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spk_0: welcome to the liberty media twenty twenty two year and 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 dar one on your telephone keypad has reminded this conference we will be recorded to date march first i would now like to turn the call over the shame fine seems vice president investor relations please go ahead
spk_1: good morning before we begin we like to remind everyone that just conclave financial statements meaning of the private securities litigation reform act of hundred ninety five actual events or of cricket materially accumulated remember risks and uncertainties including that mention in every media most recent one ten case files with the as he sees these to in statement speak only out of the date of this called american media friendly disclaims any obligation or undertaken to disseminate any updates or is it has any form the statement contained herein for like any change in liberty media expectations with regards to or any change events conditions or circumstances unlike any such statement is based on today's called we will discuss a non yeah financial measures for liberty media access including adjusted like that and address it either does require definitions of reconciliation for liberty media cancer as accents scheduled one through three can be found at the end of the earnings press release issued today which is available on liberties website now i'd like to introduce great mistake liberty president ceo
spk_2: the same and good all of you today's became a call we will also have formula one's present ceo stefano domenicali and liberties cheap accounting and principal financial officer by women first
spk_3: darwin an update on his foot off the braves and the creation of liberty like tracker
spk_2: we filed measured as fourth and we still expect completion
spk_3: in the second quarter i'm trying to liberty series xm
spk_2: we expect we'll have a simplified structure fallen recapitalisation mls examine the crease and do like tracker and we are focused on rationalizing this structure in the near term looking at it's a jury sex on the underlying assets for strong one quarter results with record high arpu and ever and record low turn management did give more cautious forward looking commentary given multiple headwinds were experiencing here and who reported twenty twenty three and top of the final in terms of new subscribers still pressure to disarm has dropped about seventeen million two thousand and nineteen to something like thirteen and a half million last year the ad market remains soft especially the first half of twenty twenty three and we are seeing moderating marketing spend ahead of the fourth quarter app revamped
spk_3: plus we've had some cash impacts
spk_2: we expect peak satellite tags and twenty twenty three and we are now in taxpayer something which previously nonsense we do expect these incremental satellite kept expo moderate twenty twenty four with newly know incremental select have backed by twenty twenty seven
spk_4: ah by the end of year
spk_2: we're also stepping up some tech industry long term success we're building improvements around commerce and identity to reduce friction and the new app will have more personalization as it has within three sixty else
spk_3: we do expect these negative trends in the ad market and the will turn and we have a resilient business model with meeting free cash flow we still remain optimistic that optimistic about our longer term prospects
spk_5: turning to live nation
spk_3: continuous incredible the man
spk_2: the twenty twenty two attendance was up twenty four percent over twenty nineteen we are all time high for concert attendance despite many markets still be close during part of have we seen especially strong international markets with seventy percent of nephew tickets sold twenty two twenty three two were to international clients and we expect another record year of demand in twenty twenty three a ticket sales and twenty twenty three you're up twenty percent versus the same time last year and last year to also benefited from twenty million of texas tickets that were rescheduled from pyre period to college
spk_6: formula one group
spk_2: right and to the twenty twenty two years attendance records were sacked we were up thirty six percent over two thousand and nineteen our fan base is increasing first with new fans be younger and the sheer females with the fan base forty percent larger than the shared and established families that than the new families the us is especially strong one in three fans globally started falling f f one in the last four years and the us it's even higher wanting to it's a result of many efforts and most and related to our efforts to drive to the access to our drivers across all channels not only drive to survive but the driver presence on social pages coverage and larger news publications late night comedy parents on people like jimmy kimmel
spk_3: as extinction know for example look at our instagram followers and comparing
spk_2: lewis hamilton as thirty one and a half million for since tom brady and thirteen point six million f one is clearly getting into the mentality of america
spk_7: and look and the younger talent
spk_3: leclerc has almost ten million and look at dawn check is at eight million again we're doing pretty well we will have three us races and twenty twenty three the second year of miami capitalizing on the first your success with several improvements around hospitality and security we expect a sporting world to be super excited as we are for the inaugural las vegas gp f one las vegas social media garnered over a hundred and seventy million impressions and over five million engagements since september two thousand twenty two and we launched lv gp tick tock tick tock last weekend
spk_2: the first post had over five hundred and thirty thirty five thousand views in the first twenty four hours
spk_8: return to the braves
