Formula One Group Q4 FY2024 earnings call

Derek Chang's Remarks

• Started as CEO 27 days ago, with a long history with Liberty Media. Near-term priorities include closing the Dorna acquisition, structural simplification, and driving momentum at F1, including focusing on the Las Vegas Grand Prix's improvement.

Brian Wendling's Remarks

• Discussed F1's financial results, cash position, revenue growth, adjusted OIBDA margin, and Liberty Live Group's cash and debt. Mentioned F1's strong financial position for 2025 with revenue mostly under contract.

Stefano Domenicali's Remarks

• Highlighted F1's 2024 financial success, media rights growth, new sponsorships, Las Vegas Grand Prix integration, strong fan engagement metrics (e.g., over 750 million fans globally, 9% growth in race attendance in 2024), and experiential licenses initiatives like F1 Arcade and exhibitions.

In 2024, Formula One Group's total revenue grew 6% across all primary streams. Sponsorship revenue saw a 10% increase due to new sponsors and contractual increases. The Las Vegas Grand Prix missed revenue and OIBDA expectations in 2024. Corporate and other results in Q4 had revenue of $118 million, including Quint results and rental income from the Las Vegas Grand Prix Plaza. F1 will host 24 races in 2025, with revenue mostly under contract. F1's adjusted OIBDA margin improved nearly 70 basis points year-over-year. The Liberty Live Group had attributed cash of $325 million and $400 million of undrawn margin loan capacity related to Live Nation margin.

Forward-Looking Statements

• F1 will host 24 races in 2025, with revenue mostly under contract, including derisked sponsorship revenue. Focus on improving Vegas' top and bottom line. F1 TV launching a new premium tier. 2025 sponsorship pipeline emphasizes high-value partners. F1's race count and composition differ by quarter in 2025 to support Net Zero pledge and logistics efficiency.

Risks

• Regulatory risks associated with the Dorna acquisition phase two review by the European Commission.
• Dependence on race-specific performance, as seen with the Las Vegas Grand Prix missing 2024 revenue and OIBDA expectations.

Q: Talk about the strategic priorities for Liberty shareholders.

A: Near-term priorities include closing the Dorna acquisition, continuing structural simplification, and driving momentum at F1, including focusing on the Las Vegas Grand Prix's improvement.

Q: Discuss the US media rights for F1.

A: Ongoing discussions with broadcasters, robust process, considering content and distribution beyond just the race event.

Q: Elaborate on the 2025 plans for the Las Vegas Grand Prix.

A: Focus on top and bottom line improvement, cost management, integration with London team, and leveraging data to revise ticket pricing strategy.

Q: Comment on GM Cadillac entering F1.

A: Positive impact, no immediate impact on Concord agreement discussions, with Cadillac bringing new US brand and potential growth opportunities.

Q: Talk about media rights globally.

A: Evolving landscape, considering regional deals, F1 TV as a tool for engagement, and working with partners to find flexible solutions.