In This Article:
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Attributed Cash and Liquid Investments: $2.6 billion at year-end, including $1.3 billion at F1 and $78 million at Quint.
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Total Debt: $2.9 billion, with $2.4 billion at F1 and $528 million at the corporate level.
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Revenue Growth: 6% increase in 2024, driven by additional races and new sponsors.
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Sponsorship Revenue: 10% increase year over year.
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Team Payments: 61.5% of pre-team adjusted OIBDA in 2024, down from 62.6% in 2023.
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Adjusted OIBDA Margin: Improved by nearly 70 basis points year over year.
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CapEx: $75 million in 2024, with $73 million at Formula One, including IT and track improvements.
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Future Revenue Contracted: $14.4 billion under multiyear agreements.
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F1 TV Subscribers: Increased by 15%.
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Social Media Followers: 97 million, up 38% year over year.
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Race Attendance: Over 6.5 million people attended races in 2024, a 9% increase over 2023.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Liberty Formula One Group (NASDAQ:FWONA) reported a 6% revenue growth in 2024, driven by additional races and new sponsorships.
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The company has $14.4 billion in future revenue contracted under multiyear agreements, providing strong financial visibility.
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F1 TV subscribers increased by 15%, with plans to launch a new premium tier offering enhanced features.
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The Las Vegas Grand Prix, despite initial financial setbacks, has been a significant driver of F1's growth in the Americas.
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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
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The Las Vegas Grand Prix missed internal expectations on revenue and OIBDA, primarily due to ticket sales underperformance.
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There was softness in certain hospitality offerings at the Las Vegas Grand Prix, impacting overall revenue growth.
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The Phase 2 regulatory process for the Dorna acquisition is ongoing, with a long stop date extended to June 30, 2025, indicating potential delays.
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The integration of the Las Vegas Grand Prix operations into the London team suggests challenges in local execution and cost management.
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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.