribers growing 37% in 2023 compared to 2022.

Stefano Domenicali: Product has been boosted by growing in the S. One calendars and fostering choices new in depth chose old 'twenty onboard cameras team radios and continuously adding life programming around every season plus have you bumped mobile friendly design.

Stefano Domenicali: We believe it delivers the best in class brothers 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 had a successful 2023 and growing the exact existing partnerships, while securing new brands, including leveraging new assets like Las Vegas N F. One academy to generate incremental demand.

Stefano Domenicali: <unk> told me he took the recently announced as officials bothered also have won Academy and we love 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're optimizing all with existing inventory to maximize impact is.

Stefano Domenicali: Exclusivity and value for our partners.

Stefano Domenicali: Also actively creating new assets to capitalize on our growing demand as supposed to a preface for Taylor opportunity in live events.

Stefano Domenicali: There are pockets vertical where we are exposed including financial services and betting to name a few.

Stefano Domenicali: Our funnel engagement activities off the track.

Stefano Domenicali: To gain momentum and 400 cases per location in London are recorded for hundreds of thousands of digital in this first year and the second U K location opening in the stomach.

Stefano Domenicali: The first U S venue will open in Boston and D. C. This year with 20 by new styles get this over the next five years. The F. One exhibition moved from a dream wedding. Welcome 117000 visitors. It's opened its second location, Indiana that'd be the smoke and we'll continue touring iconic global seated to inspire the next generation.

Stefano Domenicali: Yes.

Stefano Domenicali: Sustainability remains a large priority for pool, one across our organization commercial Buffalo and therefore.

Stefano Domenicali: 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: A number of sustainability accomplishment do I like from a philosophy to name a few progress continuing to develop over 100% sustainable library.

Stefano Domenicali: We'll be introducing doesn't and 56.

Stefano Domenicali: And that would be a drop in fuel usable in both cost without modification, which provides broader global benefits to the automotive industry well beyond they picked up a little but the non European events of the 2023 season to use the fleet transportation by DHL on the new fleet of biofuel the truck reducing really.

Stefano Domenicali: Nathan 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 teammates driver category to develop and preferred young female drivers too.

Stefano Domenicali: Get to higher levels of competition. The second season in 2024, we see F. One Academy race, either supports heaters of seven and 40 minutes.

Stefano Domenicali: Do you have 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 a wealthy make driver to these indices.

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 view as the distance our waste keeps travel globally in support of our 2013 net zero commitment.

Stefano Domenicali: China has turned to the calendar for the first time since 2019. This explains cedars will take place in Miami, Austria, Austin, Brazil, Qatar inside it.

Stefano Domenicali: We made small changes to the form of the seasonal with sprint qualify on Friday sprint race, followed by waste qualifying on Saturday and the Grand Prix is no amount on something.

Stefano Domenicali: And much to the lights of our fence. These out season that suddenly the reach of exciting young for led to secured seats for years to come with Charlotte classical meeting to discuss it here at least through 2025 in London, Lloyd's, but many macleod at least through 2026 capture the headlines Lewis Hamilton, Let's say this Paul.

Stefano Domenicali: Regarding 2025 after an incredible two with 12 seasons with the silver arrows.

Stefano Domenicali: Rosy.

Stefano Domenicali: I'm incredibly proud of the accomplishment 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 fun Dom with optimized content.

Stefano Domenicali: To boost engagements, while capturing more fast data. So we can better tailor our commercial outreach. These airports 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.

Stefano Domenicali: We'll continue to invest in our sport to capitalize on all what do you feel that you build momentum.

Stefano Domenicali: Altitude that 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 keys.

Speaker Change: Our first question is from Ben.

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 you know that was a lot of work.

Ben Swinburne: Greg I had a couple for you and maybe one for Brian if he was 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 the 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 now that everything is sort of built but you probably have some maintenance costs on all these new assets so that was it.

Speaker Change: Thanks, so much.

Speaker Change: Well, then I'm going to touch on the optimizing the cost structure, then let renee add to it and on the Cochrane agreement I'll, let Stefano cover where we stand so on the optimized the cost structure.

Speaker Change: Because we moved with real speed.

Speaker Change: To try and get a 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's a temporary structure a bridge that was put over.

Speaker Change: One of the roads that will become but was our cost that will not be re incurred.

