• Attributed Cash and Liquid Investments: $2.6 billion at year-end, including $1.3 billion at F1 and $78 million at Quint.
• Total Debt: $2.9 billion, with $2.4 billion at F1 and $528 million at the corporate level.
• Revenue Growth: 6% increase in 2024, driven by additional races and new sponsors.
• Sponsorship Revenue: 10% increase year over year.
• Team Payments: 61.5% of pre-team adjusted OIBDA in 2024, down from 62.6% in 2023.
• Adjusted OIBDA Margin: Improved by nearly 70 basis points year over year.
• CapEx: $75 million in 2024, with $73 million at Formula One, including IT and track improvements.
• Future Revenue Contracted: $14.4 billion under multiyear agreements.
• F1 TV Subscribers: Increased by 15%.
• Social Media Followers: 97 million, up 38% year over year.
• Race Attendance: Over 6.5 million people attended races in 2024, a 9% increase over 2023.

• Warning! GuruFocus has detected 6 Warning Signs with MYRG.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Liberty Formula One Group (NASDAQ:FWONA) reported a 6% revenue growth in 2024, driven by additional races and new sponsorships.
• The company has $14.4 billion in future revenue contracted under multiyear agreements, providing strong financial visibility.
• F1 TV subscribers increased by 15%, with plans to launch a new premium tier offering enhanced features.
• The Las Vegas Grand Prix, despite initial financial setbacks, has been a significant driver of F1's growth in the Americas.
• Liberty Formula One Group (NASDAQ:FWONA) is in a strong financial position with $2.6 billion in cash and liquid investments, and a leverage ratio of 1.3 times at year-end 2024.

Negative Points

• The Las Vegas Grand Prix missed internal expectations on revenue and OIBDA, primarily due to ticket sales underperformance.
• There was softness in certain hospitality offerings at the Las Vegas Grand Prix, impacting overall revenue growth.
• The Phase 2 regulatory process for the Dorna acquisition is ongoing, with a long stop date extended to June 30, 2025, indicating potential delays.
• The integration of the Las Vegas Grand Prix operations into the London team suggests challenges in local execution and cost management.
• Despite strong overall performance, the standalone event economics for the Las Vegas Grand Prix need improvement to meet original financial targets.

Q & A Highlights

Q: Derek, could you talk about your strategic priorities for Liberty Media and your philosophy around M&A? A: Derek Chang, President and CEO, emphasized Liberty's focus on closing the Dorna acquisition, structural simplification, and continuing Formula One's growth. He mentioned Liberty's history of being opportunistic with M&A and expressed interest in opportunities that involve premium IP and commercialization, similar to F1.

Q: Stefano, there's a lot of focus on the US media rights. Can you discuss the demand for US broadcast rights for F1 and any thoughts on including F1 TV in the package? A: Stefano Domenicali, CEO of Formula One Group, clarified that discussions with ESPN are ongoing and positive, despite reports. He highlighted strong interest in F1's content and the importance of balancing monetization with fan base growth. He also noted the potential for digitalization to play a role in future media rights discussions.

Q: On Las Vegas, the race missed expectations. How do you plan to grow revenue and manage costs to meet original targets? A: Stefano Domenicali acknowledged the need to focus on cost structure and local relationships in Las Vegas. He mentioned moving the race time earlier to benefit the community and integrating Vegas operations with the London team to leverage synergies and improve financial performance.

Q: Can you discuss the decision to admit GM and Cadillac as an 11th team and its impact on the Concorde Agreement? A: Stefano Domenicali expressed excitement about Cadillac's entry, emphasizing its potential to boost F1's ecosystem. He stated that Cadillac's entry does not impact the current Concorde Agreement discussions, which focus on financial and governance aspects with the teams and FIA.

Q: How does the expansion of premium F1 TV fit into discussions with streaming companies, and what are the team dynamics for the new Concorde Agreement? A: Stefano Domenicali highlighted F1 TV's value as an engagement tool and its integration into broadcaster packages. He noted constructive team dynamics and the importance of balancing traditional and new fan interests. Brian Wendling, CFO, added that they expect no degradation in team payments with the new Concorde Agreement.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.