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Liberty Media Corp (LSXMA)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 consolidated revenue was $3.166B, up sequentially (+15.2% vs Q1) but down year over year (-2.4% vs Q2 2023), with operating income $528M and net income attributable to Liberty stockholders $457M .
  • Formula One Group revenue grew to $988M (F1 $871M plus corporate/other), with F1 operating income $84M and Adjusted OIBDA $160M; eight races vs six last year drove higher media rights and sponsorship, offset by higher team payments and variable costs .
  • SiriusXM delivered revenue $2.178B, net income $316M, diluted EPS $0.08, Adjusted EBITDA $702M and free cash flow $343M; management reiterated 2024 guidance .
  • Strategic catalysts: planned combination of Liberty SiriusXM Group with SiriusXM targeted for September 9, SEC/FCC approvals received; F1 engagement remains strong (seven different winners through 14 races), and the MotoGP acquisition remains on track by year-end 2024 .

What Went Well and What Went Wrong

What Went Well

  • F1 revenue momentum: primary revenue up 20% YoY to $739M and other revenue up 25% to $132M, driven by more races (8 vs 6), media rights growth, and new/expanded sponsorships; Adjusted OIBDA rose to $160M .
  • SiriusXM sequential execution: Adjusted EBITDA held at $702M, free cash flow improved to $343M, with management highlighting reduced voluntary churn and stronger trial engagement; SiriusXM reiterated 2024 guidance .
  • Balance sheet/strategic actions: Liberty repaid $35M under the SiriusXM margin loan; Formula One Group cash and cash equivalents increased $258M during the quarter from F1 operations .

What Went Wrong

  • Consolidated revenue declined YoY (-$78M to $3.166B), reflecting lower SiriusXM revenue ($2.178B vs $2.250B) and lapping Braves-related “Other revenue” in Q2 2023; however, sequential growth was strong .
  • F1 cost growth: team payments (+26% YoY) and other variable costs increased with more races and enhanced hospitality/partner servicing, pressuring margin expansion despite revenue growth .
  • Selling, general and administrative expense at F1 rose to $66M (+32% YoY) on higher personnel, IT, property and professional fees; consolidated SG&A reached $454M in Q2 .

Financial Results

Consolidated Results vs Prior Year and Prior Quarter

MetricQ2 2023Q1 2024Q2 2024
Total Revenue ($USD Billions)$3.244 $2.749 $3.166
Operating Income ($USD Millions)$523 $502 $528
Net Earnings Attributable to Liberty Stockholders ($USD Millions)$253 $203 $457
Adjusted OIBDA ($USD Millions)$877 $826 $843

Segment Revenue and Adjusted OIBDA

SegmentQ2 2023Q1 2024Q2 2024
Liberty SiriusXM Group Revenue ($USD Billions)$2.250 $2.162 $2.178
Liberty SiriusXM Group Adjusted OIBDA ($USD Millions)$694 $625 $679
Formula One Group Total Revenue ($USD Millions)$724 $587 $988
Formula One Group Adjusted OIBDA ($USD Millions)$141 $202 $165
Other/Corporate Revenue ($USD Millions)$270 (Braves Group) $37 $135

Formula 1 Operating KPIs

KPIQ2 2023Q1 2024Q2 2024
Primary F1 Revenue ($USD Millions)$618 $463 $739
Other F1 Revenue ($USD Millions)$106 $90 $132
Team Payments ($USD Millions)$(344) $(163) $(435)
Adjusted OIBDA ($USD Millions)$155 $208 $160
Number of Races6 3 8

SiriusXM Standalone Highlights

MetricQ2 2023Q2 2024
Revenue ($USD Billions)$2.25 $2.18
Net Income ($USD Millions)$310 $316
Diluted EPS ($USD)—$0.08
Adjusted EBITDA ($USD Millions)$702 $702
Free Cash Flow ($USD Millions)$323 $343

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SiriusXM Financial GuidanceFY 2024(Not disclosed in Liberty release)Reiterated Maintained
Liberty SiriusXM + SiriusXM CombinationClose timingEarly Q3 2024 September 9, 2024 target; SEC/FCC approvals noted on call Affirmed timeline
F1 Sprint Calendar2025—Announced Sprint calendar (China, Miami, Belgium, Austin, Brazil, Qatar) New disclosure
MotoGP Acquisition2024Announced March 29; expected by YE 2024 On track to complete by YE 2024 Maintained

