Q4 2023 Liberty Media Corp Earnings Call - Q&A

Operator: Greetings and welcome to the Liberty Media Corporation and Atlanta Braves holding their 2023 year-end earnings call. At this time, all participants are in a listen-only mode.

Greetings and welcome to the Liberty Media Corporation, and Atlanta Braves holding 2023 at year end earnings call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.

Operator: A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Shane Kleinstein, Senior Vice President of Investor Relations. Thank you, Shane. You may begin. Thank you. Good morning.

Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Speaker Change: As a reminder, this conference is being recorded it is now my pleasure to introduce your host train quantity senior Vice President of Investor Relations. Thank you Sir you may begin.

Train Quantity: Thank you and good morning, before we begin we'd like to remind everyone that this call includes certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Shane Kleinstein: Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. However, actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Form 10-K filed by Liberty Media and Atlanta Breeze Holdings with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Media and Atlanta Braves Holdings expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media' or Atlanta Braves Holdings' expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based.

Speaker Change: Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent form Form 10-K filed by Liberty Media and Atlanta Braves Holdings with the SEC. These.

Speaker Change: These forward looking statements speak only as of the date of this call and Liberty Media and Atlanta Braves Holdings expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in liberty media or Atlanta Braves holdings expectations with regard there to or any change in events conditions or circumstances.

Speaker Change: Stances on which any such statement is based.

Shane Kleinstein: On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, Sirius XM, and Atlanta Braves Holdings, including adjusted OIBA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media, Sirius XM, and Atlanta Braves Holdings, Schedules 1 through 3, can be found at the end of the earnings press releases issued today, which are available on Liberty Media and Atlanta Bra Now I would like to turn the call over to Greg Maffei, Liberty's President and CEO. Thank you, Shane, and good morning to all.

Speaker Change: On today's call, we will discuss certain non-GAAP financial measures for Liberty media, Siriusxm, and Atlanta Braves holdings, including adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media, Siriusxm and Atlanta Braves Holdings schedules one through three can be found at the end of the earnings press releases issued today, which are available on Liberty media.

Speaker Change: The brands Holdings' website, now I would like to turn the call over to Greg Maffei, Liberty's President and CEO.

Gregory B. Maffei: Shayne and good morning to all.

Gregory B. Maffei: Today speaking on the call, we will also have Formula One's President and CEO, Stefano Domenicali, and Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling. Also, during the Q&A, we will answer any questions related to Atlanta Braves Holdings, and Braves Management will be available. So let me begin with Liberty Sirius XM. The LSXM Sirius transaction is on schedule. We filed the preliminary proxy on.

Gregory B. Maffei: Today speaking on the call. We will also have formula one's president and CEO Stefano Domenicali and.

Speaker Change: Liberty's, Chief accounting and principal financial Officer, Brian Wendling.

Speaker Change: Also during the Q&A, we will answer any questions related to Atlanta Braves holdings, and brakes management will be available to sell.

Speaker Change: So let me begin with Liberty Sirius XM.

Speaker Change: I want to ask Siri transaction is on schedule.

Speaker Change: We filed the preliminary proxy.

Gregory B. Maffei: January 1st, January 30th, rather. We still expect to close by early Q3. And the NAV discount, which was about 42% prior to the announcement, is now closed to about 25%, as we had hoped, and we expect that it will continue. Looking at SiriusXM itself, the strong operating and financial performance that it had in 2023 shows the durability of the business. Self-Paynet Ads, which were up in the second half, as expected, boosted by streaming. The strong margins and free cash flow generation remained, largely through cost discipline.

Speaker Change: The first of.

Speaker Change: January 30th Robyn, we still expect to close by early Q3.

Speaker Change: And the NAV discount, which was about 42% prior to announcement is now close to about 25% as we had hoped.

Speaker Change: And we expect it will continue to close I'm looking at Sirius XM itself.

Speaker Change: The strong operating and financial performance that it had in 2023 showed the durability of the business.

Speaker Change: Self pay net adds were.

Speaker Change: In the second half as expected boosted by streaming.

Speaker Change: The strong margins and free cash flow generation remained largely through cost discipline.

Gregory B. Maffei: Importantly, they rebuilt their tech stack and relaunched their app in the fourth quarter, and we're beginning to show positive early results from that with better personalization, promising engagement, and improved service quality. We believe these initiatives, as well as the incremental content they added, will continue to drive long-term growth. Looking at the 2024 priorities at the business, first, increasing 360L adoption and boosting conversion and retention, and continuing to deliver engaging content. Recently, they signed the quite popular Smart List podcast with Jason Bateman, Will Arnett, and Sean Hayes.

Speaker Change: Importantly, they rebuilt their tech stack and relaunched their app in the fourth quarter and we're beginning to show positive early results from that with better personalization promising engagement and improved service quality. We believe these initiatives as well as the incremental content. They added will continue to drive long term growth.

Speaker Change: At the 2024 priorities of the business first increasing 360, how adoption and boosting conversion and retention continuing to deliver engaging content recently, they signed quite popular smartwatch podcast with Jason Bateman will Arnett and Shawn Hayes.

Gregory B. Maffei: We do expect self-pay net ad improvement throughout the year, and there is a focus on maintaining stable, inhibitive margins and free cash. I look forward to remaining involved personally in the next evolution of the business as chairman and a shareholder. It was an amazing 2023 at F1. We saw double-digit growth across all revenue streams and adjusted OIBA to up 22%. We see a strong commercial start to the season, four race promotion renewals, including Silverstone, a 10-year deal with venue upgrades in our important heritage market, and a new race in Madrid beginning in 2026, which will be a partial street race with convenient fan access. We do see continued growth in fandom. Recently, this week, F1 joined Thread. 2.8 million followers were on board the platform after half a day. We closed the Quint acquisition in January, as we previously noted the growing partnership opportunities from Quint with F1, LBGP, and other sports properties, including the Kentucky Derby and the NBA All-Star Game. Let me turn to Vegas for a minute.

Speaker Change: We do expect self pay net adds improvement throughout the year.

Speaker Change: And there was a focus on maintaining stable EBITDA margins and free cash flow.

Speaker Change: I look forward to remaining involved personally in the next evolution of the business as chairman and a shareholder.

Speaker Change: Turning to Formula One group.

Speaker Change: <unk> 2023 to one.

Speaker Change: We saw double digit growth across all revenue streams and adjusted OIBDA up 22%.

Speaker Change: We see strong commercial start to the season for race promotion renewals, including Silverstone, a 10 year deal with venue upgrades.

Speaker Change: Heritage market.

Speaker Change: And a new race in Madrid, beginning in 2026, which will be a partial street race when convenient fan access.

Speaker Change: We do see continued growth in sand.

Speaker Change: Recently this week F. One joined threat and $2 8 million followers were on boarded platform after half a day that we use.

Speaker Change: We closed the Clinton acquisition in January as we previously noted.

Speaker Change: That growing partnership opportunities from quaint with F. One L. B G P and other sports properties, including the Kentucky Derby and the NBA All Star game.

Speaker Change: Let me try it for a minute to Vegas.

Gregory B. Maffei: It was an incredible race. We were fortunate to have such a great outcome with a record 181 overtakes. The podium came down to the final lap.

Speaker Change: It was an incredible race, we were fortunate to have such a great outcome with a record 181 overtakes. The podium came down to the final lap. It was a great result for Formula one and created new commercial opportunities and generated fantastic Global bus Ah ha.

Gregory B. Maffei: It was a great result for Formula One; it created new commercial opportunities and generated fantastic global buzz. A high percentage of the first-time F1 attendees and massive audiences tuned in to this race. It drew marquee brands to F1, for example, American Express, T-Mobile, Mot Hennessey, and Google. And we think these brands and the marquee aspects of joining Vegas will continue to help us in 2024 and beyond. It was also hugely successful for the local community. The total economic impact of the race was estimated at $1.2 billion, and the average visitor spent 3.6 times what a typical visitor spends for a non-F1 event. We look forward to building on the success of LBGP in 2024. For example, we're going to increase the GA and expand the product offerings at various price points.

Speaker Change: High percentage of first time F. One attendees and massive audiences tuned into this race it.

Speaker Change: He drew marquee brands to have one for example, American Express T mobile Moet, Hennessy, Google and we think these brands and the <unk>.

Speaker Change: Our key aspects of joining Vegas will continue to help us in 'twenty 'twenty four and beyond.

Speaker Change: It was also hugely successful the local community. The total economic impact of the race was estimated at $1 $2 billion and the average visitor spending $3 six times, what a typical visitor spend for a non F. One of them.

Speaker Change: We look forward to building on the success of Adobe G. P. In 'twenty 'twenty. Four for example, we're going to increase the G eight and expand the product offerings at various price points, we're going to optimize the cost structure.

Gregory B. Maffei: We're going to optimize the cost structure. The year-round commercialization efforts at Grand Prix Plaza are in development, but we will expect only a modest contribution from them in 2024. Corporate events at that site kicked off around the Super Bowl this year. In summary, the Vegas race exceeded our expectations on many levels, even though year one costs came in higher than we had anticipated. We do not intend to disclose race-specific information on this race, consistent with our practice across all races.

Speaker Change: The year round commercial.

Speaker Change: From a commercialization efforts.

Speaker Change: Grand Prix Plaza are developing but we will expect only a modest contribution from those in 2024.

Speaker Change: Corporate events at that site kicked off around the Super Bowl this year.

Speaker Change: In summary, the Vegas rates exceeded our expectations on many levels, even though year one costs came in higher than we had anticipated we do not intend to close disclosed specifics on this race consistent with our practice across all races.

Gregory B. Maffei: I would note that we are kicking off the F1 season with testing in Bahrain, which has occurred and look forward to the first race in Bahrain this weekend. 2023 was the biggest year ever, where there were all-time highs for attendance, ticket sales, and sponsorship. Concert attendance grew 20% with 145 million fans. Global demand for concerts continues to grow.

Speaker Change: I would note that the kit, we are kicking off the F. One season with testing in Bahrain, which occurred and look forward to the first race in Bahrain. This.

Speaker Change: Weekend.

Speaker Change: Turning to live nation.

Speaker Change: 2023, with the biggest year ever.

Speaker Change: They were all time highs for attendance ticket sales and sponsorship concert attendance grew 20% with 145 million fans.

Speaker Change: Global demand for concerts continues to grow the top 50 towards do 50% more international acts in 2023.

Gregory B. Maffei: The top 50 tours did 50% more international acts in 2023. We have an incredible pipeline for 2024 with no sign of a consumer slowdown. We're seeing strong demand across all price ranges. For example, large venue shows are up double digits, and 65% of full-year large venue shows are already booked versus only 50% last year at this time. The number of shows at amphitheaters and other operated venues will also increase in 2020. Let me turn to the Braves.

Speaker Change: We have an incredible pipeline for 2024 with no sign of consumer slowdown, we're seeing strong demand across all price points.

