Liberty Live Group Q1 FY2025 earnings call

• Dorna acquisition: Progressing with Phase II regulatory process, working constructively with European Commission, hoping for approval by June 30, 2025. MotoGP kicked off 2025 with season launch event in Bangkok, had 22 race calendar, saw attendance growth at several races, and announced commercial agreements.
• Structural simplification: Continuing path towards structural simplification, including planned split off of Liberty Live.
• Formula One highlights:
  • Sponsorship and licensing: Continued momentum, with LEGO partnership in Miami being a highlight. Pulling sponsorship pipeline forward to focus on 2026 and beyond for blue-chip names.
  • LVGP: Tickets went on sale in early April, volumes trending ahead of last year, lower initial prices driving momentum. Engaged in discussions with key local stakeholders.
  • U.S. media rights: In active discussions for new deal, F1 is a strong product with solid growth in U.S. and attractive demographic.
  • Engagement: Strong on-track performance, growing fan base. Linear TV viewership grew for first 5 races, social media followers reached 100 million, total fan base over 826 million as of year-end 2024.
  • Commercial success: Renewed Mexico Race through 2028 and Miami through 2041. F1 TV subscriber growth robust, new Premium tier outperformed expectations. Active discussions for U.S. media rights. Additional series like Formula 2, 3, Sprint, and F1 Academy provide value. Drive to Survive Season 7 and F1 Academy docuseries had strong viewership. Sponsorship had new deals like Barilla and PWC. Licensing saw high demand for LEGO F1 products. F1 Arcade expanding, Grand Prix Plaza in Las Vegas opened with year-round activations. Sustainability efforts included investment in sustainable aviation fuel, 100% sustainable fuel for F1 cars from 2026, and progress on 2026 engine regulation.
• Liberty Media Investor Day: To be held alongside Las Vegas Grand Prix on November 20 in Las Vegas

Formula One Group

• Race promotion revenue: Decreased due to mix of races, with Australia and China in current period vs Bahrain, Saudi Arabia and Australia in prior year.
• Media rights and sponsorship: Declined as only season-based revenue projected was recognized vs last year, but offset by strong growth from new and renewed deals for 2025. Media Rights revenue benefited from contractual increases and F1 TV's new premium subscription tier.
• Other revenue: Declined due to one less Paddock Club event and race mix.
• Adjusted OIBDA: Declined alongside revenue due to calendar variance.
• Other costs of F1 revenue: Increased due to higher freight costs, commissions, partner servicing costs, and Grand Prix Plaza costs.
• SG&A: Increased in first quarter due to marketing costs for season launch event, but should be viewed as percentage of total revenue for full year.
• Team payments: Decreased in first quarter due to lower pro rata recognition, partially offset by expectation of higher full year payments. Formula One paid $50 million to teams in first quarter related to 2026 Concorde Commercial agreement, excluded from adjusted OIBDA.

Corporate and Other

• Revenue: $53 million, including Quint results and ~$6 million rental income related to Las Vegas Grand Prix Plaza.
• Adjusted OIBDA loss: $12 million, including Grand Prix Plaza rental income, Quint results, and corporate expenses. Quint's business is seasonal with largest events in Q2 and Q4.

Liberty Live Group

• Attributed cash: $314 million.
• Undrawn margin loan capacity: $400 million relating to Live Nation margin loan.
• Value of Live Nation stock held: $9.3 billion as of May 6.
• Principal amount of debt: $1.15 billion against Live Nation stock holdings

• Full year other costs of F1 revenue: Expected to be consistent with prior years as a percentage of total revenue.
• SG&A: Viewed as a percentage of total revenue for full year, with first quarter increase due to marketing costs for season launch event being a one-time factor.
• Team payments: As a percent of pre-team adjusted OIBDA was 61.5% in 2024, expected to continue to come down as Concorde agreement term ends in 2025.
• 2026 Concorde Commercial agreement: Expect leverage in 2026 versus 2025 full year, and a more simplified structure benefiting the ecosystem

• Regulatory risks: Actual events or results could differ materially due to risks and uncertainties including those mentioned in the most recent forms 10-K and 10-Q filed with the SEC related to forward-looking statements.
• Macroeconomic risks: Impact on consumer sentiment and potential effect on business performance, though Formula One's business model has proven resilient historically

Q: Stephen Laszczyk asked about team payment budget structure and sponsorship opportunities.

A: Brian Wendling said there are opportunities for upside but variables like Las Vegas Grand Prix ticket sales and sponsorship pipeline need to be considered. Stefano Domenicali added focus on quality over quantity in sponsorship with strong pipeline and positive momentum.

Q: Ben Swinburne inquired about U.S. media rights and Concorde agreement.

A: Stefano Domenicali said they are engaged in active discussions with multiple partners for U.S. media rights, and F1 TV product is growing positively. Stefano also mentioned expected leverage in 2026 Concorde Commercial agreement versus 2025 full year and a simplified structure benefiting the ecosystem.

Q: Kutgun Maral asked about MotoGP.

A: Derek Chang said they are progressing with the Dorna acquisition, continue to see upside in MotoGP, and will actively engage with MotoGP management to execute on plans once the deal closes.

Q: Peter Supino asked about sponsorship and media rights.

A: Stefano Domenicali discussed media rights strategy of fitting with the right partner to develop the sport and sponsorship relevance with quality and positive numbers. Brian Wendling said sponsorship has multiple factors affecting it and patience is needed for year-to-date analysis. Derek Chang added F1 is uniquely positioned with multiple ways to engage fans across platforms.

Q: Steven Cahall asked about other costs and Concorde agreement.

A: Brian Wendling said other costs have items like increased partner servicing, GPP costs, offset by revenue from Grand Prix Plaza. Stefano Domenicali discussed Concorde agreement's importance for competitive balance, financial health of teams, and organic growth of the sport.

Q: Ryan Gravett asked about non-U.S. media rights renewals.

A: Stefano Domenicali said there is dynamic competition in non-U.S. media rights, with different cultures and streaming dynamics, but positive relationships in areas like Japan and Brazil.

Q: Joseph Stauff asked about organic KPIs and team competition.

A: Brian Wendling said they can't give more specific organic KPI details than already shown, with mix of races affecting results. Stefano Domenicali added organic growth is progressing and team competition is due to regulation and evolution, with focus on competitive balance and sustainable fuel.

Q: Spencer Amer asked about Miami Grand Prix extension.

A: Stefano Domenicali said Miami Grand Prix is important for U.S. strategy, partners have been strong, and they extended early for certainty and growth. Derek Chang added he saw improvement in Miami Grand Prix on the ground.

Q: Jason Bazinet asked about sponsorship defensiveness.

A: Stefano Domenicali and Derek Chang said the credibility of the platform, long-term partnerships, and strong relationships with partners insulate against economic slowdowns, with partners investing for long-term growth.

Q: Matthew Harrigan asked about engaging and monetizing shorter attention span viewers.

A: Stefano Domenicali said they are building an ecosystem with diverse content and engagement points, and the potential to monetize through various touchpoints like merchandise, race attendance, and Grand Prix Plaza visits rather than every short-form engagement being monetized directly