Note: The Liberty Media release references SiriusXM’s guidance but does not provide ranges; see SiriusXM IR for specifics. Liberty’s Q2 release confirms reiterated status .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2023, Q1 2024)Current Period (Q2 2024)Trend
SiriusXM merger mechanics“Combination early Q3 2024” ; structure updates in prior materials SEC/FCC approvals; shareholder meeting Aug 23; expected close Sep 9; exchange ratio reset to reduce new shares by ~90% Progressing toward close
SiriusXM operating focusApp/content investment, cost discipline Lower voluntary churn, stronger trial engagement; content partnership activations (e.g., SmartLess, Howard Stern event) Improving subscriber KPIs
F1 fan engagement & competitive parityRecord attendance, Las Vegas GP impact Seven different winners across 14 races; closest constructors’ championship since 2012; social followers +30% YTD Strengthening engagement
Sponsorship/media rightsNew sponsors; broadcast extensions (beIN SPORTS, Viaplay, FanCode) Expanded LVCVA partnership; Sprint calendar to drive content; continued F1 TV growth Expansion continues
ESG/regulatoryNet-zero by 2030, D&I initiatives (F1 Academy) F1 Academy integrated; operating costs include academy and Las Vegas Plaza lease Ongoing execution
Corporate/Other (Quint)Acquisition closed Jan 2; seasonal revenue (Q2/Q4 peak) Q2 revenue uplift from Kentucky Derby and F1 Experiences; rental income from Las Vegas GP Plaza Seasonality benefiting Q2

Management Commentary

  • Greg Maffei (President & CEO): “We are excited that the combination of Liberty SiriusXM Group with SiriusXM is expected to close on September 9th... Formula 1 is having an incredible season with particularly high engagement in growth markets... Live Nation achieved record concerts profitability and global demand hasn’t slowed...” .
  • Stefano Domenicali (F1 President & CEO): “The F1 season is seeing phenomenal racing, with seven different winners through fourteen races... we had 3.7 million race attendees through the first half of the season with ten sellout crowds.” .
  • Call highlights: “We’ve received SEC and FCC approvals... expect to close on September 9... adjusted merger exchange ratio reset to reduce the shares of New Sirius by 90%... Self-pay net adds improved... reduction in voluntary churn... SmartLess podcast partnership with exclusive subscriber event” .

Q&A Highlights

  • SiriusXM merger mechanics: Management clarified approvals, timeline, and the exchange ratio reset intended to improve trading dynamics post-close (index inclusion potential) .
  • SiriusXM KPIs and content: Discussion of improved self-pay net adds driven by lower churn and enhanced trial engagement; highlighted marquee content activations to support engagement .
  • Balance sheet and leverage: Liberty SiriusXM margin loan paydown ($35M) and available undrawn capacity; F1 leverage at 1.3x per credit facility definition .
  • Corporate/Other seasonality (Quint): Reinforced Q2/Q4 seasonality and contribution from major events and Las Vegas Plaza rental income .

Estimates Context

  • S&P Global Wall Street consensus for LSXMA Q2 2024 was unavailable due to a CIQ mapping issue for the tracking stock structure. Management reiterated SiriusXM’s FY 2024 guidance without providing ranges in Liberty’s release; investors should refer to SiriusXM’s IR for detailed guidance .

Key Takeaways for Investors

  • Consolidated trajectory: Sequential growth across the portfolio with Q2 revenue rising to $3.166B and operating income to $528M; compare this momentum to Q1 levels amid F1 seasonality and SiriusXM execution .
  • F1 engine remains strong: Eight-race quarter drove Primary revenue growth and higher Adjusted OIBDA, with parity and fan engagement supporting media/sponsorship tailwinds; watch cost discipline (team payments, hospitality) as season progresses .
  • SiriusXM cash generation steady: Q2 Adjusted EBITDA $702M and FCF $343M support capital returns and investment; reiterated guidance signals stability into year-end .
  • Near-term catalyst: Closing of Liberty SiriusXM–SiriusXM combination (target Sep 9) could reset trading dynamics and index inclusion prospects; debt instruments to be assumed by New Sirius, margin loan retired at close .
  • F1 expansion pipeline: 2025 Sprint calendar, LVCVA partnership expansion, and ongoing sponsorship/media deals underpin forward visibility; MotoGP acquisition on track by YE 2024 adds another premium sports asset .
  • Balance sheet watchpoints: Formula One Group leverage at 1.3x and rising cash balances provide flexibility; Liberty SiriusXM debt declined with margin loan paydown .
  • Trading/positioning: Focus on merger milestone execution and F1 season outcomes; consider seasonality (Q2/Q4 strongest for F1/Quint) and monitor SiriusXM subscriber KPIs and content cadence as potential share price drivers .