Speaker Change: For example, large venue shows were up double digits and 65% full year large venue shows are already booked versus only 50%.

Speaker Change: Last year at this time.

Speaker Change: The number of shows amphitheater and other operated venues will also increase in 2024.

Speaker Change: Let me turn to the Braves, obviously, there was incredible team performance in 2023, so much to highlight I don't want.

Gregory B. Maffei: Obviously, there was an incredible team performance in 2023. So much to highlight. I'd note one, the 947 runs scored were the first in MLB, and it tied an MLB home run record as well. The Braves also experienced great financial growth for the year. Baseball revenue was up 9%. We've seen continued success result in higher payments under MLB's revenue sharing plan, so that is the one negative about our continued revenue growth. But I'd also note the battery revenue was up 10%, and not just in oil, but it was up 11%. We clearly benefit from the strengths of the Braves territory in a recent study by YouGov. The Braves had 8.4 million fans in the South region, number one in MLB, and over 65% of all other local sports team fans support the Braves, which is the highest crossover of any fandom in Atlanta.

Speaker Change: The 947 runs scored with the first and MLB and entitled MLP Homerun record as well for the team.

Speaker Change: The Braves also experienced great financial growth for the year of baseball revenue was up 9%.

Speaker Change: We see continued success, resulting in higher payments under Mlps revenue sharing plans. So that is the one negative about our continued revenue growth.

Speaker Change: But I'd also note the battery revenue was up 10% and adjusted OIBDA was up 11%.

Speaker Change: We clearly benefit from the strength of the Braves territory.

Speaker Change: In a recent study by you Gov.

Speaker Change: The Braves had $8 4 million fans in the South region number one and MLB.

Speaker Change: And over 65% of all other local sports teams fan support the Braves, which is the highest crossover of any bandwidth in Atlanta.

Gregory B. Maffei: We've seen encouraging early-season trades, including for seven-time All-Star Chris Seal and outfielder Jared Kalanick. We are well positioned for future commercial and on-field success. For example, 2024 season tickets are already sold out, and there is a 16,000 person wait. We are looking forward with bated breath to the home opener against the D-backs on April 5th. And with that, let me turn it over to Brian for more on our finances. Thank you, Greg, and good morning, everyone.

Speaker Change: We've seen encouraging early season trades, including for.

Speaker Change: For seven time all-star crisil.

Speaker Change: And I'd feel or Jared Kalinic, we are well positioned for future commercial and unfilled success.

Speaker Change: For example, 'twenty 'twenty four season tickets already sold out and there is a 16000 person waitlist.

Speaker Change: We are looking forward with bated breath to the home opener against the D backs on April 5th.

Speaker Change: And with that let me turn it over to Brian for more on our financial results.

Brian Russo: Thank you, Greg and good morning, everyone at year end Liberty Siriusxm group had attributed cash liquid investments and monetize both public holdings of $90 million.

Brian Russo: At year-end, Liberty Sirius XM Group had attributed cash, liquid investments, and monetizable public holdings of $9.5 billion. This excludes $216 million of cash held directly at... During the quarter, Liberty Sirius XM repaid the remaining $199 million outstanding principal of its 1.375 basket convertible notes using cash-on-demand. Also during Q4, Liberty Sirius XM paid down $80 million under the Margin Loan, $61 million of which was from the monetization of its $1.5 million loan.

Brian: This excludes $216 million of cash held directly at Sirius XM during.

Brian Russo: During the quarter Liberty Sirius XM repaid the remaining 199 million outstanding principal of its one 375 basket convertible notes using cash on hand.

Brian Russo: Also during Q4 Liberty Siriusxm paid down $80 million under the margin loan 61 million of which was from the monetization of its 1.8 million better case shares a.

Brian Russo: $8 million better cashier. At quarter end, there was $1.1 billion of undrawn margin loan capacity at the parent level related to our SiriusXM margin loan. As of February 27th, the value of our SiriusXM stock was $15 billion, and we had $1.3 billion in principal amount of debt against these wholesalers. The total Liberty Sirius XM Group attributed principal amount of debt is $11.1 billion, which includes $9.3 billion of debt held directly at Sirius.

Brian Russo: At quarter end, there is $1 1 billion of Undrawn margin loan capacity at the parent level related to our Sirius Sirius XM margin level.

Brian Russo: As of February 27th the value of our Sirius XM stock was 10 15 billion.

Brian Russo: We have $1 3 billion in principal amount of debt against these holdings total Liberty Siriusxm group attributed principal amount of debt is $11 1 billion, which includes $9 3 billion of debt held directly at Sirius XM.

Brian Russo: Turning to the Formula One Group, at quarter end, Formula One had attributed cash and liquid investment, which includes $1 billion of cash held directly. Note the Quinn Acquisition closed in January, which will be a use of Formula 1 group cash. Total Formula 1 group attributed principal amount of debt was $2.9 billion, which includes $2.5 billion of debt at Renault, leaving $500 billion. And F-1's $500 million revolver remains undrawn, and leverage at the end of the year was $1.5. As we've said in the past, the F1 business is best analyzed on an annual basis, so we'll only be speaking about full year results.

Brian Russo: Turning to the Formula One group at quarter end Formula One group had attributed cash and liquid investments of $1 4 billion, which includes a $1 billion of cash held directly at formula one.

Brian Russo: Quint acquisition closed in January which would be a use of formula one group cash flow.

Brian Russo: Formula One group attributed principal amount of debt was $2 9 billion, which includes $2 5 billion of debt at Formula one, leaving $533 million at the corporate level.

Brian Russo: And that's one $500 million revolver remains undrawn and leverage at the end of the year was one nine times.

Brian Russo: As we've said in the past you have one business is best analyzed on an annual basis. So we'll only be speaking to full year results.

Brian Russo: Total revenue grew 25% in 2023 with double-digit growth across all primary revenues. Year-over-year revenue increases include the significant revenue generation from self-promoting the Las Vegas Grand Prix, including ticketing revenue, which is included in race promotion, sponsorship revenue, which is recognized accordingly, and hospitality and experience income, which is included in other F1 revenues. Race promotion revenue also benefited from the mix of events held compared to 2022, with two additional flyaway races this year with Qatar and Las Vegas versus Imola and France in the prior year. And sponsorship and media rights revenue grew due to increased fees under new and renewed contracts with Marshall. Other F-1 revenue grew 42%, or $196 million, driven by hospitality and experiences, largely attributed to the Las Vegas event, as well as growth in the paddock club and other events, partially offset by reduced freight income due to the easing of freight cost inflation. Team payments as a percent of pre-team adjusted OIBD as reported were 63% in 2023, down from 66%. Other costs of F1 revenue increased from 23% of total revenue the previous year to 32% of total revenue, primarily driven by promoting, organizing, and delivering, as well as increased costs of servicing. SG&A at 7% of total revenue was in line with historic averages.

Brian Russo: Total revenue grew 25% and 2023.

Brian Russo: Double digit growth across all primary revenue streams year over year revenue increases include the significant revenue generation from self promoting the Las Vegas Grand Prix.

Brian Russo: And ticketing revenue, which is included in race promotion sponsorship revenue, which is recognized accordingly, and hospitality and experience income which is included in other F. One revenue.

Brian Russo: Race promotion revenue also benefited from the mix of events held compared to 2022 with two additional flyway races. This year with Qatar and Las Vegas versus MLR in France in the prior year and sponsorship and media rights revenue grew due to increased fees under new and renewed commercial agreements.

Brian Russo: Other half one revenue grew 42% or $196 million driven by hospitality and experiences largely attributed to the Las Vegas Grand Prix as well as growth in the Paddock club and other events, partially offset by reduced freight income due to easing of freight cost inflation.

Brian Russo: Same payments as a percent of pre team adjusted OIBDA as reported was 63% in 2023 down from 66% in 2022.

Brian Russo: Other costs of F. One revenue increased from 23% of total revenue in the prior year to 32% of total revenue this year, primarily driven by promoting organizing and delivering to Las Vegas Grand Prix.

Brian Russo: Well as increased cost servicing additional hospitality offerings.

Brian Russo: SG&A at 7% of total revenue was in line with historic averages our corporate and other adjusted OIBDA was a loss of $39 million in 2023, which includes the $15 million of revenue for use of the pit building during the Las Vegas race weekend.

Brian Russo: Corporate and other adjusted OIVD was a loss of $39 million in 2023, which includes the $15 million of revenue for the use of the Pitt Building during the Las Vegas race weekend. Formula One incurs a fixed monthly rent payment that approximates depreciation, plus a variable rent component during the race week. Note that the fixed rent payment in 2023 reflects only a portion of the years the building wasn't occupied until closer to the race. Corporate level expense at Formula One Group was also elevated due to the split off and reclassification. 2024 Formula One Group Corporate and other tests. Quinn Acquisition that closed in January as well as a full year. Looking to 2024, F1 will host 24 races with the return of China and Imola compared to 2020.

Brian Russo: Formula one incurs a fixed monthly rent payment that approximates depreciation plus a variable rent component during the race weekend.

Brian Russo: Note that the fixed rent payment in 2023 reflects only a portion of the year as the building wasn't occupied.

Brian Russo: Until closer to the race weekend Corp.

Brian Russo: Corporate level expense at Formula One group was also elevated due to the split off and reclassification costs in 2020 for Formula One group corporate and other adjusted OIBDA will benefit from the <unk> acquisition that closed in January as well as a full year of the rent payments.

Brian Russo: Looking to 2024 F. One was 24 races with the return of China and M. A lot compared to 22 races in this past year.

Brian Russo: Quickly looking at a few cash items, F1 estimates its cash tax rate in 2024 to be a high single-digit percent of F1-adjusted OIBD, increasing towards low double digits in future years as a result of F1. Total CapEx incurred at the Formula One Group in 2023 was $426 million, approximately $390 million of which related to the development of LVAC, the majority of which was incurred at

Brian Russo: Quickly looking at a few cash items F. One estimates of cash tax rate and 24 to be a high single digit percent of F. One adjusted OIBDA, increasing towards low double digits in future years as a result of the U K tax rate increase.

Brian Russo: Capex incurred at the Formula One group in 2023 was 420 $26 million, approximately 390 million of which related to the development of a L. B G. P. <unk> with the majority of incurred at the Formula One group corporate level.

Brian Russo: At the Liberty Live group, there's attributed cash, liquid investments, and monetized... $15 million, which includes ETF assets. There's $400 million of undrawn margin loan capacity related to our Live Nation business, and as of February 27th, the value of the Live Nation stock was $6.4 billion. We have $1.2 billion in principal amount of debt again. Liberty and our consolidated subsidiaries are in compliance with their debt covenants at quarter end.

Brian Russo: At the Liberty Life group Theres attributed cash liquid investments and monetize it with public holdings of $418 million, which includes ETF assets.

