Liberty Media Corporation reported fourth quarter and year end 2017 results. Highlights include:

• Attributed to Liberty SiriusXM Group

  • SiriusXM reported strong full year 2017 results

    • 2017 revenue climbed 8% to $5.4 billion

    • Self-pay net subscriber additions of 1.56 million in 2017

    • 2017 net income totaled $648 million after $185 million charge related to Tax Cuts and Jobs Act

    • Adjusted EBITDA⁽²⁾ grew 13% to a record $2.12 billion in 2017

    • SiriusXM beat 2017 financial and subscriber guidance, confirmed expectations for growth in 2018

    • SiriusXM's Board of Directors approved additional $2 billion to share repurchase program

  • Liberty Media's ownership of SiriusXM stood at 70.4% as of January 29^th

• Attributed to Formula One Group

  • Repaid $400 million of first lien term loan and reduced margin on remaining balance from 3.00% to 2.50% in January 2018

  • 2017 season audience figures increased across TV and digital platforms; Formula 1 ("F1") was fastest growing sports brand on social media platforms

    • 352 million unique TV viewers across all F1 programming

  • Announced several broadcast agreements, including RTL agreement in Germany, Movistar in Spain, Fox Sports in Latin America and Sky Italia in Italy

  • 2018 F1 season kicks off March 25^th in Melbourne; 21 Grands Prix in 2018 season

• Attributed to Braves Group

  • Braves Group revenue grew meaningfully in first season at SunTrust Park

    • Ticket revenue increased 76%, concession sales increased 31% and retail sales increased 45% in 2017

  • Attendance increased 23% per game in 2017 season

  • Retail and residential developments both over 70% leased as of February 12^th

"SiriusXM delivered another outstanding year of results and continues to innovate with the launch of 360L. When Liberty completed its purchase of F1 last January, we knew the business would require investment to achieve its full potential. Chase Carey and team made great progress on their strategic goals and we look forward to more in 2018," said Greg Maffei, Liberty Media President and CEO. "The Atlanta Braves increased revenue in 2017 by an astounding 47%, demonstrating the appeal of the new SunTrust Park and Battery Atlanta."

Operating Results

Unless otherwise noted, the following discussion compares financial information for the three months or year ended December 31, 2017 to the same period in 2016.

LIBERTY SIRIUSXM GROUP - The following table provides the financial results attributed to Liberty SiriusXM Group for the fourth quarter and full year 2017. Approximately $8 million and $40 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Liberty SiriusXM Group in the fourth quarter and full year 2017, respectively.

The increases in Liberty SiriusXM Group revenue, operating income and adjusted OIBDA⁽²⁾ in the fourth quarter and full year 2017 were primarily attributable to an increase in SiriusXM's daily weighted average number of subscribers and an increase in SiriusXM's average monthly revenue per subscriber due to certain rate increases.

SiriusXM is a separate publicly traded company and additional information about SiriusXM can be obtained through its website and filings with the Securities and Exchange Commission. SiriusXM reported its stand-alone fourth quarter and year end results on January 31, 2018. For additional detail on SiriusXM's fourth quarter and year end financial results, please see SiriusXM's earnings release posted to their Investor Relations website. For presentation purposes on page one of this release, we include the results of SiriusXM, as reported by SiriusXM, without regard to the purchase accounting adjustments applied by us for purposes of our financial statements. Liberty Media believes the presentation of financial results as reported by SiriusXM is useful to investors as the comparability of those results is best understood in the context of SiriusXM's historical financial presentation. For a reconciliation of revenue, adjusted OIBDA (as defined by Liberty Media) and operating income for SiriusXM's stand-alone operating results as reported by SiriusXM to those results as reported by Liberty Media, see Liberty Media's Form 10-K for the year ended December 31, 2017.

The businesses and assets attributed to Liberty SiriusXM Group consist primarily of Liberty Media's interest in SiriusXM.

FORMULA ONE GROUP - The following table provides the financial results attributed to the Formula One Group for the fourth quarter and full year 2017. Approximately $13 million and $49 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Formula One Group in the fourth quarter and full year 2017, respectively.

"The 2017 season was successful in increasing viewers across TV and digital platforms," said Chase Carey, Formula 1 Chairman and CEO. "In 2018, we continue to focus on fan engagement through increasing carriage on linear and digital platforms, enhancing the race excitement, hosting more F1 Live events and collaborating with our partners. We look forward to the start of the season later this month in Melbourne."

Liberty completed the acquisition of F1 on January 23, 2017. For comparison and discussion purposes, the pro forma results of F1 are presented below for the three and twelve months ended December 31, 2017 and 2016, inclusive of purchase accounting adjustments, as if the acquisition of F1 occurred on January 1, 2016. The financial information below is presented for illustrative purposes only and does not purport to represent the actual results of F1 had the business combination occurred on January 1, 2016, or to project the results of operations of Liberty for any future periods.

