LLYVK

Management Statement and Operational Highlights

• Split-off of Liberty Live: Expected to complete on December 15, shareholder vote on December 5. Aims to better highlight value in Live Nation and asset-backed equity.
• Formula One: Continues commercial momentum, renewed with Heineken, media rights negotiations active, partnership with Apple in U.S. for 5 years, strong sponsorship (e.g., LVMH, Disney, Hello Kitty), growth in viewership and social media followers.
• MotoGP: Closed acquisition in July, renewed promoter relationships, growth in social engagement, new races in Brazil and 2027 return to Buenos Aires, investment in commercial activities.
• Financials: Refinanced MotoGP's debt with reduced rates, F1's net leverage improved, corporate and other results noted.

Guidance

• Formula One: Expect modest operating leverage with new Concorde agreement, ongoing investment in growth strategies including hospitality and media.
• MotoGP: Continued investment in commercial functions and hospitality, expectation of deleveraging as business grows.
• Liberty Live: Margin loan with Live Nation amended, extending maturity and reducing spread, providing flexibility for future.

Segment Performance

• Formula One: Year-to-date revenue up 9%, adjusted OIBDA up 15%. F1 OpCo net leverage was 3.0x. Media rights negotiations ongoing, renewed with Heineken, partnership with Apple in U.S. for 5 years, strong sponsorship and licensing deals.
• MotoGP: Closed acquisition in July. Year-to-date revenue grew in race promotion and media rights, but adjusted OIBDA declined due to higher costs. Net leverage was 5.6x. Renewed promoter relationships, growth in social engagement, new races in Brazil and 2027 return to Buenos Aires.
• Liberty Live Group: Attributed cash of $297 million. Margin loan with Live Nation amended to extend maturity to 2028 and reduce spread to 1.875%.
• Corporate and Other: Revenue $266 million, adjusted OIBDA loss $7 million. Includes Quint results and Grand Prix Plaza rental income.

Risks

• Market and Currency Risks: MotoGP's euro-denominated revenue and costs subject to foreign currency movements.
• Regulatory and Competitive Risks: Changes in media rights regulations, competition for exclusive rights and IP across revenue streams.

Question and Answer

Q: David Karnovsky asked about the U.S. rights agreement with Apple, engagement, and global factor.

A: Stefano Domenicali and Derek Chang discussed Apple partnership's benefits for U.S. growth, long-term deal, and global impact.

Q: Bryan Kraft inquired about Vegas cost budget and U.S. media rights revenue.

A: Stefano Domenicali and Derek Chang addressed Vegas cost control and Apple's role in media rights.

Q: Kutgun Maral asked about sponsorship trends and licensing strategy.

A: Brian Wendling and Stefano Domenicali talked about sponsorship deals accruing to future years and licensing strategy for long-term fan engagement.

Q: Stephen Laszczyk questioned global media rights opportunity and hospitality growth.

A: Stefano Domenicali and Derek Chang discussed ongoing media rights negotiations and hospitality strategy.

Q: Joseph Stauff asked about Vegas demand and MotoGP race renewals.

A: Stefano Domenicali and Carlos Ezpeleta addressed Vegas demand and MotoGP race renewal efforts.

Q: Peter Supino inquired about Concorde agreement and beyond 2026.

A: Brian Wendling and Stefano Domenicali spoke about modest leverage with new agreement and future stability.

Q: Steven Cahall asked about competitive balance and incremental costs.

A: Stefano Domenicali and Dan Rossomondo discussed competitive balance and investment in growth strategies.

Q: David Joyce asked about MotoGP race renewals and media rights.

A: Derek Chang and Carlos Ezpeleta addressed race renewals and media rights impact.

Q: Ryan Gravett asked about split-off impact and MotoGP hospitality.

A: Derek Chang and Dan Rossomondo discussed split-off impact and MotoGP hospitality opportunities.

Q: Matthew Harrigan asked about 26 engine regs and Saudi Aramco Synfuels.

A: Stefano Domenicali commented on teams' adaptation to new regs and Saudi Aramco venture.