Liberty Media Corporation Q3 2009 Earnings Call Transcript

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2009-11-09 13:56:08.0

Tags: Starz, Deutsche Bank AG, Call Transcript, Earnings, Sirius, Liberty Media Corp., Taxes, Investment, Free Trade, Personal Finance, Financial Planning, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question will come from Doug Mitchelson with Deutsche Bank.

Douglas Mitchelson - Deutsche Bank

Just a question for Greg and then a couple for Bob. Greg, which is cheaper in your view, SIRIUS stock or LCAPA stock and does your view on that differs factor into your decision making? How to perceive with your ownership stake there? Bob, can you tell us what the amount of the TV production write-down at Starz was this quarter? What your outlook for cost growth might be in the fourth quarter, given you might spend, give or take $15 million bucks marketing Spartacus? Thanks.

Greg Maffei

Doug, I try not to comment on which of the children I like best, but I will comment on the second part and could say that, that the practical matter if you look, we are prohibited from increasing our investment in SIRIUS XM, as I recall for 18 months from the term of the initial deal which would be about another year from now, first.

Then candidly, we’ll be trading lightly in, if we were to do so because of the some of the issues around the tax losses they have in the 382 limitations, so that is not easy path, even though I think SIRIUS is a attractive investment. I think Liberty Capital is quite cheap.

Douglas Mitchelson - Deutsche Bank

To the 382 limitations end right after two years or is there grey area there?

Greg Maffei

My understanding is ends after three years, so it would be roughly two and half years from now.

Bob Clasen

Nine months to-date, we’ve amortized it would put on the P&L about $15 million of growth revenue cost and a lot of that did hit in the third quarter. We’re not going to give guidance for the fourth quarter, but we’ll point out that to your question on marketing, we would expect the run rate to be pretty similar to the third quarter, since we had the second season of Crash that had quite a major campaign and would probably be roughly equivalent to some of the lead end we'll be doing in December for Spartacus with a lot of the Spartacus spending coming the first part of January.

Operator

We'll go next to James Ratcliffe with Barclays Capital.

James Ratcliffe - Barclays Capital

Couple of questions, both related to Liberty Starz. First of all, on the buyback authorization, is there any limit to how other than the [starred] SEC limits to how fast you can theoretically deploy that? Related to that, how much cash do you actually really need around to start the Starz business? Then secondly, ARPU for subscriber was up about 9% year-on-year in Starz, but at the same time you saw a subscriber dropping both of Starz non-core. Can you talk about what you say in terms of both revenue with network and buy a mixed shift or contracting increases and secondly for the people cancelling with those more our card customers or customers in high digital tiers?

 

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