Atlanta Braves Holdings (BATRK) Q2 2024 earnings summary

Executive summary

• Liberty SiriusXM transaction progressing with SEC and FCC approvals; expected close September 9 and shareholder meeting August 23. Adjusted merger exchange ratio reset, reducing new Sirius shares by 90%.

• Formula One Group revenue up 29% year-to-date, with orders +35%, driven by three additional races and strong sponsorship pipeline.

• MotoGP acquisition progressing, with regulatory clearances in key jurisdictions and expected close by year-end.

• Live Nation delivered another record quarter, with concert attendance up 5% and AOI up 21%.

• Atlanta Braves Holdings reported Q2 2024 revenue of $282.9M, up 5% year-over-year, with net earnings of $29.1M, reversing a prior-year loss.

Financial highlights

• Liberty SiriusXM Group had $88M attributed cash (excluding $100M at SiriusXM), paid down $35M margin loan, and has $1.1B undrawn margin loan capacity.

• Value of SiriusXM stock at $10B with $1.2B in principal debt; total attributed debt $10.9B (including $9.1B at SiriusXM).

• Formula One Group had $1.5B in cash/liquid investments, $2.9B in attributed debt, and F1's $500M revolver undrawn; leverage at 1.3x.

• Braves Q2 2024 adjusted OIBDA was $45.8M, up from $41.9M in Q2 2023, with cash at $121.2M and total debt at $600M.

• Braves' Battery revenue up 11% and adjusted OIBDA up 13% in Q2.

Outlook and guidance

• SiriusXM expects solid margin and cash generation for the rest of 2024, with peak CapEx this year and return to free cash flow growth in coming years.

• MotoGP transaction expected to close by year-end, with bridge financing commitments reduced from $2B to $1.65B.

• Braves plan $20M in new capital projects for 2025, expected to generate incremental revenue.

• Management expects sufficient liquidity from cash on hand, operations, and available credit to meet future obligations.

• Ongoing bankruptcy proceedings of a key broadcast partner present uncertainty for future revenue streams.