Brian Russo: There's $400 million of Undrawn margin loan capacity related to our live nation marching along.

Brian Russo: And as of February 27th Valuable live nation stock was $6 5 billion.

Brian Russo: We have $1 2 billion in principal amount of debt against these holdings.

Brian Russo: Liberty and our consolidated subsidiaries are in compliance with our debt covenants at quarter end and then quickly looking at the Braves are the brake business is also best analyzed on an annual basis due to fluctuations in game count.

Brian Russo: And then quickly looking at the Braves, the Braves business is also best analyzed on an annual basis due to fluctuation. Baseball revenue increased 9% in 2023, primarily due to increased ticket demand, leading to a 14% growth in baseball event revenue and 8% growth in retail. Other baseball revenue declined primarily due to fewer concerts held compared to the prior year.

Brian Russo: Baseball revenue increased 9% and 2023, primarily due to increased ticket demand and attendance leading to a 14% growth in baseball bat revenue, an 8% growth in retail and licensing revenue.

Brian Russo: Other baseball revenue declined primarily due to fewer concert held compared to the prior year.

Brian Russo: The battery had another great year with mixed use revenue increasing 10%.

Brian Russo: The Battery had another great year with mixed-use revenue increasing 10%. However, total adjusted OIBD decreased for the year primarily due to increased player payroll expense as Braze Management continues to invest in its on-field success, including a number of trades and accelerated player signings. The adjusted oibida for the mixed-use development increased 11% in 2020. And just a reminder that SG&A was elevated for the full year due to the split-off costs. We would anticipate a $10 to $15 million annual run rate for corporate overhead. With that, I'll turn it over to Stefano to discuss Formula 1. Thanks, Brian.

Brian Russo: Total adjusted OIBDA decreased for the year, primarily due to our increased player payroll expense as braised management continues to invest in its field success, including a number of trades and accelerated player signings in December of 2023.

Brian Russo: OIBDA for the mixed use development increased 11% in 2023.

Brian Russo: And just a reminder, that SG&A was elevated for the full year due to the split off costs, we would anticipate a $10 million to $15 million.

Brian Russo: Annual run rate for corporate overhead at the Atlanta Braves Holdings.

Brian Russo: With that I'll turn it over to Stefano to discuss Formula one.

Stefano Domenicali: Thanks, Brian.

Stefano Domenicali: The 2023 season delivered incredible racing and record financial results. On the track, we want to recognize Max Verstappen and Red Bull once again for their superb performance. The rest of the grid battled until the end.

Stefano Domenicali: So it doesn't think it's we season delivers incredible racing our record financial results.

Stefano Domenicali: On the track, we want to recognize and Mexico should happen and were once again on their superb performance, but I suppose the Greek baffled until you get.

Stefano Domenicali: The race for second in the Constructors' Championship came down to the final lap of the season between Mercedes-Benz and Ferrari. McLaren and Aston Martin battled for fourth, with McLaren intensifying the competition after a solid mid-season outing. Oscar Piastri had a stellar rookie season, securing 97 points, including two podiums and a sprint race win.

Stefano Domenicali: So at least for the second in the construct of temporary she came down to define the lap of the season between let's say this and Sarawak Mcnabb.

Stefano Domenicali: Mclaren Aston Martin absolute full force with Mclaren intensify the competition after a solid mid season that great.

Stefano Domenicali: I'll skip yesterday at the Teller Rukia season, securing 97 points included two proteins in the sprints basically an album fence as much to cheer about as these core points and the number of races. In 2000 and said this week, helping William schemes to seventh showing good progress under James I'll leave it.

Stefano Domenicali: Album fans had much to cheer about as he scored points in a number of races in 2023, helping Williams finish seventh, showing good progress under James Dowles later that season. Across the entire 2023 season, six teams were represented on the podium, a reflection of the talent up and down. The new regulations are increasingly benefiting competition across the field, and we believe this will continue in 2024 as the benefits of the cost cap and the technical regulations continue to mature. Financially, the business generated record revenue and adjusted OEB debt for the All-Primary Revenue Stream Group, benefiting from new and renewed commercial agreements. Furthermore, our Paddle Club had an incredibly strong year, with hospitality and experiences revenue growing nearly 100% year-on-year. This was driven by the expansive suite of hospitality and experience offerings at the Las Vegas Grand Prix as well as growth in our core Paddle Club product, with the Paddle Club selling-out at 10 of 19 events. Towards the end of the season, we had the spectacular Inagola-Las Vegas round.

Stefano Domenicali: Yes.

Stefano Domenicali: Across the entire it doesn't see season, 16th well represented on the boat.

Brian Russo: Selection of the talent up and down between.

Brian Russo: The new regulation easy benefiting competition, because the steel and we believe this will continue in 2024.

Brian Russo: That is a cost cap and the technical regulations continue to mature.

Brian Russo: Financially the business generated record revenue and adjusted OIBDA.

Brian Russo: For the year old primary revenue stream grew benefiting from new and renewed commercial literally.

Brian Russo: Furthermore, our public cloud as an incredibly strong year with hospitality and experiences revenue growing nearly 100.

Brian Russo: Year on year. These were driven by the expansive suites almost fatality speed us all things at Las Vegas, Grumpy as well as growth in our core public blip problem with a public let's sell out at 10 19 events.

Brian Russo: Towards the end of the season, we had this spectacular and I go to the Las Vegas Grand Prix.

Stefano Domenicali: It was a formidable undertaking moving the project from start-up planning to race delivery in little more than one year. We are incredibly proud of the Las Vegas team who worked with multiple stakeholders in the city and within the wider F1 community to deliver an incredible event on and off the track. Total ticket sales were $316,000 for the weekend. The race was profitable from start to finish. Charlie Clapp passed Paris on the last lap to secure second place, and the race generated fan-reaching multi-platform buzz and drew in new viewers who hadn't engaged all season.

Brian Russo: It was a formidable undertaking moving the project from start up planning to reach to leave it in a little more than one year, we added reasonably crowd of the Las Vegas team worked with multiple stakeholders in the city.

Brian Russo: The wider the F. One could lead to deliver an incredible event on on and off the track.

Brian Russo: Total ticket sales with three out of the 16000 for the weekend. So these was trading from the start to finish Charlotte passive Paris on the last lap to securities second place finish.

Brian Russo: The raise generated funds, which in multiplatform bus and doing new viewers, who hasn't engaged old season there.

Stefano Domenicali: The local economic benefit generated by this waste is remarkable; local casino partners had record revenue, with monthly gaming revenue for Clark County at an all-time high for the month of November. Stepping back to the broader calendar, the 2023 season overall delivered another year of record attendance. 6 million total fans attended the race weekend, up 5% compared to the 2022 season. 12 races promoted reported a new attendance record, including 480,000 at Silverstone, 445,000 at Melbourne, 405,000 in Mexico, and 308,000 in Belgium. Race attendance remained strong through the end of the season, with record crowds in So Paulo and Abu Dhabi. F1 fans tuned in across... Last season, we worked closely with our media partners and created new tools to estimate digital viewership on platforms and channels not covered by Nielsen. Our findings suggest an additional 29% of voters are not currently covered by traditional measurement globally, representing almost 20 million on average per race week.

Brian Russo: The local economic benefit generated by these waves is remarkable local casino partners had to break up the Avenue with mostly gaming revenue for Clark County at all time high for the month of November.

Brian Russo: Stepping back to the broader calendar 2020 to be seasoned overall delivered another year of record attendance 6 million total sense attended the race weekend.

Brian Russo: 5% compared to the 2022 season whoever he was promoted with both the new attendance records, including 480440 5000, the mobile fly under the <unk> 5000 in Mexico, and three out of the 8000 in Belgium.

Brian Russo: Recent tenders remain strong through the end of the season with record crowds and somehow and Abu Dhabi.

Brian Russo: That's one SKU in the cross platform last season, we work closely with our media partners and create new tools to estimate these the viewership on platforms and channels not covered by Nielsen I would've findings suggest that an additional 29% of all this is not currently covered by traditional measurement globally.

Brian Russo: Presented almost 20 million on average per race weekend.

Stefano Domenicali: The share of digital viewership is much higher for markets like the US, where fans rely more on video-on-demand and streaming platforms to watch races, especially those at less convenient times for live viewers. We will keep working with Nielsen this year to incorporate more of these digital audiences into their standard reporting to provide the most accurate picture of our total audience. Looking at broadcast TV, the cumulative TV audience for the 2023 season, excluding digital viewership, was 1.5 billion, and average viewership per race was approximately 70 million.

Brian Russo: The share of digital viewership is much higher for a market like the U S.

Brian Russo: Rely more on video on demand as twilio fastest towards wages, especially those at less convenient times full live viewing we will keep working with Nielsen this year to incorporate more of these digital audiences into their standard reporting to provide the most accurate picture of our total gets looked at.

Brian Russo: That broke STV cumulative TVO. This for 2023 season, excluding digital viewership was one 5 billion and average viewership race was approximately 70 million.

Stefano Domenicali: In the US, cumulative viewership was up 4% compared to the prior year, setting a new season cumulative TV audience record. Importantly, viewership among the under 35 and female demographics grew across all of our markets. Our Spring Series continued to drive increased engagement throughout the season, which boosted TV audiences and raised weekend attendance. For our sponsor, there was an over 50% increase in average brand exposure during the spring weekend. We look forward to the 6th event in 2021. Formula One was once again the fastest-growing major sports league on social media for the fourth year in a row, with the highest growth rate compared to the 11 other global sports, including NBA, NFL, and Champions League. We grew to 70.5 million followers on social media, up 17% from the prior year, with continued growth, especially in the US, where social media followers were up 28%. The US continues to make up our largest audience on YouTube and TikTok social.

Brian Russo: In the U S cumulative viewership was up 40%, 4% compared to the prior year setting a new season cumulative T V orders record importantly, viewership of moldy under 35, and he made the multiple graphics grew across all of our markets. Our spring Sirius continues to do.

Brian Russo: I think these engagements throughout the season, which boosted television audience as a race weekend look businesses.

Brian Russo: But our sponsor there was an over 50% decrease in average Brent exposure during the speeds we get with.

Brian Russo: We look forward to the 60 bed until 2024.

Brian Russo: Furthermore, one of them was once again, the fastest growing major sport legal social media for the fourth the eating at all with the highest growth rate compared to the 11th the other global sports, including NBA NFL Enchantingly weaker.

Brian Russo: We grew to 71 5 million followers on social media up 17% from the prior year with continued growth, especially in the U S where social media followers were at the 28%.

Brian Russo: The U S continues to make up of our largest audience on Youtube and detailed social vessels.

Stefano Domenicali: For our F1.com and F1 app platforms, over 100 million unique visitors viewed over 3.1 billion pages, an increase of plus 10% over 2020. Construction of highlight videos on our web and app also grew by 35%. And we made greater commercial progress in 2023, securing contracts that will underpin our continued future success. As of year-end, we have over $12 billion in future revenue under multi-year contracts. Our momentum continues during the off-season and into 2024.

