Atlanta Braves Holdings Reports Q3 Financial Results
Thursday, November 7th, 2024
Atlanta Braves Holdings, Inc. ("ABH") (Nasdaq: BATRA, BATRK) today reported third quarter 2024 results.
Headlines include:
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Total revenue grew to $291 million in the third quarter, up from $272 million in the prior year period.
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Baseball revenue increased 7% to $273 million.
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Mixed-use development revenue grew 12% to $17 million.
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Third straight year selling over three million tickets.
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Braves earned the number one spot for overall guest experience, concessions and non-game entertainment in MLB Voice of Consumer survey.
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The team made their 7th consecutive postseason appearance.
Discussion of Results
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2023 |
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2024 |
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% Change |
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2023 |
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2024 |
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% Change |
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amounts in thousands |
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amounts in thousands |
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Baseball revenue |
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$ |
256,266 |
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$ |
273,262 |
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7 |
% |
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$ |
528,762 |
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$ |
561,233 |
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6 |
% |
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Mixed-use development revenue |
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15,558 |
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17,412 |
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12 |
% |
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44,157 |
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49,397 |
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12 |
% |
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Total revenue |
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271,824 |
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290,674 |
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7 |
% |
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572,919 |
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610,630 |
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7 |
% |
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Operating costs and expenses: |
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Baseball operating costs |
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(198,195 |
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(225,973 |
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(14 |
)% |
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(430,424 |
) |
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(476,250 |
) |
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(11 |
)% |
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Mixed-use development costs |
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(2,247 |
) |
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(2,499 |
) |
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(11 |
)% |
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(6,451 |
) |
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(7,162 |
) |
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(11 |
)% |
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Selling, general and administrative, excluding stock-based compensation |
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(31,071 |
) |
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(30,757 |
) |
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1 |
% |
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(85,250 |
) |
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(83,777 |
) |
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2 |
% |
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Adjusted OIBDA(1) |
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$ |
40,311 |
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$ |
31,445 |
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(22 |
)% |
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$ |
50,794 |
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$ |
43,441 |
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(14 |
)% |
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Operating income (loss) |
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$ |
15,716 |
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$ |
6,402 |
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(59 |
)% |
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$ |
(14,074 |
) |
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$ |
(21,017 |
) |
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(49 |
)% |
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Regular season home games in period |
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37 |
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41 |
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80 |
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81 |
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Unless otherwise noted, the following discussion compares financial information for the three months ended September 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:
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2023 |
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2024 |
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% Change |
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2023 |
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2024 |
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% Change |
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amounts in thousands |
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amounts in thousands |
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Baseball: |
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Baseball event |
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$ |
160,794 |
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$ |
172,800 |
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7 |
% |
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$ |
324,280 |
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$ |
345,318 |
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6 |
% |
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Broadcasting |
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69,337 |
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70,992 |
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2 |
% |
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138,786 |
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144,043 |
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4 |
% |
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Retail and licensing |
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20,904 |
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16,512 |
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(21 |
)% |
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45,026 |
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41,789 |
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(7 |
)% |
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Other |
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5,231 |
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12,958 |
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148 |
% |
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20,670 |
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30,083 |
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46 |
% |
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Baseball revenue |
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256,266 |
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273,262 |
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7 |
% |
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|
528,762 |
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561,233 |
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6 |
% |
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Mixed-use development |
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15,558 |
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17,412 |
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12 |
% |
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44,157 |
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49,397 |
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12 |
% |
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Total revenue |
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$ |
271,824 |
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$ |
290,674 |
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7 |
% |
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$ |
572,919 |
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$ |
610,630 |
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7 |
% |
There were 41 home games played in the third quarter of 2024 compared to 37 home games in the prior year period.
Baseball revenue increased 7% in the third quarter. Baseball event revenue increased primarily due to new sponsorship agreements and contractual rate increases on season tickets and existing sponsorship contracts. This was partially offset by reduced attendance at regular season home games.
Broadcasting revenue was higher primarily due to an increase in the number of regular season games, as well as contractual rate increases. Retail and licensing revenue decreased due to a reduction in local revenue caused by reduced attendance at regular season home games. Other revenue increased due to additional concerts at the ballpark compared to the prior year period. Mixed-use development revenue increased 12% primarily due to higher parking revenue and increased rental income related to tenant recoveries.
Operating income and Adjusted OIBDA decreased in the third quarter due to increased baseball operating costs. Baseball operating costs increased due to higher major league player salaries as well as increases in MLB’s revenue sharing plan, minor league team and player expenses and concert related expenses. This was partially offset by decreases in variable concession and retail operating expenses due to reduced attendance at regular season home games. Selling, general and administrative expenses were relatively flat in the third quarter.