Renee: There are there was work that was done around ensuring a great security that I think will learn how to do that in a more cost effective manner, but I'll, let renee touch on other items, which he thinks we might be able to save a lot.

Renee: Alright, Thanks, Greg.

Renee: So to Greg's point, we really good lean in on transportation planning and security no. One knew just how traffic with floor, we were hoping for the best but planning for the worst and it did turn out to be significantly better than anyone fear that will hopefully allow us this year to start looking for areas that we can cut back and we also have the benefit in year two of having a.

Renee: Playback them again, we had to lean in on fan experience and other events that would allow us to create that inaugural race weekend that we needed them for year, one but this year. We are looking very closely at every line item on the budget to see where can we maximize the fan experience and ensure safety while also looking for.

Speaker Change: It really cut back on some of those costs.

Speaker Change: Some of that will be I think most of that'll be direct costs. Some of that will be in G&A, but mostly directed great Brian.

Speaker Change: I would think most of them yeah, most would be in the operating costs again.

Speaker Change: Definitely want to touch on the Cochrane agreement.

Brian: Yep. Thank you Greg Yes, Ben So we expect to address the renewal of the concert agreement with the teams very very shortly.

Ben Swinburne: We add to our view that these basically shared with the things that the basically the Concorde agreement that would need to will not need any substantial changes. This time around so we're going to start very very soon.

Ben Swinburne: Priority two finalize before the end of the season and talking about regulation and other staff with them with regard to other things that need to be solved before so now we're getting close to the time, where we're gonna start this discussion very very shortly as I said that.

Speaker Change: Got it.

Speaker Change: And then lastly ban on the on the Capex.

Speaker Change: We're not going to disclose any specific numbers, but we would expect it to start to trend back to what our normal rate was in the past specifically on L. B G. P. The team might evaluate different opportunities where you could.

Speaker Change: Put stuff on the balance sheet versus having it as rentals and opex, so those opportunities might arise, but overall, we wouldn't expect it to be overly material.

Speaker Change: Thanks, so much.

Speaker Change: Our next question is from Bryan Kraft with Deutsche Bank. Please proceed with your question.

Brian Russo: Hi, good morning.

Brian Russo: One for Greg and Stefano and Brian.

Brian Russo: Greg I was wondering if you could walk us through the steps that you still need to take in order to close the spin merge with Sirius XM.

Brian Russo: Stefano I was wondering if you could just clarify.

Brian Russo: Well the Madrid Grandpre bring in the race count to 25 in 2026 or a substitute for Barcelona or another race and then also as Stefano if you could.

Brian Russo: Just comment I mean, just qualitatively on the media rights outlook. It seems like 2024 will be a lighter year from a.

Stefano Domenicali: Media rights revenue growth standpoint, based on the renewal schedule and then a stronger year in 25 I just wanted to see if that was right.

Speaker Change: And then the last one I had was for Brian.

Stefano Domenicali: Brian I was wondering if you could just help us with some baseline numbers for Quint did that so that we could try to model that correctly.

Brian: Any estimate of revenue and EBITDA from last year and any color on seasonality. Thanks.

Brian: Okay.

Brian: So I'll touch on the first one.

Brian: We received initial comments from the SEC on the proxy.

Brian: I think those were relatively light.

Brian: Credit the legal and.

Brian: Accounting teams for.

Brian: Answering those are having a proxy that was clear and transparent and we'll be able to answer those relatively quickly. So that we will need to be cleared the final proxy by the SEC before we can go forward with a vote at the Liberty Siri level. We also have a parallel process with the FCC that I think is relatively pro forma we do not believe that will be the long.

Brian: Pole in the tent. So we are still targeting early third quarter. Some chance, we may be able to get it done quicker, but we're trying to manage your expectations and ours.

Brian: Next question, but the next part of the questions. Yeah. It's I would say I think I can come in Greg to answer Brian.

Brian: The point of Madrid, Madrid, 26, and that that is a year, where there will be a lot of Grand Prix weather, mainly euro we have different options there'll be can take over it. Therefore, I think Madrid shows once he does was very important for us to see that the the attention that's one.

Brian: Either they're also in the in the old continent, where everyone was thinking though.

