Atlanta Braves Holdings Reports Second Quarter 2023 Financial Results

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Atlanta Braves Holdings (Nasdaq: BATRA, BATRK) Reports 8% Revenue Growth in Q2 2023 Following Split-Off from Liberty Media Corporation

Positive

• Atlanta Braves Holdings reported a 8% revenue growth in the second quarter of 2023, reaching $270 million, with baseball revenue up 8% to $255 million and mixed-use development revenue up 13% to $15 million.
• The company's mixed-use development generated $10 million of Adjusted OIBDA in the second quarter.
• The split-off of the Braves and its associated mixed-use development into the separate public company Atlanta Braves Holdings was completed on July 18, 2023.
• The outstanding basic share count of Atlanta Braves Holdings as of July 31, 2023, is 62 million shares.

Negative

• None.

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Atlanta Braves Holdings, Inc. (“Atlanta Braves Holdings”) (Nasdaq: BATRA, BATRK) today reported second quarter 2023 results.

Headlines include⁽¹⁾:

• Atlanta Braves Holdings began trading July 19^th following split-off of Braves and associated mixed-use development from Liberty Media Corporation
• Total revenue grew 8% to $270 million in second quarter
  • Baseball revenue up 8% to $255 million
  • Mixed-use development revenue up 13% to $15 million
• Mixed-use development generated $10 million of Adjusted OIBDA⁽²⁾ in second quarter

“Atlanta Braves Holdings is the first MLB team to trade publicly in 25 years. We believe our new structure will better highlight the value of the Braves and the associated mixed-use development for the benefit of our team, fans, employees and shareholders,” said Greg Maffei, Chairman, President and CEO of Atlanta Braves Holdings. “The Braves are an iconic franchise with demonstrated on-field and financial success, and the Battery Atlanta development has become a model embraced and emulated by professional sports teams. Our leadership team will continue to support the Braves executives in Atlanta in their successful management of the club.”

Corporate Updates

On July 18, 2023, Liberty Media Corporation (“Liberty Media”) completed the split-off of the Braves and its associated mixed-use development (the “Split-Off”) into the separate public company Atlanta Braves Holdings. The businesses and assets at Atlanta Braves Holdings consist of Braves Holdings, LLC, the owner and operator of the Atlanta Braves Major League Baseball Club, and certain assets and liabilities associated with the Braves’ ballpark and mixed-use development, called The Battery Atlanta, which were previously attributed to the Braves Group tracking stock of Liberty Media. For purposes of this presentation, Atlanta Braves Holdings standalone results, assets and liabilities are shown for the three and six months ended June 30, 2023 and the prior year periods as though the Split-Off had occurred prior to such date, as well as certain historical financial information of the Braves Group tracking stock of Liberty Media, where applicable, including the financial impact of the Braves Group intergroup interests that were settled subsequent to quarter end. Atlanta Braves Holdings financial results for the three and six months ended June 30, 2022 include immaterial adjustments compared to results previously reported by the Braves Group tracking stock of Liberty Media for the corresponding periods. The outstanding basic share count of Atlanta Braves Holdings as of July 31, 2023 is 62 million shares.

Discussion of Results
		Three months ended												Six months ended
		June 30,												June 30,
		2022				2023				% Change				2022				2023				% Change
		amounts in thousands												amounts in thousands
Baseball revenue		$	236,918			$	254,935			8	%			$	246,758			$	272,496			10	%
Mixed-use development revenue			13,407				15,188			13	%				25,097				28,599			14	%
Total revenue			250,325				270,123			8	%				271,855				301,095			11	%
Operating costs and expenses:
Baseball operating costs			(169,585	)			(195,458	)		(15	)%				(195,811	)			(232,229	)		(19	)%
Mixed-use development costs			(2,567	)			(2,273	)		11	%				(4,310	)			(4,204	)		2	%
Selling, general and administrative, excluding stock-based compensation			(29,932	)			(30,290	)		(1	)%				(48,893	)			(53,649	)		(10	)%
Adjusted OIBDA		$	48,241			$	42,102			(13	)%			$	22,841			$	11,013			(52	)%
Operating income (loss)		$	27,561			$	19,467			(29	)%			$	(18,679	)		$	(29,790	)		(59	)%
Regular season home games in period			41				43								41				43

Unless otherwise noted, the following discussion compares financial information for the three months ended June 30, 2023 to the same period in 2022.

