Formula One Group Price & Performance (FWONA)

At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. It is now my pleasure to introduce Shane Clancy, Senior Vice President, Investor Relations. Thank you. You may begin. Thank you, and good morning. Before we begin, we'd like to remind everyone that this call includes certain forward looking statements within the meaning of the Securities Litigation Reform Act of 1995.

Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Form 10 ks filed by Liberty Media with the SEC. These forward looking statements speak only as of the date of this call, Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statement contained herein.

Reflect any change in Liberty Media's expectations with regard thereto, or any change in events, conditions or circumstances on which any such statement is based. On today's call, we will discuss certain non GAAP financial measures for Liberty Media. Including adjusted OIBDA.

Requirement definition and reconciliation for Liberty Media's schedule one be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Speaking on the call today, we have Liberty's President and CEO, Derek Chang Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling Formula One's President and CEO, Formula D'Amicali and other members of Liberty management will be available for Q and A. With that, I will turn the call over to Deric. Great.

It's great to be speaking with all of you today.

For those of you who don't know, well, I officially started as Liberty CEO days ago.

My relationship with Liberty Media goes back to 1997 When I first met John while working for PCI, Most recently, I've been fortunate to serve on Liberty's Board since 2021.

As a Board member, I am uniquely familiar with the Liberty structure culture and mandate, which has enabled a seamless and efficient transaction transition to CEO as we've set the ground running with a busy year ahead. Even as a Director, for years we've been asked what is the long term Libby playbook? Answer has been consistent. Liberty Playbook is one of constant evolution maximum flexibility and appreciation for change to drive long term shareholder value. That is and will remain true going forward. Our team will speak in more detail about the businesses, I'll make some brief remarks first. Regarding our near term priorities for 2025. First, we are working towards the close of the Dorna acquisition. The MotoGP season kicks off in Thailand on March 2, will be a 22 race calendar compared to 20 races in 2024, featuring a new track in Hungary and a return to Czech Republic for the first time since 2020. We expect an exciting season ahead MotoGP unveiled the new brand refresh and identity at the end of last season aimed at expanding its cultural relevance relevance beyond racing. We look forward to working with Dorna to take this forward to the next level.

On closing. The Phase two regulatory process is progressing. Which is a more in-depth review by the European Commission. And not uncommon in major transactions. Like these. We extended the long stop date for regulatory clearance to 06/30/2025. Are working constructively with the regulators towards approved Our second priority is continuing our path towards structural simplification and better highlighting the value of our Live Nation equity stake. And finally, we will continue to drive the momentum at Formula One.

The sport is coming off a record 2024 with high visibility into an excellent year ahead. [indiscernible] significant amount of time with Stefano and the F1 management team since the start of this this year and look forward to supporting them going forward.

Chase Carey's involvement and partnership as a Liberty Board member has and will continue to be leverage his expertise to continue momentum at F1.

I do want to touch specifically on the Las Vegas Grand Prix as this is a key area of focus.

Please note that we don't provide race specific economics for any Grand from LVGP to the broader F1 ecosystem. Cross sponsorship, hospitality, live entertainment, licensing and data. Vegas has served as a very successful test bed for product expansion and plays a key role in F1's growth in The Americas. Which is a continued focus. The event we held recently at the 2 in London and the upcoming one movie are also powerful marketing engine for all of our F1 fans, but particularly for Vegas and the North American fan. 2024 standalone event economics for Vegas missed internal expectations on revenue and OIBDA.

The team has moved very quickly, however, to enact changes that will benefit 2025 support a financially successful race for F1 and continued growth and positive impact for the Las Vegas community.

Now have two years of real data to understand what tickets and products sold well, the demographics of the fan base and the overall cost structure of the event. As a result, we are making further revisions ticket product and pricing strategy leveraging this data and more and more and more importantly, we are actively managing our cost structure. Given the halo effect to F1 we've discussed we reorganized the structure of LVG last month to integrate it fully into our London team and maximize those This change leverages the strong organization we have in London today across commercial, finance and more. At the same time, we are bolstering certain parts of the local includes bringing the ticketing sales function back in house and offering a high touch on the ground presence, which was a key learning from last year. We will continue our partnership with Quint and benefit from their expertise in VIP hospitality and F1 experience Finally, we are also bolstering our partnership with local players. Believe that continuing to expand the F1 platform in bold and new ways is critical. And ultimately leads to both increased and new sources of revenue. Want to take these opportunities for long term benefit even if there are early bumps in the road.

We have a clear handle on near term priorities for Vegas to improve and we are confident in the value it provides. I look forward to sharing more as we progress I want to thank John, the Board and the Liberty team once again for this opportunity. To our analysts and shareholders, I look forward to getting to know you better in the months and years ahead. Now I'll turn it over to Brian for more on our financial Thank you, Derek, and good morning, everyone. Just a quick reminder that the merger of SiriusXM Liberty SiriusXM closed on September 9, therefore, the results of SiriusXM Holdings are presented as At year end Formula One Group had attributed cash and liquid investments $2,600,000,000 which includes $1,300,000,000 of cash at F1 and $78,000,000 of cash at The cash balance as of year end includes proceeds from the previously mentioned long share issuance, which completed in August.

