Formula One Group (FWONA) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 5, 2023 9:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Liberty Media Corporation's 2023 Q1 Earnings 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 is being recorded, May 05.

I would now like to turn the conference over to Shane Kleinstein, Vice President of Investor Relations. Please go ahead.

Shane Kleinstein

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 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 expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements 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 scheduled one through three 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 turn the call over to Greg Maffei, Liberty's President and CEO.

Greg Maffei

Thank you, Shane, and good morning. Today speaking 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. I'm going to first update you on the split up of the Braves and the creation of the new Liberty Live Tracker. We filed the amended S-4 and are pleased with the speed of the SEC review. We believe we are nearing the end of that SEC process and we are still targeting completion before the end of the second quarter.

Turning first to Liberty SiriusXM. We continued our efforts to delever and simplify the balance sheet there. We raised $575 million of 3.75% LSXMA converts and we used the proceeds to repurchase $703 million principal amount of LSXMA debt including $591 million of the 1.375% basket convert and $112 million of the two – 2.125% Siri exchangeables. We also repaid the remaining balance of those in April. That was a reduction in gross debt just over $400 million year-to-date, including the April activity. The reclassification of the LSXMA tracker without the Live stake will simplify our structure further and we continue to be focused on rationalizing Siri and LSXM's structures in the near-term.