Liberty Media Corp. Q4 FY2024 earnings call

• Derek Chang began his role as Liberty CEO 27 days prior, with a long association with Liberty Media. Near-term 2025 priorities include closing the Dorna acquisition, continuing structural simplification, and driving momentum at Formula One. - Brian Wendling discussed financial results, noting SiriusXM Holdings results as discontinued operations, the financial position of F1, cash items, and a focus on improving the Las Vegas Grand Prix. - Stefano Domenicali highlighted F1's strong financial performance in 2024, growth in sponsorship, media rights, impressive fan engagement metrics, and initiatives such as F1 Arcade and exhibitions.

For the Formula One Group, total revenue grew 6% in 2024. Sponsorship revenue saw a 10% year-over-year increase. The Las Vegas Grand Prix fell short of revenue and OIBDA expectations. Paddock Club revenue had growth, but hospitality offerings at the Las Vegas Grand Prix were soft. Adjusted OIBDA margin improved nearly 70 basis points year-over-year. In the fourth quarter, corporate and other revenue was $118 million, with a corporate and other adjusted OIBDA loss of $2 million. For the Liberty Live Group, attributed cash was $325 million, and the value of Live Nation stock held was $9.9 billion as of February 26th, with $1.15 billion in principal amount of debt against these holdings.

• F1 will host 24 races in 2025. The majority of revenue is under contract. There is a focus on enhancing the Las Vegas Grand Prix's top and bottom line. - F1 estimates a cash tax rate in the double digits of adjusted OIBDA, with a modest increase in future years. - Operating company CapEx is expected to be 1% to 2% of total F1 revenue in 2025, excluding one-time Vegas-related CapEx.

Q: Could you elaborate on the strategy message for Liberty shareholders?

A: Near-term priorities consist of closing the Dorna deal, structural simplification, and focusing on Formula One. Liberty is opportunistic in M&A, eyeing premium IP and assets like F1.

Q: What's the outlook on the US broadcast rights for F1 given press reports about F1 and ESPN?

A: Discussions are ongoing. ESPN has been a productive partner, and there is strong interest in F1's media rights with a competitive process underway.

Q: Provide details on the path for improving the Las Vegas Grand Prix in 2025 and beyond?

A: Focus is on boosting top and bottom lines compared to 2024. The race time was moved earlier, LVGP operations are integrated with the London team, and the local Vegas team and partnerships are being strengthened.

Q: Thoughts on GM Cadillac joining as an eleventh team?

A: Cadillac will bring a boost to the ecosystem, preparing to enter in 2025. It's a positive development with GM investing in the sport's technological platform.

Q: Regarding sponsorship, any future opportunities in 2025 and impact on the Concord agreement with GM Cadillac?

A: The 2025 sponsorship pipeline is strong, and future sponsorship looks promising. Admission of Cadillac has no bearing on current Concord agreement talks, with sport growth expected to offset any margin pressure.

Q: Insights on international media rights opportunity and Vegas revenue decline?

A: US media rights negotiation isn't directly linked to global markets, but F1 TV is a key engagement tool. Most of the revenue and profit shortfall was due to the Las Vegas Grand Prix.

Q: On media rights, premium F1 TV, and Concorde team dynamics?

A: Premium F1 TV is an added value and considered in media rights negotiations. Team dynamics are constructive with recognition of significant growth, and expectations are positive with a focus on continued growth and stable team payments.

Q: Thoughts on broadcast rights and regional packages?

A: The media rights landscape is evolving with various players and regional deals in play, emphasizing opportunities based on players' strength and aspirations in different markets