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

The following table disaggregates revenue by segment and by source:

		Three months ended										Six months ended
		June 30,										June 30,
		2022			2023			% Change				2022			2023			% Change
		amounts in thousands										amounts in thousands
Baseball:
Baseball event		$	145,116		$	162,368		12	%			$	146,203		$	163,486		12	%
Broadcasting			63,745			68,558		8	%				63,745			69,449		9	%
Retail and licensing			17,755			19,747		11	%				21,610			24,122		12	%
Other			10,302			4,262		(59	)%				15,200			15,439		2	%
Baseball revenue			236,918			254,935		8	%				246,758			272,496		10	%
Mixed-use development			13,407			15,188		13	%				25,097			28,599		14	%
Total revenue		$	250,325		$	270,123		8	%			$	271,855		$	301,095		11	%

There were 43 home games played in the second quarter of 2023 compared to 41 home games in the prior year period.

Baseball revenue increased 8% in the second quarter. Baseball event and retail and licensing revenue grew primarily due to the increased number of regular season home games as well as increased ticket demand and attendance at games. Broadcasting revenue increased due to the increased number of games as well as contractual rate increases. Retail and licensing revenue also benefited from demand for City Connect apparel, partially offset by a reduction in demand for World Series Champions apparel compared to the prior season. Other revenue declined due to fewer concerts at the stadium compared to the prior year period. Mixed-use development revenue increased 13% during the second quarter due to increases in rental income related to tenant recoveries and various new lease agreements.

Operating income and Adjusted OIBDA decreased in the second quarter. Revenue growth was more than offset by increased baseball operating costs due to higher player salaries, increases under MLB’s revenue sharing plan and variable concession and retail operating costs attributable to more games held with increased ticket demand and attendance. Selling, general and administrative expense was relatively flat.

FOOTNOTES

1)		Atlanta Braves Holdings will be available to answer questions related to these headlines and other matters on Liberty Media Corporation’s earnings conference call that will begin at 10:00 a.m. (E.T.) on August 4, 2023. For information regarding how to access the call, please see “Important Notice” later in this document.
2)		For a definition of Adjusted OIBDA (as defined by Atlanta Braves Holdings) and the applicable reconciliation, see the accompanying schedule.

Important Notice: Atlanta Braves Holdings (Nasdaq: BATRA, BATRK) will be available to answer questions on Liberty Media Corporation’s second quarter earnings conference call which will begin at 10:00 a.m. (E.T.) on August 4, 2023. The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13736985 at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to https://www.bravesholdings.com/investors/news-events/ir-calendar. Links to this press release will also be available on the Atlanta Braves Holdings website.

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, product and marketing strategies, future financial performance and prospects, the split-off of Atlanta Braves Holdings from Liberty Media, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, Atlanta Braves Holdings’ ability to recognize anticipated benefits from the split-off, possible changes in the regulatory and competitive environment in which Atlanta Braves Holdings operates (including an expansion of MLB), the unfavorable outcome of pending or future litigation, operational risks of Atlanta Braves Holdings and its business affiliates, including operations outside of the U.S., Atlanta Braves Holdings’ indebtedness and its ability to obtain additional financing on acceptable terms and cash in amounts sufficient to service debt and other financial obligations, tax matters, compliance with government regulations and potential adverse outcomes of regulatory proceedings, changes in the nature of key strategic relationships with broadcasters, partners, vendors and joint venturers, the impact of organized labor, the performance and management of the mixed-use development and the impact of inflation and weak economic conditions on consumer demand. These forward-looking statements speak only as of the date of this press release, and Atlanta Braves Holdings expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Atlanta Braves Holdings’ expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Atlanta Braves Holdings, including Amendment No. 5 to the Registration Statement on Form S-4 filed by Atlanta Braves Holdings with the Securities and Exchange Commission on June 8, 2023 and the most recent Form 10-Q, for additional information about Atlanta Braves Holdings and about the risks and uncertainties related to Atlanta Braves Holdings’ business which may affect the statements made in this press release.

NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DISCLOSURES

SCHEDULE 1: Reconciliation of Adjusted OIBDA to Operating Income (Loss)

To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for Atlanta Braves Holdings together with reconciliations to operating income, as determined under GAAP. Atlanta Braves Holdings defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring, acquisition and impairment charges.

Atlanta Braves Holdings believes Adjusted OIBDA 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. Because Adjusted OIBDA is used as a measure of operating performance, Atlanta Braves Holdings views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that Atlanta Braves Holdings’ management considers in assessing the results of operations and performance of its assets.

