Atlanta Braves Holdings Reports Third Quarter 2023 Financial Results
Monday, November 6th, 2023
Atlanta Braves Holdings, Inc. ("Atlanta Braves Holdings") (Nasdaq: BATRA, BATRK) today reported third quarter 2023 results.
Headlines include(1):
-
Total revenue grew 11% to $272 million in third quarter
-
Baseball revenue up 11% to $256 million
-
Mixed-use development revenue up 10% to $16 million
-
-
Mixed-use development generated $11 million of Adjusted OIBDA(2) in third quarter
-
Atlanta Braves secured sixth consecutive NL East Title
-
54 game sellouts and 3.2 million tickets sold for 2023 season
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 represent the combination of the historical financial information of the Braves Group until the date of the Split-Off. Although Atlanta Braves Holdings was reported as a combined company until the date of the Split-Off, it is now a consolidated company and all periods reported in this presentation are referred to as consolidated.
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Discussion of Results |
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Three months ended |
Nine months ended |
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|
September 30, |
September 30, |
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|
2022 |
2023 |
% Change |
2022 |
2023 |
% Change |
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|
amounts in thousands |
amounts in thousands |
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|
Baseball revenue |
$ |
231,279 |
$ |
256,266 |
11 |
% |
$ |
478,037 |
$ |
528,762 |
11 |
% |
|||||||||||||
|
Mixed-use development revenue |
14,168 |
15,558 |
10 |
% |
39,265 |
44,157 |
12 |
% |
|||||||||||||||||
|
Total revenue |
245,447 |
271,824 |
11 |
% |
517,302 |
572,919 |
11 |
% |
|||||||||||||||||
|
Operating costs and expenses: |
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|
Baseball operating costs |
(194,216 |
) |
(198,195 |
) |
(2 |
) |
% |
(390,027 |
) |
(430,424 |
) |
(10 |
) |
% |
|||||||||||
|
Mixed-use development costs |
(2,089 |
) |
(2,247 |
) |
(8 |
) |
% |
(6,399 |
) |
(6,451 |
) |
(1 |
) |
% |
|||||||||||
|
Selling, general and administrative, excluding stock-based compensation |
(24,626 |
) |
(31,037 |
) |
(26 |
) |
% |
(73,519 |
) |
(84,686 |
) |
(15 |
) |
% |
|||||||||||
|
Adjusted OIBDA |
$ |
24,516 |
$ |
40,345 |
65 |
% |
$ |
47,357 |
$ |
51,358 |
8 |
% |
|||||||||||||
|
Operating income (loss) |
$ |
(4,692 |
) |
$ |
15,716 |
NM |
$ |
(23,371 |
) |
$ |
(14,074 |
) |
40 |
% |
|||||||||||
|
Regular season home games in period |
38 |
37 |
79 |
80 |
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Unless otherwise noted, the following discussion compares financial information for the three months ended September 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:
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Three months ended |
Nine months ended |
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September 30, |
September 30, |
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|
2022 |
2023 |
% Change |
2022 |
2023 |
% Change |
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|
amounts in thousands |
amounts in thousands |
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Baseball: |
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|
Baseball event |
$ |
134,941 |
$ |
160,794 |
19 |
% |
$ |
281,144 |
$ |
324,280 |
15 |
% |
|||||||||
|
Broadcasting |
66,901 |
69,337 |
4 |
% |
130,646 |
138,786 |
6 |
% |
|||||||||||||
|
Retail and licensing |
17,590 |
20,904 |
19 |
% |
39,200 |
45,026 |
15 |
% |
|||||||||||||
|
Other |
11,847 |
5,231 |
(56 |
) |
% |
27,047 |
20,670 |
(24 |
) |
% |
|||||||||||
|
Baseball revenue |
231,279 |
256,266 |
11 |
% |
478,037 |
528,762 |
11 |
% |
|||||||||||||
|
Mixed-use development |
14,168 |
15,558 |
10 |
% |
39,265 |
44,157 |
12 |
% |
|||||||||||||
|
Total revenue |
$ |
245,447 |
$ |
271,824 |
11 |
% |
$ |
517,302 |
$ |
572,919 |
11 |
% |
|||||||||
There were 37 regular season home games played in the third quarter of 2023 compared to 38 regular season home games in the prior year period.
Baseball revenue increased 11% in the third quarter. Baseball event and retail and licensing revenue grew primarily due to increased ticket demand and attendance at regular season home games. Broadcasting revenue increased due to contractual rate increases. Other revenue declined due to fewer concerts at the ballpark compared to the prior year period. Mixed-use development revenue increased 10% during the third quarter due to increases in rental income related to tenant recoveries and various new lease agreements, as well as higher sponsorship revenue.
Operating income and Adjusted OIBDA increased in the third quarter. Revenue growth more than offset increased baseball operating costs due to higher player salaries and minor league team and player expenses. Selling, general and administrative expense increased during the third quarter primarily driven by costs related to the Split-Off.