spk_2: we reiterate that we believe the split off of better highlight the value the braves oh we grew baseball revenue and twenty twenty two even though we had experienced less postseason games lightning on intel and from our twenty twenty one world series win are we had year over year growth across ticket sales sponsorships concessions and retail
spk_3: we saw three point one million tickets and lead major league baseball with food ninety four percent of our inventory
spk_9: being sold
spk_3: demand for the season and single ticket game said tickets remains high for the twenty twenty one twenty twenty three seasons
spk_2: bleacher report called the braves fan off the front office the number one in major league baseball for the twenty twenty three season we tend to agree we were happy to extend manager brian sector through twenty twenty five and gm alex and topless invested smartly and off season
spk_3: adding to the already core talent we have by locking them up in multi year deals
spk_2: this team is built on young talent as position for long term success and we very much look forward to the opener on march thirtieth and with that let me turn over brian to talk a little bit more about our financial results
spk_3: thank you greg and good morning everybody that quarter and liberty sirius xm group had attributed cash and liquid investments of approximately three hundred and five million which excludes fifty seven million of cash held answer is xm there's also one point three billion of undrawn margin on capacity of current level related to our sex i'm in my position marginal
spk_10: as of february twenty eight the value of are serious exam stock held at liberty serious exam group was fourteen point one billion and value the live nation interest was five million we have two point eight billion and principal amount of dad against these holdings total liberty serious successes liberty sirius xm group attributed principal amount of debt is thirteen point one
spk_3: billion which includes nine point five billion of death that's down at the series at some level for me wonder that attributed cash liquid investments and monetize bill public holdings of one point eight billion a quarter and which includes seven hundred fifty two million of cash at formula total formula one group attributed principal amount of that was free dial this includes two point four billion of deaths down and formula one level of leaving five hundred sixty five million of the corporate level porter upon refinanced it's term loan and revolver to tracked rights and an extended maturity of one repaid four hundred seventy seven million of it's term loan be in connection with this refinancing using cash on hand and that year and formula one five hundred million dollar revolvers undrawn formula one's leverage at the end of the year was two point seven times on a up when operating business given quarterly variability in the year over year race calendar reminder that this business as best analyzed on an annual basis total revenue grew twenty percent and twenty twenty two with growth across all primary revenue streams other up on revenue grew sixty three percent to go or hundred and eighty million dollars with approximately one hundred and ten million of the revenue growth coming from hospitality and experiences an approximate that the five million coming from interest rates see payments as percent of the preteen way of it as reported was sixty six percent and twenty twenty two down from sixty eight percent the prior benefiting from the team at the terms of the twenty twenty one concorde agreement as a reminder other costs a formula one revenue are largely variable in nature and relate to both primary and other f one revenue opportunities as mentioned in que three we did have some modest increases and personnel cost to the change in the company's l tip from a stock to a caste based long term bonus program and increased headcount to support growth also included nancy and a twenty twenty two was nineteen million a pass from the las vegas grandpre mostly related to personnel and marketing initiatives looking at twenty twenty three we look for to record twenty three right counter counter or consist of fourteen flower flyway races compared to twelve flyway races and twenty twenty two as as we've discussed before flyway races typically pay higher fees than the european races and en las vegas as previously communicated weeks back total revenue approaching five hundred million dollars looking at tolerate specific economics vegas is projected to be in the top five of all races in year one in terms of total profit to the company the paddock building is progressing on schedule and the concrete structure will be complete by the end of march callbacks related to the paddock building the will be incurred of the formula and corporate level and track related callbacks is expected to be incurred as the of one off hello the majority of our cap expand will be encouraged to corporate level primarily because the around accusations addict building separate
spk_10: we will not be providing forward looking allocation between of one opto and formula one corporate callbacks
spk_3: will you be on see it in our store for numbers as they can reporters lv gp will pay rent another phase out of formula one out to the formula one corporate for use the building during the race period which will sharpen our financial statements as revenue the corporate level bubble eliminate consolidation we also expect the receipt of advanced payments primarily related to ticket sales to impact your of your dependability working capital flows
spk_10: and the first year the biggest race
