Liberty Media Corporation

Welcome to the Liberty Media 2022 year-end 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, March 1st. I would now like to turn the call over to Shane Kleinstein, Vice President, Investor Relations. Please go ahead.

Thank you. 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 Liberty Media's most recent Form 10-K filed with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media'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 OIBDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media and SiriusXM, Schedules 1 through 3, can be found at the end of the earnings press release issued today, which is available on Liberty's website. Now I'd like to introduce Greg Maffei, Liberty President and CEO.

Thank you, Shane, and good morning to all of you. Today, speaking in the call, we will also have Formula One's President and CEO, Stefano Domenicale, and Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling. First, let me start with an update on the split off of the Braves and the creation of Liberty Live Tracker. We filed the amended S-4, and we still expect completion in the second quarter. Let me turn to Liberty Sirius XM. We expect we will have a simplified structure following the recapitalization of LSXM and the creation of Liberty Live Tracker. And we are focused on rationalizing this structure in the near term. Looking at SiriusXM, the underlying asset, reported strong fourth quarter results with record high ARPU and EBITDA and record low churn. Management did give more cautious forward-looking commentary given Multiple headwinds we're experiencing here in the early part of 2023. The top of the funnel in terms of new subscribers is still pressured as the SAR has dropped from about 17 million in 2019 to something like 13 and a half million last year. The ad market remains soft, especially in the first half of 2023. And we are seeing moderating marketing spend ahead of the fourth quarter app revamp. Plus, we've had some cash impacts. We expect peak satellite capex in 2023, and we are now a taxpayer, something which previously we had not been. We do expect these incremental satellite capex will moderate in 2024 with nearly no incremental satellite capex by 2027, by the end of the year. We're also stepping up some tech investments for 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 360L. We do expect these negative trends in the ad market and the SAR will turn and we have a resilient business model with meaning free cash flow. So we still remain optimistic about our longer term prospects. Turning to Live Nation. Continuously incredible demand. 2022 attendance was up 24% over 2019. We are at an all-time high for concert attendance, despite many markets still being closed during part of the year. We've seen especially strong international markets with 70% of net new tickets sold in 2022 were to international clients. And we expect another record year of demand in 2023. Ticket sales in 2023 are up 20% versus the same time last year. and last year also benefited from 20 million of tickets that were rescheduled from prior periods due to COVID. Formula One Group. Great end of the 2022 year. Attendance records were set. We were up 36% over 2019. Our fan base is increasingly diverse, with new fans being younger, and the share of females within the fan base 40% larger than the share in the established fan base. That's in the new fan base. The U.S. is especially strong. One in three fans globally started following F1 in the last four years. In the U.S., it's even higher at one in two. This is a result of many efforts, and most of them related to our efforts to drive the access to our drivers across all channels, not only drive to survive But the driver presence on social pages, coverage in larger used publications, late night comedy appearances on people like Jimmy Kimmel. And it's interesting to note, for example, look at our Instagram followers. And comparing goats, Lewis Hamilton has 31.5 million versus Tom Brady at 13.6 million. F1 is clearly getting into the mentality of America. And looking at the younger talent, Leclerc has almost 10 million and Luka Doncic is at 8 million. Again, we're doing pretty well. We will have three U.S. races in 2023, the second year of Miami, capitalizing on the first year's success with several improvements around hospitality and security. We expect the sporting world to be super excited, as we are, for the inaugural Las Vegas GP. F1 Las Vegas social media garnered over 170 million impressions and over 5 million engagements since September of 2022. And we launched LVGP TikTok last weekend. The first post had over 535,000 views in the first 24 hours. Let me turn to the Braves. We reiterate that we believe the split-off will better highlight the value of the Braves. We grew baseball revenue in 2022, even though we had experienced less postseason gains, capitalizing on the tailwinds from our 2021 World Series wins. We had year-over-year growth across ticket sales, sponsorship, concessions, and retail. We sold 3.1 million tickets and led Major League Baseball with 94% of our inventory being sold. Demand for the season and single-ticket games remains high for the 2023 season. Bleachers report... called the Braves front office the number one in Major League Baseball for the 2023 season, and we tend to agree. We were happy to extend manager Brian Snicker through 2025, and GM Alex Anthopoulos invested smartly in the offseason, adding to the already core talent we have by locking them up in multi-year deals. This team is built on young talent and is positioned for long-term success, and we very much look forward to the opener on March 30th. And with that, let me turn it over to Brian to talk a little bit more about our financial results.