Liberty Live Group (LLYVK) Q3 2024 Earnings Conference Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
Earnings call summary shows strong financial performance with 15% revenue growth and improved margins. New partnerships and increased revenue streams boost sentiment. Concerns in Q&A about sponsorship revenue and ticket sales are offset by optimistic guidance and strategic moves like race calendar expansion. Despite debt concerns, shareholder return plans and solid cash position are positives. Market cap indicates a moderate reaction, suggesting a positive stock price movement in the short term.
Key Financial Performance
Formula One Group Revenue $2.7 billion, up 15% year-over-year due to double-digit growth across all revenue streams, boosted by two additional races and new partnerships.
Adjusted OIBDA $1.4 billion, up 21% year-over-year, driven by lower pro rata recognition of team payments and increased revenue from new partners.
Formula One Group Cash and Liquid Investments $2.7 billion, includes $1.4 billion of cash at F1 and $65 million at Quint.
Total Formula One Group Debt $2.9 billion, includes $2.4 billion of debt at F1, with leverage at 1.1 times.
Adjusted OIBDA Margin 25.8%, improved from 24.4% year-to-date through Q3 2024, due to lower team payments as a percentage of pre-team adjusted OIBDA.
Corporate and Other Revenue $70 million, includes Quint results and approximately $7 million of rental income related to the Las Vegas Grand Prix Plaza.
Corporate and Other Adjusted OIBDA Loss $14 million, includes Grand Prix Plaza rental income, Quint results, and corporate expenses.
Live Nation Stock Value $8.8 billion, with $1.2 billion in principal amount of debt against these holdings.
Attendance at MotoGP 2.9 million attendees year-to-date, up 9% on leg-for-leg races.
F1 TV Subscribers Up 10% year-over-year, particularly strong in the US market.
Social Media Followers 94 million, up 38% year-over-year.
Quint Results Primarily driven by F1 experiences across the seven races held.
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Operating Highlights
F1 TV Subscriber Growth: F1 TV subscriber growth continued to be robust, with subscribers up 10% year over year, particularly strong in the US market.
F1 Arcade Expansion: F1 Arcade opened its Washington DC location on October 13th, with plans for a Las Vegas location in Q3 of 2025.
New Partnerships: New partnerships announced with LVMH, American Express, Lenovo, and Santander, expanding F1's commercial agreements.
F1 Exhibition: The F1 exhibition opened in London on August 23rd, with 135,000 tickets sold, extended through Q1 2025.
MotoGP Acquisition: Liberty Media is progressing with the MotoGP acquisition, expecting a year-end close after regulatory approval.
New Race Calendar: The 2025 MotoGP calendar has been announced with 22 races across 18 countries.
Las Vegas Grand Prix: The Las Vegas Grand Prix is expected to leverage learnings from the previous year to enhance the event experience.
F1 Revenue Growth: Formula One's revenue is up 15% year-to-date, with adjusted OIBDA up 21%.
Operational Efficiencies in F1: F1's adjusted OIBDA margin improved from 24.4% to 25.8% through Q3 2024.
Cost Structure Optimization: Efforts are ongoing to optimize the cost structure and product offerings for the Las Vegas Grand Prix.
Transition of Atlanta Braves Holdings: Liberty Media is transitioning services directly to the Atlanta Braves, marking their evolution as a standalone private company.
Refinancing of F1 Debt: F1 refinanced its Term Loan B, reducing the margin from 2.25% to 2%, with potential further reductions post-MotoGP acquisition.
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Risk or Challenges
Regulatory Hurdles: The MotoGP transaction is pending approval from the European Commission, which is the only remaining regulatory hurdle before closing.
Competitive Pressures: The Formula One season remains highly competitive, with both constructors' and drivers' championships closely contested, which could impact viewership and sponsorship revenue.
Economic Factors: The Las Vegas Grand Prix is seen as a potential swing factor for revenue and profitability, with ticket sales being a last-minute market and subject to fluctuations.
Sponsorship Revenue: There is a noted decline in sponsorship revenue due to lower pro rata revenue recognition, which is influenced by the mix of races during the quarter.
