百花视频

百花视频 Reports Fourth Quarter and Year End 2022 Financial Results

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- 百花视频 (鈥湴倩ㄊ悠碘�� or 鈥湴倩ㄊ悠碘��) (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) today reported fourth quarter and year end 2022 results. Headlines include ⁽¹⁾:

• On schedule to complete planned split-off of Atlanta Braves Holdings, Inc. and reclassification of tracking stocks to create 百花视频 Live Group tracking stock in second quarter 2023
• Attributed to 百花视频 SiriusXM Group
  • SiriusXM reported strong full year 2022 results
    • 2022 revenue of $9.0 billion; up 4% year-over-year
    • Net income of $1.21 billion in 2022 and diluted EPS of $0.31
    • Adjusted EBITDA⁽²⁾ reached $2.83 billion
    • SiriusXM achieved financial guidance in 2022; reported full-year self-pay net additions of 348 thousand
    • SiriusXM issued 2023 financial guidance
  • 百花视频鈥檚 ownership of SiriusXM was 82.4% as of January 31, 2023
• Attributed to Formula One Group
  • F1 confirmed record 23 race calendar for 2023, beginning March 5^th in Bahrain
  • 2022 fan attendance of 5.7 million, up 36% compared to 2019
  • Cumulative TV viewers of 1.54 billion in 2022
    • Social media followers up 23% to 61 million
    • Cumulative TV viewership in US up 36%
  • Secured Qatar Airways as Global Airline Partner under multi-year agreement
  • Refinanced F1 Term Loan B and revolving credit facility and raised new Term Loan A
  • Announced global charity partnership with UNICEF focused on providing quality education to children from vulnerable communities
• Attributed to Braves Group
  • Battery development generated strong $16 million of operating income and $28 million of net operating income (鈥淣OI鈥�)⁽²⁾ in 2022

鈥淔ormula 1 capped off an incredible 2022, with growing fan enthusiasm and success with commercial partners driving record engagement, revenue and adjusted OIBDA. The Atlanta Braves made smart additions to their roster in the off-season. We expect to complete the planned split-off of the Braves and the creation of the 百花视频 Live Group tracking stock in the second quarter, which should better highlight the value of their underlying assets and enhance investor choice,鈥� said Greg Maffei, 百花视频 President and CEO. 鈥淒espite a challenging automotive and advertising market, SiriusXM delivered its financial guidance in 2022 and reached new records for revenue and churn. The company commands the largest paid share-of-ear in the car and is making important technological investments to capitalize on this position.鈥�

Discussion of Results

Unless otherwise noted, the following discussion compares financial information for the three months or year ended December 31, 2022 to the same period in 2021.

LIBERTY SIRIUSXM GROUP 鈥� The following table provides the financial results attributed to 百花视频 SiriusXM Group for the fourth quarter and full year 2022. Approximately $13 million and $39 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the 百花视频 SiriusXM Group in the fourth quarter and full year 2022, respectively.

SiriusXM is a separate publicly traded company and additional information about SiriusXM can be obtained through its website and filings with the Securities and Exchange Commission. SiriusXM reported its stand-alone fourth quarter and full year results on February 2, 2023. For additional detail on SiriusXM鈥檚 financial results, please see SiriusXM鈥檚 earnings release posted to its Investor Relations website. For presentation purposes on page one of this release, we include the results of SiriusXM, as reported by SiriusXM, without regard to the purchase accounting adjustments applied by us for purposes of our financial statements. 百花视频 believes the presentation of financial results as reported by SiriusXM is useful to investors as the comparability of those results is best understood in the context of SiriusXM's historical financial presentation.

The businesses and assets attributed to 百花视频 SiriusXM Group consist primarily of 百花视频鈥檚 interests in SiriusXM, which includes its subsidiary Pandora, and an investment in Live Nation.

FORMULA ONE GROUP 鈥� The following table provides the financial results attributed to the Formula One Group for the fourth quarter and full year 2022. Approximately $17 million and $56 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Formula One Group in the fourth quarter and full year 2022, respectively.

鈥淔ormula 1 saw record attendance at its races in 2022 and we were once again the fastest growing major sport on social media. We are continuing to build fan engagement through our high-quality broadcast, enhanced content on F1 TV, social channels and new immersive experiences including the F1 Arcade and F1 Exhibition products. F1鈥檚 global relevance and sustainability efforts are enticing the entry of premier OEMs including Audi and Ford in 2026, and we are confident they will bring significant value to our sport,鈥� said Stefano Domenicali, Formula 1 President and CEO. 鈥淲e look forward to a record 23 race calendar this year including, in particular, the inaugural Las Vegas Grand Prix.鈥�

The following table provides the operating results of Formula 1 (鈥淔1鈥�).