Total Formula One Group attributed principal amount of debt was $2,900,000,000 at quarter end, which includes $2,400,000,000 of debt at F1.

Leaving $528,000,000 at the corporate level.

F1's $500,000,000 revolver is undrawn and their leverage at twelvethirty one was 1.3 times.

As a reminder, all MotoGP transaction related financing is in place and Turning to the F1 business.

Just a reminder that it's best analyzed on an annual basis given variability in year over year race count. Total revenue grew 6% in 2024 with growth across all primary revenue streams.

Revenue growth was primarily driven by the two additional races held and contractual increases across all of our revenue streams.

As well as the benefit of new sponsors, which drove a 10% increase in sponsorship revenue year over year. As Derek mentioned, the Las Vegas Grand Prix did miss expectations, primarily on offsetting some of the race promotion revenue growth year over year despite the two additional races.

Other F1 revenue was relatively flat in 2024 We saw strong growth in Paddock Club revenue at most events in 2024 as well as increases in freight and licensing. This was offset by softness in certain hospitality offering at the Las Vegas Grand Prix.

Team payments as a percent of pre team adjusted OIBDA was 61.5% in 2024, down from 62.6% in '20 We continue to expect incremental leverage to determine the current Concord agreement which runs through the end of the 2025 season.

Other costs of F1 revenue was broadly flat at 31% of total revenue and SG and A was 8% of total revenue both in line with historical averages. Adjusted OIBDA margin improved nearly 70 basis points year over year And then looking briefly at corporate and other results in the fourth quarter, revenue was $118,000,000 which includes Quint results. And approximately $13,000,000 of rental income related to the Las Vegas Grand Prix Plaza.

Half of which is variable and recognized in fourth quarter in connection with the event.

Corporate and other adjusted OIBDA loss was $2,000,000 and includes Grand Prix Plaza rental income.

Results and corporate expenses. Results in the fourth quarter were primarily driven by the F1 by F1 experiences across the six races held, including Vegas as well as the NBA Cup. Looking to 2025, F1 will host 24 races consistent with 2024, And while I'm reticent to encourage quarterly modeling, please note that the race count and composition will be different in each of the four quarters this year compared to 2024.

In part, this is due to our efforts to increase regionalization of the calendar, in support of our Net Zero pledge by 2030 and for enhanced efficiency in our freight logistics We are in a strong financial position as we head into 2025.

The majority of our revenue is under contract, including our sponsorship revenue, which has been derisked by pulling the pipeline forward given the level of announcements. Made prior to the season.

This also allows our team to focus on future sponsorship pipeline with enough The other revenue streams will predominantly be driven by renewals and escalators this season.

On Vegas, we are very focused on top and bottom line improvement relative to 2024 results and our clear steps already taken and in process to achieve this.

Turning to a few cash items, F1 estimates cash tax rate in 2025 to be low double digit percent of adjusted OIBDA increasing modestly in future years. Total CapEx incurred at the Formula One Group in 2024 was $75,000,000 approximately $73,000,000 of which was incurred at Formula One and includes CapEx related to technical improvement projects for IT, and F1 TV as well as the Las Vegas Grand Prix Track and Paddock Building. Note that the operating company CapEx has historically trended at one F1 revenue excluding one time Vegas related CapEx and we expect this range to broadly consistent in 2025. Turning to the Liberty Live Group, there's attributed cash of $325,000,000 and $400,000,000 of undrawn margin loan related to our Lab Nation margin. Billion dollars and we have $1,150,000,000 in principal amount of debt against [indiscernible] Liberty and F1 are in compliance with their debt covenants at quarter end. And with that, I turn the call over to Stefano to discuss Formula one. Thanks, Brian.

Formula One finished 2024 with solid financial results. Excellent racing and in a very strong position heading into 2025. The on track competition intensified throughout the season and we expect an even closer fight when we begin the new season in Melbourne. The strength of our brand and fandom translated to strong financial results in 2024. We continue to benefit from favorable supply and demand dynamics across our revenue streams. Very strong demand to be part of the F1 ecosystem, whether in Orsi races airing our content partnering on sponsorship activation or enjoying our hospitality products. Is met with relatively limited supply across the board. We've seen this benefit commercial agreements where our teams made incredible progress in 2024. Signing a number of agreements that provide clear visibility for near term financial momentum beyond. As of year end, F1 had $14,400,000,000 in future revenue contracted under multi years agreements. On race promotion, we remain focused on balancing growth and heritage markets. As reflected in the extension of our agreement to race in Shanghai throughout 02/1930 and the renewals of both Mondele and Monaco throughout 02/1931. We also extended The Netherlands for one year and Belgium under a multiyear rotational deal with the opportunity for another race to fill the alternating year slots.

