[Atlanta Braves Holdings Second Quarter 2025 Financial Results](index=1&type=section&id=ATLANTA%20BRAVES%20HOLDINGS%20REPORTS%20SECOND%20QUARTER%202025%20FINANCIAL%20RESULTS) Atlanta Braves Holdings reported strong financial growth for Q2 2025, with total revenue increasing by 10% to $312 million and Adjusted OIBDA surging by 44% to $66 million, driven by significant growth in both baseball and mixed-use development segments [Discussion of Results](index=1&type=section&id=Discussion%20of%20Results) Atlanta Braves Holdings reported strong financial growth for Q2 2025, with total revenue increasing by 10% to $312 million and Adjusted OIBDA surging by 44% to $66 million, driven by significant growth in both baseball and mixed-use development segments [Revenue Performance](index=1&type=section&id=Revenue%20Performance) Total revenue for Q2 2025 increased by 10% year-over-year, reaching $312.44 million, primarily fueled by a 49% increase in mixed-use development revenue and an 8% rise in baseball revenue, with broadcasting revenue being a key driver within the baseball segment | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :---------------------------- | :--------------------- | :--------------------- | :------- | | Total revenue | $312,440 | $282,876 | 10 % | | Baseball revenue | $287,319 | $266,001 | 8 % | | Mixed-use development revenue | $25,121 | $16,875 | 49 % | - Baseball revenue growth was primarily driven by a **14% increase in broadcasting revenue** due to additional streaming rights and contractual rate increases, and a **5% increase in baseball event revenue** from season tickets and sponsorship contracts, with other revenue also seeing an **80% increase** due to a concert and special events[5](index=5&type=chunk)[7](index=7&type=chunk) - Mixed-use development revenue increased significantly by **49%** due to higher rental income from new lease commencements and an April 2025 real estate acquisition, as well as increased sponsorship revenue[5](index=5&type=chunk)[8](index=8&type=chunk) [Operating Income and Adjusted OIBDA Performance](index=1&type=section&id=Operating%20Income%20and%20Adjusted%20OIBDA%20Performance) Operating income for Q2 2025 increased by 68% to $41.79 million, and Adjusted OIBDA grew by 44% to $65.70 million, as revenue growth outpaced increases in operating and selling, general and administrative expenses | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :--------------- | :--------------------- | :--------------------- | :------- | | Adjusted OIBDA | $65,704 | $45,750 | 44 % | | Operating income | $41,787 | $24,936 | 68 % | - Baseball Adjusted OIBDA grew **39% to $52 million**, while Mixed-Use Development Adjusted OIBDA grew **53% to $18 million**[3](index=3&type=chunk) - Operating costs increased due to MLB's revenue sharing plan, Truist Park event expenses, minor league expenses, and operating costs from the April 2025 real estate acquisition, with SG&A expenses rising due to increased property taxes, insurance, professional fees, and personnel costs[9](index=9&type=chunk) [About Atlanta Braves Holdings, Inc.](index=3&type=section&id=About%20Atlanta%20Braves%20Holdings%2C%20Inc.) Atlanta Braves Holdings, Inc. primarily comprises the Major League Baseball franchise, the Atlanta Braves, and a real estate portfolio including The Battery Atlanta, a mixed-use development adjacent to Truist Park - The company's core assets are the Atlanta Braves MLB franchise and The Battery Atlanta mixed-use development[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements regarding future business, financial performance, and strategies, emphasizing that such statements involve risks and uncertainties and actual results may differ materially, advising against undue reliance and referring to SEC filings for detailed risk factors - Forward-looking statements are identified by words like "believe," "estimate," "expect," and "anticipate," covering business strategies, future financial performance, and trends[13](index=13&type=chunk) - Such statements are subject to risks and uncertainties, including historical financial information not being representative of future results, ability to recognize benefits from the split-off from Liberty Media, costs as a standalone company, financing, indebtedness, impact of inflation, litigation, operational risks outside the US, tax carryforwards, regulatory compliance, changes in strategic relationships, on-field success, player talent, organized labor, broadcasting revenue, data security, key personnel retention, real estate business risks, stock price fluctuations, and geopolitical events[13](index=13&type=chunk)[14](index=14&type=chunk) [Non-GAAP Financial Measures and Supplemental Disclosures](index=6&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES%20AND%20SUPPLEMENTAL%20DISCLOSURES) This section defines Adjusted OIBDA as a non-GAAP financial measure used by ABH to assess operational strength and performance, providing a reconciliation to GAAP operating income and clarifying that it supplements, rather than