Liberty TripAdvisor Holdings Inc (NASDAQ:LTRPA) Q3 2018 Earnings Conference Call Transcript

Nov 08, 2018 • 11:00 am ET

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Liberty TripAdvisor Holdings Inc (NASDAQ:LTRPA) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Liberty Media Corporation 2018 Q3 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded, November 8.

I'd now like to turn the conference over to Courtnee Chun, Senior Vice President of Investor Relations. Please go ahead.

Executive
Courtnee Chun

(Forward-Looking Cautionary Statements)

On today's call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA of Liberty Media and adjusted EBITDA of SiriusXM. The required definitions and reconciliations, Schedules one and two can be found at the end of the earnings press release issued today, which is available on our website.

(Forward-Looking Cautionary Statements)

Now I'd like to introduce Greg Maffei, Liberty's President and CEO.

Executive
Greg Maffei

Thank you, Courtnee, and good morning to all of you out there. Today on the call, besides myself, we will have Liberty CFO, Mark Carleton; and Formula One Chairman and CEO, Chase Carey. During the Q&A, we will also be available to answer questions regarding Liberty TripAdvisor.

So beginning with Liberty SiriusXM, we continued our repurchases of the Liberty SiriusXM stock and bought an additional $134 million from August 1 through October 31. We effectively bought the SiriusXM shares at a price of a luxury price of $4.91 over this period.

We think this compares quite favorably to yesterday's close of $6.30. Commenting about iHeartCommunications for the moment. Their bankruptcy process continues. We watch with interest, but it's unlikely we'll increase our investment in iHeart at this time.

Looking at SiriusXM, we had another outstanding quarter. Revenue of $1.5 billion was a new quarterly record. Self-pay net subscriber adds were up 298,000. We recorded adjusted EBITDA, which was a record, and it drove the margin over 40% for the first time.

Liberty Media's ownership stood as of October 22 at 71.2%, but I would note that when the Pandora deal closes, of which I'll comment more in the moment, we expect our ownership to fall to about 65%.

Looking at Pandora, the acquisition is moving forward. We filed the S-4 on October 31. Yesterday's close, Pandora was trading below the indicated deal price, suggesting the deal will get done. And we expect the close to occur early in the first quarter of 2019.

Looking at the Formula One Group, great 2018 with exciting outcomes. Lewis Hamilton secured his fifth championship. We still have two more races to go and we expect excitement because the constructor championship is still on the line. In sponsorship, we signed data rights deals during the quarter with ISG to produce live Formula One betting, offering.

As we've mentioned many times before, this business is hard to compare on a quarterly basis. This quarter, we had eight races versus six in the comparable period in 2017 so we mind you to take a longer-term look. With that in mind, we are revving for an exciting 2000 season, and we're quite excited.

Live Nation posted its best quarter ever. Revenue up 11%. All divisions delivered strong quarterly AOI results although through the quarter, we had 71 million fans attending over