Brian Russo: F. One I'll call them, an F. One app platforms, all behind the meter and unique visitors viewing over people one medium pages. I think these are lost 10% over 2022 conception of highlight videos or novel Web and App also grew by 35%.

Brian Russo: And we made greater commercial progress in 2023, securing conflicts that will underpin our continued student success.

Brian Russo: As of year end, we had over $12 billion in future revenue under multiyear contracts.

Brian Russo: Our momentum continued during the off season and into 2024.

Stefano Domenicali: On race promotion, we are prioritizing the quality and the value of every race slot, having reached what we believe is a comfortable near-term max of 24 races. Early this month, we announced a 10 year extension with Silverstone and look forward to enhancements to the Paddock Lab and other physical infrastructure upgrades at Silverstone. We are excited to welcome the Madrid Grand Prix under a 10 years' agreement in a brand new circuit with both street and non-street segments from 2026. The race has plans to invite 110,000 fans initially and has the potential to expand to over 140,000 over several years.

Brian Russo: Race promotion, we are prioritizing the quality and the value of every race slots have you reached what we believe is a comfortable near to a Max of 24 races.

Brian Russo: This month, we announced that he is extension would Silverstone and look forward with enhancements to the public cloud and other physical infrastructure upgrades of the circuit. We are excited to welcome the mother.

Brian Russo: 10 years agreement and a brand new stupid with both sweetened know St segment for 2036 that asos plans driven by the 110000 sense initially and that has potential to expand to over 140000 over several years.

Stefano Domenicali: We also announced a five-year extension for our Japan and Brazil races. With this announcement, we have now finalized all contract negotiations for the 2025 season and will turn our attention to optimizing the risk calendar for 2026 and beyond. Additionally, on MediaRite, we are delighted to have recently secured a long-term pan-regional deal across the MENA region with its biggest sport platform, Dein Sport.

Brian Russo: We also announced five years are essential for our Japan, and Brazil basis with these announcements we have now finalized the old contract negotiation for the 2025 season, and we turned our attention to optimized at least calendar for 2026 and beyond.

Brian Russo: Additionally, our media right. We are delighted to have recently secured a long term part of regional deal I suppose the Mena region with its biggest port platform being sport.

Stefano Domenicali: This is on the heels of over half a dozen renewals signed in 2023. F1 continues to benefit from the demand for live global premium content. We are broadcast in 200 territories and have a well-diversified portfolio of media rights contracts across markets, typically ranging from 3 to 5 years. As we have said, alternative bidders, including digital players, are increasingly showing interest in live sports, which increases competition from scarce media rights.

Brian Russo: On the heels of over half of those renewals signed in 2023.

Brian Russo: That's one continues to benefit from the demand pull live global premium.

Brian Russo: We're broke us in 200 territories and have a well diversified portfolio of media rights.

Brian Russo: Gross markets typically ranging from three to five years as we have said alternative bidders included digital players I think visually show an interest in live sports and increases competition, So Scotts media rights.

Stefano Domenicali: Our F1 TV product has grown significantly since launch, with active F1 TV Pro subscribers growing 37% in 2023 compared to 2021. The product has been boosted by adding more races to the F1 calendar, F1 sprint races, new in-depth shows, all 20 onboard cameras, team radios, and continuously adding live programming around every season plus a revamped mobile-friendly design. We believe it delivers the best-in-class product for fans and is now available in 120 countries. Early this year, we rolled out our price increase across markets for the first time since product launch in 2018 to bring the pricing in line with the market rates for the qualification of the offer. Turning to sponsorship, we had a successful 2023 growing existing partnership while securing new brands, including leveraging new assets like Las Vegas and F1 Academy to generate incremental demand. Puma and Tommi Rieffelke recently announced as official partners of F1 Academy and will have a design livery for this season.

Brian Russo: That's one PD product has grown significantly since launch with XD F. One P V pro subscribers growing 37%.

Brian Russo: 23, compared to 2022, the product has been boosted by growing in the S. One Columbus and fostering traces new in depth chose old plenty on board cameras team radios and confusing the abbey life programming around every season plus have you bumped mobile friendly design.

Brian Russo: We believe it delivers the best in class product for fans and is now available in 20 countries.

Brian Russo: That'd be this year, we had all of our price increase in the cross market for the first time since product launch in 2018 to bring the pricing in line with the market waits for the qualified all the offering.

Brian Russo: Turning to sponsorship, we a successful 2023 and growing the exact existing partnerships, while securing new brands, including leveraging new asset like Las Vegas N F. One academy to generate incremental demand.

Brian Russo: <unk> told me he took the recently announced as officials bothered also have won Academy and we love designed Liberty for the season and beauty brands like Charlotte Tilbury also became a official bother, though that's what I can.

Stefano Domenicali: And beauty brands such as Charlotte Tilbury also became an official partner of F1 Academy, marking their first ever global sport partnership. We also announced an attractive multi-year renewal with our global partner DHL. Going forward, we are optimizing our existing inventory to maximize impact, exclusivity, and value for our partners. We are also actively creating new assets to capitalize on our growing demand and sponsor preference for tailored opportunities in live events. There are target verticals where we are exposed, including financial services and betting, to name a few. Our fun engagement activities off the track continue to gain momentum. F1 Arcade's first location in London recorded 400,000 visitors in its first year, and a second UK location opened in Birmingham. The first U.S. venue will open in Boston, N.Y.

Brian Russo: Marking the first E ever global support Boppish, we also in the house and attractive multi year renewal with our Google powered with DHL.

Brian Russo: Going forward, we are optimizing all with existing embed suite to maximize impact exclusivity and value for our buses. We are also actively creating new assets to capitalize our growing demand as supposed to a preface for Taylor opportunity like the best.

Brian Russo: There are targets vertical where we are exposed including financial services and betting to name a few.

Brian Russo: Our final engagement activities off the track.

Brian Russo: To gain moment, if one of those cases test location, London recorded 400000 digital in this first year and the second UK location opening in the stomach.

Brian Russo: The first U S venue will open in Boston and D. C. This year with 20, new style get this over the next five years. The F. One exhibition moved from a dream wedding. Welcome 117000 visitors. It's opened its second location, Indiana that'd be the smoke and we'll continue touring iconic global seated to inspire the next generation.

Stefano Domenicali: this year, with 20 venues targeted over the next five years. The F1 exhibition moved from Madrid, where it welcomed 170,000 visitors. It opened its second location in Vienna early this month and will continue touring iconic global cities to inspire the next generation of F1 drivers. Sustainability remains a large priority for FOMO 1 across our organization. Commercial partner and F1. More detail will be provided in the coming weeks detailing our progress towards reaching the sustainability strategy we laid out in 2019. There are a number of sustainability accomplishments to highlight from last year, to name a few. Progress continues to develop 100% sustainable hybrid fuel that will be introduced in 2026 and will be a drop in fuel usable in road cars without modification, which provides broader global benefits to the automotive industry well beyond the impact of home automation.

Brian Russo: That purpose.

Brian Russo: Sustainability remains a large priority for a while across our organization commercial buffer and therefore.

Brian Russo: More that they will be provided in the coming weeks detailing our progress towards reaching the sustainability strategy, we laid out in 2019.

Brian Russo: There are a number of sustainability accomplishment Twilight from for last year to name a few progress continuing to develop over 100% sustainable library.

Brian Russo: We'll be introducing doesn't 36 and that will be a drop in fuel usable and votes cast without modification, which provides broader global benefits to the automotive industry well beyond they picked up somewhat.

Stefano Domenicali: The nine European events of the 2023 season used freight transportation by DHL on a new fleet of bio-fueled trucks, reducing related logistic carbon emissions by 83 percent. The first cohort of students from the F1 engineering scholarship embarked on their first world placement with the F1 teams. We will welcome the third cohort this year. Finally, we launched F1 Academy, the all-female driver category to develop and prepare young female drivers to progress to higher levels of competition.

Brian Russo: Non European events of the 2023 season to use the fleet transportation by DHL on the new fleet of biofuel, the truck reducing related logistic carbon emission by 83%.

Brian Russo: The first cohort of students from F. One in Geneva scholarship embarked on their first award placement with the F. One things we will welcome the third cohort. This year. Finally, we launched the F. One of Kevin the old teammates driver category to developing preferred young female drivers to progress to higher levels of competition the second season.

Stefano Domenicali: The second season in 2024 will see F1 Academy race as a support series at seven F1 events. The F1 teams are getting more involved in supporting the series. In 2024, all ten will have their liveries displayed on one F1 Academy car each and will each nominate one female driver to race in the series.

Brian Russo: In 2024, we see F. One Academy race, either supports heaters at 740 minutes.

Brian Russo: One teams are getting more involved in supporting to see this in 2024 old 10 will have that lever is displayed on one F. One academy car each and each nominate a wealthy make drive at least in the Cds.

Stefano Domenicali: We look forward to beginning our 2024 season next month. The 24-race calendar has greater regionalization and more efficient flows of races, which reduce the distance our freight kits travel globally, in support of our 2030 Net Zero Commitment. China returned to the calendar for the first time since 2019.

Brian Russo: We look forward to beginning to our 2024 season next month.

Brian Russo: The 24 race calendar has greater digitalization and more efficiently flows of races, which we view as the distance our waste keeps travel globally in support of our 2013 net zero commitment.

Brian Russo: China returned to the calendar for the first time since 2019. This explains cedars will take place in Miami, Austria, Austrian Brazil, Qatar in China.

Stefano Domenicali: The Six Springs Series will take place in Miami, Austria, Austin, Brazil, Qatar, and China. We made small changes to the format this season with Spring Qualifying on Friday, Spring Trace followed by Race Qualifying on Saturday, and the Grand Prix as normal on Sunday. And much to the delight of our fans, this off-season has certainly delivered excitement. Young talent secured seats for years to come, with Charlotte Clares committing to the Scuderia at least through 2025, and London Owens remaining in McLaren at least through 2026. Capturing the headlines, Lewis Hamilton will leave Mercedes for Ferrari in 2025 after an incredible 12 seasons with a silver arrow.

Brian Russo: We made small changes to the format the seasonal woods Prequalify on Friday Sprint race, followed by re qualifying on Saturday and the Grand Prix is normally on something.

Brian Russo: And much to the lights of our fence these outsourced and that suddenly the rebuilt exciting young for leaded to secured seats for years to come with Charlotte classical meeting to discuss it here at least through 2035 in London, Lloyd's, but many mcleod of leased through 2026 capture the headlines Lewis Hamilton, Let's say this fall.

Brian Russo: Regarding 2025 after an incredible two with 12 seasons with the silver arrows.

Brian Russo: I'm incredibly proud of the accomplishment in 2023 and eager to begin our 24 season.