replaces, GAAP measures - Adjusted OIBDA is defined as operating income (loss) plus stock-based compensation, depreciation and amortization, separately reported litigation settlements, restructuring, acquisition, and impairment charges[16](index=16&type=chunk) - ABH uses Adjusted OIBDA to indicate operational strength, performance, and for analytical comparisons, believing it identifies items not directly reflective of ongoing business trends[17](index=17&type=chunk) - Operating income is considered the most directly comparable GAAP measure, and Adjusted OIBDA is intended to supplement GAAP measures, not replace them[17](index=17&type=chunk) [Adjusted OIBDA Reconciliation](index=6&type=section&id=SCHEDULE%201%3A%20Reconciliation%20of%20Adjusted%20OIBDA%20to%20Operating%20Income%20%28Loss%29) The reconciliation shows how Adjusted OIBDA is derived from operating income by adding back non-cash and non-recurring items, highlighting the operational performance of the Baseball and Mixed-Use Development segments | (amounts in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating income (loss) | $41,787 | $24,936 | $(2,665) | $(27,419) | | Stock-based compensation | 2,646 | 3,705 | 5,292 | 7,424 | | Depreciation and amortization | 21,271 | 17,109 | 34,528 | 31,991 | | **Adjusted OIBDA** | **$65,704** | **$45,750** | **$37,155** | **$11,996** | | Baseball Adjusted OIBDA | $52,047 | $37,391 | $12,447 | $(4,325) | | Mixed-Use Development Adjusted OIBDA | $17,566 | $11,509 | $30,453 | $21,442 | | Corporate and other | $(3,909) | $(3,150) | $(5,745) | $(5,121) | [Cash and Debt](index=7&type=section&id=SCHEDULE%202%3A%20Cash%20and%20Debt) ABH's cash decreased by $148 million in Q2 2025, primarily due to a real estate acquisition, capital expenditures, and seasonal working capital changes, while total debt increased by $3 million, mainly from borrowings for mixed-use development capital projects - ABH cash decreased by **$148 million** during Q2 2025, driven by the April 2025 acquisition of real estate assets, other capital expenditures, seasonal working capital changes, and increases in restricted cash[21](index=21&type=chunk) - Total ABH debt increased by **$3 million** in Q2 2025, primarily due to borrowings on Mixed-Use Development debt to support capital projects[21](index=21&type=chunk) | (amounts in thousands) | June 30, 2025 | March 31, 2025 | | :--------------------- | :------------ | :------------- | | ABH Cash (GAAP) | $96,196 | $244,679 | | Total ABH Debt (GAAP) | $703,101 | $699,466 | [Condensed Consolidated Financial Statements](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Atlanta Braves Holdings, Inc., including the balance sheet, statement of operations, and statement of cash flows, providing a comprehensive view of the company's financial health and performance [Condensed Consolidated Balance Sheet](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET) As of June 30, 2025, total assets increased to $1.68 billion from $1.52 billion at December 31, 2024, primarily driven by increases in property and equipment and other assets, while total liabilities also increased to $1.15 billion from $987.62 million, mainly due to higher current liabilities and long-term debt | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :------------------------- | :------------ | :----------- | | Total assets | $1,683,861 | $1,523,846 | | Total liabilities | $1,148,988 | $987,622 | | Total stockholders' equity | $522,828 | $524,179 | - Current assets increased significantly from **$179.15 million to $236.53 million**, largely due to an increase in restricted cash and accounts receivable[24](index=24&type=chunk) - Current liabilities rose from **$286.66 million to $371.16 million**, mainly due to increases in accounts payable and accrued liabilities, and deferred revenue, with long-term debt also increasing[25](index=25&type=chunk) [Condensed Consolidated Statement of Operations](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20OPERATIONS) For the three months ended June 30, 2025, ABH reported net earnings of $29.49 million, consistent with the prior year, and basic EPS of $0.47, while for the six months, the company reported a net loss of $11.90 million, a significant improvement from the $22.16 million loss in the prior year period | Metric (in thousands, except per share) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $312,440 | $282,876 | $359,651 | $319,956 | | Operating income (loss) | $41,787 | $24,936 | $(2,665) | $(27,419) | | Net earnings (loss) | $29,494 | $29,109 | $(11,897) | $(22,163) | | Basic EPS | $0.47 | $0.47 | $(0.19) | $(0.36) | - Interest expense increased for both the three and six-month periods, while share of earnings from affiliates decreased[26](index=26&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash provided by operating activities increased to $87.64 million from $56.75 million in the prior year, net cash used in investing activities significantly increased to $130.11 million, primarily due to a $93.71 million acquisition of real estate