Liberty Media Corporation (FWONA) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 4, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Liberty Media Corporation’s Third Quarter 2022 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference will be recorded today, November 4th.

I would now like to turn the call over to your host, Courtnee Chun, Chief Portfolio Officer. Please go ahead.

Courtnee Chun

Thank you, and 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 10-K and 10-Q or Liberty Media Acquisition’s most recent Forms 10-K and 10-Q 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 statements contained herein to reflect any change in Liberty Media or Liberty Media Acquisition’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 OIBDA. The required definitions and reconciliations for Liberty Media and SiriusXM Schedules 1 and 2 can 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.

Greg Maffei

Thank you. Good morning.

Today speaking on the call, we will also have Formula One’s President and CEO, Stefano Domenicali; and Liberty’s Chief Accounting and Principal Financial Officer, Brian Wendling.

So, let me start with Liberty SiriusXM. Last quarter, we discussed our intention to reduce debt at LSXM and we took actions during the third quarter. We opportunistically repurchased about 21% of the 1.375% Basket convert combining prudent debt management and effective share buyback.

FWON paid $64 million and BATR paid $14 million to LSXM to settle their respective intergroup interest. The remainder of the repurchase was funded with LSXM cash and $27 million from an unwind of a bond hedge and warrant.