Liberty Media Corp (LSXMA)·Q1 2024 Earnings Summary

Executive Summary

• Q1 2024 was operationally solid with steady SiriusXM performance and strong F1 growth on more races; Liberty highlighted the on‑track timeline to close the Liberty SiriusXM Group and SiriusXM merger in early Q3 2024 and an expected year‑end close for the MotoGP acquisition .
• SiriusXM posted 1% revenue growth to $2.16B, adjusted EBITDA up 4% to $650M, and reiterated 2024 guidance; ad revenue grew 7% YoY and diluted EPS was $0.07 .
• Formula One Group revenue rose 45% to $587M with Adjusted OIBDA up 92% to $202M, driven by one additional race, media rights/sponsorship momentum, and higher hospitality; team payments and event‑related costs increased as expected with season mix .
• Potential stock catalysts: LSXM–SIRI combination closing (early Q3), regulatory approvals/timing for MotoGP acquisition (target year‑end 2024), and continued F1 media/sponsorship expansion (beIN MENA through 2033, Viaplay NL/Nordics through 2029, FanCode India through 2025) .

What Went Well and What Went Wrong

What Went Well

• SiriusXM delivered stable top‑line and margin progress: revenue +1% to $2.16B, adjusted EBITDA +4% to $650M; ad revenue +7% YoY; guidance reiterated .
• F1 momentum: Total F1 revenue +45% to $553M (Group total $587M), Adjusted OIBDA +78% to $208M (Group $202M), aided by an extra race and growth in media, sponsorship, race promotion, hospitality, and new F2 car cycle sales .
• Strategic partnerships: F1 secured a multi‑year Official Partner deal with Globant to elevate digital fan/team experiences (announced May 2, 2024), adding to DHL expansion, McDonald’s regional deal, and beIN/Viaplay/FanCode media rights strength .

Management quote: “We were thrilled to announce Liberty’s planned acquisition of MotoGP… Formula 1 kicked off the 2024 season with over 1 million fans in attendance across the first five races. At SiriusXM, they delivered solid revenue and adjusted EBITDA growth… The planned merger with Liberty SiriusXM is on track to be completed at the beginning of the third quarter.” — Greg Maffei, CEO .

What Went Wrong

• SiriusXM free cash flow decreased 8% YoY to $132M due to higher capex and investment activity, despite robust EBITDA; subscriber trends were a focus for improvement into 2H .
• F1 costs increased as season intensity and program delivery rose (team payments on pro rata recognition with one more race; new F2 car costs, higher freight, travel, technical, digital, and FIA regulatory costs; Las Vegas GP Plaza lease charges) .
• Cash at Liberty SiriusXM Group decreased $171M in the quarter, reflecting SiriusXM capex/returns and Liberty SiriusXM Group debt reduction; debt was reduced modestly via $65M margin loan repayment .

Financial Results

Attributed Group Financials (USD millions)

Liberty SiriusXM Group

Formula One Group (Total)

SiriusXM Standalone KPIs

F1 Operating KPIs

Notes on estimates: S&P Global consensus mapping for LSXMA was unavailable; therefore, we cannot present LSXMA consensus revenue/EPS comparisons for Q1 2024 or the prior two quarters (S&P Global data unavailable via tool) [SpgiEstimatesError].

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• Strategic priorities: “We were thrilled to announce Liberty’s planned acquisition of MotoGP… At SiriusXM, they delivered solid revenue and adjusted EBITDA growth… The planned merger with Liberty SiriusXM is on track to be completed at the beginning of the third quarter.” — Greg Maffei, CEO .
• F1 operating outlook: “We are seeing continued momentum both in financial performance and amplification of our fanbase… We recently published our first ever Impact Report and are proud to highlight that we are on track to reach our net zero target by 2030…” — Stefano Domenicali, F1 CEO .
• Call highlights (prepared remarks): “SiriusXM had a solid first quarter performance… expect self‑pay net adds improvements in the second half… guidance reiterated.” — Greg Maffei .
• Call Q&A (media rights): “We’ve been very happy with the renewals and interest… The U.S. renewal is obviously out ahead.” — Greg Maffei .

Q&A Highlights

• LSXM–SIRI combination: Management reiterated the transaction is progressing on track with an expected early Q3 close, addressing regulatory process and structural simplification .
• SiriusXM trajectory: Commentary pointed to cost optimization, app/digital investments, and improving self‑pay net adds into 2H 2024; guidance kept intact .
• F1 media strategy: Strong demand and attractive renewals (MENA, Nordics/Netherlands, India); U.S. renewal timing flagged as a future item .
• Sustainability/Academy: Management reinforced Impact Report milestones and academy programs as ongoing pillars .

Estimates Context

• S&P Global (Capital IQ) consensus for LSXMA could not be retrieved due to missing mapping for the tracking stock; therefore, we cannot provide LSXMA EPS/revenue consensus comparisons for Q1 2024 or the prior two quarters (S&P Global data unavailable via tool) [SpgiEstimatesError].
• The company does not provide consolidated LSXMA EPS guidance in the press release; SiriusXM reiterated its 2024 financial guidance, but specific guidance figures were not reiterated numerically within Liberty’s 8‑K; investors are directed to SiriusXM’s IR materials for details .

Key Takeaways for Investors

• Near‑term catalysts: LSXM–SIRI merger closure (early Q3 target) and regulatory milestones for MotoGP acquisition (target year‑end 2024) remain central to the equity narrative .
• SiriusXM delivered steady execution (rev +1%, EBITDA +4%), with focus on digital/app and self‑pay net adds into 2H; guidance maintained, limiting near‑term estimate volatility absent external shocks .
• F1’s commercial engine remains robust — more races, extended/expanded media rights, and new sponsors — supporting revenue/Adjusted OIBDA growth even as variable costs scale with the calendar .
• Tech enablement (Globant partnership) should enhance at‑event digital experiences and fan engagement, underpinning long‑term monetization opportunities .
• Balance sheet actions were disciplined: $65M paydown on the SiriusXM margin loan; LSXM Group cash decreased mainly from capex/returns at SiriusXM and net debt repayment .
• Shareholder returns optionality intact with $1.1B remaining repurchase authorization across Liberty tracking stocks .
• Watch list: timing/terms for U.S. F1 media rights, SiriusXM subscriber trajectory and engagement metrics, and regulatory approvals for MotoGP, all of which can shape narrative momentum into 2H.

Additional Notes and Sources

• Press release (Q1 2024 8‑K Item 2.02 and Exhibit 99.1) provides full group and segment tables, cash/debt detail, and non‑GAAP reconciliations .
• Prior quarters’ releases used for trend context: Q4/FY 2023 (Feb 28, 2024) ; Q3 2023 (Nov 3, 2023) .
• Q1 2024 earnings call transcript references: Insider Monkey transcript and Seeking Alpha transcript excerpts corroborate management remarks cited above .
• Other relevant press release: Globant–F1 multi‑year partnership (May 2, 2024), elevating F1 digital experiences .