spk_3: near nearly all l bgp revenue be recognized in the fourth quarter when race takes place we'd expect grandstand and ga tickets as well sponsorship revenue to be recognized and primary up one revenue as race promotion and sponsorship revenue respectively we expect hospitality tickets to be recognized within other forms on revenue on costs recognition we expect a vast majority of the ritual and cost of to recognize with race takes place as cost about one revenue so there will be some as renamed heard throughout the first two quarters and twenty twenty three finally at the brains group that quarter and they attributed cash and liquid investments of one hundred and fifty one million which excludes twenty two million of restricted cash prize repair the repaired attributed principle my of death of five hundred forty six million at the end of the or liberty in arkansas that subsidiaries are in compliance with that covenants and quarter and with that altered or stefano to the sky
spk_11: us formula one
spk_12: thanks brian two thousand twenty two was a fantastic season
spk_13: on track
spk_12: commercially with our partners and financially in our results much of a southern city wins broke records with the most wins in a single season the rebel team won their first construct a championship since two thousand and seventeen and then he packed competition back down to the last race without been in the cloud in both fighting for fourth place the feedback from the drivers made it to you the new regulation meant the cars could raise more closely and we saw some great results from the track this action suit in the season sealed our growing san engagements to doesn't that the two so reckless attend his of ram prevents we welcome more than five point seven million fast race weekend of thirty six percent from put two thousand and ninety the man is considered in in two thousand twenty three with sellout crowd expected as a number of places deceased former month was once again the fastest growing mages board leaked on the planet in two thousand twenty two in some of social media followers we have sixty point six million total follows are twenty three percent from two thousand and twenty one and so significant growth the markets like the us was social follow as well up forty two percent this two thousand twenty one to pull from five million additionally are close have won dot com and their the f one app unique users web app eleven percent best thousand twenty one two hundred and twenty five million on viewership who are the tv audiences for the two thousand and fifty two seasons was one point five four billion an average viewership or race was seventy million us viewers viewership was up thirty six percent compared to two thousand and twenty one with an average of one point two million viewers tuning in alright days look it up some other marcus peters viewership grew to does that to twitter to process australia was up to twenty percent and germany viewership group nine percent with our new were younger demographic did this to share of f one video minutes consume grew from sixty percent in two thousand and twenty one to twenty four percent in two thousand and twenty two as an endorsement of f one growing global popularity technological rather than says the ability of ford's for and now return to their last from two thousand and twenty six in a new partnership with rebel ford is a celebrated name and motor sport with the story f one history dating back into their sixties and the as the third most successful as human factors in f one history we expect for his involvement as a taking the engine providers will bring value know totally to reboot but it is for the growing san engagements has benefited both new and renewed commercial agreements edwin drood avenue across all primary sources promotion meteorite and advertise in and sponsorship in addition our father plateaus fatality brother for thorndike specially well in two thousand twenty two his first full season of operations since the onset of the pandemic
spk_14: we love them
spk_12: fifty thousand guests over the season with sell out at twelve out of nineteen events in two thousand twenty three were thought was an optimized and zadie of allow a padded gloves by expanding the premier services we often considered it's when asked the guess is business and adjusting price totals the recent updates and on our commercial agreements or a promotion with and and our race example from thousand twenty four and two thousand twenty five and the twenty three that's grand prix is already so that the promote of as focus on sustainability thumbs up with ninety nine percent of general nice i'm sick of those isn't unpleasant ready to arriving by topic it does put these vice or on food we sign a number of large protests agreements well a doesn't twenty two in food is a new in our position with sky a major european markets and with e s the and in the us more recently we entered into a moody a meteorite agreement we'd been sports twist to it is broadcast f one in ten said with it is a procedure our fox sport agreement the mexico was extended to two thousand twenty five we also knew that were partners you with place for the in belgium food to pleasant with the twins doesn't twenty four and now what agreements with the zone in japan to two thousand and twenty five and plenty if continues to grow in popularity among new an editor just dispense the product is now available in hundred twenty countries on sponsorship just last week we announced the addition of to thought of ways as a global their life partners on the mood to get agreement the will also be the title sponsor or three races looking forward to that are a number of i have as we conceded to both for additional sponsorship opportunities including travel financial services food and beverage telecommunications and more our team is continues building fan engagement opportunities to capitalize on our momentum the fifth season of drive to survive a them february twenty fourth the two dozen says is the f one is food qualify five rounds he's been have through may twenty fifth and we hope to be done this drawn and gays and from last year when one point the medium players have tended to qualify the new license program a one or case launches first location london in december hosting over six hundred f one guess as celebrities as the official launch