Liberty Live Group Q4 FY2024 earnings call

• Near-term Priorities: Work towards closing the Dorna acquisition, continue structural simplification to highlight Live Nation equity stake, and drive momentum at Formula One. For F1, focus on improving the Las Vegas Grand Prix with revised ticket strategies, cost management, and integration into the London team.
• Financials: F1 had attributed cash and liquid investments of $2.6 billion at year-end, with $2.9 billion in total debt. 2024 F1 revenue growth was driven by additional races, contractual increases, and new sponsors. Corporate and other results in Q4 included revenue from Quint and Las Vegas Grand Prix Plaza rental income.
• Fan Engagement and Initiatives: F1 had over 750 million fans globally, with younger and female fans growing rapidly. 2024 saw record attendance at races and Paddock Club, and initiatives like F1 Arcade expansion and exhibition events were discussed.

Formula One Group: In 2024, total revenue grew 6% across all primary revenue streams. Sponsorship revenue increased 10% year-over-year. The Las Vegas Grand Prix missed revenue and OIBDA expectations. Adjusted OIBDA margin improved nearly 70 basis points year-over-year. For 2025, F1 will host 24 races, with the majority of revenue under contract. Liberty Live Group: Attributed cash was $325 million, and the value of Live Nation stock held at Liberty Live 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, with revenue mostly under contract. Focus on improving the Las Vegas Grand Prix's financial performance. Media rights negotiation is ongoing with a robust process expected. Live Nation stock value and debt position are noted, with $9.9 billion in stock value and $1.15 billion in debt as of Feb 26th.

• Regulatory risk: Phase two review for the Dorna acquisition by the European Commission, with the long stop date extended to June 30, 2025.
• Financial risk: Las Vegas Grand Prix missing revenue and OIBDA expectations in 2024.
• Media rights risk: Competitive landscape and uncertainties in negotiating media rights deals, including the US media rights situation with ESPN.

Q: Could you talk about the strategy for Liberty shareholders and M&A philosophy?

A: Near-term priorities include closing Dorna acquisition, structural simplification, and driving F1 momentum. Liberty is opportunistic with M&A, looking at premium IP and monetization opportunities.

Q: Thoughts on US media rights for F1 and ESPN?

A: Discussions with ESPN are ongoing, with multiple players interested in media rights. F1 has a robust content offer and is well-positioned, with a competitive process expected.

Q: Path for improving Las Vegas Grand Prix in 2025?

A: Revising ticket product and pricing strategy, managing cost structure, integrating LVGP into the London team, and bolstering local Vegas team and partnerships.

Q: GM Cadillac entry and impact on Concord agreement?

A: GM Cadillac entry is positive for F1, bringing a new US brand. It doesn't impact current Concord agreement discussions, and the sport is expected to grow with new opportunities.

Q: Media rights opportunity internationally and US experience?

A: US media rights negotiation experience doesn't directly correlate to global markets, but F1 TV is a strong engagement tool. Global media rights have growing fan demand and potential with streaming platforms.

Q: Race promotion renewals and media rights revenue outlook?

A: Race promotion renewals show growth potential due to strong market interest. Media rights revenue in 2025 will be driven by renewals, escalators, and new premium F1 TV product.