Stefano Domenicali: In closing, I'm incredibly proud of the accomplishments in 2023 and eager to begin our 24th season. We have a solid financial foundation and an attractive growing fan base. Our team is focused on deepening this fandom with optimized content and platforms to boost engagements while capturing more fast data so we can better tailor our commercial outcome. These efforts are spread across protecting our established fans, nurturing newly acquired fans, and growing up into new cohorts, especially younger audiences and underserved growth markets like Asia. We will continue to invest in our sport to capitalize on our incredible momentum. Avanti Tutta, Full Speed Ahead!

Brian Russo: We have a solid financial foundation and an attractive growing fan base. Our team is focused on deepening these fun Dom with optimized content.

Brian Russo: To boost engagements, while capturing more fast data. So we can better tailor our commercial outreach. These airports are spread across protecting our establishes fat neutering newly acquired fast and growing that into new cohorts, especially younger audiences and under served growth markets like Asia.

Brian Russo: We'll continue to invest in our sport to capitalize on our momentum.

Brian Russo: Altitude that full speed ahead.

Gregory B. Maffei: And now, I will turn the call back over to Greg. Bye-bye, ciao. Thank you, Stefano, and thank you, Brian, listening audience. We appreciate your continued interest in Liberty Media and the Atlanta Braves holding. And with that, operator, I'd like to open the line for questions. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key.

Brian Russo: And now I will turn the call back over to Greg Bye-bye Joe.

Brian Russo: Yeah.

Gregory B. Maffei: Thank you Stefano and thank you Brian.

Gregory B. Maffei: The listening audience. We appreciate your continued interest in Liberty media and the Atlanta Braves Holdings.

Speaker Change: And with that operator, I'd like to open the line for questions.

Speaker Change: Thank you.

Speaker Change: Ask your question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Barton Crockett: Our first question is from Ben Swinburne with Morgan Stanley. Please proceed with your question. Thanks. Good morning and congratulations to Renee and the Las Vegas team on a great race and outcome. I know that was a lot of work. Greg, I had a couple for you and maybe one for Brian if he's willing to entertain them.

Speaker Change: Our first question is from Brett.

Speaker Change: Ben Swinburne with Morgan Stanley. Please proceed with your question.

Barton Crockett: Thanks, Good morning, and congratulations to Renee and the Las Vegas team on a great race, an outcome you know that was a lot of work.

Barton Crockett: Greg I had a couple for you and maybe one for Brian if he was willing to entertain it.

Gregory B. Maffei: You mentioned optimizing the cost structure in Las Vegas for year two. I just maybe could spend a minute on what the opportunities are and, even if you're willing to tell us where in the P&L that might show up between the kind of G&A at F1 versus direct cost. Any thoughts on a new Concord agreement? That had been something you guys had talked about trying to hammer out last year. Just curious if you had any update there. And then, Brian, I didn't know if you had any guidance for us on CapEx at F1 in 24, you know, now that everything is sort of built, but you probably have some maintenance costs on all these new assets. So, that was it. Thanks so much.

Barton Crockett: You mentioned optimizing the cost structure in Las Vegas for a year or two I, just maybe you could spend a minute on what the opportunities are.

Barton Crockett: And even if you're willing to tell us where we are in the P&L that might show up between kind of G&A that F. One versus our direct costs.

Barton Crockett: Any thoughts on a new concrete agreement that had been something you guys had talked about trying to execute last year. I'm. Just curious have you had any update there and then Brian I didn't know if you had any guidance for us on Capex at F. One in 'twenty four and now that everything is sort of built but you probably have some maintenance costs on all these new assets so that was it.

Speaker Change: Thanks, so much.

Gregory B. Maffei: Ben, I'm going to touch on optimizing the cost structure, then let Rene add to it. And on the Concord Agreement, I'll let Stefano explain where we stand. So on the cost structure, look, because we moved with real speed to try and get Las Vegas up in record time, many things were done to accommodate a great fan experience and make sure we got it done on time. And with the benefit of more time, there are many things we can optimize. There, for example, there's a temporary structure, a bridge that was put over one of the roads that will become what was our cost and will not be reincurred.

Speaker Change: Well, then I'm going to touch on the optimizing the cost structure, then let renee add to it and on the Cochrane agreement I'll, let Stefano cover where we stand so on the optimized the cost structure.

Speaker Change: Because we moved with real speed.

Speaker Change: To try and get a Las Vegas up in a record time.

Speaker Change: Many things were done to accommodate a great fan experience and make sure. We got done on time and with the benefit of more time. There are many things we can optimize their for example, there's a temporary structure a bridge that was put over.

Speaker Change: One of the roads that will become it was our cost that will not be re incurred.

Speaker Change: There are.

Gregory B. Maffei: There was work that was done around ensuring great security that I think we'll learn how to do that in a more cost-effective manner. But I'll let Rene touch on other items that she thinks we might. Sure, thanks, Greg. So, to Greg's point, we really did lean in on...

Speaker Change: There was work that was done around ensuring a great security that I think will learn how to do that in a more cost effective manner, but I'll, let renee touch on other items, which he thinks we might be able to save a lot.

Renee: Alright, Thanks, Greg.

Renee: So to Greg's point, we really good lean in on transportation planning and security no. One knew just how traffic would flow we were hoping for the best but planning for the worst and it did turn out to be significantly better than anyone fear that will hopefully allow us this year to start looking for areas that we can cut back and we also have the benefit in year two of having it.

Rene: I implicitly said that it takes time and skilled managers, self-authorized engineers, and many others. We also have the benefit in year two of having a playbook. Again, we had to lean in on fan experience and other events that would allow us to create that inaugural race weekend that we needed for year one. But this year, we are looking very closely at every line item on the budget to see where we can maximize the fan experience and ensure safety, while also looking to really cut back on it. Some of that will be, I think most of that will be direct costs, and some of that will be in G&A. I would think most of them, yeah, most would be in the operating.

Renee: Hey, Doc I'm again, we had to lean in on fan experience and other events that would allow us to create that.

Renee: An audio race weekend that we needed them for year, one but this year. We are looking very closely at every line item on the budget to see where can we maximize the fan experience and ensure safety. While also looking to really cut back on some of those desktop.

Renee: Some of that will be I think most of that'll be direct costs. Some of that will be in G&A, but mostly directed great Brian.

Rene: Stefano, do you want to touch on the Cochrane Agreement? Yeah, thank you, Greg. Yes, Ben.

Speaker Change: I would think most of them yeah, most would be in the operating cost.

Speaker Change: Definitely want to touch on the Cochrane agreement.

Speaker Change: Yep. Thank you Greg.

Stefano Domenicali: So we expect to address the renewal of the Concord agreement with the teams very, very shortly. Our view, which is basically shared with the teams, is that basically the Concord agreement would not need any substantial changes this time around. So we're going to start very, very soon.

Speaker Change: It's been so we expect to address the renewal of the concert agreement with the teams very very shortly.

Brian: We add to our view that these basically shared with the things that the basically the Concorde agreement that would need to will not need any substantial changes. This time around so we're going to start very very soon.

Brian: We had priority to finalize before the end of the season talking about, you know, regulation and other stuff with regard to other things that need to be solved before. So now we're getting close to the time where we're going to start this discussion very, very shortly, as I said, Ben. And then, lastly, Ben, on the CapEx, we're not going to disclose any specific numbers, but we would expect it to start to trend back to what our goal is, the rate it was in the past, specifically on LBGP. The team might evaluate different opportunities where you could put stuff on the balance sheet versus having it as rentals in OPEX. So those opportunities might arise, but overall, we wouldn't expect it to be over. Thanks so much.

Speaker Change: Priority two finalize before the end of the season and talking about you know regulation and other staff with them with regard to other things that need to be solved before so now we're getting closer to the time will be then establish discussion very very shortly as I said that.

Speaker Change: Got it.

Speaker Change: And then lastly ban on the on the Capex.

Speaker Change: We're not going to disclose any specific numbers, but we would expect it to start to trend back to what our normal rate was in the past specifically on L. B G. P. The team might evaluate different opportunities where you could.

Speaker Change: Put stuff on the balance sheet versus having it as rentals and opex, so those opportunities might arise, but overall, we wouldn't expect it to be overly material.

Speaker Change: Thanks, so much.

Brian Russo: Our next question is from Brian Kraft with Deutsche Bank. Please proceed with your question. Hi, good morning. I had one for Greg, Stefano, and Brian.

Speaker Change: Our next question is from Bryan Kraft with Deutsche Bank. Please proceed with your question.

Brian Russo: Hi, good morning.

Brian Russo: One for Greg and Stefano and Brian.

Gregory B. Maffei: Greg, I was wondering if you could walk us through the steps that you still need to take in order to close the spin merge with Sirius XM. Stefano, I was wondering if you could just clarify, will the Madrid Grand Prix bring the race count to 25 in 2026, or will it substitute for Barcelona or another race? And then also, Stefano, if you could just comment, I mean, just qualitatively, on the media rights outlook. It seems like 2024 will be a lighter year from a media rights revenue growth standpoint based on the renewal schedule, and then a stronger year in 2025. I just wanted to see if that was right. And then the last one I had was for Brian.

Brian Russo: Greg I was wondering if you could walk us through the steps that you still need to take in order to close the spin merge with Sirius XM.

Brian Russo: Stefano I was wondering if you could just clarify.

Brian Russo: Well the Madrid Grandpre bring in the race count to 25 in 2026 or a substitute for Barcelona or another race.

Brian Russo: And then also as Stefano if you could.

Brian Russo: Just comment I mean, just qualitatively on the media rights outlook. It seems like 2024 will be a lighter year from a media rights revenue growth standpoint based on the renewal schedule and then a stronger year in 25 I just wanted to see if that was right and then the last one I had was for Brian.

Gregory B. Maffei: Brian, I was wondering if you could just help us with some baseline numbers for quint events so that we could, you know, try to model that correctly, you know, any estimate of revenue and EBITDA from last year and any color on seasonality. Thanks. So I'll touch on the first one. We received initial comments from the SEC on the proxy, and I think those were relatively light.

Brian Russo: Brian I was wondering if you could just help us with some baseline numbers for quint events. So that we could try to model that correctly any any estimate of revenue and EBITDA from last year and any color on seasonality. Thanks.

Brian: So I'll touch on the first one we received.

Brian: Initial comments from the SEC on the proxy.

Gregory B. Maffei: Credit the legal and accounting teams for answering those, or having a proxy that was clear and transparent, and we'll be able to answer those relatively quickly. So that will need to be cleared, the final proxy, by the SEC before we can go forward with a vote at the Liberty Syria level. We also have a parallel process with the FCC that I think is relatively pro forma. We do not believe that will be the long pole in the tent, so we're still targeting.

Brian: I think those were relatively light.

Brian: Credit the legal and.

Brian: Accounting teams for.

Brian: Answering those are having a proxy that was clear and transparent and we'll be able to answer those relatively quickly so that will need to be cleared the final proxy by the SEC before we can go more with a vote.

