Atlanta Braves Holdings, Inc. Series C Common Stock 2026 Q2 Earnings Call

Before we begin, we'd like to remind everyone that on today's call, management's prepared remarks may contain forward-looking statements that represent our beliefs or expectations about future events. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. A number of factors could cause actual results to differ materially from those anticipated, including those set forth in the Risk Factors section of our annual and quarterly reports filed with the SEC. Forward-looking statements are based on current expectations, assumptions, and beliefs, as well as information available to us at this time and speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events. During this call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA.

The full definition of adjusted OIBDA and the reconciliations to the comparable GAAP financial measures are contained in the Form 10-Q and earnings press release available on the company's website. Now I'd like to turn the call over to Terence McGuirk, Chairman, President, and CEO of Atlanta Braves Holdings.

Good morning. Thank you for joining us. Joining me today are Derek Schiller, President and CEO of the Atlanta Braves, Mike Plant, President and CEO of Braves Development Company, and Jill Robinson, our CFO. With only 49 games left in the season, our team continues to play well. Currently, we sit in first place in the National League East with FanGraphs giving the Braves an 89% chance of winning the division and a 99% chance of making the playoffs. While we have dealt with our fair share of injuries this season, the team is getting some of these players back and continues to be playoff bound. Chris Sale has once again performed like a future hall of famer and currently commands the second lowest ERA in all of baseball. Matt Olson and Ozzie Albies have continued to provide production and veteran leadership.

Drake Baldwin has built on his Rookie of the Year season, Raisel Iglesias has been outstanding at the back end of our bullpen. Michael Harris has returned to form and has been exceptional both at the plate and in center field. As we move through the second half of the season, we are encouraged by the progress of several key players who are making their way back from injuries. 23-year-old AJ Smith-Shawver is back from Tommy John surgery and throwing 100 miles an hour and looking like his old self. Five-time All-Star Ronald Acuña Jr. only recently rejoined the team, and his presence makes everyone better. In addition, Sean Murphy and Ha-Seong Kim were on rehabilitation assignments and returned to the team yesterday.

The depth of this team has been on full display in the past few months, and we are excited to be playing at near full strength going into the back half of the season. Our objective remains the same every year: to compete for and win a World Series championship. We have great confidence in Alex Anthopoulos, our President of Baseball Operations, and Walt Weiss, our Field Manager, two of the finest leaders in baseball. Part of the strength of this organization has been our ability to draft successfully and cultivate young players, which has helped the Braves develop a premier minor league system. With the expiration of the trade deadline earlier this week, we added some valuable talent for the stretch, starting with talented outfielder Lane Thomas, as well as multiple players to bolster our pitching depth, including Bailey Falter, Brent Suter, Tyler Uberstine, and Tyler Mahle.

We approached the trade deadline the same way we have in the past, with a mentality of making our team better without sacrificing the next wave of talent. This is a deep and talented organization, and we believe this team is positioned to compete deep in October. We were extremely proud to have had five Braves selected to represent the National League in the All-Star Game. Chris Sale, Matt Olson, Ozzie Albies, Drake Baldwin, and Raisel Iglesias. Chris Sale was selected for the 10th time in his outstanding career. Having five representatives tied for the most among National League teams reflects the talent and depth of this club. I also want to recognize Braves legend Andruw Jones, who was inducted into the National Baseball Hall of Fame on July 26th.

Andruw became the 12th player to enter the hall as a Brave, capping a remarkable career that included 10 consecutive Gold Glove awards, five All-Star selections, and 434 home runs. His impact on our franchise and the city of Atlanta has been extraordinary. Finally, I'd like to thank Braves Country. Attendance and fan engagement have remained very strong with 17 sellouts this season through July. The energy our fans bring to Truist Park makes a real difference to our players and the entire organization. We never take their passion or loyalty for granted. With that, I'll turn the call over to Derek.

Thank you, Terry. I want to echo Terry's appreciation for Braves Country and the continued support our fans showed throughout the season. Providing them with the best possible experience, both at Truist Park and wherever they follow the team, remains one of our highest priorities. That commitment was central to the launch of BravesVision, our owned and operated multimedia platform and the official local television home of the Braves. BravesVision gives us a more direct relationship with our viewers and greater ability to shape how fans experience and engage with the team throughout the season. In a short period of time, we have built the capabilities needed to manage distribution, advertising sales, production, and programming directly, while working with the experienced third-party partners. Our focus remains on delivering a high-quality viewing experience, bringing fans closer to the team, and building a durable platform that can grow over time.

We continue to receive high praise from fans and the media for the superior quality of BravesVision. Work has also begun to expand content on the network, including live batting practice at home games, in addition to our pre- and post-game shows for those fans who want to tune in and see the action ahead of the game. Our entire team continues to work to expand the reach of BravesVision and develop programming and content that strengthens the connection between the team and our fans. Are confident that we will replicate or exceed revenue from our prior third-party local rights partner on an annualized basis. Overall, the legacy cable model continues to decline, with some distributors seeing subscriber numbers decrease even more so than previously forecasted, putting pressure on our business.

This is not unique to the Braves. That pressure is being felt across sports. However, our unique ability to manage our business means that we have been insulated from those impacts more than most teams. One example is our incredibly strong direct-to-consumer business, which is outpacing our early projections and positions us well for the future. As you can see in our published financials, we have renamed the revenue line associated with our broadcasting operations to reflect the impact of BravesVision. What was formerly broadcasting has been changed to media-related revenue, given the various items in this line stemming from the launch of BravesVision. Jill will go into more detail on this change in a moment. The enthusiasm of our fans has been evident across Truist Park in the first half of the season.

While our second quarter comparison reflects six fewer regular season home games than last year, underlying fan demand remains strong. Through the first six months of the year, average attendance per home game increased, season ticket demand remained strong, and baseball event revenue grew despite one fewer regular season home game than the first six months of the 2025 season. We believe that performance reflects the enduring strength of Braves Country and the value fans place on experiencing Braves baseball in person. We remain focused on making every visit to Truist Park memorable, from the atmosphere inside the ballpark to the broader experience surrounding each game. In fact, just a few weeks ago, the Information Display & Entertainment Association held its annual IDEA conference, in which it awards its Golden Matrix Awards to recognize superior achievement throughout the event presentation industry.

Our incredibly talented fan experience team received 3 awards, including Best Overall Production across all sports, honoring overall operational and live entertainment excellence, Best Overall in Baseball, recognizing the top game presentation in the sport, and Best Tribute Video, awarded for the team's special feature production, Hank Aaron tribute video. We also continue to identify opportunities to utilize the ballpark beyond our regular season home game schedule, introducing the venue to new audiences while generating additional activity across the broader campus. During the 2nd quarter, we hosted 3 Savannah Bananas games, as well as an additional concert in May. These events attracted fans and visitors to Truist Park outside of traditional Braves games and contributed to strong growth in our other revenue.

We hosted the first-ever Braves Country Fest presented by Truist in June, which saw over 100,000 visitors attend a variety of concerts held in the stadium as well as out in The Battery. This was in addition to the Noah Kahan concert held in late July and the upcoming Guns N' Roses concert in September. We continue to work around the clock to make the most of our campus and ballpark, and bring as many fans and visitors as we can. Beyond the ballpark, we're also seeing strong engagement with our fans, including demand for our new City Connect apparel. Taken together, the early response to BravesVision, continued support at Truist Park, and engagement with the Braves brand reinforce our confidence in the strength and reach of our fan base.