Liberty Live Group Q2 FY2025 earnings call

• Split-off of Liberty Live: Filed the initial S-4 at the end of July, expect completion in Q4. Chad Hollingsworth to be CEO of Liberty Live Holdings.
• Formula One: Strong financial results, new sponsors announced, promoter partners extended, and media rights agreements signed. TV viewership and attendance up, with 12 of the past 14 races sold out and 6 races setting new attendance records.
• MotoGP Acquisition: Completed July 3. Near-term priorities: accelerate commercial function build-out (sponsorship, marketing, etc.), enhance brand positioning using new campaign, and collaborate with F1. Medium-term priorities: enhance Grand Prix experience, expand global presence, and scale sponsorship partners.

Formula One Group

• At quarter end, attributed cash and liquid investments were $3.1 billion, with $1.8 billion cash at Formula One and $70 million at Quint. Total debt was $2.9 billion. Second quarter revenue up 14% and adjusted OIBDA up 21% across all revenue streams, including sponsorship, race promotion, and media rights.

MotoGP

• Acquired on July 3. Spanish GAAP revenue for the 6 months ended 6/30/25 was EUR 220 million, EBITDA EUR 75 million. Near-term priorities include accelerating commercial function build-out, enhancing brand positioning, and collaborating with F1. Medium-term priorities involve enhancing Grand Prix experience, expanding global presence, and scaling sponsorship partners.

Liberty Live Group

• Attributed cash was $308 million, with $400 million of undrawn margin loan capacity related to the Live Nation margin loan. The value of Live Nation stock held at Liberty Live Group was $10.4 billion.

Corporate and Other

• Revenue was $198 million, including Quint results and rental income from the Las Vegas Grand Prix Plaza. Adjusted OIBDA loss was $4 million.

• Formula One: Expect to delever to the 3 to 4x range for the MotoGP business by the end of 2026. Revenue and adjusted OIBDA growth continuing with strong performance in various revenue streams.
• MotoGP: Aim to grow primary revenue streams, normalize the race calendar (unlike 2024 with race cancellations), and delever while growing the business. Focus on expanding global fan base and scaling sponsorship.
• Liberty Live: Continue to manage debt and holdings related to Live Nation, with expectations of growth in the value of Live Nation stock held.

• Market and Regulatory Risks: Impact of economic downturns, regulatory changes on media rights, sponsorship, and operational costs.
• Integration Risks: Challenges in integrating MotoGP, aligning strategic directions, potential delays in the split-off of Liberty Live or refinancing at MotoGP.
• Competition Risks: Intense competition in sports media and entertainment affecting viewership, sponsorship, and revenue generation.

Q: Update on U.S. media rights process and F1 TV role.

A: Stefano Domenicali discusses progress in negotiations, mid-term agreements, and highlights F1 TV's role in growth and fan engagement.

Q: Vegas Grand Prix on sale process and contribution.

A: Stefano Domenicali and Derek Chang talk about positive progress in the on-sale process, price strategy, and the future contribution of the Vegas Grand Prix to financials.

Q: F1 movie contribution and MotoGP ownership accounting.

A: Brian Wendling states the F1 movie is one-time revenue in the mid-teens for the quarter, and MotoGP's 16% ownership is accounted for as a non-controlling interest.

Q: MotoGP investment pace and F1 hospitality growth.

A: Carlos Ezpeleta discusses MotoGP investment in growth, focusing on expanding fan base, and Stefano Domenicali talks about strong hospitality demand and focus on quality in F1 hospitality offerings.

Q: MotoGP top line performance and F1 sponsorship pipeline.

A: Brian Wendling refers to the info deck for MotoGP's top line, and Stefano Domenicali talks about sponsorship momentum and future opportunities in sponsorship for F1.

Q: F1 race promotion outlook and Melbourne opportunity.

A: Stefano Domenicali discusses positive trends in F1 race promotions and opportunities in markets like Melbourne.

Q: Las Vegas PP&E return on investment.

A: Brian Wendling states the goal to earn a return on the Las Vegas PP&E investment, with benefits to the overall ecosystem.

Q: MotoGP race promoter contracts and F1 renewal delta.

A: Carlos Ezpeleta discusses race promoter contract cadence at MotoGP, and Stefano Domenicali talks about positive renewals and their benefits for F1.

Q: MotoGP capital allocation and leverage target.

A: Derek Chang discusses delevering efforts and capital allocation priorities for MotoGP and overall Liberty Media.

Q: F1 TV cannibalization and competitive balance.

A: Stefano Domenicali talks about content availability and competitive balance through budget cap and regulatory measures in F1.

Q: MotoGP media rights and sponsorship contracts.

A: Dan Rossomondo discusses media rights cycles and sponsorship growth opportunities at MotoGP, emphasizing the need to attract new brands and tell better stories.