Brian: At Liberty Siri level, we also have a parallel process with the FCC that I think is relatively pro forma we do not believe that will be the long pole in the tent. So we are still targeting.

Gregory B. Maffei: Early third quarter, some chance we may be able to get it done quicker, but we're trying to manage your expectations and ours. Questions for the next part of the question. It's, I would say, I think I can come in, Greg, to answer Brian's point about Madrid. Madrid 26, and that is a year where there will be a lot of Grand Prix where, mainly, Europe, we have different options that we can take over. Therefore, I think Madrid shows one thing that was very important for us, to see that the attention left is there also in the old continent, where everyone was thinking, oh, you know, we need to move out of Europe because there's no more interest. Madrid showed the opposite.

Brian: Early third quarter, some chance, we may be able to get it done quicker, but we're trying to manage your expectations and ours.

Brian: Next question, but the next part of the questions.

Brian: It's a I would say I think I can come in Greg to answer Brian.

Brian: To the point of Madrid, Madrid, 26, and that that is a year, where there will be a lot of Grand Prix, where theyre, mainly euro we have different options there'll be can take over and therefore I think Madrid shows once he does what's very important for us to see that the the attention that's one.

Brian: Either they're also in the in the old continent, where everyone was thinking Oh, you know we need to move out to euro because theres not any more theaters, but we show the opposite I think towards the sea. So you're going to you're going to see something interesting. We are discussing with other promoters in Europe to do something that would.

Stefano Domenicali: I think you're going to see something interesting. We have discussed it with other promoters in Europe to do something that will be announced as soon as we close, for sure. But Madrid will be a big boost because the event will be organized in a place where, as Greg was mentioning at the beginning of his speech, will be on a sort of track and a place where it will be around the convention area to allow give the opportunity to the fans to live that event in an incredible way. But, of course, so far, the focus in Spain is on Barcelona.

Brian: It will be announced as soon as we close for sure, but <unk> will be a big boost because the event will be organized in a place where as Greg was mentioning at the beginning of his speech.

Brian: The sort of track and a place where we'll be around the convention area to allow us to.

Brian: Given the opportunities of the fast to lead that event in an incredible way, but of course, so far just focus in Spain in Barcelona is a big can lead them to do a big lumpy. There. The next capital needs that with regard to the media right that would say there are two points that I think that we cannot consider like the 2020 full because we just signed up.

Stefano Domenicali: There is a big commitment to do a great Grand Prix there in the next couple of years. But with regard to the media right, I would say there are two points that I think that we cannot consider light in 2024 because we just signed a very important deal with BEIN for the next 10 years. And we do believe that also F1 Plus TV will be going very, very well this year. So I think that, for sure, this is a year where we're going to see another growth. And, of course, we are getting ready for a very important year when, in two years' time, there will be the media deal in the U.S. that will be a very important deal we need to discuss at the right moment, where we believe this will be another step in terms of our growth in that sense. Yeah, and then Brian, on Quint, we're not going to give the 2024 numbers, but what we would say is that the acquisition So you can kind of do the math from there.

Brian: Very important deal with Dean.

Brian: For the next 10 years and we do believe that also the F. One blast Tvs, we're going very very well. This year. So I think that for sure is in the year, whether you're going to see another growth and of course, Oh, we are getting ready for a very important year when that in the future in two years' time that will be the the media deal in U S that will be a very important.

Brian: Some deal we need to discuss it at the right moment, where are we going to believe where we believe this will be another step in terms of our growth in that landscape.

Speaker Change: Yes, and then Brian on Quinn, we're not going to give the 2024 numbers, but.

Speaker Change: What we would say is that the acquisition should be accretive to the formula One group overall.

Speaker Change: So you can kind of do the math from there it's not overly material to the formula one business, but it should be accretive going forward.

Brian: It's not overly material to the Formula One business, but it should be accretive going forward. Thank you. Maybe just one follow-up for Greg. Greg, what's the amount of time you need between SEC approval for the proxy and the vote and then the vote and closing the transaction? They...circa two months.

Speaker Change: Thank you and then maybe just one follow up for Greg just Greg what's the.

Gregory B. Maffei: The amount of time, you need between FCC approval for the proxy and the vote and the vote and closing the transaction.

Gregory B. Maffei: Say circa two months.

Gregory B. Maffei: Okay, gotcha. Thanks very much. I appreciate it. Our next question is from David Karnovsky with J.P. Morgan. Please proceed with your question. Thank you.

Speaker Change: Okay got you. Thanks.

Speaker Change: Thanks, very much I appreciate it.

Speaker Change: Yeah.

Speaker Change: Our next question is from David Karnofsky with J P. Morgan. Please proceed with your question.

David Karnofsky: Alright, thank you.

David Karnovsky: For Gregory, I think your biggest hotel partners were consistent in their views on their earnings calls, but the race should have a broader appeal and benefit some of the lower end or further properties on the strip. So, interested in how you're thinking about potentially accommodating that and what it means for the race in terms of ticketing or operational adjustments. And then for Brian, F1 operating leverage for the year was a little better than we think some investors had anticipated. You know, in the release, you called out a reduction in the team payout percentage as per the 2021 Concord. Just want to make sure that was the main driver and there weren't any kind of any one-time adjustments to consider.

David Karnofsky: For Gregor a day.

David Karnofsky: I think your Vegas Hotel partners were consistent in their views on their earnings calls that the rates should have a broader appeal and benefits some of the lower end or further properties on the strip. So interested in how youre thinking about potentially accommodating that and what it means for the race in terms of ticketing or operational adjustments and then for Brian.

David Karnofsky: F. One operating leverage for the year was a little better than I think some investors had anticipated.

David Karnofsky: So you called out a reduction in machine payout percentage as compared to 2021 Concord.

David Karnofsky: Want to make sure that was the main driver or weren't kind of any onetime adjustments to consider.

Gregory B. Maffei: I'll let Renee touch on the Vegas part. Yeah, thanks for the question. So we will be going on sale pretty soon, and when we go on sale, you'll see that we have a... and many more. Thank you. We are actually creating a brand new general admission-only zone, which will have single-day tickets and will be at the lowest price point that you will have seen for the last year. This is largely driven to accommodate the lower end properties and also to bring downtown.

David Karnofsky: I'll, let renee to touch on the Vegas partners.

Renee: Yeah. Thanks for the question. So we will be going on sell pretty soon and when we go and sell you'll see that we have a significantly higher number of general admission, we're actually creating a brand new general admission only zone.

Renee: But you will have single day tickets and will be at the lowest price point that you've all seen for the Las Vegas Grand Prix. This is largely driven to accommodate the lower end properties and also to bring downtown into the mix. We are also working in partnership with the all D. C. D. A to actually engage downtown different types of Activations potentially watch parties, but really just spreads is.

Rene: We are also working in partnership with the LBCBA to actually engage downtown, different types of activations, potentially watch parties, but really to spread the benefit of what was an incredible weekend throughout the entirety of the valley. And then on the F1 operating leverage, to your point, it primarily is the team fees. There's lots of ins and outs, but there's no material one-time item.

David Karnofsky: Benefit of what was an incredible weekend throughout the entirety of the Bali.

David Karnofsky: Okay.

David Karnofsky: And then on the on the F. One operating leverage to your point it primarily as the team fees, there's lots of ins and outs, but theres no material one time items.

Brian Russo: Great, thank you. Our next question is from David Joyce with Seaport Resource Partners. Please proceed with your question. Thank you. I just wanted to try to get a finer point on the team payments there. Would Quint be excluded from team share payments, or would some of those activities, if one related, be involved? I guess the same would go for any other acquisitions. Would any tuck-ins be outside of the Concord Agreement?

Speaker Change: Great. Thank you.

David Karnofsky: Our next question is from David Joyce with Seaport Research Partners. Please proceed with your question.

David Karnofsky: Yeah.

David Joyce: Thank you just wanted to try to get a finer point on the team payments. There would 15 that'd be excluded from team share payments or would some of those activities if thoroughly if one related that'd be involved.

David Joyce: I guess the same would go for any other acquisitions, what went into it with any tuck ins be outside of the Concorde agreement.

David Joyce: And related to that, how are you balancing reinvesting in the business versus thinking about capital returns from here? Thanks. So I think Quint had an arm's length deal in place prior to our purchase of F1, and we would expect that arm's length deal to continue, but the Quint results are part of the F1 tracking stock, not part of F1. And that would likely be the case for any other acquisition. Can't say absolutely because it would depend on the company, but likely that would be outside the F-1 group or the F-1 operating statement, the shared...

David Karnofsky: And related to that how are you balancing reinvesting in the business versus thinking about capital returns from here. Thanks.

David Karnofsky: So I think quint has an arm's length deal existing prior to our purchase with F. One and we would expect that arms like deal to continue but the results are part of the one tracking stock not part of F. One.

David Karnofsky: And that would likely be the case for any other acquisitions cant say, absolutely because it would depend on the company, but likely that would be outside the U F. One group or the F. One operating statement and shared with the teams.

Gregory B. Maffei: Uh, you know, we continue to weigh opportunities like Vegas. Obviously, we look at lots of sporting properties. We think we have something to bring to the sporting world based on what we have been able to achieve at F1. And we think there are some things that we could bring forward to other sports properties. But we're judicious in that.

David Karnofsky: <unk>.

David Karnofsky: We continue to weigh our opportunities like Vegas, obviously, we look at we look at lots of sporting properties. We think we have something to bring to the sporting world based on.

David Karnofsky: What we have been able to achieve it that's why don't we think there are some things that we could bring forward to other sports properties, but we're judicious in that.

Gregory B. Maffei: And people approach us because of those. Certainly, looking at continued share repurchase is an alternative as well, and we weigh third-party alternatives that might arise with that. Thanks. And on the Braves, if we could just get an update on where that process is with the bankruptcy courts and the RSNs, please. Derek, do you want to touch on that?

David Karnofsky: And people approach us because of those skills.

David Karnofsky: Certainly looking at continued share repurchase is an alternative as well and we way.

David Karnofsky: Third party alternatives that we might arrive that might arise with that.

Speaker Change: Thanks, and if I could add one on the Braves, if we could just get an update please on where that the process is with the.

Speaker Change: Yeah with the bankruptcy courts on the euro sense. Thanks.

Speaker Change: Derek do you want to touch on that.

Derek: Sure. Thanks for your question.

Derek: Sure, thanks for your question. We're watching that closely, and what we see is that the bankruptcy presentation that was made is still being followed. Diamond Sports seems to have a plan for emerging from bankruptcy, as you've probably read. We're watching and seeing that just like you are.

Derek: We're watching that closely and what we see as the bankruptcy.

Derek: A presentation that was made is still being followed diamond sports seems to have a plan for emerging from bankruptcy as you've probably read.

Speaker Change: We're watching and seeing that just like you are.