Brian: We need to move with Alto euro because theres not any more theaters, but we show the opposite I think towards the sea. So you're going to you're going to see something interesting. We are discussing with other promoters in Europe to do something that would.

Brian: It will be announced as soon as we close for sure, but <unk> will be a big boost because the event will be organized in a place where as Greg was mentioning the a D. A.

Brian: The beginning of his speech will be in a sort of track and a place where we'll be around the convention area to allow us to.

Brian: Given the opportunities of the fast to lead that event in an incredible way, but of course, so far just focus in Spain in Barcelona is a big can lead them to do a big lumpy. There. The next capital lease debt with regards to the media right I would say there are two points that I think that we cannot consider light that 2020 full because we just signed up.

Brian: Very important deal with Dean.

Brian: For the next 10 years and we do believe that also the <unk> blast Tvs were going very very well. This year. So I think that for sure is in the year, whether you're going to see another growth and of course Oh we.

Brian: We're getting ready for a very important year when that in the future in two years' time that will be the the media deal in the U S that will be a very important deal we need to discuss at the right moment, where are we going to believe where we believe this will be another step in terms of our growth in that landscape.

Speaker Change: Yes, and then Brian on Quinn, we're not going to give the 2024 numbers, but.

Speaker Change: What we would say is that the acquisition should be accretive to the formula One group overall.

Speaker Change: So you can kind of do the math from there it's not overly material to the formula one business, but it should be accretive going forward.

Speaker Change: Thank you and then maybe just one follow up for Greg just Greg what's the.

Gregory B. Maffei: The amount of time, you need between FCC approval for the proxy and the vote and the vote and closing the transaction.

Gregory B. Maffei: Say circa two months.

Speaker Change: Okay got you. Thanks.

Speaker Change: Thanks, very much I appreciate it.

Speaker Change: Yeah.

Speaker Change: Our next question is from David Karnofsky with J P. Morgan. Please proceed with your question.

David Karnofsky: Alright, thank you.

David Karnofsky: For Gregory.

David Karnofsky: Your Vegas Hotel partners were consistent in their views on their earnings calls that the rates should have.

David Karnofsky: Broader appeal and benefits some of the lower end or further properties on the strip so.

David Karnofsky: Interested in how youre thinking about potentially accommodating that and what it means for the race in terms of ticketing or operational adjustments and then for Brian.

David Karnofsky: F. One operating leverage for the year was a little better than we had I think some investors had anticipated.

David Karnofsky: The release, you called out a reduction in the teen payout percentage as compared to 2021, Concord just want to make sure that was the main driver or weren't kind of any onetime adjustments to consider.

Speaker Change: I'll, let Renee touch on the Vegas partners.

Renee: Yeah. Thanks for the question. So we will be going on sell pretty soon and when we go and sell you'll see that we have a significantly higher number of general admission, we're actually creating a brand new general admission only zone waste.

Renee: But you will have single day tickets and we will be at the lowest price point that you've all seen for the Las Vegas Grand Prix. This is largely driven to accommodate the lower end properties and also to bring downtown into the mix. We are also working in partnership with ELV CBA to actually engage downtown different types of Activations potentially watch parties, but really just spreads is.

Speaker Change: Benefits of what was an incredible weekend throughout the entirety of the Bali.

Speaker Change: Okay.

Speaker Change: And then on the on the F. One operating leverage to your point it primarily as the team fees, there's lots of ins and outs, but theres no material one time items.

Speaker Change: Okay. Thank you.

Speaker Change: Our next question is from David Joyce with Seaport Research Partners. Please proceed with your question.

David Joyce: Thank you just wanted to try to get a finer point on the team payments. There would 15 that'd be excluded from team share payments or would some of those activities if thoroughly if one related.

David Joyce: Be involved.

David Joyce: The same would go for any other acquisitions would within it with any tuck ins be outside of the Concorde agreement.

David Joyce: And related to that how are you balancing reinvesting in the business versus thinking about capital returns from here. Thanks.

David Joyce: So I think quint has an arm's length deal existing prior to our purchase with F. One and we would expect that arms like deal to continue but the results are part of the one <unk>.

David Joyce: <unk> stock not part of that one.

David Joyce: And that would likely be the case for any other acquisitions cant say, absolutely because it would depend on the company, but likely that would be outside the U F. One group or the F. One operating statement and shared with the teams.

David Joyce: <unk>.

