Liberty Media Corporation (NASDAQ:LSXMA) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 10:00 am ET


Liberty Media Corporation (NASDAQ:LSXMA) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Media Corporation's 2020 Quarter Two Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, August 10.

I would now like to turn the conference over to Courtnee Chun, Chief Portfolio Officer and Senior Vice President of Investor Relations. Please go ahead.

Courtnee Chun

Thank you. 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 our most recent Forms 10-K and 10-Q filed with the SEC. These forward-looking statements speak only as to 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, including adjusted OIBDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media and SiriusXM Schedules one and two can be found at the end of the earnings press release issued today, which is available on our website.

Now I'd like to turn the call over to Liberty President and CEO, Greg Maffei.

Gregory B. Maffei

Good morning, and thank you, Courtnee. Today speaking on the call, we will also have Formula One's Chairman and CEO, Chase Carey; and Liberty's Chief Accounting and Principal -- Chief Principal Officer -- Financial Officer, Brian Wendling.

First, I hope you all -- healthy and safe and have been enjoying your summer given these challenging circumstances. Second, I'd like to again thank our management teams and employees that have done such an impressive job managing through this COVID-19 crisis.

So first, looking at Liberty SiriusXM. We completed the previously announced rights offering that was fully subscribed, generated proceeds of $754 million, and we used that money to fully repay the intergroup loan that Liberty SiriusXM had to the Formula One Group. During that period, we paused our share repurchases as we were prohibited from being in market during the rights offering. We are certainly aware that the discounting remains, and we have ample liquidity at LSXM and expect to take full advantage of the discount opportunity.

Our ownership at SiriusXM now stands as of July 28 at 72.9%. SIRI also paused its buybacks in Q2 due to market conditions in the depths of the COVID crisis, but recently expanded their authorization by $2 billion. We remain very focused on getting to 80% at SIRI.

Looking at Sirius itself, like our other subscription businesses, Sirius has proved resilient during the crisis. Self-pay net adds -- subscriber adds were 264,000 and churn was down to 1.6%. During the quarter, we generated over $0.5 billion of free cash flow. We also announced the deal to acquire