assets, and net cash provided by financing activities also increased to $83.49 million | Metric (in thousands) | 2025 | 2024 | | :-------------------------------------------------------- | :----------- | :----------- | | Net cash provided by (used in) operating activities | $87,640 | $56,752 | | Net cash provided by (used in) investing activities | $(130,105) | $(58,105) | | Net cash provided by (used in) financing activities | $83,487 | $24,992 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $41,022 | $23,639 | - The significant increase in cash used in investing activities was primarily due to the **$93.71 million acquisition of real estate assets** in 2025, compared to no such acquisition in 2024[27](index=27&type=chunk) - Borrowings of debt increased substantially to **$88.51 million** in 2025 from **$33.41 million** in 2024, contributing to the higher cash from financing activities[27](index=27&type=chunk) [Contact Information](index=11&type=section&id=Contact) This section provides contact details for investor relations inquiries for Atlanta Braves Holdings, Inc - Investors can contact Cameron Rudd for investor relations at **(404) 614-2300** or **investorrelations@braves.com**[28](index=28&type=chunk)

Group 1 - Atlanta Braves Holdings (NASDAQ: BATRA, NASDAQ: BATRK, OTCQB: BATRB) has outperformed the market by approximately 2% since the previous article published in March [1] - The financial markets are considered efficient, with most stocks reflecting their real current value, suggesting that the best investment opportunities arise from less-followed stocks or those mispriced in their markets [1] Group 2 - The analyst holds a beneficial long position in BATRA through stock ownership, options, or other derivatives, indicating a personal investment interest in the company [2]

Group 1 - Atlanta Braves Holdings (BATRK) is part of the Consumer Discretionary group, which includes 254 companies and ranks 11 in the Zacks Sector Rank [2] - BATRK currently holds a Zacks Rank of 1 (Strong Buy), with a 15.7% increase in the consensus earnings estimate over the past 90 days, indicating improved analyst sentiment [3] - Year-to-date, BATRK has returned 21.8%, outperforming the average return of 10.6% for the Consumer Discretionary sector [4] Group 2 - BATRK belongs to the Media Conglomerates industry, which consists of 17 stocks and ranks 44 in the Zacks Industry Rank, with an average gain of 11.5% this year [5] - Another stock in the Consumer Discretionary sector, Bilibili (BILI), has a year-to-date return of 18.5% and also holds a Zacks Rank of 1 (Strong Buy) [4][5] - The Broadcast Radio and Television industry, which includes Bilibili, has gained 29.8% this year, but ranks 144 overall [6]

Industry Overview - The Zacks Media Conglomerates industry is thriving due to the consumer shift towards over-the-top (OTT) content, with major players like Disney, Atlanta Braves Holdings, and Madison Square Garden Entertainment investing heavily in original content to attract Gen Z and millennial subscribers [1][2] - The industry's growth is supported by cost-effective alternative packages, such as skinny bundles, which offer lower prices compared to traditional offerings [1] - Challenges include declining broadcast television ratings, reduced demand for home entertainment sales, and advertisers' cautious spending amid inflation and high interest rates [1][2] Trends Impacting the Industry - Original content is driving growth as media companies adapt to consumer preferences for subscription services over traditional pay-TV, leading to increased opportunities for targeted advertising [3] - The demand for high-speed internet is a key catalyst, enhancing the consumption of high-quality videos and binge-watching trends, particularly in international markets with a growing broadband ecosystem [4] - The industry faces difficulties from cord-cutting trends and the maturation of the pay-TV sector, which has led to increased competition from streaming services [5] Industry Performance - The Zacks Media Conglomerates industry ranks 44 within the broader Zacks Consumer Discretionary sector, placing it in the top 18% of over 245 Zacks industries, indicating positive earnings outlook [6][8] - Despite this ranking, the industry has underperformed compared to the broader sector and the S&P 500, returning 4.9% over the past year versus 15.8% for the sector and 10% for the S&P 500 [9] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-sales (P/S) ratio of 1.51X, significantly lower than the S&P 500's 5.33X and the sector's 2.28X, suggesting potential undervaluation [12] Company Highlights - **Atlanta Braves Holdings**: Reported a 27% year-over-year revenue growth to $47 million, with baseball revenues up 30% to $29 million. The company has a strong cash position of $244.7 million and access to $275 million in liquidity [15][17] - **Disney**: Achieved profitability for Disney+ and Hulu with a combined subscription base of 180.7 million. The company is trading at a discounted P/E ratio of 19.25, with projected 16% EPS growth for fiscal 2025 [20][22] - **Madison Square Garden Entertainment**: Revenues increased by 6% to $242.5 million, with adjusted operating income surging 50% to $57.9 million. The company is well-positioned for continued growth with diverse revenue streams and strong advance sales for upcoming events [25][27]

