Atlanta Braves Swings to Loss as Baseball Costs Climb
Second-quarter baseball operating costs rose 20% to $252.0 million.
Atlanta Braves Holdings (BATRA), owner of the Atlanta Braves and the surrounding mixed-use development, swung to a second-quarter loss as fewer home games weighed on baseball revenue and costs increased.
Revenue fell 2% to $305.1 million, reversing from 53% growth in the first quarter, when the schedule included five home games compared with none a year earlier. First-half revenue remained 5% higher at $377.1 million.
The company posted a net loss attributable to stockholders of $12.2 million, or 19 cents a share, compared with earnings of $29.5 million, or 47 cents a basic share, a year earlier. It recorded an operating loss of $18.5 million after operating income of $41.8 million.
Baseball revenue declined 4% to $276.4 million as the Braves played 34 home games, down from 40 a year earlier. Baseball-event revenue fell 11% to $161.0 million, while media-related revenue dropped 10% to $72.9 million amid the transition to BravesVision and changes in national media-rights arrangements.
Other baseball revenue rose 183% to $20.7 million, supported by more special events at Truist Park, including three Savannah Bananas games and an additional concert. Retail and licensing revenue increased 18% to $21.8 million on demand for City Connect apparel and higher league-wide revenue.
Those gains did not offset the pressure on baseball profitability. Baseball Adjusted OIBDA deteriorated to a $5.7 million loss from a $52.0 million profit, and total Adjusted OIBDA fell 82% to $11.8 million, though the total measure improved sequentially from a first-quarter loss.
Mixed-Use Development remained profitable as revenue rose 14% to $28.7 million and Adjusted OIBDA increased 18% to $20.6 million. Its margin expanded to about 72% from about 70% a year earlier, even as revenue growth slowed from 41% in the first quarter.
First-half operating cash flow shifted to a $1.6 million outflow from an $87.6 million inflow a year earlier. During the quarter, cash declined $18.9 million to $116.3 million and debt increased $83.7 million to $795.1 million, primarily reflecting working-capital borrowings under league-wide and team credit facilities.