Liberty Media Corporation

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Media Corporation 2021 Q2 earnings 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. As a reminder, this conference is being recorded August 6th. I would now like to turn the conference over to Courtney Chun, Chief Portfolio Officer. Please go ahead.

Thank you. 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 Liberty Media's most recent forms, 10-K and 10-Q, or Liberty Media Acquisitions Form S-1 Registration Statement filed with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Media and Liberty Media Acquisition 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 Liberty Media Acquisition Corporation's expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media and SiriusXM, including adjusted OIVDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media and SiriusXM, Schedules 1 through 3, and be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Now I'd like to turn the call over to Greg Maffei, Liberty's president and CEO.

Thank you, Courtney, and good morning to all of you. Today speaking on the call, we will also have Formula One's president, CEO Stefano Domenicali, and Liberty's chief accounting and principal financial officer, Brian Wendling. So beginning with Liberty SiriusXM, we continue to repurchase shares, purchasing shares, $141 million across LSXMA and the K shares from May through July. The discount remains, and we therefore were purchased at a look-through price on Surrey of just over $4 per share. We continue to take advantage of the discount opportunity, and I expect we will continue to do it going forward. And our ownership of SiriusXM is 78.1% as of July 23rd. Looking now at Sirius itself, They had an outstanding results for the quarter, another beaten raise, with record low churn at 1.5 percent. EBITDA also set a new quarterly record, and new car penetration increased to 82 percent. We have a continued focus on growing the already strong presence in the car. There are 140 million vehicles on the road today which are enabled for SiriusXM, and the 360L enhanced feature set will continue to evolve based on data received from users. We're also growing engagement outside of the car, and the rebranded SXM app is gaining traction. The variable margins are as good or better than satellite. I encourage you to get it today. And please don't forget we are growing our advertising platform with 150 million listeners, the largest digital audio ad platform in North America. With all these combined platforms and capabilities, we believe SiriusXM presents a compelling, comprehensive offering for talent, media, and social brands to create and monetize audio experiences. So turning to Live Nation, the reopening accelerated, led by outdoor concerts in the U.S. and the U.K. with other countries coming along as vaccination levels increased. Festivals and amphitheaters are the focus for the summer, led by Lollapalooza, Rolling Loud, a hip-hop festival in Miami, Latitude in the UK. Between them, they all had 750,000 fans, which is back to pre-COVID levels. Live Nation is helping to put on the New York reopening concert in Central Park on August 21st. And Veeps, our streaming service, continues to be an incremental live revenue stream for us with the Bob Dylan show later this month. Live expects all segments to return to AOI profitability in the second half of 21. And all signs continue pointing to a great 2022. And we expect 2022 activity and financial results will exceed 2019. Turning now to the Formula One group. It was phenomenal racing the first half of the season up until the summer break with a fierce battle between Lewis and Max. Among the rest of the drivers, there is a tight competition for third, and the Constructors' Championship is also highly competitive with Mercedes and Red Bull going wheel-to-wheel and McLaren and Ferrari battling for the third spot. We remain impressed with the way Formula One continues to navigate the continued challenges from the pandemic. I have lost count of how many times we have made changes to the 2021 calendar, but we continue to move forward. And the Formula One team continues to plan for the known and unknown variables that come at them. We did welcome a full crowd at Silverstone, 356,000 fans over the weekend, which was tremendous. and we remain confident in our ability to have a full 23 race season. We also had our first sprint event there, which was a resounding success. We make meaningful progress on sponsorship. We continue to, and we're consistently announcing new partners. And if you haven't already, I encourage you to tune in to the Business Breakdowns podcast with Stefano, where he's quite articulate about the future of the business. The link to it is on our IR homepage. The Braves, baseball fans nationwide, but particularly in Atlanta and here in certain parts of Colorado, were devastated to see Acuna end his season early. We do wish him a speedy recovery. The team has been battling despite setbacks. We had an impressive comeback last night to sweep the Cardinals, and the Braves are now over .500. At Truist Park, fans are back in a big way. We expanded to capacity of 100% in early May. Baseball revenue per home game is up in the second quarter compared to 2021, despite only partial capacity early in the quarter. Ticket sales, concessions, and retails per caps are all trending very favorably. We are having trouble keeping jerseys in stock, a high-quality problem. The Braves do lead Major League Baseball in total attendance at over 1.5 million and average attendance at over 29,000 per game. With our financial strength, we are reinvesting in on-field talent before the trade deadline. You saw us do that, rather. And at the battery, development revenue continues up in the quarter due to rental income for new tenants, including TK and Papa John's, and the end of COVID-related modified rents. You'll also see the Phase 2 office tower. We're confident it will be fully leased in the near term. And just in crump, we'll move into their new headquarters later this month. Finally, we continue to make good progress on LMAC, the SPAC. We think the trends in the SPAC market, which are challenging for many, actually play to the benefit of Liberty. With that, I will turn it over to Brian for more on our financial results.