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Liberty Media Corporation Series B Liberty Formula One (FWONB)
:FWONB
RESEARCH TOOLSreports
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Liberty Media Liberty Formula One
(OTC:FWONB)
Rating:71Outperform
Price Target:
$96.00
▲(9.36% Upside)
Liberty Media Liberty Formula One (FWONB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.98B
Dividend YieldN/A
Average Volume (3M)20.00
Price to Earnings (P/E)83.3
Beta (1Y)0.43
Revenue Growth5.77%
EPS Growth-6.97%
CountryUS
Employees1,184
SectorCommunication Services
Sector Strength90
IndustryEntertainment
Share Statistics
EPS (TTM)1.52
Shares Outstanding2,428,597
10 Day Avg. Volume50
30 Day Avg. Volume20
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.75
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda164.80
Forecast
1Y Price Target
$96.00Price Target Upside9.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company DescriptionLiberty Media Corporation's Liberty Formula One Group, trading under the ticker FWONB, is a segment of Liberty Media focused on Formula 1, the globally popular motorsport championship. The company owns the commercial rights to Formula 1, managing the sport's operations, regulatory aspects, and media distribution. It is responsible for organizing and promoting the FIA Formula One World Championship, which includes events worldwide, and it engages in licensing and sponsorship activities related to the sport.
How the Company Makes MoneyLiberty Formula One generates revenue through several key streams. The primary source is the sale of broadcasting rights to television networks and streaming platforms, which allows them to air Formula 1 races globally. Sponsorship and advertising deals with major brands also contribute significantly to revenue, given the sport's high-profile viewership. Additionally, the company earns from hosting fees paid by countries and cities hosting Grand Prix events, as well as merchandising and licensing fees for Formula 1 products and branding. Partnerships with automotive and technology companies further enhance its revenue potential, leveraging the sport's global reach and appeal.
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: -1.83%|
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance with notable growth in both Formula One and MotoGP, including successful sponsorships, media rights deals, and audience engagement. However, challenges remain in U.S. media rights negotiations and managing increased leverage post-acquisition.Q2-2025 Updates
Positive Updates
Strong Financial Performance in F1
Year-to-date revenue up 14% and adjusted OIBDA up 21% for Formula One, with growth across all revenue streams including sponsorship, race promotion, and media rights.
Successful Completion of MotoGP Acquisition
Liberty Media completed the acquisition of 84% of MotoGP, with management retaining a 16% ownership stake. The acquisition is expected to enhance growth prospects for MotoGP.
Increased Engagement and Attendance in MotoGP
Attendance is up 6% on a like-for-like race basis, with new circuit attendance records set in Italy, Netherlands, and Germany. Social media followers grew 6% year-over-year.
Formula One Audience and Engagement Growth
F1 TV viewership rose, with a 7% increase in U.S. live viewership. Social media followers reached 106 million, growing over 20% year-over-year.
Successful Sponsorship and Media Rights Deals
F1 secured new sponsorships and media rights agreements, including with Pepsi and Disney. Renewals include the Austrian and Canadian Grand Prix, and a media rights extension with Bell Media in Canada.
Negative Updates
Increased Leverage Post MotoGP Acquisition
Pro forma leverage increased to 5.2x for MotoGP, with plans to delever to 3 to 4x by the end of 2026.
Challenges in Expanding U.S. Media Rights
Negotiations for U.S. media rights continue, with a focus on balancing reach and payment. Deal finalization is still pending.