Remain in a strong position with demand from potential future race venues across the globe, and will assess any potential new calendar addition against strategic requirements for both the business [indiscernible] Turning to Media Rights, our 1TD product continued to grow at a healthy rate with subscribers up 15%. The U. S. Remains its largest market. Capitalizing on this success, we're launching a new higher priced premium tier this year to target Avisans. It will offer enhanced functionality including four ks ultra high definition multi view a virtual pit wall and the ability to watch across up to six devices.

Brian, touched on some financial inputs for the season. Entering 2025, I am particularly proud of the growth in sponsorship, both in renewal terms and new partnership that will take effect this year. This includes our landmark deal with LVMH as a global partner [indiscernible] after being an official partner since 2022 our renewal with Pirelli as well as bringing on Amex Santander and Keep the Cat as official partners. More recently, we announced the extension of our partnership with Crypto.com, through 02/1930, and OWIN, a global lottery operator as an official partner. Our success in signing this partnership ahead of the season now allows the team to spend 2025 focuses on growing and executing a pipeline of new deals and renewal uplift opportunity for 2026 and beyond. While 2025 is clearly a standout year in I am optimistic about the discussion we have in developing, including new regional deals. Upsells and the potential for movement of our existing sponsor within tiers as the bar has been raised across the board. The team is also continuing to innovate on our hospitality products. The Vegas race allow us to test different concept [indiscernible] Michelin Star chef Gordon Ramsay was announced as the path of our most premium hospitality product, F1 Garage.

We are also pleased to extend our multi decade relationship with Do and Co for another ten years of Pado club delivery. We will continue to work with them on enhancing our Pado Club offerings. Looking at the Las Vegas Grand Prix, we delivered another outstanding Spectator on track. And earning the Promoter of the Year award from Altosport. Moving into 2025, we are taking an important step in the race evolution and are fully integrating its operation into our F1 team in London. This will further maximize the value we believe the Vegas race provides for F1 Broadus commercial activities. In addition to being an excellent lead generator of a commercial deal, Vegas has been a successful test bed of innovation we are now extending elsewhere in Formula One. A few recent examples include expanding our license product and merchandise offering. The global partnership with Gordon Ramsay after his involvement in Vegas and building a new CRM system for all of F1 which will enhance our fan targeting. We also know the Vegas race is key to our expansion strategy in The U. S. Following the second year of the race, we have a clear vision of the overall value accruing to Formal One.

Turning to broader fan engagement, Nielsen published a set of fan data in 12/20/2424 confirming F1 is the most popular annual sporting series globally with over seven fifty million fans and growing. Younger and female fans are growing the fastest as statistics that Fuse Sport Thank In the last five years, the 35 years old and female fund demographics have both increased by over 50%. With steady growth especially in markets like The U. S. And China. In 2024, dollars 1,600,000,000.0 cumulative TV viewers tuned in For races, With the number of unique viewer up 9% year over year, and additional aggregator of most of almost 500,000,000 watched the F1 content on streaming platforms, including 30,000,000 watching YouTube highlights reels on the F1 channel. We saw TV growth, especially in China, [indiscernible] [indiscernible] Argentina and The Middle East. As we are increasing our global fund base. At the same time, our European stronghold markets Italy, UK, Germany, were also up year over year. Average viewership per race was 66,000,000 on linear platforms, with an additional 20,000,000 estimated on digital platform, including F1TD. Nielsen is now capped [indiscernible] Which will be included in our reported viewership numbers beginning 2025. This will provide a more comprehensive view on how current fund consumes port content and we aim to integrate new sources and platform over time.

Social media, Formula One ended the year with 97,000,000 followers across the platform. Up 38% year over year. If we look at the comparable social media platforms where all major sports For the fifth consecutive years, F1 has been the fastest growing global sports league for follower growth.

We also reached an audience of €4,000,000,000 globally through our proactive media activity in 2024, showing the breadth At races, strong attendances trends continued throughout the season with the 2024 seeing 17 sellout crowds and 10 new attendance records. Over 6,500,000 people attended races in 2024, a new record growing 9% over 2023. Formula races welcomed crowds of over 400,000. The Padelklok also saw record attendance hosting 58,000 total guests across the season, up 20% on 2023.

Despite the strength of these metrics, we know that DOLIA fraction of our fund base is able to attend the race. I think a key focus of our ongoing growth strategy is to reach fans in new creative ways to maintain their interest. Raise awareness and continue the growth momentum. This is our F1 always on strategy ensuring F1 is present beyond the 24 races calendar. This approach is supported by our experiential licensing initiatives, Following successful international venues in Boston, DC 2024, F1 Arcade is planning to open four additional U. S. Locations The F1 exhibition sold almost 600,000 tickets across all venues 2024, connecting our fans with F1 rich history. Buenos Aires, will be the fifth city to host the exhibition when it's open on March 22 and is the first stop of a planned multi country South American tour. Amsterdam was recently announced as the sixth location set to open in April 2025.