Derek: For our purposes, we're still getting full payment and operating the agreement as normal. So at this point in time, nothing's deviating from that. We don't expect that, especially as they've laid out in their plan. All right. Thank you very much.

Derek: For our purposes, we're still getting full payment.

Derek: Operating the agreement.

Derek: As normal so at this point in time, nothing is deviating from that and we don't expect that.

Derek: Especially as they've laid out for their appointment.

Speaker Change: Alright, Thank you very much.

Derek: Yeah.

Barton Crockett: Our next question is from Barton Crockett with Rosenblatt Securities. Please proceed with your question. Okay, thank you for taking the question. I'm just wondering about EBITDA growth year over year.

Derek: Our next question is from our in Crockett with Rosenblatt Securities. Please proceed with your question.

Crockett: Okay. Thank you for taking the question.

Crockett: I'm just wondering on the EBITDA growth year over year.

Gregory B. Maffei: You know, I understand you're not going to break out Vegas in any specificity, but is there any comment you can make on whether or not Vegas provided any material impact on that EBITDA change? Did it, you know, go up, down, or was it no impact?

Crockett: I understand youre not going to break out Vegas in any specificity.

Crockett: But is there any comment you can make on whether or not Vegas.

Crockett: <unk> provided any material impact on that EBITDA change did it.

Crockett: Up down or was it no impact.

Gregory B. Maffei: because that was a very big kind of year over year growth and that was a new race that was obviously meaningful. So that's one. Secondarily, following up on the Braves kind of questioning, I was wondering if you could comment on some of the discussion that Major League Baseball is interested potentially in rolling up sports local team rights for its own kind of streaming service. And that could, you know, potentially, be a roadblock or, you know, something to be resolved as you go through this diamond restructuring. So if you could talk about the kind of your views, your support for that idea. Thanks.

Crockett: Fix that was very big kind of year over year growth and that was in a race there.

Derek: It was obviously meaningful so that's one and then.

Derek: Secondarily on the.

Derek: Following up on the Braves kind of questioning.

Derek: I was wondering if you could comment on some of the discussion that major League baseball is interested.

Derek: Potentially rolling up sports local team rights.

Derek: So I'm kind of streaming service.

Derek: And if that could potentially.

Derek: You know be a roadblock or something to be resolved as you go through this diamond restructuring if you could talk about kind of your views your support for that idea. Thank you.

Derek: So touching on LPG P. I can say that Lvg V. G. P was a positive concho contributor to <unk> earnings for 2023, and with the cost optimization measures, we've discussed and frankly you know.

Gregory B. Maffei: So touching on LVGP, I can say that LVGP was a positive contributor to Fwan's earnings for 2023, and with the cost optimization, measures we've discussed, and, frankly, you know, improved interest in the race and improved potential price points, I think we will see a greater contribution in 2024. I think that's where we'll leave that. On MLB, I think I'm reluctant to comment.

Derek: Improved interest rates and improved potential price points I think we will see a greater contribution in 2024.

Speaker Change: That's where we'll leave that on M.

Derek: M L. B I think I'm reluctant to comment you've seen some of the public actions that MLP has was against some of the diamond proposed restructurings, but other than that I think.

Gregory B. Maffei: You've seen some of the public actions that MLB has taken against some of the diamond proposed restructurings. But other than that, I think we'd leave it alone. Other than Derek, if you want to add.

Speaker Change: We'd leave it alone other than Derek if you want to add anything.

Derek: Now the only other thing I might say, just a point of clarification if you're not aware, the current agreement with Diamond does not include streaming rights, so those streaming rights continue to be held at the league level. That's not necessarily the case for all teams, but in our case, it is, and so we're obviously deferential to what the league is going to do as a whole, but right now, our streaming remains at the league-wide level. Okay, great. Thank you. Our next question is from Stephen Lazik with Goldman Sachs. Please proceed with your question. Thanks, Good morning.

Derek: No. The only other thing I might say just point of clarification, if youre not aware.

Derek: The current agreement with Diamond does not include streaming rights. So those streaming rights continue to be held at the league level, that's not necessarily the case for all teams, but in our case it is and so.

Derek: We're obviously differential to what the league is going to do as a whole but right.

Derek: Right now our streaming remains with the league wide level.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question is from Stephen <unk> with Goldman Sachs. Please proceed with your question.

Stephen: Thanks, Good morning, two one formula one maybe for both Greg and Stefano first one Patrick could you maybe talk a little bit about where you see opportunity to grow a hospitality revenues in 'twenty four I'm curious what inning.

Stephen Lazik: Two on Formula One, maybe for both Greg and Stefano. First on Patek, could you maybe talk a little bit about where you see opportunity to grow hospitality revenues in 24? I'm curious about any pricing increase front right for Patek. It's been a pretty nice tailwind over the last few years.

Stephen: <unk> increased front and where we're at for panic, it's been a pretty nice tailwind over the last few years and then are there any areas across the slate in particular, where do you think there's opportunity to grow capacity.

Stefano Domenicali: And then, are there any areas across the slate in particular where you think there's opportunity to grow capacity? And then, secondly, on sponsorship, nice growth in 23. Could you maybe just talk a little bit more about the opportunity in 24? How much room do you feel like there still is to increase inventory without diluting the existing sponsorship value add? Stefano, I think you mentioned creating some new assets.

Stephen: And then secondly on sponsorship nice growth in 'twenty three could you maybe just talk a little bit more about the opportunity in 24, how much room do you feel like there still is to increase inventory without diluting the existing sponsorship.

Stephen: Value add Stefan I think you mentioned, creating some new assets be curious if you talk a little bit more about that and what verticals remain large opportunities. Thank you.

Stefano Domenicali: I would be curious to talk a little bit more about that and what verticals remain large opportunities. Thank you. Stefano, do you want to start with hospitality? Yes.

Speaker Change: Definitely do you want to start on hospitality.

Stefano Domenicali: Yeah, thank you, Greg. Thank you, Stephen. I think that what has been amazing in the last couple of years is that our offer in terms of Padaplab has always been appreciated by our customers. We did some adjustments on pricing, not everywhere, because, of course, we understand that, of course, prices are very important, very sensitive things to do or to apply. And therefore, I think that what we have done this year, which is basically already confirming an incredible demand from our partners, teams, and guests, is try to maximize the eventual potential of growth in the area where there is still availability of space. And the other thing that we are doing is to see if there is another kind of offer that we can put together. Of course, the fact that now we are together with Quint, we can exploit the maximum opportunity to make sure that the Padaplab experience can grow also in the area of entertainment, because that's another place where we are exploiting in a different way the racing we can offer our fans.

Speaker Change: Yes. Thank you Greg Thank you Steven I think that to.

Definitely: What that's been amazing these in the last couple of years, but the fact that the our offer in term of Paddock club has been always appreciated by the customer we did some adjustments on pricing not everywhere because of course, we understand that Oh of course, the prices are very important but it's just simply it seems to do or to apply.

Definitely: And therefore I think that's what we have done this year that these basically already confirming an incredible request from our partners and teams and guests is try to maximize the eventual potential of growth and added that he sees availability of space and the other thing that's worth.

Definitely: We are doing these proceeds there is another kind of offer that we can put together of course. The fact that now we have together with quint begun to exploit the maximum opportunity to make sure that's it.

Definitely: The other publics Peter's can grow also in data of entertainment because that's another place where we have a exploit in a different way that recently, we can experience for our fans.

Stefano Domenicali: And with regard to sponsorship, I think that what we have seen in the last couple of years has been an incredible growth in terms of quality and in terms of quantity of our partners. That means that we need to keep having the right attention toward this kind of revenue stream, but that also means that we need to be ready to increase our possibility of having the right offer in terms of new opportunities. I think that one that is pretty clear that we are able to optimize, and we did so already last year, in a way, was the digital possibility to differentiate this different option for our partners from area to area.

Definitely: And with regard to the sponsorship I think that what we have seen the last couple of years has been an incredible growth in terms of quality and quantity of our partners that means that we need to keep it.

Definitely: Having the right attention towards these kind of revenue stream, but that means that also we need to be ready to increase our possibility to having the right.

Definitely: Offer into in terms of new opportunities I think that the one that is pretty clear that they are able to optimize that we've done already last year and in a way has been the digital plus.

Definitely: Possibilities to differentiate from <unk>.

Definitely: Added to add add these are deferred.

Definitely: Option for our partners and all the other side of course, there are two main added whether that we believed that has potential to do both we need to add the right competence and we need to find the right partners calls here. The complexity that is one that is as the gambling.

Stefano Domenicali: On the other hand, of course, there are two main areas where we believe there is potential to do so, but we need the right competences, and we need to find the right partners, considering the complexity. That is one area, gambling, and the other area is financial services, which took a big step last year with Amex, but I think that is a huge opportunity that we can take into the future. And that is really where I believe in the long term that the potential to even grow is still there and will be there. I got it.

Definitely: And then the other area is on the financial services.

Definitely: It's been already taken a big step last year with the IMAX, but I think that is a huge opportunity that we can take into the future and thats really where I believe in the old term that has the potential to even grow it seems that and it will be and will be there.

Stefano Domenicali: Thank you. Thank you. Our next question is from Peter Cipino with Wolf Research. Please proceed with your question. Hi, good morning.

Speaker Change: Got it thank you.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Thank you. Our next question is from Peter Zaffino with Wolfe Research. Please proceed with your question.

Peter Zaffino: Hi, Good morning, one first a final one for Greg Stephano, if you wouldn't mind with Silverstone and Madrid in Sao Paulo in Suzuka all signs in the last quarter I guess, we have seen contracts locked in for five or 10 years.

Peter Cipino: One for Stefano, one for Greg. Stefano, if you wouldn't mind, with Silverstone, Madrid, San Paolo, and Suzuka all signed in the last quarter, I guess we have seen contracts locked in for five or 10 years in some cases. How should we be thinking about the trade-offs in terms of contract duration, escalators, and step-ups for promotion rights like this? Curious about the pros and cons and how we can think about that for modeling.

Peter Zaffino: Some cases, so how should we be thinking about the trade offs in terms of contract duration escalators step ups for promotion rights like this I'm curious about the pros and cons and how we can think about that for modeling and then Greg If you could please comment on the.

Stefano Domenicali: And then, Greg, if you could please comment on the bigger picture for sports rights. It's become very controversial, this topic that was once only driven by optimists. And if you could let us know how you see sports rights values playing out over the next several years, given the puts and takes of when you're in streaming. Thank you. Well, Peter, thank you.

Greg: Bigger picture for sports rights, it's become very controversial this topic that was once.

Gregory B. Maffei: Only driven by Optimists.

Greg: And if you could let us know how you see sports rights audience, playing out over the next several years given the puts and takes of linear and streaming. Thank you.

Greg: Well Peter Thank you for the with regards to the first question I think is always well.