Primary F1 revenue represents the majority of F1's revenue and is derived from (i) race promotion fees, (ii) broadcasting fees and (iii) advertising and sponsorship fees. F1 held 20 races in the 2017 season compared to 21 in the 2016 season.

Race promotion revenue decreased in the fourth quarter, primarily due to legacy contractual terms of one Grand Prix event, which provided for a one time material step down in the promotion fee effective after the 2016 season and carrying through the remaining term of the contract through 2020. This agreement was entered into by previous management and is atypical and not reflective of terms carried in F1's other promotion agreements. For the full year 2017, race promotion revenue decreased due to one less event being held, the aforementioned reduction in one promotion fee, as well as a contract amendment discussed in the second quarter that provided for a decrease in promotion revenue which was partly offset by the impact of increases in other revenue streams. The reduction in race promotion revenue for the fourth quarter and full year was partially offset by the impact of other contractual increases.

Broadcast revenue increased in the fourth quarter and full year 2017 due to the impact of certain contractual rate increases. The increase in the fourth quarter was also driven by the pro-rata recognition of broadcast revenue across the season, as 6/20 of the full year fees were recognized compared to 6/21 in the prior year. The increase in the full year was partially offset by the adverse impact of weaker prevailing foreign currency exchange rates used to translate a small number of Pound and Euro-denominated contracts into US dollars.

Advertising and sponsorship revenue decreased in the fourth quarter primarily due to the prior year recognition of a proportion of two non-renewed sponsorship agreements, partially offset by revenue from one new sponsorship contract. For the full year, advertising and sponsorship revenue increased as higher fees and growth in certain contractual arrangements plus revenue from new sponsors more than offset the aforementioned two non-renewed agreements.

Other F1 revenue increased modestly in the fourth quarter and full year 2017, primarily due to higher logistics and digital media revenue, contributions from broadcasting in Ultra High-Definition and higher hospitality revenue, partially offset by lower spend by competing teams in the GP3 series due to it being the second year of the GP3 vehicle cycle.

Operating income decreased in the fourth quarter and operating loss increased for the full year 2017. Adjusted OIBDA decreased in the fourth quarter and full year 2017 primarily due to the aforementioned reduction in revenue and increased costs. Cost of F1 revenue increased primarily due to spend on fan engagement, filming in Ultra High-Definition and higher freight costs, which more than offset reduced team payments. Selling, general and administrative expense also increased for the fourth quarter and full year 2017 as a result of additional headcount and new corporate offices. Additionally, stock-based compensation increased related to awards granted to members of F1 management.

On January 22, 2018, Liberty provided revised expectations regarding certain F1 tax considerations. Liberty now expects a mid- to -high-single-digit effective cash tax rate on UK EBITDA for the F1 business. This update is due to the cumulative impact of changes in UK tax law, conclusions reached by Her Majesty's Revenue and Customs regarding the future treatment under UK tax law of certain historic transactions and the effects of an F1 corporate restructuring in the fourth quarter of 2017. F1's adjusted OIBDA (as reported) less stock-based compensation is a reasonable proxy for UK EBITDA for this purpose.

F1's total net debt to covenant OIBDA ratio, as defined in F1's credit facilities for covenant calculations, was approximately 7.1x as of December 31, 2017, as compared to a maximum allowable leverage ratio of 8.75x.

The businesses and assets attributed to the Formula One Group consist of all of Liberty Media's businesses and assets other than those attributed to the Liberty SiriusXM Group and the Braves Group, including Liberty Media's subsidiary F1, its interest in Live Nation, minority equity investments and an intergroup interest in the Braves Group. There are approximately 9.1 million notional shares of the Braves Group underlying the Formula One Group's 15.1% intergroup interest as of January 31, 2018.

BRAVES GROUP - The following table provides the financial results attributed to the Braves Group for the fourth quarter and full year 2017. Approximately $3 million and $7 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Braves Group in the fourth quarter and full year 2017, respectively.

The following table provides the operating results of Braves Holdings, LLC ("Braves").

Braves revenue increased in the fourth quarter, primarily due to revenue generated at the Braves mixed-use facility, which more than offset the decline in baseball related revenue due to zero home games being played in the fourth quarter of 2017 versus two in the prior year. Braves revenue increased for the full year 2017, primarily attributable to an increase in ballpark operations revenue driven by the move to the new Braves ballpark, SunTrust Park. Ticket sales, concessions, corporate sales, suites and premium seat fees all increased for the full year 2017 compared to the prior year.

