Atlanta Braves Holdings, Inc. (BATRA)·Q2 2025 Earnings Summary

Executive Summary

• Revenue of $312.44M rose 10% YoY and beat Wall Street consensus by $16.08M (+5.4%); Diluted EPS of $0.46 missed consensus by $0.10 (-18.3%) on higher interest expense and tax expense *.
• Adjusted OIBDA increased 44% YoY to $65.70M on strong broadcasting growth and mixed‑use performance; operating income grew 68% YoY to $41.79M as revenues outpaced cost growth .
• Baseball broadcasting revenue grew 14% YoY to $81.07M driven by additional streaming rights granted to the regional broadcast partner and contractual rate increases; mixed‑use development revenue surged 49% YoY to $25.12M, aided by the April 2025 Pennant Park acquisition .
• Liquidity shifted as cash declined to $96.20M at quarter‑end (from $244.68M in Q1) primarily due to the Pennant Park acquisition and capex; total debt (GAAP) modestly increased to $703.10M .

What Went Well and What Went Wrong

What Went Well

• Broadcasting unlocked incremental streaming rights and contractual rate increases, lifting baseball revenue to $287.32M (+8% YoY) and broadcasting to $81.07M (+14% YoY) .
• Mixed‑use development revenue rose 49% YoY to $25.12M, with new leases and Pennant Park in‑place rents contributing; segment Adjusted OIBDA grew to $17.57M (+53% YoY) .
• Profitability improved: Adjusted OIBDA rose 44% YoY to $65.70M and operating income climbed 68% YoY to $41.79M as revenue growth outpaced operating and SG&A cost increases .

Management quotes:

• “We reformulated [our regional media] agreement…where we unlocked D2C rights, the streaming option…We’re quite pleased with where things stand.” — Derek Schiller .
• “Pennant Park…adds an additional revenue stream…while also helping reduce the seasonal nature of baseball revenue.” — Mike Plant .
• “We have $275 million of untapped liquidity in the form of 2 baseball revolvers.” — Jill Robinson .

What Went Wrong

• Concession revenue was pressured by reduced attendance at regular season home games, dampening baseball event revenue growth despite new premium seating and sponsorships .
• Interest expense increased to $11.65M (from $9.71M YoY), and tax expense was $12.29M, constraining EPS and contributing to the EPS miss versus Street .
• Retail and licensing declined 5% YoY to $18.57M, reflecting softer merchandise trends .

Financial Results

Quarterly Performance and YoY

Margins

Values retrieved from S&P Global.*

Segment Revenue Breakdown (Q2)

KPIs and Balance Sheet Snapshot

Guidance Changes

Note: No formal quantitative guidance was issued in the Q2 earnings materials or 8‑K; Q2 call transcript was not available in the document set .

Earnings Call Themes & Trends

Management Commentary

• “They unlocked D2C rights…first time the Atlanta Braves have been offering streaming…We’re quite pleased with where things stand.” — Derek Schiller .
• “This [Pennant Park] acquisition…adds an additional revenue stream…helping reduce the seasonal nature of baseball revenue.” — Mike Plant .
• “We have $275 million of untapped liquidity in the form of 2 baseball revolvers.” — Jill Robinson .
• “There has never been more talent…This will attract significant interest in the League’s media rights…We are optimistic about the continued growth and success of the sport.” — Terence McGuirk .

Q&A Highlights

• Mixed‑use and baseball revenue growth sustainability: Management targets revenue growing faster than expenses on an annual basis; Pennant Park expected to enhance mixed‑use capabilities, though no forward guidance provided .
• Media outlook: Positive local streaming traction via the regional partner; strong territorial rights position and optionality as local rights and MLB national rights expirations align .
• Liquidity: $275M untapped baseball revolvers and increased mixed‑use borrowings support expansion plans .

Estimates Context

Values retrieved from S&P Global.*

Implications: Strong topline beat reflects broadcasting streaming rights and pricing; EPS miss driven by higher interest expense ($11.65M) and tax expense ($12.29M), diluting flow‑through to net income despite OIBDA/operating income strength .

Key Takeaways for Investors

• Topline resilience: Broadcasting and pricing/sponsorships drove a revenue beat; mixed‑use performance is increasingly meaningful to earnings quality .
• Profitability improving: OIBDA and operating income expanded YoY; margin trajectory positive versus Q1 and Q4 *.
• EPS miss: Higher interest and tax expense compressed EPS vs. expectations; watch financing costs and tax cadence through seasonality *.
• Mixed‑use strategy working: Pennant Park adds accretive, less seasonal revenue; expect continued lease‑up and tenant announcements to support segment OIBDA .
• Liquidity redeployment: Cash drawdown reflects acquisition and capex; leverage stable; ample revolver capacity maintained .
• Attendance risk: Concession softness from reduced attendance offset some event revenue gains; monitor in‑stadium KPIs for Q3 .
• Media optionality: D2C streaming momentum and alignment of rights expirations provide optionality for future monetization .

Bolded items indicate significant beats/misses versus consensus.