party with fetus take sides in the on f one with sixty four motion races recent it the sake of any will open in birmingham a new case in the food for the thousand twenty three with additional locations plans to follow a new f one exhibitions with also launched in madrid later this month and remained there before moving to be learning time for the telling rubbery this is a ninety minutes immersive experience guide and visitors through the past present and the future of the sport and his plans to visit twenty five cities around the world over the next decade we are counting down to the startled two thousand twenty three season right right since cities last week and with another year of improvements of the track whereas pets in even thesis competition on the track surat him and say this as sicily eager for their comeback back will be new faces of agree with leak the breeze asked of ghastly and the promising young un american drivers those answers as well as the return of legal hooked twenty three raised concerns that he said they have a former one we made the decision not to replace china on the calendar of the most his economic benefits over replaces race was not worth the logistical and sustainability consideration for that was and i would themes there will be six sprints van helsing the said by john oh snap spot qatar or scene and brazil the serious have been successful in drive attend this engagement across the entire weekend for our promote as and broadcast partners the two thousand it's six a lambda with feature three race in the u s flew the take him to the streets of las vegas for a nice race in november we are now heineken silver as the title sponsor and symbol by as the schools have wireless provider the plan to deploy and the does fides he popped in that national race weekend doesn't power our customers app and then have the decency of the fun experience our second wave of public ticket sales we launched to and in spring the world the gays over to face in the track roads with this is a plans in place to minimise disruption to the last big as flow of traffic in the process may the long term investment las vegas which we expect to set us up there to the race for vegas to come and finally we made several announcement for the our forces sustainability diversity and inclusion of one recently announced the global charity bothers with unicef to help bring wanted to the case to the was as vulnerable to visit on f one long history of promote is sam education worldwide wilson forward to the poodle f one a in two thousand twenty three diseases intend to maximize the potential of young female drivers to reach their highest level motor sport provided those currently go karting of other judah contends with access to the fundamentalist with his knees before racing at three am working out of the won the series because his of five teams run by for the at to of three teams each entity because to make up of distinct ospreys the first season with comprise twenty one told the races and the as a support events of the austin rubbery in october i'm delighted that today we have a now susie wolff as the meds director of the f one academy see as a wealth of experience as a driver and the principal and would provide susquehanna to the pros rapid two thousand twenty two and look into two thousand twenty three i think of one is is the strongest position he doesn't ever been to see if we loans and you've read complaint demonstrating that one place in the sport in the and as a team of were given new paths a reason to actively engaged with as twenty three seasons and keep tommy back for more f one is an unmissable an extraordinary spectacle an adrenaline fueled an intoxicating what faction innovation and entertain both on and off the track where the extraordinary potential of technology and to work comes together to make the difference between winning and be forgotten this is not only sport this is over one avanti to them so full speed ahead and now i told the coal back over to a second job
spk_3: that you step right
spk_2: two are listening audience we appreciate your continued support of interest and liberty media and with that operator i'd like to open the line for question
spk_0: absolutely thank you at this time will be conducting a question and answer session if like to ask a question please press star one on your telephone cheap a confirmation tell when to take the line is in the questions you may press start to if you like to remove your question from the que for participants use a speaker equipment events may be necessary to pick up your handsets before pressing the start i first question conservatives the jays and not with evercore please proceed with your question
spk_15: odds at the morning
spk_10: a break up with the the braves hots been about to get done and recapitalisation the reattribution of liberty live and sort of talked about the rationalizing the structure of liberty serious i think deniers self talk about the prospect of during the hot spin of liberty serious post
spk_16: the reattribution is any limitations on that when you did liberty and it in many years ago him before you talked about a combination with directv you did a hot spin and then over time it is that something that's something potentially possible structurally and from attacked sufficiency perspective
spk_17: and and then for stefano
spk_16: you know you have i think ten global sponsors is that you talk to a lot more opportunities and different verticals is that more opportunity to have more global sponsors are we sort of tapped out at that ah and if i could one final on it looks like the logistic costs arm that is sort of state by the teams but the seem sort of elevated and i'm turn on sand is somebody inflation impact of that been passed onto the teams is that something we should expect to continue or it was that sort of a one off tactics thank you
spk_3: okay i'll start visit i was so lago those are those questions arose got would last
spk_18: thank you
