Liberty SiriusXM Group (LSXMA) Misses Q3 EPS by 19c, Revenues Beat

Liberty SiriusXM Group (NASDAQ: LSXMA) reported Q3 EPS of $0.06, $0.19 worse than the analyst estimate of $0.25. Revenue for the quarter came in at $2.03 billion versus the consensus estimate of $1.9 billion.

Headlines include(1):

• Attributed to Liberty SiriusXM Group
  • SiriusXM reported third quarter 2020 financial results
    • SiriusXM self-pay net subscriber additions of 169,000 in third quarter
    • Third quarter revenue of $2,025 million, up 1% year-over-year
    • Third quarter net income of $272 million, up 11%; diluted EPS of $0.06
    • Adjusted EBITDA(2) of $661 million in the third quarter, up 1% year-over-year
    • SiriusXM increased 2020 subscriber and financial guidance on October 22nd
    • Third quarter SiriusXM capital returns total $544 million; Stitcher acquisition complete; leadership transition on track
  • Jennifer Witz slated to become CEO of SiriusXM on January 1, 2021
  • Liberty Media’s ownership of SiriusXM stood at 74.4% as of October 20th
  • From August 1st through October 31st, Liberty repurchased 3.1 million LSXMA/K shares at an average price per share of $34.93 and total cash consideration of $110 million
  • Corporate level liquidity as of September 30th: $974 million cash, cash equivalents and undrawn margin loan capacity (excluding liquidity at SiriusXM)
• Attributed to Formula One Group
  • F1 and FIA announced new five year Concorde Agreement executed with all ten teams
  • Completed 13 races of planned 17 race season
  • Lewis Hamilton sets new record of 93 Grand Prix wins, surpassing Michael Schumacher
  • Stefano Domenicali appointed President and CEO of F1 effective January 2021
    • Chase Carey will move to role of non-executive Chairman
  • Liquidity as of September 30th: $2.1 billion cash, cash equivalents and revolver capacity (including $639 million of liquidity at F1)
• Attributed to Braves Group
  • Braves clinched third straight NL East title and won NL Wild Card Series and NL Division Series
  • Braves amended debt agreements related to the team revolver and ballpark funding
  • Liquidity as of September 30th: $260 million cash, restricted cash, cash equivalents and revolver capacity (including $183 million liquidity at Braves)

“Our employees and management teams executed exceptionally well given the ongoing challenges presented by COVID-19. SiriusXM posted strong results, returned capital of $544 million and announced Jennifer Witz will assume the role of CEO in 2021. The Braves had an outstanding season, clinching their third straight NL East title. Formula 1 impressively planned a 17 race calendar and has produced some thrilling races thus far, including at two new venues. We were pleased to announce that Stefano Domenicali has been appointed CEO effective January 2021,” said Greg Maffei, Liberty Media President & CEO.

Note on COVID-19

Liberty Media continues to monitor and assess the effects of the COVID-19 pandemic on its operations, wholly-owned businesses and various investments. The global spread of COVID-19 prompted many countries throughout the world to take aggressive actions, including imposing travel restrictions and stay-at-home orders, closing public attractions and restaurants, and mandating social distancing practices. As a result, the start of the 2020 F1 season was delayed until the beginning of July 2020 and the Major League Baseball season was delayed until the end of July 2020. In addition, in mid-March 2020, Live Nation suspended all large-scale live entertainment events but has continued to host alternative types of concerts and live events in various global locations that are compliant with local safety standards. Liberty Media and our portfolio companies will continue to comply with the recommendations of various government agencies and focus on the safety of our employees, partners and customers. Liberty Media, SiriusXM, Formula 1 and Braves Holdings are in compliance with all debt covenants as of September 30, 2020. Braves Holdings is expected to be out of compliance with certain debt covenants related to one mixed-use loan as of December 31, 2020, and is in ongoing discussions with the debt counterparty to obtain waivers and covenant modifications.

For earnings history and earnings-related data on Liberty SiriusXM Group (LSXMA) click here.

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