Atlanta Braves Holdings Reports Second Quarter 2024 Financial Results

Atlanta Braves Holdings, Inc. ("ABH") (NASDAQ:BATRA, BATRK))) today reported second quarter 2024 results.

Headlines include:

• Total revenue grew 5% to $283 million in second quarter
  • Baseball revenue up 4% to $266 million
  • Mixed-use development revenue up 11% to $17 million
• Operating income up 28% to $25 million and Adjusted OIBDA⁽¹⁾ up 9% to $46 million in second quarter
• Announced new and expanded seating options at Truist Park to open ahead of 2025 season as part of commitment to enhance fan experience

Discussion of Results

Unless otherwise noted, the following discussion compares financial information for the three months ended June 30, 2024 to the same period in 2023.

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:

There were 40 home games played in the second quarter of 2024 compared to 43 home games in the prior year period.

Baseball revenue increased 4% in the second quarter due to growth in baseball event and broadcasting revenue. Baseball event revenue grew primarily due to new sponsorship agreements and contractual rate increases on season tickets and existing sponsorship contracts, partially offset by fewer regular season home games. Broadcasting revenue increased primarily due to more regular season games played (home and away) as well as contractual rate increases. Mixed-use development revenue grew 11% during the second quarter due to increases in rental income related to tenant recoveries and higher parking revenue.

Operating income and Adjusted OIBDA increased in the second quarter as revenue growth more than offset increased baseball operating costs. Baseball operating costs increased due to higher player salaries, increases under MLB's revenue sharing plan and increased minor league team and player expenses, partially offset by lower variable concessions and retail expenses driven by fewer regular season home games. Selling, general and administrative expense was relatively flat in the second quarter.

FOOTNOTES

Important Notice: Atlanta Braves Holdings, Inc. (NASDAQ:BATRA, BATRK))) will be available to answer questions on Liberty Media's earnings conference call which will begin at 10:00 a.m. (E.T.) on August 8, 2024. The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13742818 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 ABH 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 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, ABH's historical financial information not being representative of its future financial position, results of operations, or cash flows, ABH's ability to recognize anticipated benefits from the Split-Off, possible changes in the regulatory and competitive environment in which ABH operates (including an expansion of MLB), the unfavorable outcome of pending or future litigation, operational risks of ABH and its business affiliates, including operations outside of the U.S., ABH's 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, ABH's ability to use net operating loss and disallowed business interest carryforwards, 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, disruptions in ABH's information systems and information system security, ABH's use and protection of personal data 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 ABH expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in ABH's 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 ABH, including the most recently filed Forms 10-K and 10-Q, for additional information about ABH and about the risks and uncertainties related to ABH's 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 ABH together with reconciliations to operating income, as determined under GAAP. ABH defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring, acquisition and impairment charges.

ABH 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, ABH 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 ABH management considers in assessing the results of operations and performance of its assets.

The following table provides a reconciliation of Adjusted OIBDA for ABH to operating income (loss) calculated in accordance with GAAP for the three and six months ended June 30, 2023 and June 30, 2024.

SCHEDULE 2: Cash and Debt

The following presentation is provided to separately identify cash and debt information. ABH cash decreased $60 million during the second quarter due to cash used in operations primarily driven by seasonal working capital changes as well as increases in restricted cash held and capital expenditures, partially offset by net borrowings. ABH debt increased $20 million in the second quarter primarily due to borrowings on the mixed-use development credit facilities to support current capital projects.

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