Leveraging learnings from other license activation, Granbury Plaza in Las Vegas is launching a series of new year round activities beginning at the March. This site will be the North American home of the sport, especially serving our growth U. S. Fan base. In partnership with the Round Room Live, our partner in the F1 exhibition, Grand Prix Plaza will host three unique and immersive experience F1 Drive, F1X, F1 hub and we'll also have three new private event spaces available for rent. We're building momentum in consumer products and other licensing areas which we expect will be both economical lucrative and provide new touch points for our diverse fan base.

Our partnership with LEGO launched with the product range featuring all 10 teams engaged content across legal digital platform and presence at race weekends, including Fan Zone activations. Our partnership with the Matell is launching throughout 2025 with eight F1Ts brought to life across a range of products and presence at select races, including hot wheels activation and retail opportunities. Sustainability initiatives remain a priority and we are on track to be net zero by 02/1930. In 2024, we began our investment in sustainable aviation fuel and expect our initiative here will have provided an approximately 19% reduction in 2024 relative emissions compared to traditional aviation fuel. We are already well advanced in our plans to expand the sustainable aviation fuel initiative further in 2025. Also, that agreed by all 10 teams, F1 and the FIA. This is an important step and invites collaboration across the ecosystem to produce impactful results. Looking ahead to the 2025 season and beyond, we are working to capitalize on our momentum and establish key building blocks for future growth. I'm confident that our brand awareness will continue growing, especially as we look to the Apple movie, which will premiere in June and the impact of our recent high profile season launch event held at the O2. [indiscernible] launch event was the first of its kind, a pitch all 10 teams revealing their twenty twenty five Liberties.

Top tier entertainment and a gathering of the entire four zero one community celebrate our seventy fifth anniversary. Over fifteen thousand fans packed the O2 while over 40 global broadcasters aired the show live. A fun digital channels including YouTube drew 7,500,000 total live viewers, making it F1 most successful ice cream ever. The media buzz was incredible and over 2,000 pieces of global content were published within twenty four hours of the event. From a sporting perspective, this year we expect an intense fight on the track as teams continue to converge after a very competitive 2024 season.

Travel changes are plentiful. With many rookies entering the grid demonstrated the success of the F2 and F3 support leaders in preparing drivers for Formula One. We also expect an interesting balance as the teams have to focus both on 2025 performance, but also prepare the significant changes required by the new technical regulation We look forward to see the cars take to the track this weekend. Avanti Tutta full speed ahead, And now I will turn the call back over to Derek.

Thank you. Great. Thank you, Stefano.

I think we'd like now like to open the call for questions.

Thank you. We'll now be conducting the Our first question comes from the line of Ben Swinburne with Morgan Stanley. Please proceed with your question. Thanks. I have two questions. One for Derek and one for Stefano. I know he said bye, but hopefully he's still there. Derek, welcome to the wonderful world of quarterly earnings calls.

Nice to talk to you again. Could you talk a little bit about sort of the message you have to Liberty shareholders around kind of strategy. I know you talked a little bit about in your prepared remarks, But like what are your strategic priorities for the year [indiscernible] any comment you can share on sort of your philosophy around M and A I think Liberty obviously tremendous track record on the M and A front.

At the same time, investors really like the kind of pure plays that you have and are continuing create. So I would love to hear some thoughts there and then have an F1 question for Stefano if he's there.

Sure. Thank you, Pat. Good to hear your What's that?

Assessment.

Sorry.

Thanks, Ben, and thanks for the warm welcome there.

I guess I would say that I've touched on some of the points in terms of our near term priorities. Closing Dorna, the structural simplification that we've discussed and obviously a huge focus right now on F1 continuing sort of the close trajectory that that's been on and helping Stefano and his team sort of accomplish that. We've got a lot sort of on our plate as you get through the year and we sort of roll forward, I would think that a lot of what we've done in the past would sort of reflect on what we might do in the future. We've always been an opportunistic place. And I think as those opportunities present themselves, we will certainly hopefully be active and be able to build on the assets that we have in terms of tuck ins or adjacencies and things like that. But then as we start to to look beyond that, where there is sort of opportunities that involve premium IT abilities to monetize and commercialize along the way that we've done with with some of the assets like F1. Those we would look at pretty seriously. But for now, again, back to sort of the near term priorities that we've already Scapito?

Ben, do you want to ask Stefano your next going on between Concord and media rights, everything else, but there's a lot of focus as you can imagine on The U. S. Media rights right now. There's some press reports that F1 and ESPN have sort of moved on from each other. I guess I'm just curious if you could talk a little bit about how you're feeling about the demand for The U. S. Broadcast rights for F1 today whether we still should think there's going to be an increase from your current deal any thoughts on including or excluding F1 TV in the package that you're bringing to market? Would be appreciated. Thank you.