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $47.211 million, an increase of 27.4% compared to $37.080 million in the same period of 2024[132]. - Baseball revenue increased to $28.621 million in Q1 2025, up 30.2% from $21.970 million in Q1 2024, primarily driven by a $2.2 million increase in broadcasting revenue[133]. - Mixed-Use Development revenue rose to $18.590 million, a 23.8% increase from $15.110 million in the prior year, mainly due to a $3.1 million increase in rental income[134]. Operating Performance - Operating loss decreased to $44.452 million in Q1 2025, improving by $7.9 million from a loss of $52.355 million in Q1 2024[139]. - Adjusted OIBDA improved to a loss of $28.549 million in Q1 2025, a $5.2 million increase compared to a loss of $33.754 million in Q1 2024[140]. - Baseball operating costs increased by $3.6 million in Q1 2025, primarily due to a $1.1 million rise in major league player salaries[135]. - Selling, general and administrative expenses rose by $1.2 million in Q1 2025, attributed to increased personnel costs[137]. - Stock-based compensation decreased by $1.1 million in Q1 2025, reflecting a reduction in outstanding awards[138]. Net Loss - The company reported a net loss of $41.391 million for Q1 2025, compared to a net loss of $51.272 million in Q1 2024[132]. - The Company's net losses were $41.4 million for the three months ended March 31, 2025, an improvement from net losses of $51.3 million in the same period of the prior year[146]. Tax and Cash Position - The Company's effective tax provision increased by $8.5 million for the three months ended March 31, 2025, compared to the same period in the prior year[145]. - The Company's cash and cash equivalents totaled $244.7 million as of March 31, 2025, primarily invested in U.S. Treasury securities and other highly rated financial instruments[147]. Debt and Credit Facilities - As of March 31, 2025, the Company had $259.9 million in floating rate debt with a weighted average interest rate of 6.2%[158]. - The Company had $442.6 million in fixed rate debt with a weighted average interest rate of 4.4% as of March 31, 2025[158]. - The maximum amount available under the League Wide Credit Facility (LWCF) was $125.0 million as of March 31, 2025, which remains undrawn[151]. - The MLB Facility Fund Revolver had a maximum availability of $38.5 million as of March 31, 2025, and was fully drawn[152]. - The TeamCo Revolver provides revolving commitments of $150.0 million, with full availability as of March 31, 2025[153]. Adjusted OIBDA - Baseball Adjusted OIBDA increased by $2.1 million for the three months ended March 31, 2025, compared to the same period in the prior year[141]. - Mixed-Use Development Adjusted OIBDA increased by $3.0 million for the three months ended March 31, 2025, compared to the same period in the prior year[141]. Corporate Structure - The company completed a tax-free Split-Off transaction on July 18, 2023, transitioning to a standalone public company[124].

Core Insights - Atlanta Braves Holdings reported a quarterly loss of $0.66 per share, which is better than the Zacks Consensus Estimate of a loss of $0.94, and an improvement from a loss of $0.83 per share a year ago [1] - The company achieved an earnings surprise of 29.79%, having previously reported a loss of $0.31 per share against an expected loss of $0.69 per share, resulting in a surprise of 55.07% [2] - Revenues for the quarter ended March 2025 were $47.21 million, exceeding the Zacks Consensus Estimate by 34.12%, compared to $37.08 million in the same quarter last year [3] Financial Performance - Over the last four quarters, Atlanta Braves Holdings has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $285.5 million, and for the current fiscal year, it is -$0.54 on revenues of $680.84 million [8] Market Position - Atlanta Braves Holdings shares have increased by approximately 5.9% since the beginning of the year, contrasting with a decline of -3.8% in the S&P 500 [4] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Media Conglomerates industry, to which Atlanta Braves Holdings belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Revenue Performance - Total revenue for Q1 2025 reached $47.2 million, a 27% increase from $37.1 million in Q1 2024[5] - Baseball revenue increased by 30% to $28.6 million, driven by a rise in broadcasting revenue and events held at Truist Park[7] - Mixed-use development revenue grew 23% to $18.6 million, primarily due to increased rental income and higher parking and sponsorship revenue[8] - Total revenue for Q1 2025 was $47,211,000, an increase of 27.4% compared to $37,080,000 in Q1 2024[27] - Baseball revenue increased to $28,621,000 in Q1 2025, up 30.5% from $21,970,000 in Q1 2024[27] - Mixed-use development revenue rose to $18,590,000, a 23.8% increase from $15,110,000 in the same period last year[27] Financial Performance - Adjusted OIBDA improved to $(28.5) million, a 15% increase from $(33.8) million in the prior year[5] - Operating income loss decreased to $(44.5) million, compared to $(52.4) million in Q1 2024, reflecting improved revenue performance[9] - Operating loss for Q1 2025 was $44,452,000, an improvement from a loss of $52,355,000 in Q1 2024[27] - Net loss for Q1 2025 was $41,391,000, compared to a net loss of $51,272,000 in Q1 2024, reflecting a 19.2% reduction in losses[27] Cash and Debt Management - Cash increased by $135 million during Q1 2025, resulting in total cash of $244.7 million[21] - Total debt rose to $699.5 million, up from $617.1 million at the end of 2024, primarily due to borrowings for mixed-use development projects[22] - Cash and cash equivalents increased to $244,679,000 as of March 31, 2025, up from $110,144,000 at the end of 2024[25] - The company reported a net increase in cash, cash equivalents, and restricted cash of $154,392,000 for Q1 2025, compared to $71,300,000 in Q1 2024[28] Asset and Liability Overview - Total assets grew to $1,681,439,000 as of March 31, 2025, compared to $1,523,846,000 at the end of 2024, marking a 10.3% increase[25] - Total liabilities increased to $1,183,273,000 as of March 31, 2025, up from $987,622,000 at the end of 2024[26] Operational Highlights - Mixed-use development generated $13 million of Adjusted OIBDA, a 30% increase from the prior year[5] - Baseball operating costs increased by 8% to $(48.8) million, largely due to higher player salaries and shared expenses[9] - The Braves recorded seven sellout games through the first three homestands of the season, indicating strong fan engagement[5] Cash Flow from Operations - Net cash provided by operating activities was $95,770,000 for Q1 2025, compared to $91,064,000 in Q1 2024[28]

Group 1: Company Overview - Atlanta Braves Holdings (BATRK) is part of the Consumer Discretionary group, which consists of 257 companies and ranks 12 in the Zacks Sector Rank [2] - BATRK currently holds a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook for the stock [3] Group 2: Performance Analysis - In the past quarter, the Zacks Consensus Estimate for BATRK's full-year earnings has increased by 28.5%, reflecting improved analyst sentiment [4] - Year-to-date, BATRK has gained approximately 1.1%, while the average return for Consumer Discretionary stocks has declined by 10.2%, showcasing BATRK's outperformance [4] - BATRK belongs to the Leisure and Recreation Services industry, which has seen a decline of about 20.2% this year, further highlighting BATRK's relative strength [6] Group 3: Comparison with Peers - Laureate Education (LAUR) is another Consumer Discretionary stock that has outperformed the sector with a year-to-date return of 4.7% [5] - The consensus EPS estimate for Laureate Education has risen by 14.9% over the past three months, and it also holds a Zacks Rank of 1 (Strong Buy) [5]

Company Overview - Atlanta Braves Holdings (BATRK) shares increased by 5.4% to close at $38.08, following a notable trading volume, contrasting with a 7.7% loss over the past four weeks [1] - The company is expected to report a quarterly loss of $0.94 per share, reflecting a year-over-year decline of 13.3%, with revenues projected at $35.2 million, down 5.1% from the previous year [3] Recent Developments - The Braves Development Company has acquired Pennant Park, a six-building office complex, which is anticipated to be immediately accretive due to strong tenant credit and over 80% occupancy [2] - The acquisition is viewed as a strategic move to enhance the real estate portfolio of Atlanta Braves Holdings [2] Earnings Estimates and Market Position - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [4] - Atlanta Braves Holdings currently holds a Zacks Rank of 1 (Strong Buy), suggesting positive market sentiment [4]

Group 1 - The stock of Atlanta Braves Holdings (BATRK) closed at $39.58, showing no change over the past four weeks, but analysts suggest a potential upside with a mean price target of $51.67, indicating a 30.6% increase [1] - The average price targets from analysts range from a low of $45 to a high of $58, with a standard deviation of $6.51, suggesting a consensus among analysts regarding the stock's potential movement [2] - Analysts have revised earnings estimates upward, with two estimates increasing in the last 30 days and no negative revisions, leading to a Zacks Consensus Estimate increase of 28.5% [12] Group 2 - BATRK holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13] - The correlation between earnings estimate revisions and stock price movements suggests that the positive trend in earnings estimates could lead to a stock price increase [11] - While price targets are often viewed as important, they should be approached with skepticism, as they may not reliably indicate actual stock price movements [10]