spk_3: so we have lots of things we could do including a spin of theory but i think there are probably
spk_2: discussion to be had with the sirius xm and of and a board members about the best structure moving forward to something but all elements are on the table options rather table and as we said we looked we're looking at those with renewed vigor and we believe are much better execute on a those posts delivery live or yeah
spk_19: to be celebrated
spk_12: deborah
spk_20: oh yes a sexy date for the question i suffer for the sec them but these the just exhausted issue last year was a combined factors as we have to pay for that
spk_12: and into the to deceive but i would say the first single that we see did the she is going into right direction of of these that this is supposed to be reduced and them that to say that is also the other element that smith trying to be even more efficient you know the to make sure that's that you know the things out of done in the of the weights and and the and it
spk_20: she's very very very force of to ship us and the and they're on the other side which we got to the partners of course us we want to keep the exclusivity as a as a maid that you and and and with the want to put on the other side the final numbers that these is implausible it's important that this we give the right side you to the global five but also
spk_21: the other verticals that that of come into the equation because you know we never had such a strong pipeline so it's up to was ready to make sure that everyone is the rights this visibility and value for was the is invested really do with us
spk_0: thanks as
spk_22: our next question is from ben swinburn with morgan stanley please proceed with your questions
spk_23: thanks good morning
spk_24: two for me one question so i guess first for gregor stuff your level it's it's take it or four poster leave us
spk_25: it's pretty clear adding external made this point last year that the value of the teams has significantly increased especially from where you bought it does this years ago but i don't know as i have a clear idea of how that benefits f one the company and ultimately shareholders sick it does but i want to get your perspective
spk_24: in particular the award of asking the first conquered agreement question for twenty twenty six states does this allow are unable or support your ability to sort of continue on as tassos operate leverage into the new agreement because of the amount of value creation of the team level so that's that's i guess the and any more interesting question and then i'm going to try and o'brien you guys don't like to give guidance that i just wanted to take another take a stab at the g in a commentary because we're going to lot of questions on that this morning eighty million op go into for their way for us to think about how sort of recurring that level was dna is as you move into twenty three and a you mentioned marketing
spk_3: and i guess when you guys talk about a top size economic race for vegas are you including these incremental gene a cause that are happening outside of a quarter that's it thank you so stefano i'm happy to take a type and then of or or let you lead other games one of the things we're credit chasing read stephen us was easier for me to go for select give them credit one of the things that we at one of the one with liberties helped have been trying to do is build a mentality
spk_26: that our credit the nfl for which is one league that we benefit when everybody benefits and yes the teams compete very hard on sunday but and monday we need to think about growing the entire ecosystem
spk_3: and it was critical that we have healthy teams so that we could have a healthy league and it was critical that they had a prospect of making money even the team's towards the back of the grid so that we could have a prospect of also making money and they've seen radical increases in their value we've seen pretty good increases in our guys but we're here to play the long game and that mean we won't have disagreements with the teams about how much of the pie is ours and how much the pie is there's been trying to build the mentality that as you gain weight gain and vice versa and that that were playing the long game here is really part of our goal and so i think we will have you know a strength and hand in the next target agreements now a whip hand but a hand saying hey look we're here to grow the value and dude you're going to be edited from and and we want to see your team die grow dramatically
spk_20: stefano please correct me and yeah
spk_12: no i totally greg it's i may add just to consideration don't
spk_20: financially mean so so the strength of the inside system to us this with their also this thread is to gauge more with and partners will ever on and that exceeds sex with this to the growth and the thanks for the business itself and with enough to forget that that's not too many years ago
spk_3: that these were subsidies and we as as one was there to support them financially as and this is up to the with the net to forget that's why we recently leads as if they move by the we get to the move by the would go back to the system and that to then side business and then on the up on the us in a piece of i'll talk about it from the the for your basis first but you seen an increase obviously related or de las vegas grand prix that's ninety million that was elevated in the fourth quarter because we had our launch event and marketing activities around and assault ticket sale as we also talked about the all to moving from stock compensation expense to a more like a personal expenses as in there now you won't see that you won't see that increase so it's in the base
spk_24: and then there's other one time items in there there's higher legal and professional fees associated with a couple different matters not and your p implementation and a few other one time items that are affecting as dna
spk_0: so on your question about whether es una is included in our statement on top five raise it it most definitely is
