Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Atlanta Braves Holdings Inc (BATRA, Financial) is optimistic about the 2025 season with key players returning from injuries, enhancing their competitive edge.
- The company has secured a significant partnership with FanDuel Sports Network, providing fans with increased access to stream games.
- The Battery Atlanta continues to thrive as a year-round destination, attracting 8.7 million visitors in 2024 and generating over $130 million in retail revenue.
- The upcoming Major League Baseball All-Star Game will be hosted by the Braves, showcasing Atlanta and potentially boosting local engagement and revenue.
- The company reported an increase in full-year revenue to $662.7 million in 2024, up from $640.7 million in 2023, driven by new sponsorship agreements and broadcasting revenue.
Negative Points
- The fourth quarter of 2024 saw a decline in revenue to $52.1 million from $67.7 million in the same period in 2023, primarily due to the absence of home games and concerts.
- Despite the overall revenue increase, the company faced reduced attendance at regular season home games, impacting revenue growth.
- Operating losses, although improved, remain significant at $18.6 million for Q4 2024, compared to $32.4 million in Q4 2023.
- The company faces challenges in monetizing social media engagement, as younger demographics show a preference for short-form content over traditional broadcasts.
- There is concern over the potential impact of national broadcasting rights negotiations, particularly with ESPN's reported exit from MLB deals, which could affect future revenue streams.
Q & A Highlights
Q: Can you discuss the strategic impact of your new media rights agreements, including the deal with FanDuel TV and Gray Media, and how they might affect broadcasting revenue growth in 2025?
A: Terence McGuirk, Chairman, President & CEO, explained that the reemergence of Main Street Sports from bankruptcy allowed for a re-engineering of their media rights deal, adding streaming opportunities alongside traditional linear distribution. This ensures broader accessibility for fans. The partnership with Gray Media further enhances accessibility by broadcasting additional spring training and regular season games. These changes are expected to benefit both fans and the business. Jill Robinson, CFO, added that they are comfortable with their current capital structure, which supports flexibility in investments.
Q: What are the development opportunities within the Battery Atlanta, and how do you plan to increase non-game day events?
A: Mike Plant, President & CEO of Braves Development Company, mentioned that they remain opportunistic about development opportunities, citing the upcoming Tru Securities headquarters as an example. Derek Schiller, President & CEO, added that they are aggressively pursuing non-game day events, including concerts, to maximize the use of their facilities year-round.
Q: How do you view the national broadcasting rights environment, especially with reports of ESPN potentially exiting its MLB deal?
A: Terence McGuirk stated that the ESPN MLB breakup is not expected to impact the Braves' economics. He expressed confidence in the strong interest for the upcoming rights and assured that the market will be surprised by the enthusiasm for these rights.
Q: How is the Braves organization addressing changes in fan engagement, particularly with the rise of social media and international interest?
A: Derek Schiller highlighted their strategy to maximize content accessibility across various platforms, including social media. They aim to meet fans where they are, using platforms like Instagram and YouTube. Internationally, the Braves benefit from a large following, partly due to their historical presence on TBS as a superstation.
Q: What is the outlook for player salaries and potential offseason trades?
A: Terence McGuirk confirmed that the Braves remain a top 10 salary organization and are prepared to cross the competitive balance tax if necessary. They have resources available for strategic player acquisitions and are monitoring the market for opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