Company Guidance
During the 2025 Second Quarter Earnings Call for Liberty Media Corporation, the company provided guidance on several key metrics. Liberty Media highlighted the planned split-off of Liberty Live, with the initial S-4 filed by the end of July and completion expected in the fourth quarter. Formula One (F1) showcased robust financial results, with revenue up 14% year-to-date and adjusted OIBDA rising by 21%. F1's audience metrics indicated strong growth, with attendance at capacity for nearly all events, and TV viewership in key markets like the U.S. increased by 7%. Liberty Media also completed its acquisition of MotoGP on July 3, owning 84% of the company. The focus for MotoGP is on expanding commercial functions and enhancing brand positioning, with efforts already underway to optimize race locations and sponsorship opportunities. For F1, the company emphasized strong sponsorship growth, with significant new partnerships, and anticipated continued momentum into 2026. Additionally, Liberty Media noted that Formula One Group had $3.1 billion in attributed cash and liquid investments and outlined plans to deleverage both F1 and MotoGP to a 3-4x range by the end of 2026.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Liberty Media Liberty Formula One showcases a mixed financial performance. The company faces revenue growth challenges but maintains strong gross margins. The balance sheet reflects solid equity but significant leverage, and cash flows are robust, indicating effective cash management. Key areas for improvement include enhancing profitability and managing debt levels.Income Statement
The TTM (Trailing-Twelve-Months) revenue of Liberty Media Liberty Formula One is slightly down due to a 3.83% decline from the previous annual period, reflecting recent revenue challenges. While the gross profit margin is robust at 28.61%, the net profit margin is negative due to consistent net losses, indicating poor bottom-line performance. The EBIT and EBITDA margins stand at 3.44% and 9.51% respectively, showing moderate operational efficiency but room for improvement in earnings before interest and taxes.65
Positive
Balance Sheet
The balance sheet reveals a strong equity position with an equity ratio of 52.97%, highlighting financial stability. However, the debt-to-equity ratio is relatively high at 0.65, indicating significant leverage. The return on equity (ROE) is negative at -1.45%, primarily due to net losses, suggesting inefficiencies in generating shareholder returns.70
Positive
Cash Flow
Liberty Media Liberty Formula One exhibits strong cash flow management with a TTM free cash flow of $727 million, a significant 47.76% increase from the previous year. The operating cash flow to net income ratio is healthy, showing efficient cash generation relative to net income. However, the free cash flow to net income ratio is skewed due to net losses, indicating reliance on cash flows rather than profitability.77
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 23.16B | 0.00 | 0.00 | 0.00 | 1.15B |
| Gross Profit | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 171.00M |
| EBITDA | 145.00M | 0.00 | -170.00M | 0.00 | 0.00 | -119.00M |
| Net Income | 25.00M | -31.00K | -142.00M | 1.29M | -358.00K | -594.00M |
Balance Sheet | ||||||
| Total Assets | 1.23B | 1.22B | 1.16B | 667.00M | 664.00M | 11.19B |
| Cash, Cash Equivalents and Short-Term Investments | 314.00M | 325.00M | 305.00M | 0.00 | 0.00 | 1.68B |
| Total Debt | 1.58B | 1.56B | 1.32B | 920.00M | 1.98B | 3.76B |
| Total Liabilities | 1.58B | 1.56B | 1.33B | 920.00M | 1.98B | 4.64B |
| Stockholders Equity | -374.00M | -359.00M | -188.00M | -278.00M | -1.34B | 6.55B |
Cash Flow | ||||||
| Free Cash Flow | 108.00M | -14.00M | -13.00M | -8.00M | -25.00M | -160.00M |
| Operating Cash Flow | 135.00M | -14.00M | -13.00M | -8.00M | -25.00M | -139.00M |
| Investing Cash Flow | -191.00M | 105.00M | 1.00M | -37.00M | 21.00M | 75.00M |
| Financing Cash Flow | -84.00M | -71.00M | 317.00M | 45.00M | 4.00M | 1.16B |
Liberty Media Liberty Formula One Technical Analysis
Negative
87.78
Price Trends
92.11
Negative
87.23
Positive
85.48
Positive
Market Momentum
-1.35
Positive
30.96
Neutral
9.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONB, the sentiment is Negative. The current price of 87.78 is below the 20-day moving average (MA) of 92.11, below the 50-day MA of 92.11, and above the 200-day MA of 85.48, indicating a neutral trend. The MACD of -1.35 indicates Positive momentum. The RSI at 30.96 is Neutral, neither overbought nor oversold. The STOCH value of 9.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FWONB.
Liberty Media Liberty Formula One Risk Analysis
Liberty Media Liberty Formula One disclosed 106 risk factors in its most recent earnings report. Liberty Media Liberty Formula One reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liberty Media Liberty Formula One Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $23.83B | 11.43 | 19.96% | 0.91% | 16.60% | 57.39% | |
78 Outperform | $36.89B | 85.64 | 5.11% | 0.40% | 53.33% | ― | |
76 Outperform | $36.75B | 68.81 | 345.87% | ― | -0.39% | 108.72% | |
71 Outperform | $31.98B | 83.28 | 3.79% | ― | 5.77% | -6.97% | |
65 Neutral | $17.12B | 35.40 | 5.69% | 0.69% | -11.42% | 75.42% | |
61 Neutral | $43.99B | 4.24 | -7.47% | 4.00% | 2.31% | -34.39% | |
54 Neutral | $27.78B | 37.15 | 2.18% | ― | -3.79% | ― |
* Communication Services Sector Average
Performance Comparison
FWONB
Liberty Media Liberty Formula One
88.00
16.72
23.46%
LYV
Live Nation Entertainment
158.87
64.44
68.24%
NWSA
News Corp
29.62
2.25
8.22%
TKO
TKO Group Holdings
191.28
74.76
64.16%
FOXA
Fox
59.12
20.57
53.36%
WBD
Warner Bros
12.05
4.81
66.44%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.