Quarterly report [Sections 13 or 15(d)]

Information About Liberty's Operating Segments

v3.25.2
Information About Liberty's Operating Segments
6 Months Ended
Jun. 30, 2025
Information About Liberty's Operating Segments  
Information About Liberty's Operating Segments

(10)   Information About Liberty's Operating Segments

The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the media and entertainment industries. The Company identifies its reportable segments as (A) those consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of the Company's annual pre-tax earnings.

Liberty’s chief operating decision maker, the chief executive officer, evaluates performance and makes decisions about allocating resources to the Company’s reportable segments based on financial measures such as revenue, operating expenses (including team payments and other cost of revenue), selling, general and administrative expenses and Adjusted OIBDA.

For segment reporting purposes, the Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses excluding all stock-based compensation, separately reported litigation settlements, Concorde incentive payments and restructuring, acquisition and impairment charges. The Company believes this measure is an important indicator of the operational strength and performance of its businesses, by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements, Concorde incentive payments and restructuring, acquisition and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

Formula 1, a reportable segment, is a global motorsports business that holds exclusive commercial rights with respect to the F1 Championship, an annual, approximately nine-month long, motor race-based competition in which teams compete for the Constructors' Championship and drivers compete for the Drivers' Championship. The F1 Championship takes place on various circuits with a varying number of Events taking place in different countries around the world each season. Formula 1 is responsible for the commercial exploitation and development of the F1 Championship as well as various aspects of its management and administration. 

As of December 31, 2024, Live Nation met the Company’s reportable segment threshold for equity method affiliates. See note 7 for segment disclosures related to Live Nation.

The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, differing revenue sources and marketing strategies. The significant accounting policies of the segments are the same as those described in the Company's summary of significant policies in the Company's annual financial statements filed on Form 10-K.

Performance Measures

Three months ended June 30, 2025

    

    

Corporate and

    

    

Formula One

Other

Eliminations

Total

amounts in millions

Revenue:

Primary revenue

$

1,032

1,032

Other revenue

194

145

(30)

309

Total revenue

1,226

145

(30)

1,341

Operating expenses:

 

 

 

Team payments, excluding Concorde incentive payments

(513)

(513)

Other cost of revenue

(274)

(110)

30

(354)

Selling, general and administrative, excluding stock-based compensation

(78)

(32)

(110)

Adjusted OIBDA

$

361

3

364

Six months ended June 30, 2025

    

    

Corporate and

    

    

Formula One

Other

Eliminations

Total

amounts in millions

Revenue:

Primary revenue

$

1,351

1,351

Other revenue

278

198

(39)

437

Total revenue

1,629

198

(39)

1,788

Operating expenses:

 

 

 

Team payments, excluding Concorde incentive payments

(627)

(627)

Other cost of revenue

(402)

(152)

39

(515)

Selling, general and administrative, excluding stock-based compensation

(154)

(59)

(213)

Adjusted OIBDA

$

446

(13)

433

Three months ended June 30, 2024

    

    

Corporate and

    

    

Formula One

Other

Eliminations

Total

amounts in millions

Revenue:

Primary revenue

$

739

739

Other revenue

132

141

(24)

249

Total revenue

871

141

(24)

988

Operating expenses:

 

 

 

Team payments

(435)

(435)

Other cost of revenue

(210)

(112)

24

(298)

Selling, general and administrative, excluding stock-based compensation

(66)

(25)

(91)

Adjusted OIBDA

$

160

4

164

Six months ended June 30, 2024

    

    

Corporate and

    

    

Formula One

Other

Eliminations

Total

amounts in millions

Revenue:

Primary revenue

$

1,202

1,202

Other revenue

222

185

(34)

373

Total revenue

1,424

185

(34)

1,575

Operating expenses:

 

 

 

Team payments

(598)

(598)

Other cost of revenue

(333)

(141)

34

(440)

Selling, general and administrative, excluding stock-based compensation

(125)

(47)

(172)

Adjusted OIBDA

$

368

(3)

365

Our subsidiaries’ customers generally pay for services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in our unaudited condensed consolidated statement of operations as the services are provided.

Significant portions of the transaction prices are related to undelivered performance obligations that are under contractual arrangements that extend beyond one year. The Company anticipates recognizing revenue from the delivery of such performance obligations of approximately $1,542 million for the remainder of 2025, $2,624 million in 2026, $2,364 million in 2027, $6,050 million in 2028 through 2032, and $1,716 million thereafter. We have not included any amounts in the undelivered performance obligations amounts for those performance obligations that relate to a contract with an original expected duration of one year or less.  

Other Information

June 30, 2025

    

Total

    

Investments

 

assets

in affiliates

amounts in millions

Formula One Group

Formula 1

$

9,661

2

Corporate and other

 

2,974

 

31

Intergroup elimination

(150)

Total Formula One Group

12,485

33

Liberty Live Group

Corporate and other

1,371

589

Total Liberty Live Group

1,371

589

Elimination

(35)

Consolidated Liberty

$

13,821

 

622

The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) from continuing operations before income taxes:

Three months ended

Six months ended

June 30,

June 30,

    

2025

    

2024

    

2025

    

2024

 

amounts in millions

Adjusted OIBDA

$

364

 

164

 

433

 

365

Concorde incentive payments

(50)

Acquisition costs

(3)

(11)

(14)

(20)

Stock-based compensation

 

(8)

 

(7)

 

(10)

 

(20)

Depreciation and amortization

 

(80)

 

(89)

 

(157)

 

(175)

Operating income (loss)

273

57

202

150

Interest expense

 

(57)

 

(60)

 

(112)

 

(122)

Share of earnings (losses) of affiliates, net

 

71

 

83

 

72

 

59

Realized and unrealized gains (losses) on financial instruments, net

 

(129)

 

87

 

(64)

 

66

Other, net

 

70

 

26

 

106

 

47

Earnings (loss) from continuing operations before income taxes

$

228

 

193

 

204

 

200