F1 Operating Results

Primary F1 revenue represents the majority of F1鈥檚 revenue and is derived from (i) race promotion revenue, (ii) media rights fees and (iii) sponsorship fees. For the year ended December 31, 2022, these revenue streams comprised 28.6%, 36.4% and 16.9%, respectively, of total F1 revenue.

There were 22 and 6 races held in the full year and fourth quarter of 2022, respectively, compared to 22 and 7 races held in the full year and fourth quarter of 2021. The 2021 season was impacted by the pandemic, with attendance at races limited particularly in the first half of the season. Restrictions on fan attendance reduced as 2021 progressed, with all races in the second half of the year operating at either full capacity or with limited restrictions. F1鈥檚 results in 2022 were not impacted by capacity limitations, and F1 had record growth in attendance in the grandstands and in the Paddock Club, with numbers well above pre-COVID-19 levels.

Primary F1 revenue grew for the full year with increases across all primary revenue streams. Race promotion revenue grew due to higher fees generated from the mix of events held, with three additional races held outside of Europe compared to 2021 and the return of capacity crowds, whereas limitations on fan attendance in 2021 led to one-time changes in the contractual terms of a limited number of races held. Media rights revenue increased for the full year due to growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements, and sponsorship revenue increased due to the recognition of revenue from new sponsors.

Primary F1 revenue decreased in the fourth quarter, driven by lower race promotion and media rights revenue primarily due to the impact of one less race held in the fourth quarter of 2022 compared to the prior year period. Race promotion revenue declined due to one less race held, as well as lower fees generated from the different mix of events on the calendar with only three of the same races occurring in both periods. Media rights revenue decreased as contractual increases and growth in F1 TV subscription revenue were offset by the impact of lower proportionate recognition of season-based income (6/22 races took place in the fourth quarter of 2022 compared to 7/22 in the fourth quarter of 2021). Sponsorship revenue increased as the recognition of revenue from new sponsors more than offset the impact of lower proportionate recognition of season-based income.

Other F1 revenue increased in the full year and fourth quarter driven by higher hospitality revenue generated from the Paddock Club, which operated at 19 races with record attendance throughout 2022 compared to 11 events during 2021, as well as higher freight revenue with more races held outside of Europe compared to the prior year and the impact of freight cost inflation on billing rates. Other F1 revenue for the full year also benefited from the ability to undertake a greater scope of activities than was possible in the pandemic-affected first half of 2021.

Operating income and adjusted OIBDA⁽²⁾ grew for the full year. Team payments increased for the full year driven by the growth in F1 revenue and the associated impact on the calculation of the team payments, which are 100% variable under the 2021 Concorde Agreement. Other cost of F1 revenue is largely variable in nature and is mostly derived from servicing both Primary and Other F1 revenue opportunities. These costs increased in the full year primarily driven by higher freight costs with three more events held outside of Europe and underlying inflation on freight costs, increased Paddock Club costs associated with higher hospitality attendance and servicing eight additional Paddock Club events compared to the prior year, as well as higher commissions and partner servicing costs associated with increased Primary F1 revenue streams and higher Formula 2 and Formula 3 related costs. Selling, general and administrative expense increased in the full year due to higher personnel and IT costs and increased legal and other advisory fees, as well as approximately $19 million of costs associated with the planning and launch of the Las Vegas Grand Prix.

Operating income and adjusted OIBDA decreased in the fourth quarter. Team payments decreased due to the impact of the pro rata recognition of such payments across the race season as one less race was held in the fourth quarter of 2022 compared to the prior year period. This was offset by increased Other cost of F1 revenue due to higher freight costs and costs associated with higher hospitality attendance in the Paddock Club. Selling, general and administrative expense increased in the fourth quarter primarily due to costs associated with the planning and launch of the Las Vegas Grand Prix.

The 百花视频 SiriusXM Group has an approximate 1.7% intergroup interest (4.2 million notional shares) in the Formula One Group attributed to it as of January 31, 2023. These shares are not included in the outstanding share count of Formula One Group in 百花视频鈥檚 most recent Form 10-K. Assuming the issuance of the shares underlying this intergroup interest, the Formula One Group outstanding share count as of January 31, 2023 would have been 234 million.

The businesses and assets attributed to the Formula One Group consist of 百花视频鈥檚 subsidiary F1, other minority investments and an inter-group interest in the Braves Group.

BRAVES GROUP 鈥� The following table provides the financial results attributed to the Braves Group for the fourth quarter and full year 2022. Approximately $3 million and $13 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Braves Group in the fourth quarter and full year 2022, respectively.

The following table provides the operating results of Braves Holdings, LLC (鈥淏raves鈥�).

Braves Operating Results

Baseball revenue is derived from two primary sources: (i) ballpark event revenue (ticket sales, concessions, advertising sponsorships, suites and premium seat fees) and (ii) broadcasting revenue (including national and local broadcast rights). Mixed-use development revenue is derived from the Battery Atlanta mixed-use facilities and primarily includes rental income.

