Formula One Group

Welcome to Liberty Media Corporation 2024 Second Quarter Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press star 1 on your telephone keypad. As a reminder, this conference will be recorded today, August 8th. I would now like to turn the call over to Claire Adams, Senior Manager, Investor Relations. Please go ahead.

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. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Forms 10-K and 10-Q filed by Liberty Media and Atlanta Braves Holdings with 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. On today's call, we'll discuss certain non-GAAP financial measures for Liberty Media, SiriusXM, and Atlanta Braves Holdings, including adjusted OIDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media, SiriusXM, 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 Braves Holdings websites. Now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO.

Thanks, Claire, and good morning to all. Today, speaking on the call, we will also have Formula One President and CEO Stefano Domenicali, Liberty's Chief Accounting and Principal Financial Officer Brian Winley, and also during Q&A, We will answer questions related to Atlanta, Braves Holdings, and Braves Management will be available to answer them as well. So beginning with Liberty Sirius XM, the transaction is progressing towards close. We've received SEC and FCC approvals. We've set the shareholder meeting date for August 23rd, and we expect to close on September 9th. You may note the adjusted merger exchange ratio has been reset to reduce the shares of NewSiri by 90%. We expect the NewSiri share price will be higher at close because of that, and we expect enhanced trading dynamics, including increased potential for index inclusion. I look forward to remaining chairman and a meaningful shareholder. Turning now to Series 6M itself, the company maintains its strong financial position Self-pay net ads improved sequentially and year-over-year, driven primarily by a reduction in voluntary churn. EBITDA was flat versus the prior year, but plus 8 versus the first quarter. We expect solid margin and cash generation through the balance of 2024. 2024 is also going to be a peak capex year, and we expect to return to free cash flow growth in the coming years. We believe SiriusXM is attractive on a free cash flow multiple basis. Sirius continues to pursue growth opportunities, beginning in the car with a new three-year subscription with a new vehicle purchase at certain automakers, free access, the first free ad-supported platform, which aims to increase trials and win back listeners, and 360L is continuing to drive improved share of listening in the car. Looking at streaming, Sirius is launching new features and updates every month, and we've seen early improvements in multi-day listening. We've also seen increased engagement in the trial period versus the first quarter. And finally, by pursuing smart, unique content. The Smart List podcast is kicking off its partnership in August with an exclusive subscriber event featuring Howard Stern, Jelly Roll, and many more. Turning to the Formula One group. Despite early questions, this is turning out to be one of the most competitive seasons, certainly in the start back to 2012. Across the first 14 races, we've seen seven different race winners and eight drivers have been on the podium. We're on track to have the closest Constructors' Championship across the top four since 2012 as well. The difference in time from front to back of grid at this point in the season is the closest also since the start of the current qualifying system in 2010. Looking at the 2020 driver market, it continues to provide interesting excitement. With Carlos Sainz going to Williams, Haas announcing Ocon joining as a current Ferrari Reserve driver, Behrman as well. Behrman is showcasing the pipeline of support series talent that is delivering to Formula One. And the biggest open question remains, What will Mercedes do with its open seat? Looking now at the financial results for F1, we had a great first half. Year-to-date revenue is up 29% in derivatives, plus 35%, partially driven by three additional races in the period this year. We announced LVCVA as an official partner. They're going to activate across 25 races in 2024 and 10 in 2025. And we continue to successfully scale partners brought in through LVGP. We remain excited about our sponsorship pipeline. Let me turn briefly to MotoGP. The transaction is progressing well. Regulatory funds are progressing on track. We've received foreign investment control clearance in both jurisdictions needed, Italy and Spain, and we recently received merger clearance in Brazil and Australia. We continue to expect the transaction to close by year end. At MotoGP, the racing has been awesome. quickly closed the gap with Rory Martin, but Martin just took the lead back in Silverstone. We are seeing a very competitive title fight, now separated by only three points. And at MotoGP, 12 riders across eight teams have been on the podium this season. Attendance is up across our races, with a new all-time attendance record set at Le Mans, and Germany was at 253,000, was epic. 8% off an already record 2023 attendance number. Similar to F1, rider movements are fueling excitement. We've also seen interesting movements in the Constructors Championship, Constructors category, rather, with Prima Primac switching from Ducati to Yamaha next season. The summer break ended last weekend in Silverstone. We're excited for more action in the second half. Turning briefly to Quint, Some of the second quarter highlights, we had the 150th Kentucky Derby, which was an enormous success, the largest single event executed in Quinn history, serving over 12,000 customers per day. F1 experiences has seen meaningful growth across eight races this year. And we've completed inaugural activations for several new partnerships, including the WNBA All-Star Game and the Men's and Women's US Opens for the USGA. Turn to Live Nation. So another record quarter with no signs of slowdown. 2024 is a year of AOI amphitheaters and arenas. And in second quarter, despite stadium activity being lower, concert attendance was up 5%. AOI was up 21% with record concert segment profitability. And this was one of the top five quarters in history for ticket sales. Revenue from on-site spending is also up double digits year to date. and cancellation rates for North America are tracking lower than last year. The ticketing and artist pipeline continues to expand globally. New artists have increased touring by 130% year-to-date, and two-thirds of all total new enterprise tickets signed year-to-date are from international. Turning briefly to Venue Nation, we're continuing to see the enhancements made generate incremental revenue. Major festivals average per fan spend is up double digits year to date. The amphitheater average per fan spend is also expected to grow by $2 per fan. And Live Nation plans to open 14 major global venues across 2024 and 2025. Turning to the Braves, we've had strong performance from key players this season through last weekend, Pizunia, led the National League with 86 RBIs. Since April 12th, Sale has had a 2.64 ERA, and Freed has had a 2.71 ERA, which ranks second and third, respectively, in the National League. Ahead of the trade deadline, the Braves announced the return of Jorge Soler to fill a key position in the outfield and right-handed pitcher Luke Jackson. Both players were on the 2021 World Series winning team. Fan demand remains strong, per caps up in ticketing and concessions year over year. There are 18,000 on the season ticket wait list, and we've seen a 90% renewal to date on season tickets for 2025. Several of the master planning projects completed earlier this year are already adding value and enhancing the fan experience. The new 60-foot, 6-inch Jim Beam bar concessions are up double digits versus 2023 concessions in the same location. Recently, they've announced further upgrades ahead of the 2025 season, including a new seating product, The Bullpen, which includes access to exclusive lounge underneath seats and extension of the Coors Light Chophouse seating area. Also, the Braves recently unveiled the logo to kick off the 2025 All-Star Game. The Braves are thrilled to host the All-Star Game. It's an incredible opportunity to showcase the truest, and the battery sections. Now I'll turn it over to Brian for more on our financial results.