David Joyce: We continue to weigh our opportunities like Vegas, obviously, we look at we look at lots of sporting properties. We think we have something to bring to the sporting world based on.

David Joyce: What we have been able to achieve it that's why don't we think there are some things that we can bring forward to other sports properties, but we're judicious in that.

David Joyce: And people approach us because of those skills.

David Joyce: Certainly looking at continued share repurchase is an alternative as well and we way.

David Joyce: Third party alternatives that we might arrive that might arise with that.

Speaker Change: Thanks, and if I could add one on the Braves, if we could just get an update please on where that the process is with the.

Speaker Change: With the bankruptcy court something or a sense. Thanks.

Speaker Change: Derek do you want to touch on that.

Derek: Sure. Thanks for your question.

Derek: We're watching that closely and what we see as the bankruptcy.

Derek: A presentation that was made is still being followed diamond sports seems to have a plan for emerging from bankruptcy as you've probably read.

Speaker Change: We're watching and seeing that just like you are.

Derek: For our purposes, we're still getting full payment.

Speaker Change: Operating the agreement.

Speaker Change: As normal so at this point in time, nothing is deviating from that and we don't expect that.

Speaker Change: Especially as they've laid out for their plant.

Speaker Change: Alright, Thank you very much.

Speaker Change: Yeah.

Speaker Change: Our next question is from our in Crockett with Rosenblatt Securities. Please proceed with your question.

Crockett: Okay. Thank you for taking the question.

Crockett: I'm just wondering on the EBITDA growth year over year.

Crockett: I understand you're not going to break out Vegas in any specificity.

Crockett: But is there any comment you can make on whether or not Vegas.

Crockett: Provided any material impact on that EBITDA change did it.

Crockett: Up down or was it no impact.

Crockett: Fix that was very big kind of year over year growth and that was in a race there.

Crockett: It was obviously meaningful so that's one and then.

Crockett: Secondarily on the.

Crockett: Following up on the Braves kind of questioning.

Crockett: I was wondering if you could comment on some of the discussion that major League baseball is interested.

Crockett: Potentially rolling up sports local team rights.

Crockett: So I'm kind of streaming service.

Crockett: And if that could potentially.

Crockett:

Crockett: Be a roadblock or something to be resolved as you go through this diamond restructuring, but could you talk about kind of your views your support for that idea. Thank you.

Crockett: So touching on LPG P. I can say that it'll be cheap at the GP was a positive concho contributor to <unk> earnings for 2023, and with the cost optimization measures, we have discussed and frankly you know.

Crockett:

Crockett: Improved interest rates and improved potential price points I think we will see a greater contribution in 2024.

Crockett: I think that's where we'll leave that on M. L. B I think I'm reluctant to comment you've seen some of the public actions that MLP has was against some of the diamond proposed restructurings, but other than that I think.

Crockett: We'd leave it alone other than Derek if you want to add anything.

Derek: No. The only other thing I might say just point of clarification, if youre not aware of.

Derek: The current agreement with Diamond does not include streaming rights so that.

Derek: Streaming rights continue to be held at the league level, that's not necessarily the case for all teams, but in our case it is and so we're obviously.

Derek: Obviously differential to what the league is going to do as a whole but right.

Derek: Right now our streaming remains at the league wide level.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question is from Stephen <unk> with Goldman Sachs. Please proceed with your question.

Stephen: Thanks, Good morning, two one formula one maybe for both Greg and Stefano first one Patrick could you maybe talk a little bit about where you see opportunity to grow hospitality revenues in 'twenty four I'm curious what inning of the pricing increase front and where we're at for panic, it's been a pretty nice tailwind over the last few years and then are there any areas.

Stephen: Across the slate in particular, where you think there's opportunity to grow capacity.

Speaker Change: And then secondly on sponsorship nice growth in 'twenty three could you maybe just talk a little bit more about the opportunity in 24, how much room do you feel like there still is to increase inventory without diluting the existing sponsorship.

Speaker Change: Value add Stefano I think he mentioned, creating some new assets I'd be curious if you talk a little bit more about that and what verticals remain large opportunities. Thank you.

Speaker Change: Definitely do you want to start on hospitality, yes.

Stefano Domenicali: Yes. Thank you Greg. Thank you Steven I think that what.