Supply Chain Challenges: The cancellation of the Valencia MotoGP race due to flooding highlights potential supply chain and operational challenges that can arise unexpectedly.
Debt Management: Liberty Media has significant debt levels, with $2.9 billion attributed to the Formula One Group, which could pose risks if not managed effectively.
Market Demand: The demand for the Las Vegas Grand Prix is uncertain, with expectations of ticket sales being a significant variable impacting overall revenue.
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Guidance & Outlook
F1 Revenue Growth: Formula One year-to-date revenue is up 15% and adjusted OIBDA is up 21%, driven by double-digit growth across all revenue streams.
MotoGP Acquisition: Liberty Media completed the necessary funding for the MotoGP acquisition, with expectations of F1 leverage between 3.5 to 4 times post-deal.
New Partnerships: New commercial agreements signed for 2025 with LVMH, American Express, and Lenovo, indicating strong sponsorship momentum.
Sustainability Initiatives: Investment in sustainable aviation fuels covering 11% of estimated carbon flight emissions for the 2024 season.
F1 Arcade Expansion: F1 Arcade opened a new location in Washington DC and plans to open in Las Vegas in Q3 2025.
F1 Leverage: F1 leverage expected to be between 3.5 to 4 times post-MotoGP acquisition.
Adjusted OIBDA Margin: Adjusted OIBDA margin improved from 24.4% to 25.8% year-to-date through Q3 2024.
Team Payments: Slight leverage on team payments expected for the full year 2024 relative to year-to-date payout.
Las Vegas Grand Prix: Expectations for increased ticket sales and profitability as the event approaches.
Future Sponsorship Growth: Positive outlook for sponsorship revenue growth in 2025 and 2026, with strong interest from high-value partners.
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Shareholder Return Plan
Shareholder Return Plan: Liberty Media has not explicitly mentioned a shareholder return plan involving dividends or share buybacks during the earnings call. However, they discussed the refinancing of debt and the financial performance of Formula One, which may indirectly support shareholder value.
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Key Q&A
Q:Any potential updates you can provide on Concord, progress, tone of talks, or expected timing?
A:Conversations are progressing very well. The ecosystem is solid, and all teams have benefited. There is no urgent rush, and we will inform everyone when we have something concrete.
Q:On the team payment accrual in the quarter or year-to-date, any specific shifts in assumptions on pre-team profit for the year?
A:The figures imply a lower full-year figure due to conservatism towards Vegas, reflecting typical year two trends that promoters see.
Q:Can you help us think about how meaningful the sponsorship revenue growth outlook can be in the coming years?
A:We have a lot of activity around potential sponsorship, licensing, and other activities. The future looks positive with high-value partners.
Q:What are your latest thoughts on the sports media rights landscape heading into the U.S. renewal next year?
A:We have a partnership with ESPN that runs to the end of ‘25. We will look to see what we can do with them, but there's also a lot of other interest from partners.
Q:Is there anything more you can say on demand for Vegas heading into the final few weeks and expectations around revenue and profitability for the event this year?
A:We expect an uptick in traffic and conversion rates around ticket sales as we get closer to the race weekend. We remain positive on the benefits that Vegas provides.
Q:Are there any plans to expand the race calendar, especially in emerging markets?
A:We believe that 24 is the right balance to maintain exclusivity. We are confident about our strategy for the future.
Q:Review of Unclear Management Responses
A:Management appeared to avoid giving a direct answer regarding the specifics of the Concord negotiations, stating that there is no rush and they will inform when something concrete is ready. Additionally, the response on the sponsorship revenue growth outlook lacked specific figures or projections, remaining vague about the potential impact.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Americas
Formula
Grand Prix
Las
MotoGP
Nation
Quint
TV
Term Loan
agreement
benefit
brand
calendar
cash
course
date
deal
end
event
experience
fan
interest
leverage
line
lot
market
medium right
partner
payment
platform
product
race
renewal
result
season
sponsorship
term
th
ticket
transaction
update
way
week
weekend
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