Thanks, Ben. As you said, lots going on in this months, but that's the light of Formula. Every day is a new day where a lot of things that are always opportunities. First of all, let me say that with regard to ESPN and Formula One, let me say that I cannot deny the sort of situation that is negative because first of all, we need to be thankful for what ESPN is providing to us We are very happy about the quality of the service need to always remember that there were first to believe in our projects. So therefore, the fact that, again, of the exclusivity period, they have not put in place on a formal offer doesn't mean that the discussions are going ahead. Actually, it's the other way around. So there are still a lot of discussion to try to find the best solution And of course, now, as we always said, is the of the month where other players are around the table. And we cannot deny the fact that there is a lot of interest around our product We have Formula enough to have compelling content contents and growing fan base and a strong demand for different situation from various parties.

As we always said, there is the big point related to the fact that from one side, we always want to maximize the monetization of our media rights, but on the other side, we need to make sure that also in terms of awareness, in terms of growth of our fan base, we need to try find the best way in terms of reach. Therefore, these are the two questions the two points that are on the table. We have a lot of players that we are discussing with I think the hot months will be the next one before summer. When we should have a better picture and that's sure something that I believe it will happen because as I said, we are really in a situation where our possibility to grow and also to offer to them the possibility to give to our broadcaster partner any better commercialization on how they can explore their rights are possible. And I can say that the digitalization and also the experience of that broadcast during Europe, other part of the world could be an essential part of what could be the discussion we're going to have with them. And that's what I would say with regard to the media, right?

I'm sure that the Deric if you want to say something more on that, before I can touch base on the situation on convert.

Thanks, Stefano. Yes, I mean, I love talking about media rights.

But I would add to that that people tend to look at these sorts of discussions somewhat simplistically sometimes and really focus on sort of the race and the race broadcast. But when you think about sort of meteorite in today's world, the broadcast the distribution partners and the IP holders I think it's a much more involved relationship than just sort of the event benefit in the ecosystem and how people can use sort of our IP not just through the event but through the other forms of content through the activation and hospitality even and things like that come into play. And I think that we at F1 continue to be very well positioned with respect to the content offering we have. We've invested a lot of money in our own content production, which can also be very helpful to the potential broadcast partners. Ultimately, as everyone knows in this world, things sort of hinge up a little bit on supply and demand. And at the competitive process that unfolds situations like this. And sort of what the availability is of other rights around this timeframe vis a vis sort of which of our potential partners may may be looking for IP like ours at this time And so not to over complicate the answer, but I think we do believe that there is process that will unfold here.

I think to use an F1 analogy, we're early in the race and people are still feeling off the track per se. But I think also you have one analogy. It's going to be a fast race and we're going to move pretty quickly hopefully to come to sort of the end of the middle of the year and into the later part of the year. And just to echo one thing that Stefano said, A lot of times people on the outside tend to frame these things as, oh, oh, ESPN said they didn't want the one rights going forward and it's very again sound bite sort of way to describe the relationship. But it's actually been quite productive and constructive relationship And I personally have had a long term F1 has had a great relationship with ESPN we'll continue to see how these conversations unfold. Thank you. Thank you. Our next question is coming from the line of David Karnovsky with JPMorgan.

Please proceed with your questions.

On Las Vegas, as you noted the race missed your budgeting and get the need to look at this holistically given its impact to sponsorship and other rights. But I wanted to see if you could dig in a bit on the path here in 2025 and the next few years specifically growing revenue and kind of also managing the cost base to get the event back towards some of those original standalone targets you had laid out if that's still the goal? Thanks.

Catherine, do you want to start?

Yes. Thanks, Derek. I would say thanks, David. I mean, we do believe that, as we always said, this is an incredible Grand Prix.

On which we need to keep working and make sure that it will stay as we believe at the top of the range because the benefit of this Grand Prix as we said, that provides a broader financial benefit to the all the acquisition of four zero one. What we are focusing with the actions that we have delivered is to make sure that you said correctly we need to make sure that we focus our attention on the cost structure of the situation that we have to manage in Vegas. We need to have a even a better local relationship because that's the key of the success. And by the way, on that respect, one news that I believe it's an important for the ecosystem of the communities that we have moved the race time to hours earlier. And that's why because we believe that it's important always to be connected to the community. And we do not forget that the community is benefiting with a big impact on their economic P and L on the weekend of the race And then of the fact that we believe that by integrating the older function of Vegas, LPGB together with London, will help to boost the synergy that we can use by knowing this system and the experience that all the other Grand Prix are, let's say, in Barcelona given to us.