Speaker Change: That's been amazing these in the last couple of years, but the fact that the our offer in term of pattern play that's been always appreciated by the customer we did some adjustments on pricing not everywhere because of course, we understand that Oh of course, the prices are very important but it's just simply things to do.

Speaker Change: Or to apply and the forward I think thats, what we have done this year that these basically already confirming an incredible request from our partners and teams and guests.

Speaker Change: Is try to maximize the eventual potential of growth and added that the these TSA availability of space and the other thing that we are doing. These proceeds there is another kind of offer that we can put together of course. The fact that now we have together with quint begun to exploit the maximum opportunity to make sure that's it.

Speaker Change: Other Catholics Peter's can grow also in the area of entertainment because that's another place where we have a exploit in a different way that we can experience for our fans and with regard to the sponsorship I think that what we have seen in the last couple of years has been an incredible growth in term of quality and in terms of quantity.

Speaker Change: <unk> of our partners that means that we need to keep it.

Speaker Change: Having the right attention towards these kind of revenue stream, but that means that also we need to be ready to increase our possibilities to having the right.

Speaker Change: Offer into in terms of new opportunities I think that the one that is pretty clear that we are able to optimize that we've done already last year and in a way has been the digital plus.

Speaker Change: Possibilities to differentiate from <unk>.

Speaker Change: Edit to add these are deferred.

Speaker Change: The option for our partners and on the other side of course, there are two main added whether that we believe that has potential to do both we need to have the right competences and we need to find the right partners calls here the complexity that these one out of the gambling.

Speaker Change: And that the other areas on the financial services.

Speaker Change: It's been already taken a big step last year with the IMAX, but I think that is a huge opportunity that we can take into the future and thats really where I believe in the old term that that the potential to even grow it seems that and it would be and we'll be there.

Speaker Change: Got it thank you.

Speaker Change: Okay.

Speaker Change: Thank you. Our next question is from Peter Zaffino with Wolfe Research. Please proceed with your question.

Peter Zaffino: Hi, Good morning, one first a final one for Greg Stephano, if you wouldn't mind with Silverstone and Madrid in San Paulo in Suzuka, all signs in the last quarter I guess, we have seen contracts locked in for five or 10 years.

Peter Zaffino: Some cases, so how should we be thinking about the trade offs in terms of contract duration escalators step ups for promotion rights like this I'm curious about the pros and cons and how we can think about that for modeling and then Greg If you could please comment on the.

Greg: Bigger picture for sports rights, it's become very controversial this topic that was once.

Greg: Only driven by Optimists.

Greg: And if you could let us know how you see sports rights audience, playing out over the next several years given the puts and takes of linear and streaming. Thank you.

Greg: Well Peter Thank you for the with regards to the first question I think is always well.

Greg: We take the decision with regard to the new World.

Speaker Change: But a lot of evidence of that we need to consider first of all of course, the financial expertise relevant no doubt and I and the fact that we are able to stabilize with sort of promoter, which we believe are presented and credible opportunities in in in terms of our stability on this market. These are relevant.

Speaker Change: Element to consider.

Speaker Change: The fact that in that you have seen in the last couple of years that we were able to ratify uncollectible.

Speaker Change: The agreement with certain promote them. These bad Daddy's from one side of course that are very interesting financial package, but on the other side, an incredible opportunity to develop our business in that the added that on top of the one that is related to the promotional fee and thats really our our approach. It is clear that the E U.

Speaker Change: See the development of our original Ization of the Callender, we have moved out from being that European centric to a very worldwide basic development that needs to be kept into the future.

Speaker Change: Just want to confirm the fact that we believe 24 races is the right number and I think that we got that play in there actually I was mentioning just briefly before on the fact that we have certain opportunities you want to bring it to the market in the next couple of years.

Speaker Change: <unk> seen some 2026 onwards.

Speaker Change: So I could just add on what Stefano said look the way I think it's.

Speaker Change: Not unlike the sports rights question, which I'll get to in a SEC your way.

Speaker Change: What's the appeal of the venue.

Speaker Change: And what are the economic opportunities for us and in general if you see us cut a very long deal you must think it's we think it's a pretty good opportunity both on the fan basis and on the economic basis, you see a shorter term deal that's open to questions and so we weigh all of those on the sports rights.