spk_20: great thanks everybody
spk_27: into
spk_10: our next question is from barton crockett with rosenblatt securities please proceed with your question
spk_27: the switch gears to
spk_20: worst teams in this wanted your your kind of use greg on
spk_10: you know what's behind the kind of vibrant activity we're seeing right now he and acquisitions sports teams in many sports at premium prices in on seeking us said talk around manchester united milwaukee bucks unique signs
spk_3: maybe huge commander certainly denver broncos are seems to be a lotta fights is coming in that a way of us while we're kind of says the values that the scene for carried added things like forbes or sport ago and i'm wondering if you have any thoughts about why he and you know if this could be a clickable that baseball in your view he adds
spk_28: in in in is there any potential for this to be disrupted by all of the noise around local tv rights in the risk that carries to you know and important revenue stream
spk_3: i'm a couple of thoughts i mean i don't have any i believe the thoughts on devalue sports teams you seen a lot of commentary about these a trophy i said there's a limited number you know they've been good stories of value that creasing global popularity only means that they have more interest globally and more fan and more potential investor interest globally i think those are all true
spk_28: isolating which of those factors hard to for me to say i think that certainly going to be true of the atlanta braves
spk_3: is true of them as a on the trading value the longest continuously operating franchise united states storied history of winning storied history of economic success hard to think of aids a more perfect franchise in many ways obviously there are changes coming in the ecosystem i feel pretty good about those changes for a bunch of reasons i do think you will see net revenue declines across all of baseball with the decline of the our sensors and citing sets in the short term at least that's almost inevitable with some of these contracts are done in there may maybe operations which prevent that but it seems more likely than not
spk_29: but about are relative position i feel very good having the largest
spk_27: kamal house solar or of broadband household territories having a very large dedicated fan base having a relatively modest or it's and given the scale of those that territory
spk_0: all anecdotal evidence we know suggests that we have the most profitable rs and for the or as an owner and distributor so
spk_30: does not the have plenty confidence of their reasons why they would wanna stay engaged and there are a lot of other broadcast tablets which would want to be involved with the braves given the strength of all the things i started with so yelp the disruption and certainly their the potential but i feel very good about our relic decision and frankly the financial help the braves give me more
spk_20: conference in that too
spk_31: okay
spk_3: i'm afraid thank you our next question comes from stephen a less deck with goldman sachs please proceed with your question gained the morning maybe for greg on f one think he said that our lovely assertiveness and started falling as one him in last year's in that's or and make sense with looking at the attendance is the maybe looking ahead could you talk a little bit more about your confidence in the sand of coming to the sport needed because a dragon survivor social media or the last few years into a lifelong fan sport and maybe more broadly it would see in the next most important bombers to drive his address here but i'll comment but i also want stefano to add look we are very focused on and sustaining the growth in interest in f one in many many ways that with new innovations on the track ensuring
spk_32: more competitive racing with new innovations on around the weekend like the sprint races lots of ways to grow fan interest on the tracks lots of wage growth and interest in some other things we do off the track and exposing the drivers drive to survive was obviously a key part but not the only one i think you know
spk_20: were helping and the teams are helping create what will be a very exciting movie next year with brad pitt and directors of top gun maverick and fruits is of top gun maverick all of which we think will be another thing to sustain growth the las vegas race is going to be a massive noise maker for your sports and know and i'll open up our sport many people who previously were not aware while there are sixteen and seventeen year olds who praised in get up every sunday morning to watch there are many people who really do not fall from the once it will be hard to miss formula one after was vegas it will be lot loud and we will get lot of attention so we're not only thinking about things which are current but we're thinking about thanks for the long term to try and sustain that interest convert that enters into long term fans and i think we have a lot on our on the plate and many more in front of us that we're working on to do that stefano what would you add please yes i would say that greg guess the main sporting filler of for short coverage we talk about racing on the sporting sites on the technical side on the financial side these other elements or which we really have focused because we have shown in the short term the weeds find the ideas to eat rule that this flexible of the race in itself but the it's that's where the another dimension related to the fact that we haven't seen them flattened that he's grown we are working on new form of that sunny gate with with the different social going to the when you weigh but connect with the does that also with will to forget once he that i would say is getting more and more relevant the way that sweet
spk_30: the are doing now was forcing the contest well we're talking about that
