Liberty Media Corporation Series A Liberty Formula One ((FWONA)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Liberty Media Corporation Series A Liberty Formula One painted a picture of robust financial health and growth, particularly within the Formula One segment. The company reported impressive sponsorship and media rights deals, alongside record engagement metrics. However, challenges were acknowledged in the MotoGP segment, with a noted decline in 2024 revenue and increased debt following its acquisition.
Strong Financial Performance
Formula One has shown remarkable financial performance, with a 14% increase in revenue year-to-date and a 21% rise in adjusted OIBDA. This growth was consistent across all revenue streams, including sponsorship, race promotion, and media rights, underscoring the sport’s expanding commercial appeal.
Successful Sponsorship and Media Deals
The company announced significant sponsorship deals, featuring extensions and new partnerships with major brands such as Pepsi and MSC Cruises. Additionally, Formula One finalized media rights agreements in key regions like Japan and Mexico, further solidifying its global footprint.
Record Engagement and Audience Growth
Formula One’s fan base has reached an unprecedented 826 million in 2024, with a notable 43% under the age of 35. Social media engagement has surged, with followers growing over 20% year-over-year, driven by platforms like TikTok, Instagram, and YouTube.
MotoGP Acquisition and Growth Plans
Liberty Media completed its acquisition of MotoGP, with plans to enhance its commercial functions and expand its global presence. The sport saw a 6% increase in attendance and a 6% growth in social media followers year-over-year, indicating positive early results.
Successful F1 Movie Release
The release of the F1 movie was a major success, grossing over $500 million globally and becoming the highest-grossing Apple film to date, highlighting the brand’s cultural impact.
Las Vegas Grand Prix Progress
Ticket sales for the Las Vegas Grand Prix are outperforming last year’s figures, with higher sell-through rates and all founding partners agreeing to contract extensions, showcasing strong demand and partner confidence.
MotoGP Revenue Decline in 2024
Despite overall growth, MotoGP’s revenue declined to EUR 462 million in 2024, down from EUR 486 million in 2023. This was attributed to race cancellations and their replacement with lower fee races, presenting a challenge for the segment.
Increased Debt Due to MotoGP Acquisition
The MotoGP acquisition has increased the pro forma leverage for F1 OpCo to 3.3x, up from 0.7x, reflecting the financial impact of the acquisition on the company’s balance sheet.
Forward-Looking Guidance
Liberty Media’s forward-looking guidance remains optimistic, with plans to complete the split-off of Liberty Live by the fourth quarter. The company aims to continue its commercial growth in Formula One through media rights and sponsorships, including new partnerships with Pepsi and Disney. For MotoGP, Liberty Media plans to deleverage to a 3-4x range by the end of 2026, while enhancing its commercial and brand positioning.
In conclusion, Liberty Media Corporation Series A Liberty Formula One’s earnings call highlighted strong financial performance and strategic growth initiatives, particularly within the Formula One segment. While challenges exist in the MotoGP segment, the company’s forward-looking guidance suggests a strategic approach to overcoming these hurdles and continuing its trajectory of growth.