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Liberty Media Corporation Series B Liberty Formula One (FWONB)
OTHER OTC:FWONB
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Liberty Media Liberty Formula One
(OTC:FWONB)
Rating:71Outperform
Price Target:
$96.00
▲(1.74%Upside)
Liberty Media Liberty Formula One (FWONB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.63B
Dividend YieldN/A
Average Volume (3M)3.00
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth3.60%
EPS Growth-120.30%
CountryUS
Employees1,184
SectorCommunication Services
Sector Strength84
IndustryEntertainment
Share Statistics
EPS (TTM)0.05
Shares Outstanding2,428,597
10 Day Avg. Volume10
30 Day Avg. Volume3
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.61
Price to Sales (P/S)0.00
P/FCF Ratio45.81
Enterprise Value/Market Cap0.46
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda600.92
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company DescriptionFormula One Group engages in the motorsports business in the United States and internationally. It holds commercial rights for the world championship, approximately a nine-month long motor race-based competition in which teams compete for the constructors' championship and drivers compete for the drivers' championship. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group is a subsidiary of Liberty Media Corporation.
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:May 07, 2025
(Q1-2025)
| % Change Since: 11.30%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong start to 2025 for Liberty Media, with significant progress in acquisitions, record-breaking attendance at Formula One events, and strong growth in digital engagement. However, the decline in revenue due to race calendar variance and increased costs were notable challenges.Q1-2025 Updates
Positive Updates
Dorna Acquisition Progress
Liberty Media is progressing with the Phase II regulatory process for the Dorna acquisition and working constructively with the European Commission. Approval is hoped to be received by June 30, 2025.
Formula One Attendance Records
The Argentina Grand Prix set a new attendance record with over 200,000 spectators. Thailand's attendance was up 15%, and Coda hosted its largest crowd since 2018. Attendance at races is showing significant growth.
Strong Formula One Engagement
Live TV viewership in the top 50 markets has grown, with ESPN viewership in the U.S. up 45% across the first five races. The Australian Grand Prix was the most viewed edition ever for the U.S. audience.
New Commercial Agreements
Several commercial agreements were announced, including a new tire supplier deal with Pirelli starting in 2027 and race extensions for Barcelona, French, and Valencia GPs through 2031.
Formula One Revenue Visibility
As of March 31, Formula One had $14.2 billion of future revenue secured under contract, providing high visibility into business performance for several years.
Social Media and Digital Engagement
Social media followers reached 100 million, growing 30% year-over-year, with significant growth on Instagram, TikTok, and YouTube.
Negative Updates
Revenue Decline Due to Race Calendar Variance
Formula One's revenue and adjusted OIBDA declined year-over-year due to the calendar variance, with two races in Q1 2025 compared to three races in Q1 2024.
Decline in Sponsorship and Media Rights Revenue
Sponsorship and media rights revenue declined due to the shift in the race calendar, although this was largely offset by new and renewed deals for 2025.
Higher Costs Affecting Formula One
Other costs of F1 revenue increased due to higher freight costs, increased commissions, and partner servicing costs.
Company Guidance
During Liberty Media Corporation's 2025 Q1 earnings call, significant guidance was provided, including updates on several key metrics and strategic priorities. The company is advancing its Dorna acquisition, aiming for regulatory approval by June 30, 2025. Formula One's 2025 season features a 22-race calendar, up from 20 last year, with record-breaking attendance at events like the Argentine and Australian Grand Prix. Formula One's future revenue is secure with $14.2 billion under contract as of March 31, 2025. Financially, the Formula One Group had $2.8 billion in cash and investments, with $2.9 billion in debt, while adjusted OIBDA saw a decline due to fewer races in the quarter. Sponsorship and licensing are noted growth areas, with strong engagement metrics such as a 31% increase in YouTube highlights viewership and a 30% growth in social media followers. The company is in active discussions for U.S. media rights, emphasizing the sport's growing U.S. viewership and appealing demographics. Future strategies include structural simplification efforts and capitalizing on the sport's global appeal to secure long-term commercial agreements.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 | 0.00 | 0.00 | 0.00 | 0.00 | 1.15B | Gross Profit |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 171.00M | EBIT |
| -13.00M | -11.00K | -11.00M | 0.00 | 0.00 | -444.00M | EBITDA |
| 145.00M | 0.00 | -170.00M | 0.00 | 0.00 | -119.00M | Net Income Common Stockholders |
| 25.00M | -31.00K | -142.00M | 372.00K | -358.00K | -594.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 314.00M | 325.00M | 305.00M | 0.00 | 0.00 | 1.68B | Total Assets |
| 1.23B | 1.22B | 1.16B | 667.00M | 664.00M | 11.19B | Total Debt |
| 1.58B | 1.56B | 1.32B | 920.00M | 1.98B | 3.76B | Net Debt |
| 1.27B | 1.23B | 1.01B | 920.00M | 1.98B | 2.08B | 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
Positive
94.36
Price Trends
85.29
Positive
85.42
Positive
81.80
Positive
Market Momentum
1.40
Negative
73.99
Negative
71.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONB, the sentiment is Positive. The current price of 94.36 is above the 20-day moving average (MA) of 89.78, above the 50-day MA of 85.29, and above the 200-day MA of 81.80, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 73.99 is Negative, neither overbought nor oversold. The STOCH value of 71.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $23.78B | 13.74 | 16.89% | 0.98% | 15.70% | 26.73% | |
77 Outperform | $16.69B | 32.87 | 5.88% | 0.70% | -5.43% | 135.46% | |
77 Outperform | $34.36B | 50.97 | 827.53% | ― | -2.92% | 166.63% | |
74 Outperform | $34.63B | 101.57 | 4.19% | 0.87% | 63.73% | ― | |
71 Outperform | $32.63B | ― | -1.22% | ― | 3.60% | -120.30% | |
63 Neutral | $26.03B | ― | -27.69% | ― | -5.58% | -254.85% | |
61 Neutral | $14.33B | 5.90 | -3.82% | 8.01% | 2.79% | -33.24% |
* Communication Services Sector Average
Performance Comparison
FWONB
Liberty Media Liberty Formula One
94.36
27.50
41.13%
LYV
Live Nation Entertainment
148.87
59.49
66.56%
NWSA
News Corp
28.35
1.05
3.85%
TKO
TKO Group Holdings
174.96
68.72
64.68%
FOXA
Fox
55.25
21.18
62.17%
WBD
Warner Bros
10.52
3.21
43.91%
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.