spk_3: a very for some baddies will be talking about this as a diversity in our soldiers will be talk about our social responsibility will we're talking about our ideas to the battle of the sustainability side of it's i think that's all these this new elements of discussions are elements that are slacking new people new fans of form an alliance and also we have the for to talk about he sees with a different voice and the tone of voice of forces the for sending own food we want to engage with but the are we out of last opportunity busy so rather than a ticket sydney's that's it all the elements access are able to attack instead of has to be discussed and operates as a the way that so hopefully we have shown to be is she does us
spk_0: thanks to that an interest in was quick one by mention of team payments came down as a percentage of freaking shared a city but as are or who that are and twenty twenty three we know that or bearable i was wondering if you'd be willing to speak to our point besides to see some of that operating leverage come through and twenty twenty two and media wife
spk_33: investors and expect to see on this france and twenty three
spk_30: yeah it's a as you rather point out in payments were i were a source of margin expansion twenty twenty two
spk_33: that that by the break impression that we talked about higher hospitality cut costs although we still have very attractive margins the moon and had a club
spk_27: but as as we talked about before with the twenty one concorde agreement is our profitability grounds we have increased leverage on those t payment counts and as we've we've pointed out before others him one time items in austria night and we would expect
spk_3: great thank you or next question is from peter subpoena with wolf research please proceed with the question hi good morning pleasure to be on a liberty called question on f one operating expenses in particular i wondered if you would discuss puts it takes for our backs as we move beyond twenty twenty three given that twenty twenty three attacks include some one time costs for the oh no events in vegas
spk_10: and then a second question is on your global popularity is obviously on the rise and we all agree that the us is going to see a wonderful benefit from vegas and as that happens i wonder if if you look at other professional sports leagues in the way they leverage their brands what what best practices outside of the core of them are you looking out
spk_34: do you think the my daughter replicated f one thanks
spk_35: so i'll take the the affects one first by
spk_36: as well as we pointed out for a margins have been one of the biggest pressures on our other cost of
spk_20: revenue and we've we've basically absorb that and twenty twenty two so you wouldn't expect to see that continue in as we go forward and of we'd see some leverage their opportunity costs as we just sad there's there's good margin south and vegas will will play and we'd we haven't given the x number with just given them revenue number and overall profitability but you'll see our backs increase associate with vegas as you would expect but yeah we would expect leverage as we before
spk_12: that knowledge and handle second
spk_20: yeah
spk_37: it's as they can you hear me better
spk_38: yeah thanks toughness and else
spk_0: okay thought it was the like now i think that's a global popularity as you said is drawings and and and there and this is a fact and i would say what's with we are bringing home is the fact that there are all the others food league business i read into this an understanding house as the was so fast and and dramatic and a but of course we have flight
spk_39: humbled and into suppose because you want to learn from everyone around the world as what we can capture to in order to increase it let's see
spk_30: our our way out of growing i think that is this once she that the is very important that is the way that the engage with our drivers with offense and they yeah really the voice the authentic voice all of the bees are we at it we've seen that the shared it with that the possibility of all of that to plan engagements is
spk_10: in as an incredible actually because then that's exactly the earth
spk_3: approach will turn into business is you think about game he to think about decide that the drive that this says was to send this to to the raise it you want it to see that the first was to follow the thompson other social media site the this is the really one of the key elements that sir is quite unique and the i on that we will work even have that make sure that these these voices in the stronger
spk_40: there's so much
spk_3: next question i last question is from jason bazinet with city please proceed with your question he just had a quick question formula one can you just his biggest is as successful as you expect it will be can you just talk about getting factors a constraints that are headed you in terms of the expanding that into other cities thanks
spk_41: ah i'll take a cut now let's stuff no at
spk_20: vegas is unique for many reasons one the economic opportunity is large we're not they were operating in a country that with which liberty is reasonably familiar pretty close to us the ability go negotiate and make something happen on a street circuit rather than and own circuit made it easier in many ways or was an abrupt promoter natural promoter
spk_39: we were was a role that was good for us to fill in and it was good for us to test
spk_2: some of the theories we had about promotion so it was a unique opportunity and great it's a great tesla or could there be other cities i think there are many countries where it's obvious we would be less effective as a promoter than us there may be somewhere we could operate recently effectively or maybe have some form of cop promotion and that to be interesting but i do now
spk_3: i think vegas is relatively unique in terms of being caught a place where we would go all out and do what we have done it and will we are doing here and twenty twenty three definite what my us
spk_0: yes
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