Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Atlanta Braves Holdings Inc (BATRA, Financial) reported a revenue increase to $291 million in Q3 2024, up from $272 million in the same period last year.
- The company successfully sold over 3 million tickets for the third consecutive year, ranking fifth in Major League Baseball for ticket sales.
- The Battery Atlanta continues to thrive as a top destination, contributing to increased mixed-use development revenue.
- The Braves ranked number one in overall guest experience in a league-wide fan survey conducted by MLB.
- The company is set to host the Major League Baseball All-Star game, which is expected to enhance visibility and revenue opportunities.
Negative Points
- Operating income decreased to $6 million in Q3 2024 from $16 million in the prior year period, primarily due to higher baseball operating costs.
- Adjusted OIBDA fell to $31 million in Q3 2024 from $49 million in the prior year period, impacted by increased player salaries and revenue sharing payments.
- The pending bankruptcy proceedings of Diamond Sports Group LLC pose a potential risk to future revenue streams.
- Despite revenue growth, the company experienced a decline in cash from operations due to increased capital expenditures.
- The company faces challenges in expanding sports betting opportunities due to the lack of legalization in Georgia.
Q & A Highlights
Q: What are the biggest growth opportunities for Atlanta Braves Holdings over the next several years?
A: Derek Schiller, President and CEO, highlighted that the company is investing in both the ballpark and the Battery Atlanta, with a focus on projects that offer a return on investment. The goal is to enhance fan experiences, which in turn should drive business growth. There is also potential for growth in the Battery Atlanta through better tenant arrangements and new opportunities.
Q: How does Atlanta Braves Holdings plan to create value as a public company, and why not remain private?
A: Terry McGuirk, President and CEO, emphasized that the goal is to win the World Series, which drives both financial and statistical value. Derek Schiller added that the focus is on growing top-line revenue through various initiatives, including media opportunities and leveraging their large territory. The company is not looking to roll up other sports teams but is focused on maximizing growth within the Braves organization.
Q: What is the impact of Diamond Sports Group's bankruptcy on the Braves' local TV rights?
A: Terry McGuirk stated that while they are monitoring the bankruptcy proceedings, they are also exploring potential opportunities should the rights return to them. The Braves have a large television territory, which they believe offers significant potential for capitalizing on media rights.
Q: What are the plans for expanding concert and special event activities at Truist Park?
A: Derek Schiller mentioned that as more fans enjoy their experiences at Truist Park, the company is working with promoters to increase non-game day concerts and special events. There are also plans to host various events, such as a golf event, to utilize the park beyond baseball games.
Q: What is the stance on sports betting in Georgia, and how does it relate to the Braves?
A: Derek Schiller expressed frustration over the lack of legalized sports betting in Georgia and stated that the Braves support its legalization. They believe regulated sports betting is beneficial for the game and are hopeful that it will be legalized in the state.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