The following table provides a reconciliation of Adjusted OIBDA for Atlanta Braves Holdings to operating income (loss) calculated in accordance with GAAP for the three and six months ended June 30, 2022 and June 30, 2023.

		Three months ended								Six months ended
		June 30,								June 30,
(amounts in thousands)		2022				2023				2022				2023
Operating income (loss)		$	27,561			$	19,467			$	(18,679	)		$	(29,790	)
Impairment of long-lived assets and other related costs			—				232				—				530
Stock-based compensation			3,063				3,153				6,126				6,344
Depreciation and amortization			17,617				19,250				35,394				33,929
Adjusted OIBDA		$	48,241			$	42,102			$	22,841			$	11,013
Baseball		$	41,685			$	37,415			$	10,581			$	1,878
Mixed-use development			8,480				10,166				16,397				19,319
Corporate and other			(1,924	)			(5,479	)			(4,137	)			(10,184	)

SCHEDULE 2: Cash and Debt

The following presentation is provided to separately identify cash and debt information. Atlanta Braves Holdings cash decreased $85 million during the second quarter due to cash used in operations primarily due to seasonal working capital changes, increases in restricted cash and capital expenditures. Atlanta Braves Holdings debt was flat in the second quarter. In May 2023, a subsidiary of Braves Holdings, LLC refinanced an $80 million construction loan agreement that was used to construct the retail portion of the mixed-use development with a new term loan with $80 million in commitments.

(amounts in thousands)		March 31, 2023				June 30, 2023
Atlanta Braves Holdings Cash (GAAP)(a)		$	215,515			$	130,537
Debt:
Baseball
League wide credit facility		$	—			$	—
MLB facility fund - term			30,000				30,000
MLB facility fund - revolver			43,125				43,125
TeamCo revolver			—				—
Term debt			168,562				168,561
Mixed-use development			300,313				301,127
Total Atlanta Braves Holdings Debt		$	542,000			$	542,813
Deferred financing costs			(3,704	)			(4,118	)
Total Atlanta Braves Holdings Debt (GAAP)		$	538,296			$	538,695

a)

Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $30 million and $52 million as of March 31, 2023 and June 30, 2023, respectively.

ATLANTA BRAVES HOLDINGS CONDENSED COMBINED BALANCE SHEET INFORMATION June 30, 2023 (unaudited)
		June 30,				December 31,
		2023				2022
		amounts in thousands
Assets
Current assets:
Cash and cash equivalents		$	130,537			150,664
Restricted cash			52,033			22,149
Accounts receivable and contract assets, net of allowance for credit losses			54,491			70,234
Other current assets			27,068			24,331
Total current assets			264,129			267,378
Property and equipment, at cost			1,037,399			1,007,776
Accumulated depreciation			(298,542	)		(277,979	)
			738,857			729,797
Investments in affiliates, accounted for using the equity method			98,890			94,564
Intangible assets not subject to amortization:
Goodwill			175,764			175,764
Franchise rights			123,703			123,703
			299,467			299,467
Other assets, net			107,759			99,455
Total assets		$	1,509,102			1,490,661
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities		$	65,426			54,748
Deferred revenue and refundable tickets			142,010			104,996
Current portion of debt			7,205			74,806
Other current liabilities			5,524			6,361
Total current liabilities			220,165			240,911
Long-term debt			531,490			467,160
Redeemable intergroup interests			340,889			278,103
Finance lease liabilities			106,014			107,220
Deferred income tax liabilities			46,965			54,099
Pension liability			10,450			15,405
Other noncurrent liabilities			31,247			28,253
Total liabilities			1,287,220			1,191,151
Equity:
Parent’s investment			730,620			732,350
Retained earnings (deficit)			(515,971	)		(429,082	)
Accumulated other comprehensive earnings (loss), net of taxes			(4,056	)		(3,758	)
Total parent's investment			210,593			299,510
Noncontrolling interests in equity of subsidiaries			11,289			—
Total equity			221,882			299,510
Commitments and contingencies
Total liabilities and equity		$	1,509,102			1,490,661