We don't have to forget that we were arriving as Derek was mentioning in his speech at the beginning, any data relevant for that community. And now we have taken that in the way to build the system in order to formalize the right packages, the right offer And on the other side, we have always said the is the beginning that we know that when there is a new approach going ahead, the first year is a learning curve that will take the right time to make the right strategic decision because as we said, this is an incredible event that will continue to be one of the most important event in the future. That's what I could say on that respect, David.

Derek? Yes.

I'd like to just add that if you step back for a second, I think that LVGP has been a huge success. To put on an event like that in the short amount of time that our team here in Denver and were able to do that over the last couple of years been pretty impressive. And I think we talked at length about sort of the benefit to the F1 ecosystem as a whole, whether it's it's the media, the sponsorship, fandom growing here in The U. S. All that sort of stuff is at been hugely impacted by what we've been able to accomplish and Las Vegas. I think we all here were disappointed by sort of the some of the financial metrics in the early going here. But those in my mind are all sort of durable and fixable and both Stefano and I have already alluded to, we're already sort of working on those plans and feel comfortable that we will see nice improvement there. Over the course of the year. Thank you.

Okay.

And then Stefan, I was interested to get your expanded beyond GM Cadillac and the decision to admit them as a 11 team.

We had the reception of some resistance to this in the past.

So, I was interested to understand better any change in your thinking and what the can add to the sport, especially in The U. S. And can you just refresh us on how the entry fee works to the teams and what role F1 asset value there?

No, thanks for that. It's important to clarify that operation. We always said that Cadillac is giving and will give an incredible boost to the ecosystem of Formula One. We were referring to other situation that were handled but now the picture is totally different. Therefore, I think that Cadillac is preparing the entry in term of preparing the season because it would not be an easy situation for them to be in such a high-tech above the sporting platform. They are doing everything in order to show how Cadillac is really evolving into the sport. [indiscernible] that is related to the process that it's almost ready together with the FAA that has to be an update and whenever this will be ready, it should be not too long. There will be a sort of an update to formalize what basically has already happened. So they will be ready to fight against or together with the other teams for next year. And that is the evolution that, as you know, GM has taken as as a fact that they want to be a real infrastructure or a manufacturer that will invest in our sport because they do believe in in the technological platform that the F1 can provide to their systems.

So very, very happy that now this is on board moving forward and looking forward to see them on the track together with the other teams to fight for a great championship. Thank you.

Thank you. Our next question has come from the line of Gunmeral with Evercore ISI. Please proceed with your questions.

Good morning and thanks for taking the questions. Two if I could. First on sponsorship, I know 2025 will already be very robust given the partnerships that you've already inked and it doesn't seem like the team has stopped either with at least an all win deal and bringing on Tag Heuer as a title partner for Monaco. I guess looking ahead, do you see even more opportunities as you look to the balance of this year? Are you largely set for 2025 based on the pipeline?

And given the tenor of your conversations, is there anything you can share about how sponsorship could look like in 2026 as well? And then I have a follow-up on GM Cadillac.

Yes. Thank you, Ben. I mean, as we said, we are very robust with regard to the pipeline for 2025 because basically in term of achievement, the entry of the robust partnership that we have announced has been, I would say, impressive Impressive with regard to the quality of the brand and of course not only about the quality, but [indiscernible] investment they're bringing to us. What for me is relevant is that this new partnership has brought in and will brought in new way of activating the partnership. It's not only visibility, it's not only awareness, it's all what is behind that. And now everyone is working together to to make sure that this platform will offer to their needs in terms of business development what we can offer to them. So that is an important assessment that we have done together and we will see already with facts. With regard to the other possibility what we lived and we don't have to forget where we were just a couple of years ago.

We have moved not only in term of quantity, but also in quality of published for us was the need now to restructure the category in order to make sure there was a a possibility to develop regional deals or to uplift as we did from official to global partners. And of course, there are different possibility to maximize it through the digitalization. That can be up applied to our presentation, our product on TV and not only on TV, other track. And on top of that, of course, the fan engagement that we are bringing with new partners is pushing us to move and this is the reason why for example, once more Vegas was important to create different opportunity with the hospitality packages and hospitality and experience that we are offering to our fans. [indiscernible] I would say the pipeline already for the next year is very strong and that's what we need to do. Work together and if we were well the activation program that we are we are activating with them With facts, it's showing that our strategy is right. Otherwise, it wouldn't be in such a good position. And I do believe that this position will keep going like that even in the future.

That's very helpful. Thank you so much. And then maybe if I could just follow-up on the GMCADALACT discussion. There have been some questions on what this could mean to the concord agreement discussions and ultimately what it does to the splits and economics that the teams are pushing for I know that there's not much you can share on the Concorde right now, but should we think about the financial impact of welcoming GM Cadillac to the grid? And is the hope that the long term top line opportunities through sponsorship and Navy Meteorites offset any margin pressure? Or is it just wrong to even Thanks, Amin.

With regard to the first question, there's no impact all with the current discussion of the Comfort Agreement.

