Liberty Live Group Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Split-off: Liberty expects to complete the split-off of Liberty Live on December 15, with shareholder vote on December 5. The split-off is intended to highlight the value of Live Nation and asset-backed equity.
• Formula One: Continues commercial momentum with renewals like Heineken, Apple distribution partnership, strong fan growth, and media rights renewals. Engaged with high-quality consumer names and saw growth in retail sales and Paddock Club attendance.
• MotoGP: Closed acquisition in July, working with management team, enhancing Grand Prix experience, expanding global footprint, and scaling sponsorship roster. Saw engagement growth and renewed broadcast and sponsorship agreements.
• Leadership Change: John Malone to step down from Liberty Media Board, with Dob Bennett named Chairman.

Segment Performance

• Formula One: Year-to-date revenue up 9% and adjusted OIBDA up 15%. At quarter end, F1 OpCo net leverage was 3.0x, down from 3.3x. Attributed cash at Formula One was $571 million. Renewed with Heineken, signed Apple distribution deal, and had strong commercial momentum with fan growth and media rights renewals.
• MotoGP: Closed acquisition on July 3. Year-to-date revenue grew in race promotion and media rights, but adjusted OIBDA declined due to higher costs. MotoGP net leverage was 5.6x. Attributed cash at MotoGP was $176 million. Working on strategic plan, engagement growth, and new race calendar entries in Brazil and Argentina.
• Liberty Live Group: Attributed cash of $297 million. The margin loan for Live Nation was amended, extending maturity and reducing spread.
• Corporate and Other: Revenue was $266 million, adjusted OIBDA loss was $7 million. Includes Quint results and Las Vegas Grand Prix Plaza rental income.

Guidance

• Expect to delever at Formula One and MotoGP.
• Split-off of Liberty Live on track to complete on December 15.
• Forward-looking on continued growth in Formula One's commercial opportunities and MotoGP's strategic initiatives, including expanding global footprint and sponsorships.

Risks

• Forward-looking statements subject to material differences due to risks in Forms 10-K and 10-Q.
• Foreign currency impacts on MotoGP's revenue and costs.
• Competition in media rights negotiations and potential dilution of value in certain markets.

Question and Answer

Q: On the U.S. rights agreement and engagement, what gives confidence in growing the U.S. media audience?

A: Stefano and Derek discuss Apple partnership, leveraging Apple's ecosystem for engagement and long-term multiyear deal.

Q: On Vegas cost budget, how is cost control tracking?

A: Stefano talks about minimizing costs through partner engagement and event adjustments.

Q: On sponsorship and licensing, are new deals impacting current guidance?

A: Brian and Stefano discuss long-term multiyear sponsorships and licensing deals accruing to future years, not significantly impacting current guidance.

Q: On global media rights opportunity for F1, where is growth expected?

A: Stefano mentions ongoing media rights negotiations and global market dynamics, with focus on new partnerships and platform shifts.

Q: On MotoGP hospitality, when will benefits of integration materialize?

A: Dan discusses investment in hospitality experience improvements, targeting new fan bases and enhancing existing offerings through collaboration with Quint.