Formula One Group Q2 FY2025 earnings call

• Planned split-off of Liberty Live: Filed initial S-4 in late July, expect completion in Q4 with Chad Hollingsworth as CEO of Liberty Live Holdings.
• Formula One: Strong financial results, new sponsors, promoter partners extended, media rights agreements signed. Attendance solid, TV viewership growing, sponsorships active with new partnerships like MSC Cruises and Pepsi. Media rights deals progressing in various regions. Las Vegas Grand Prix ticket sales trending ahead, sustainability efforts highlighted.
• MotoGP: Acquired on July 3. Near-term priorities include accelerating commercial function build-out, enhancing brand positioning, collaborating with F1. Medium-term priorities: Enhance Grand Prix experience, expand global presence, scale sponsorship partners.

Formula One Group: At quarter end, attributed cash and liquid investments were $3.1 billion (including $1.8 billion cash at Formula One and $70 million at Quint), with total debt $2.9 billion. Second quarter revenue grew 14% and adjusted OIBDA up 21%. MotoGP: Acquisition closed on July 3. Spanish GAAP revenue for 6 months ended 6/30/25 was EUR 220 million, EBITDA EUR 75 million. Majority of revenue and costs euro-denominated. Liberty Live Group: Attributed cash $308 million, Live Nation stock value $10.4 billion, $1.15 billion debt. Corporate and Other: Revenue $198 million, adjusted OIBDA loss $4 million.

• Expect to complete Liberty Live split-off in Q4.
• MotoGP refinancing expected to close in August with new capital structure reducing interest expense. Goal to delever MotoGP to 3 to 4x range by end of 2026.
• Progress on U.S. media rights negotiations, confident in position in U.S. market.

• Variability in quarterly race numbers impacting financial comparisons.
• Sponsorship sales cycles can be long.
• Currency exposure, particularly for MotoGP with majority euro-denominated revenue and costs.

Q: For Derek or Stefano, update on U.S. media rights process and priorities between reach and payment?

A: Stefano Domenicali stated negotiations are progressing, looking for mid-term agreements, focusing on balance between reach and awareness, with progress seen in U.S. follower growth.

Q: Bryan Kraft asks about F1 movie contribution to primary revenue and MotoGP 16% ownership accounting?

A: Brian Wendling says F1 movie is one-time mid-teens revenue contribution. MotoGP 16% ownership accounted for as non-controlling interest, with 84% of earnings picked up through P&L and 16% allocated to non-controlling interest.

Q: Stephen Laszczyk asks about MotoGP growth framework and F1 hospitality growth?

A: Carlos Ezpeleta says growth divided into monetizing current fan base and increasing global fan base, with investment in commercial, marketing, and fan insights already underway. Stefano Domenicali mentions strong hospitality demand, focusing on quality and quantity of offerings.

Q: Ben Swinburne asks about MotoGP top line performance and F1 sponsorship pipeline for 2026?

A: Brian Wendling refers to info deck for MotoGP Spanish GAAP numbers. Stefano Domenicali says sponsorship team focusing on 2026 with strong pipeline, focusing on brand alignment and new categories like consumer area.

Q: Kutgun Maral asks about F1 race promotion outlook, particularly Melbourne?

A: Stefano Domenicali states positive trend with demand and investment opportunities, with each Grand Prix having specific considerations but overall positive delta for profitability.

Q: Peter Supino asks about profit recovery potential in Las Vegas and return on capital?

A: Brian Wendling says goal is to earn return on investment, with LVGP benefits extending to overall ecosystem.

Q: Ryan Gravett asks about capital allocation plans and target leverage for F1 OpCo?

A: Derek Chang says delevering ongoing, with focus on M&A discipline and looking at opportunities in marketplace.

Q: Steven Cahall asks about F1 TV cannibalization risk and competitive balance in F1?

A: Stefano Domenicali addresses competitive balance, noting small gaps between teams due to budget cap, and F1 TV focuses on providing content across various platforms to reach consumers.

Q: David Joyce asks about MotoGP media rights contracts and sponsorship renewals?

A: Dan Rossomondo says media rights deals have varying cycles and focus on adapting to consumer changes, while sponsorships are a growth area with investment in brand building and attracting new partners