As you know, Concord is done by two major elements. One is the financial one that is related to the commercialization. And the marketing side of it That discussion between us and the teams and we are in a good position of that. The other topic or the other part of it is the governance that of course we need to work together with FIA and the And on that, we are working in order to respect the data, as you know, there's no time pressure on that because we are all working as partners and we want to find the best solution for the sport. And this is something that we're going to do. Even with one more team together into the future because of course Cadillac will be part of it and we'll have a voice as the others into the future. Then with regard to the fact that Cadillac will bring a new U. S. Branch I think that we can bring opportunities. And I'm totally positive because the sport is growing in such a magnitude that everyone will exploit the best out of it And I'm sure that the Cadillac GM Group will benefit from being part of this group.

Can I just add, thanks Stefano, that in my early days here, I have had the opportunity to meet with certainly on the last month or so? And look, I don't think the I think the relationship between Formula One and the teams has has never been stronger. We've heard a lot of good positive affirmation of that in terms of what Liberty has done since since we acquired F1. And I think people really are excited about the future and Sort of growing the overall pie in terms of the economics of what this work can deliver. I think very specifically on the Conocoorn agreement and our splits with the teams, Stefano, already remarked on the fact that hopefully we get the 11 team is not really an impacted sort of that discussion per se. And if you think about it, it doesn't impact the splits between us and the team that it certainly is an 11 team in terms of [indiscernible] the teams themselves. But again, I mean, with the entry of a group like GM, the hope and the thought here is that we continue to grow the overall pie for Formula one and the Formula one ecosystem.

Thank you both. Very helpful.

Thank you. Our next question is coming from the line of Jeffrey Volhicheck with Pivotal Research Group. Please proceed with your questions.

Good morning. First of all, congrats, Eric.

On the new position.

I had a couple related to Formula One. I guess a follow-up on the Concorde agreement.

So I mean should we expect that's going to be pretty similar to the current deal or can you make changes that really help move this forward I guess, Stefano, on the twenty twenty six powertrains, you talked to the team they develop that. Are there any major surprises, positive or negative that you're you're seeing [indiscernible] I didn't get the second question properly, to be honest. The first related to Convoort, I think that is worth to say without saying anything that we cannot say so far is the basic fundamentals are quite similar to the actual structure.

That is definitely the way that we are working on and the way we are progressing with that. The second one, I heard something related to the twenty twenty six cars. Jeffrey, Iqem, if you can repeat because the line was not great. Sorry for that.

Yes, no worries. Hopefully, you can hear me now. Just wondering if there were any major surprises on the development of those 26 powertrains that you've heard from the team the team either positive or negative?

I think that as always, when there is a change of regulation, there is a lot of a lot of things that are related to who is working the best knows or has been able to maximize the performance out of the regulation that is totally new. So a lot of expectation and it is normal that a part of the ecosystem at that stage is trying to say why we are changing the things in a moment where the champions are so competitive. That has been always the case in the cycle of Formula One, I do believe that the fact that now regard to the technological development, we put at the center the sustainable fuel is something that will give the future boost of a different thinking of technological implication of the future InformaOne. That's one.

Pretty convinced about it. We need to keep at the center to show the fact that the drivers needs to be the center of the at the center of the stage and the technological choices for the future needs to be relevant for that. Need to keep that clearly because it is relevant to say that our fan base is shifting in terms of interest and we need to have the duty to make sure is the right balance between the, let's say, the so called traditional funds versus the new funds. And that's the focus that we want to keep together.

Thank you. Our next question comes from the line of Brian Kraft with Deutsche Bank. Please proceed with your questions. Hey, Brian, are you able to check if you're self muted, please? Our next questions come from the line of Steven Lazic with Goldman Sachs. Please proceed with your questions.

Two if I could. First, on the meteorites opportunity internationally for Stefano and Derek, if he wants to jump in on this one.

I'm curious if there's anything you've learned so far through your U. S. Media rights negotiation that has made you more or less optimistic on the demand backdrop for meteorites for F1 more globally?

Thanks, Steven. I mean, from my side, I see that as a nice of a great opportunity to exploit the MAX because I do believe that it's potentially we not potentially, actually actually we have a growing fund base and we need to make sure we find the right product and the right partner in order to engage with them. And that's really crucial. One thing that we need to we don't have to forget that this part of the equation is our F1TV product. Because it's something that it is relevant. It is really an incredible tool of engagement and this is something that we want to keep that inside the discussion whoever will be the partner of the future because we believe of the we are truly believer of the value of this platform.

I would say that that the I'm not so sure The U. S. Rights necessarily correlated to what we learned through this experience is necessarily correlated to other markets per se because each of them have their own individual characteristics, both in terms of demand as well as sort of players in the market. I would say that one thing that is obviously transpired over the last several years as some of the large streaming platforms have gotten engaged in sports. Is sort of a demand on their part first sort of worldwide, right, for lack of better term, And hopefully, that will will certainly drive some of the demand as we look around the globe. If you see one of the big selling points of the Netflix sort of taking on the NFL Christmas games [indiscernible] So, this is clearly an evolving space that we'll keep an eye on. Got it. Thanks for that. And then a second question just on Vegas.

