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Liberty Media tracking stocks see early volatility


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Liberty Media tracking stocks see early volatility

It has been less than one month since the former LibertyMedia split into three tracking stocks ­­— Liberty SiriusXM, Liberty Braves andLiberty Media Corp. —and the company said May 9 that so far things are going roughly as expected.

Specifically, the company has already seen a return of thetracking stock discount.During a May 9 conference call, an analyst called the discounts "prettywide" and asked how the company hoped to narrow them.

Liberty Media CEO Greg Maffei said the company was neithersurprised nor overly concerned about the tracking stock discount at the presenttime.

"In general, Liberty stocks have always traded at adiscount somewhere between 2% and 35%," he said, adding that the companyhas tried to take advantage of that fact through share repurchases.

Also, he noted the tracking stock for Liberty SiriusXM hasalready seen some improvement in the weeks since the recapitalization. "Outof the blocks, not unexpectedly, trading has been somewhat volatile but we arepleased to see the discount has narrowed at LXSMA."

Although the recapitalization of Liberty Media's commonstock into the three new tracking stocks was not completed until April 15, thecompany reported its first-quarter results as though the split had occurred onJan. 1, 2015.

Liberty SiriusXM Group reported net earnings attributable tostockholders of $101 million, up from $47 million in the year-ago period. Totalrevenues rose to $1.20 billion, up from $1.08 billion in the first quarter of2015. Liberty SiriusXM ended the period with 30.1 million subscribers. Lookingahead, the company expects 2016 net subscriber growth to total 1.6 million.

The Liberty Braves Group reported an attributable net lossof $25 million and total revenue of $4 million, as compared to a net loss of$15 million and revenue of $5 million in the year-ago period.

Liberty Media Group reported no revenue but due to asettlement managed to record net earnings attributable to stockholders of $289million, as compared to a net loss of $51 million in the year-ago period.