Speaker Change: Well look the world has gotten more muddled as you suggested.

Speaker Change: In general.

Speaker Change: More people bidding that's a positive.

Speaker Change: Also more sports that may be a challenge.

Speaker Change: And then the issue of fragmentation and trying to find where you're sport is for your fans and making it easy we are always looking particularly given our big sponsorship business on the trade off between reach and what we get paid.

Speaker Change: Lots of factors there overall on whether you are positive or negative I would note I feel very positive about the sports properties were involved with why both have incredible fan demand have high ratings.

Stefano Domenicali: Relative to what they get paid both have a passionate fan base as I suggested look at the ratings for where the Braves are look at who is watching F. One and where they want to get up and watch it early in the morning, both of them both of them are not hugely monetize relative to what some of their peers are monetized.

Speaker Change: And I think if you look at sports market in general you've seen renewals on properties that did not necessarily have massive growth and still get more money. So I remain in general bullish on sports rights given the multiplicity of buyers and in particular bullish on the sports rights and the properties were involved in.

Speaker Change: That's great answer thank you and if I could pile on with one since my esteemed colleagues seems you'd be comfortable doing the same I wanted to ask you on.

Speaker Change: The U S media rights for F. One the ESPN renewal is it.

Speaker Change: Well its generally understood that ESPN doesn't earn much advertising revenue on that contract and so how do you think about the case for them pay more.

Speaker Change: I think the case you know when I, obviously I have a little bit of bias for this I think the case is pretty easy you've got one of those cases, where you have massive growth in fan interest and we can show statistically how much our fan interest has grown across all sorts of platforms, we have a very desirable.

Speaker Change: Scale audience, we have a younger audience a lot of factors that they would like to bring to the party ESPN or anybody else not to not to.

Speaker Change: Limited to that so I think there are a lot of reasons why we can make the case that our media rights in the U S are more valuable and there will be likely a multiplicity of players and we will likely get a better number.

Speaker Change: Thank you all.

Speaker Change: Okay.

Speaker Change: Thank you.

Stefano Domenicali: Our last question is from Jeffrey <unk> with pivotal Research group. Please proceed with your question.

Jeffrey: Good morning, guys I had a follow up on Vegas do you anticipate after your banks experienced taking a promoter role and more races, I guess post 'twenty fives, and then specifically on your decision not to lead into the web team.

Jeffrey: I assume you need a new coffee I guess can you provide color on that and then do you need a new Concorde agreement to raise the accuracy to make a more teams more palatable for the existing James Thanks.

Speaker Change: Thanks, Jeff I'll I'll touch on the first part about.

Stefano Domenicali: Promotion or co promoting or what other you'll see my answer and then Stefan maybe you will comment on the 11th team.

Stefan: Yeah. So on on promotion look I think we went in and promoted Vegas for a variety of reasons. We thought it was a unique opportunity to promote the sport. We thought it was a unique economic opportunity. We thought we would learn a lot about being a promoter and make us more credible with other promoters.

Jeffrey: I do not know what that there are many opportunities out there like Vegas, where we're gonna say, we absolutely want to do this.

Jeffrey: There may be opportunities in the future, where we can partner with promoters. Some promoters are short on capital. Some promoters are short on some skills and there are things that we could bring to the table, but in many cases, our promoters bring local knowledge local contacts local strengths.

Jeffrey: That are very valuable and we.

Jeffrey: We wouldn't necessarily be able to supplant those so in some way to think about enhancing that and working together I think that's the more likely path in thinking we're going to become a promoter of a bunch of races.

Jeffrey: And yes, Jeff with regard to the second question <unk> for short is ease of bond related to the comfort agreements. These are point of you know a joint work that has to be done between the FAA and that's when we go out to the different the kind of the evaluation that we need to do so I think that with regards to.

Jeffrey: What does happen I think that the person has been follow it in the end that we presented the result in the right way for the future is a matter of discussion of course with the teams with the right commercial and technical position that will be discuss accordingly in there within this year.

Speaker Change: Thank you.

Speaker Change: Alright. Thank you I believe that was our last question. Thank.

Speaker Change: Thank you again to the listening audience for both your interest in Liberty media and the Braves are we look forward to speaking with you again next quarter if not sooner.

Speaker Change: Okay.

Jeffrey: Okay.

Speaker Change: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.