ATLANTA BRAVES HOLDINGS CONDENSED COMBINED STATEMENT OF OPERATIONS INFORMATION June 30, 2023 (unaudited)
		Three months ended June 30,							Six months ended June 30,
		2023				2022			2023				2022
		amounts in thousands, except per share amounts
Revenue:
Baseball revenue		$	254,935			236,918			$	272,496			246,758
Mixed-use development revenue			15,188			13,407				28,599			25,097
Total revenue			270,123			250,325				301,095			271,855
Operating costs and expenses:
Baseball operating costs			195,458			169,585				232,229			195,811
Mixed-use development costs			2,273			2,567				4,204			4,310
Selling, general and administrative, including stock-based compensation			33,443			32,995				59,993			55,019
Impairment of long-lived assets and other related costs			232			—				530			—
Depreciation and amortization			19,250			17,617				33,929			35,394
			250,656			222,764				330,885			290,534
Operating income (loss)			19,467			27,561				(29,790	)		(18,679	)
Other income (expense):
Interest expense			(9,448	)		(6,402	)			(18,360	)		(12,529	)
Share of earnings (losses) of affiliates, net			11,462			15,022				10,659			12,143
Unrealized gains (losses) on intergroup interests			(49,409	)		34,881				(62,786	)		36,103
Realized and unrealized gains (losses) on financial instruments, net			3,840			1,659				3,079			6,460
Gains (losses) on dispositions, net			2,503			28				2,503			20,215
Other, net			813			143				1,654			168
Earnings (loss) before income taxes			(20,772	)		72,892				(93,041	)		43,881
Income tax benefit (expense)			(8,141	)		(9,193	)			6,152			(3,217	)
Net earnings (loss)		$	(28,913	)		63,699			$	(86,889	)		40,664

ATLANTA BRAVES HOLDINGS CONDENSED COMBINED STATEMENT OF CASH FLOWS INFORMATION June 30, 2023 (unaudited)
		Six months ended June 30,
		2023				2022
		amounts in thousands
Cash flows from operating activities:
Net earnings (loss)		$	(86,889	)		40,664
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			33,929			35,394
Stock-based compensation			6,344			6,126
Share of (earnings) losses of affiliates, net			(10,659	)		(12,143	)
Unrealized (gains) losses on intergroup interests, net			62,786			(36,103	)
Realized and unrealized (gains) losses on financial instruments, net			(3,079	)		(6,460	)
(Gains) losses on dispositions, net			(2,503	)		(20,215	)
Deferred income tax expense (benefit)			(7,014	)		(9,454	)
Cash receipts from returns on equity method investments			6,225			7,550
Other charges (credits), net			949			1,687
Net change in operating assets and liabilities:
Current and other assets			(14,338	)		21,184
Payables and other liabilities			50,141			69,798
Net cash provided by (used in) operating activities			35,892			98,028
Cash flows from investing activities:
Capital expended for property and equipment			(29,700	)		(7,638	)
Cash proceeds from dispositions			—			47,175
Investments in equity method affiliates and equity securities			—			(5,273	)
Other investing activities, net			110			—
Net cash provided by (used in) investing activities			(29,590	)		34,264
Cash flows from financing activities:
Borrowings of debt			15,815			39,753
Repayments of debt			(18,893	)		(138,113	)
Contribution from noncontrolling interest			11,289			—
Other financing activities, net			(4,756	)		(6,074	)
Net cash provided by (used in) financing activities			3,455			(104,434	)
Net increase (decrease) in cash, cash equivalents and restricted cash			9,757			27,858
Cash, cash equivalents and restricted cash at beginning of period			172,813			244,113
Cash, cash equivalents and restricted cash at end of period		$	182,570			271,971

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803221159/en/

Shane Kleinstein (720) 875-5432

Source: Atlanta Braves Holdings, Inc.

FAQ

What is the ticker symbol of Atlanta Braves Holdings?

The ticker symbols of Atlanta Braves Holdings are BATRA and BATRK.

When did Atlanta Braves Holdings begin trading?

Atlanta Braves Holdings began trading on July 19th following the split-off of Braves and associated mixed-use development from Liberty Media Corporation.

What was the revenue growth reported by Atlanta Braves Holdings in Q2 2023?

Atlanta Braves Holdings reported an 8% revenue growth in Q2 2023, reaching $270 million, with baseball revenue up 8% to $255 million and mixed-use development revenue up 13% to $15 million.

What is the outstanding basic share count of Atlanta Braves Holdings as of July 31, 2023?

The outstanding basic share count of Atlanta Braves Holdings as of July 31, 2023, is 62 million shares.

What is the definition of Adjusted OIBDA?

Adjusted OIBDA refers to the operating income before depreciation and amortization, and it was $10 million for the mixed-use development in the second quarter.