There were 83 and 4 home games (including postseason) played in the full year and fourth quarter of 2022, respectively, compared to 87 and 11 home games played in the comparable prior year periods. In December 2021, the Collective Bargaining Agreement (鈥淐BA鈥�), which requires Major League Baseball (鈥淢LB鈥�) clubs to sign players using a uniform contract, expired and MLB commenced a lockout of the MLB players. As a result of the lockout, the start of the 2022 regular season was delayed and the number of spring training games played was reduced. A new five-year CBA was signed in March 2022 and the regular season began in April. A full 162 game schedule was played in 2022 with no capacity limitations. The 2021 regular season began with fans in attendance at 33% capacity for the first home game beginning April 9^th, which increased to 50% capacity beginning April 23^rd and further expanded to 100% capacity beginning May 7^th.

Baseball revenue increased for the full year due to increased capacity and ticket demand at regular season and Spring Training games, World Series related retail revenue and additional special events held at the ballpark including concerts. This increase was partially offset by a decrease in the number of postseason home games, impacting ticket sales and concession revenue, and the absence of revenue from the Professional Development League Clubs which were sold in January 2022. Baseball revenue declined in the fourth quarter primarily driven by the decrease in the number of regular and postseason home games played. Development revenue increased in the full year and fourth quarter due to a reduction in deferred payment arrangements and increases in rental income from various new lease commencements.

Operating income and adjusted OIBDA decreased in the full year and fourth quarter. Revenue growth was more than offset by increased operating costs due to higher player salaries, higher variable concession and retail operating costs and facility and game day expenses driven by an increase in the number of regular season home games in the full year period and higher attendance, an increase in the number of concerts at Truist Park and increased expenses under MLB鈥檚 revenue sharing plan. Selling, general and administrative expense increased in the full year and fourth quarter primarily due to increased advertising initiatives for the 2022 season and personnel costs.

The Formula One Group has an approximate 11.0% intergroup interest (6.8 million notional shares) and the 百花视频 SiriusXM Group has an approximate 2.9% intergroup interest (1.8 million notional shares) in the Braves Group attributed to them as of January 31, 2023. These shares are not included in the outstanding share count of the Braves Group in 百花视频鈥檚 most recent Form 10-K. Assuming the issuance of the shares underlying these intergroup interests, the Braves Group outstanding share count as of January 31, 2023 would have been 62 million.

The businesses and assets attributed to the Braves Group consist primarily of 百花视频鈥檚 subsidiary the Braves, which indirectly owns the Atlanta Braves Major League Baseball Club and certain assets and liabilities associated with the Braves鈥� ballpark and mixed-use development project.

Share Repurchases

There were no repurchases of 百花视频鈥檚 common stock (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) from November 1, 2022 through January 31, 2023. The total remaining repurchase authorization for 百花视频 as of February 1, 2023 is approximately $1.1 billion and can be applied to repurchases of common shares of any of the 百花视频 tracking stocks.

FOOTNOTES

1. 百花视频 will discuss these highlights and other matters in 百花视频's earnings conference call which will begin at 10:00 a.m. (E.T.) on March 1, 2023. For information regarding how to access the call, please see 鈥淚mportant Notice鈥� later in this document.
2. For definitions of adjusted OIBDA (as defined by 百花视频), adjusted EBITDA (as defined by SiriusXM) and net operating income (as defined by the Braves) and applicable reconciliations, see the accompanying schedules.

NOTES

The following financial information with respect to 百花视频's equity affiliates and available for sale securities is intended to supplement 百花视频's consolidated balance sheet and statement of operations to be included in its Form 10-K for the year ended December 31, 2022.

Fair Value of Corporate Public Holdings

Fair Value of Intergroup Assets and Liabilities

The intergroup interests represent quasi-equity interests which are not represented by outstanding shares of common stock; rather, the Formula One Group and 百花视频 SiriusXM Group have attributed interests in the Braves Group, which are generally stated in terms of a number of shares of 百花视频 Braves common stock, and the 百花视频 SiriusXM Group also has an attributed interest in the Formula One Group, which is generally stated in terms of a number of shares of 百花视频 Formula One common stock. Each reporting period, the notional shares representing the intergroup interests are marked to fair value. The changes in fair value are recorded in the unrealized gain (loss) on the intergroup interest line item in the unaudited attributed consolidated statements of operations. The intergroup interests will remain outstanding until the redemption of the outstanding interests, at the discretion of 百花视频鈥檚 Board of Directors, through transfer of securities, cash and/or other assets from the Braves Group or Formula One Group, respectively, to the respective tracking stock group.

Cash and Debt
The following presentation is provided to separately identify cash and liquid investments and debt information.