For Brian. I appreciate you're not commenting on race specific economics, but I was just curious if there's anything you can give us on the magnitude of the decline year over year in revenue and profit at the race, just given the focus at the moment by the market that could maybe give us that some of the underperformance in the quarter was isolated to Vegas specifically and not more broadly throughout the F1 core business? Thank you.

Yes, thanks. We can't comment on the specifics, but the majority of the of the miss that you guys are calculating based on the team payment was Vegas related.

Got it. That's helpful. Thank you both.

Thank you. Our next question comes from the line of Brian Kraft with Deutsche Bank. Please proceed with your questions.

Hi. Can you hear me now? Yes.

Okay, great.

Well, thanks for letting me back in. Welcome, Derek, and congratulations.

I had two questions. So first, on the heels of several high profile rates promotion renewals, how did the results of those renewals line up with your expectations that race promotion is increasingly becoming a revenue growth opportunity?

And then the second one is, I know you don't want to give guidance, but could you just talk broadly about the Media Rights revenue outlook in 2025 relative 2024, it seems like growth in that line should accelerate this year.

Would appreciate any color there. Thank you.

Thanks, Brian. I mean, rate promotion as you know, we have let's say, we have taken the decision to be strong and long term agreement with the place where we do believe is relevant to state focused and working together because there is a possibility to increase even other revenue stream through this relationship. The other thing is, of course, every promoter is is innovating is investing And I remember very well when I had my first earnings calls, there were a lot of doubt that this revenue stream would be able to grow because there was a lot of thinking that that was not possible. Actually, we put them the other way around. And I do believe that due to the tension, positive tension of the market, because we want a lot of a lot of countries was to host the Grand Prix and everyone was to basically show that they are committed to long term is the possibility to keep growing this restaurant revenue stream. This is our focus. Of course, what is good Is that we everyone has now the focus on the fans who has attended the race. So everyone has to improve the different segmentation that the fans requires in terms of GA, in terms of medium hospitality, in a higher profile hospitality, working the marginality of course, working on the experience of the fast together with the promotion.

So on that respect, I do believe the expectation even if we are not given any kind of guidance on that, are in the direction of being very strong even in the future. With regard to the media rights, if I may say, Derek, I would say on that if we have a good package, and if you have a good sport, if you have a good fan base, the media rights should keep growing in that respect. And I do believe that what is important for the future is to see how the fans wants to capture the content of Apple News. And there would be not only the so called traditional media rights, but there are other plus that will have a big effect [indiscernible] but also growing the different possibility of engaging with the fans. And this is for me in our opinion, very, very peculiar to the fact that this is relevant to to the growth in that landscape.

Yes. And I'd just add, Brian, specifically on '25 versus '24 for media rights. You're largely going to be seeing just regular uplifts and standard renewals We would expect continued growth in F1 TV and we're launching our new premium F1 TV product too. So those will be the primary drivers in 2025.

It's kind of similar and strength as last year from a growth perspective or would you expect any acceleration this year, Brian.

I'll leave it at what we've answered already, Brian.

All right. Thanks to you both.

Thank you. Our next question is comes from the line of Stephen Kehoe with Wells Fargo. Please proceed with your question.

Thank you for taking the question. So first just on meteorites and with the expansion of premium F1 TV, can you just help us conception some of the larger streaming companies? Guess the expectation is that those streaming companies probably don't want to see a competing streaming product in market even if it's your own. So how do you manage those dynamics as you look to maximize the value of what you can get for rights? And then just one on Concorde and maybe Concorde Dynamic. I think the last Concord had a big overhang from what was going on with the pandemic and maybe the teams expectation or need to limit some of their downside risk. You've grown the sport a lot since then. The teams have also added a lot to their calendar, both with media and with races. So how do you think team dynamics are this time? What do you think their expectations are And do you think that they have any feelings about your ability to kind of hold team payments flat and would be willing to accept that? Thank you.

Thanks, Steven. I mean, with regard to the The value of the premium F1 TV or Pro or what are doing in terms of different propositions. As we said, we believe that this has to be considered as an added value. And we find solution. I'll give you one example in a collaboration with the ViaPlay in the Dutch market.

We were able to find a solution that has integrated that in the pack So I do believe that we are flexible to understand what will be the need of our future broadcaster knowing that has a value because it's an incredible package. And the extended and the different packs that we are offering allows all our fans to be connected with our world. And I do believe this is relevant also. And this element has to be considered in our negotiation with future partner. Concord, I mean, the team dynamics, I would say everyone recognize huge growth of the business. I mean, it's not only related to the fact that there is a lot of interest on