Operating loss increased in the fourth quarter primarily as a result of increased depreciation and amortization expense due to the depreciation of assets associated with the Braves mixed-use facility and SunTrust Park. Operating loss increased for the full year 2017 primarily as a result of increased stock-based compensation expense due to an increase in the estimated value of the Braves, combined with the continued vesting of outstanding awards, which resulted in a higher accrual for Braves' equity compensation, as well as the aforementioned increase in depreciation and amortization expense. Adjusted OIBDA decreased in the fourth quarter primarily due to increased costs associated with the new ballpark and the mixed-use facility. In addition, the Braves recognized a $13 million write-off of certain contractual rights in 2017 related to international players, the majority of which was recognized in the fourth quarter. Adjusted OIBDA increased for the full year 2017, primarily due to the increase in ballpark operations revenue as discussed above, partially offset by increased costs associated with baseball and ballpark operations and the mixed-use facility and the aforementioned write-off.

The Formula One Group holds an approximate 15.1% intergroup interest in the Braves Group as of January 31, 2018. Assuming the issuance of the shares underlying the intergroup interest held by the Formula One Group, the Braves Group outstanding share count as of January 31, 2018 would have been 60 million.

The businesses and assets attributed to the Braves Group consist primarily of Liberty Media's subsidiary the Braves, which indirectly owns the Atlanta Braves major league baseball club, five minor league baseball clubs and certain assets and liabilities associated with its ballpark and mixed-use development project.

Share Repurchases

There were no repurchases of Series A or Series C Liberty SiriusXM common stock, Series A or Series C Liberty Formula One common stock or Series A or Series C Liberty Braves common stock from November 1, 2017 through January 31, 2018. The total remaining repurchase authorization for Liberty Media is approximately $1.3 billion and can be applied to repurchases of Series A and Series C shares of any of the Liberty Media Corporation tracking stocks.

NOTES

The following financial information with respect to Liberty Media's equity affiliates and available for sale securities is intended to supplement Liberty Media's consolidated balance sheet and statement of operations to be included in its Form 10-K for the year ended December 31, 2017.

Cash and Debt

The following presentation is provided to separately identify cash and liquid investments and debt information.

Total cash and liquid investments attributed to Liberty SiriusXM Group increased $381 million during the fourth quarter. Additional borrowing at Liberty SiriusXM combined with cash from operations at SiriusXM more than offset SiriusXM's stock repurchases and dividend payment as well as investments at Liberty SiriusXM. Included in the cash and liquid investments balance attributed to Liberty SiriusXM Group at December 31, 2017 is $69 million at SiriusXM. Although SiriusXM is a consolidated subsidiary, it is a separate public company with a significant non-controlling interest, therefore Liberty Media does not have ready access to SiriusXM's cash balance.

Total debt attributed to Liberty SiriusXM Group increased $512 million during the fourth quarter primarily as a result of increased borrowings under Liberty's SIRI margin loan to fund investing activities and general corporate purposes.

Total cash and liquid investments attributed to Formula One Group decreased $138 million during the fourth quarter, primarily as a result of a reduction in operating cash flows due to normal timing fluctuations combined with interest payments.

Total debt attributed to Formula One Group decreased $27 million during the quarter. In November, the remaining Delta Topco exchangeable notes issued to the F1 selling shareholders in connection with the F1 acquisition were exchanged for 1.2 million FWONK shares.

Subsequent to quarter end, on January 31, 2018, Liberty Media announced the closing of the refinancing of F1's first lien term loan. Concurrent with the refinancing, F1 repaid $400 million of the first lien term loan using a combination of $150 million of excess cash on the balance sheet and $250 million of loans under the first lien revolving credit facility, reducing the first lien term loan from $3.3 billion to $2.9 billion. Following the refinancing, the margin on the first lien term loan was reduced from 3.00% to 2.50%. The transaction was net leverage neutral and the refinanced term loan remains non-recourse to Liberty Media.

Total cash and liquid investments attributed to the Braves Group was flat in the quarter as capital expenditures related to the mixed-use development and new spring training facility were offset by net cash from operations and additional borrowings.

Total debt attributed to Braves Group increased by $82 million during the fourth quarter primarily as a result of additional borrowings, net of repayments, for funding the Braves' mixed-use development and new spring training facility in Sarasota, Florida. The total cost of construction for the spring training facility is estimated to be approximately $125 million, of which the Braves are contributing approximately $55 million using debt and cash on hand, and the remaining funding is coming from municipal and private entities.

As of December 31, 2017, construction of the Braves new ballpark was completed on-budget and materially all associated costs have been incurred. The total cost of the project was approximately $722 million, of which approximately $392 million of funding was provided by Cobb County and related entities and approximately $330 million provided by the Braves. As of December 31, 2017, approximately $419 million had been spent on the mixed-use development. The Braves have provided $388 million of this funding, of which approximately $188 million was contributed in equity and approximately $200 million in debt.