Gregory B. Maffei: With regard to the first question, I think, as always, when we take decisions with regard to renewal, there are a lot of elements that we need to consider. First of all, the financial aspect is relevant, no doubt, and the fact that we are able to stabilize with certain promoters, which we believe represent an incredible opportunity in terms of our stability on this market, is a relevant element to consider. The fact that, in the last couple of years, we have been able to ratify incredible agreements with certain promoters means that there is, from one side, of course, a very interesting financial package, but on the other side, an incredible opportunity to develop our business in other areas that are on top of the one that is related to the promotional fee, and that's really our approach.

Speaker Change: We take the decision with regard to the renewal.

Gregory B. Maffei: Local vendors so that we need to consider first of all of course, the financial expertise relevant no doubt and I and the fact that we are able to stabilize with solta promoter, which we believe will represent an incredible opportunities in in in terms of our stability on this market. These are relevant.

Gregory B. Maffei: Element to consider.

Gregory B. Maffei: The fact that in that you have seen in the last couple of years that we were able to ratify and credible.

Gregory B. Maffei: The agreement with certain promoted MS. Bad Daddy's from one side of course that are very interesting financial package, but on the other side that incredible opportunities to develop our business in that the added that's added on top of the one that is related to the promotional fee and Thats really our our approach it is clear that the E U.

Gregory B. Maffei: It is clear that, if you see the development of our regionalization of the calendar, we have moved out from being European-centric to a very worldwide basic development that needs to be kept into the future. I just want to confirm the fact that we believe 24 races is the right number, and I think that we're going to play in the right way. I was mentioning just briefly before the fact that we have certain opportunities that we want to bring to the market in the next couple of years, starting from 2026 onwards. So if I could just add to what Stefano said, look, you weigh... Not unlike their sports rights questions, which I'll get to in a sec.

Gregory B. Maffei: See the development of our original Alization off the calendar, we have moved out from being that European centric to a very worldwide basic development that needs to be kept into the future.

Gregory B. Maffei: Just want to confirm the fact that we believe 24 races is the right number and I think that we got that play in there actually I was mentioning just briefly before on the fact that we have certain opportunities you want to bring into the market in the next couple of years.

Peter Zaffino: In sum 2026 onwards.

Speaker Change: So I could just add on what Stefano said look the way I think it's.

Peter Zaffino: Not unlike the sports rights question, which I'll get to in a SEC your way.

Gregory B. Maffei: What's the appeal of the venue? And what are the economic opportunities for us? And in general, if you see us cut a very long deal, you must think we think it's a pretty good opportunity, both on the fan basis and on the economic basis. But if you see a shorter-term deal, that's open to question. And so we weigh all of those on the sports rights issue. Clearly, the world has gotten more muddled, as you suggested.

Peter Zaffino: What's the appeal of the venue.

Peter Zaffino: And what are the economic opportunities for us and in general if you see us cut a very long deal you must think if we think it's a pretty good opportunity both on a fad basis and on the economic basis, you see a shorter term deal that's open to questions and so we weigh all of those on the sports rights.

Peter Zaffino: But like the world has gotten more muddled as you suggested.

Gregory B. Maffei: In general, more people bidding, that's a positive. Also, more sports, that may be a challenge. And then there is the issue of fragmentation and trying to find where your sport is for your fans and making it easy. You know, we are always looking, particularly given our big sponsorship business, at the tradeoff between reach and what we get paid. So lots of factors there. Overall, whether you're positive or negative, I would note I feel very positive about the sports properties we're involved with. Why?

Peter Zaffino: In general.

Peter Zaffino: More people bidding that's a positive.

Peter Zaffino: Also more sports that may be a challenge.

Peter Zaffino: And then the issue of fragmentation and trying to find where you're sport is for your fans and making it easy we are always looking particularly given our big sponsorship business on the trade off between reach and what we get paid.

Peter Zaffino: Lots of factors there overall on whether you are positive or negative I would note I feel very positive about the sports properties were involved with why both have incredible fan demand have high ratings.

Gregory B. Maffei: They have incredible fan demand, and have high ratings relative to what they get paid. Both have passionate fan bases, as I suggested. Look at the ratings for where the Braves are, look at who is watching F1 and where they're willing to get up and watch it early in the morning. Both of them are not hugely monetized relative to what some of their peers are monetized.

Peter Zaffino: Relative to what they get paid both have a passionate fan base as I suggested look at the ratings for the Braves or look at who is watching F. One and where they want to get up and watch it early in the morning both.

Peter Zaffino: Both of them both of them are not hugely monetize relative to what some of their peers are monetized.

Gregory B. Maffei: And I think if you look at sports rights in general, you've seen renewals on properties that did not necessarily have massive growth and still get more money. So I remain, in general, bullish on sports rights given the multiplicity of buyers and, in particular, bullish on the sports rights where the properties are involved. That's a great answer. Thank you. And if I could pile on with one since my esteemed colleagues seem to be comfortable doing the same.

Peter Zaffino: And I think if you look at sports market in general you've seen renewals on properties that did not necessarily have massive growth.

Peter Zaffino: They'll get more money.

Peter Zaffino: I remain in general bullish on sports rights, given the multiplicity of buyers and in particular bullish on the sports rights and the properties were involved in.

Speaker Change: That's great answer thank you and if I could pile on with one since my esteemed colleagues seems you'd be comfortable doing the same I wanted to ask you on.

Gregory B. Maffei: I wanted to ask you about the US media rights for F1, the ESPN renewal. It's well, it's generally understood that ESPN doesn't earn much advertising revenue on that contract. And so how do you think about the case for them paying more? I think the case, you know, and obviously I have a little bit of a bias for this, is pretty easy.

Speaker Change: The U S media rights for F. One the ESPN renewal, it's well, it's generally understood that ESPN doesn't earn much advertising revenue on that contract and so how do you think about the case for them pay more.

Speaker Change: I think the case.

Speaker Change: Obviously I have a little bit of bias for this I think the case is pretty easy you've got one of those cases, where you have massive growth in fan interest and we can show statistically how much our fan interest has grown across all sorts of platforms. We have a very desirable upscale audience, we have a younger audience.

Gregory B. Maffei: You've got one of the cases where you have massive growth in fan interest, and we can show statistically how much our fan interest has grown across all sorts of platforms. We have a very desirable upscale audience. We have a younger audience. There are a lot of factors that they would like to bring to the party, ESPN or anybody else, not to limit it to that. So I think there are a lot of reasons why we can make the case that our media rights in the U.S. are more valuable, and there will likely be a multiplicity of players, and we will likely get a better number. Thank you all. Thank you. Our last question is from Jeffrey Woodzisak with Pivotal Research Group. Please proceed with your question. Good morning guys.

Speaker Change: A lot of factors that they would like to bring to the party ESPN or anybody else not to not to.

Speaker Change: Limited to that so I think there are a lot of reasons why we can make the case that our media rights in the U S are more valuable and there will be likely a multiplicity of players and we will likely get a better number.

Speaker Change: Thanks, you all.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Our last question is from Jeffrey <unk> with pivotal Research group. Please proceed with your question.

Jeffrey Woodzisak: I had a follow-up on Vegas. Do you anticipate, after your Vegas experience, taking a promoter role in more races, I guess post-25 and then specifically on your decision not to let it in the 11th team? I assume you need a new, I guess you could provide color on that, and then do you need a new Concord agreement to raise the entry fee to make more teams more palatable for the existing teams? Thanks. Thanks, Jeff.

Jeffrey: Good morning, guys I had a follow up on Vegas do you anticipate after your banks experienced taking a promoter role and more races, I guess post 'twenty five.

Jeffrey: And then specifically on your decision not to lead in the lab team.

Jeffrey: I assume you use a new coffee I guess can you provide color on that and then do you need a new Concorde agreement to raise the accuracy to make a more teams more palatable for the existing James Thanks.

Gregory B. Maffei: I'll touch on the first part about promotion or co-promoting or what else; you'll see my answer. And then, Stefano, maybe you will comment on the 11th, about promotion. Look, I think we went in and promoted Vegas for a variety of reasons. We thought it was a unique opportunity to promote the sport. We thought it was a unique economic opportunity. We thought we would learn a lot about being a promoter and make us more credible with other promoters. I do not know that there are many opportunities out there like Vegas where we're going to say we absolutely want to do it. There may be opportunities in the future where we can partner with promoters. Some promoters are short on capital, and some promoters are short on some skills, and there are things that we could bring to the table. But in many cases, our promoters bring local knowledge, local contacts, and local strengths that are very valuable, and we wouldn't necessarily be able to supplant them.

Speaker Change: Thanks, Jeff I'll I'll touch on the first part about.

Speaker Change: Promotion or co promoting or you'll see my answer and then Stefan maybe you will comment on the 11th team.

Stefan: Yeah, so on on.

Jeffrey: Motion look I think we went in and promoted Vegas for a variety of reasons. We thought it was a unique opportunity to promote the sport. We thought it was a unique economic opportunity. We thought we would learn a lot about being a promoter and make us more credible with other promoters.

Jeffrey: I do not know that there are many opportunities out there like Vegas, where we're gonna say, we absolutely want to do this.

Jeffrey: There may be opportunities in the future, where we can partner with promoters. Some promoters are short on capital. Some promoters are short on some skills and there are things that we could bring to the table, but in many cases, our promoters bring local knowledge local contacts local strengths.

Jeffrey: That are very valuable and we.

Jeffrey: We wouldn't necessarily be able to supplant those so in some way to think about enhancing that and working together I think that's the more likely path in thinking we're going to become a promoter of a bunch of races.

Stefano Domenicali: So in some ways, to think about enhancing that and working together, I think that's the more likely path to thinking we're going to become a promoter of a bunch of races. And yeah, Geoffrey, with regard to the second question, I think for sure it is a point related to the Concord Agreement. It is a point of, you know, joint work that has to be done between the FIA and FOM in regard to the different kinds of evaluation that we need to do. So, with regard to what has happened, I think that the process has been followed, and we presented the result in the right way. For the future, it is a matter of discussion, of course, with the right commercial and technical proposition that will be discussed accordingly this year. Thank you. All right, thank you. I believe that was our last question. Thank you again to the listening audience for both your interest in Liberty Media and The Braves. We look forward to speaking with you again next quarter, if not sooner. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Jeffrey: And yes, Jeff with regard to the second question <unk> for short is ease of bonds related to the comfortable element. These are point of you know a joint work that has to be done between the FAA and therefore it means we go out to the different kind of evaluation that we need to do so I think that with regards to.

Jeffrey: What does happen I think that the person has been follow it in the end that we presented the result in the right way for the future is a matter of discussion of course with the teams with the right commercial and technical position that we'll be discussing accordingly in there within this year.

Speaker Change: Thank you.

Speaker Change: Alright. Thank you I believe that was our last question. Thank.

Speaker Change: Thank you again to the listening audience for both your interest in Liberty media and the Braves are we look forward to speaking with you again next quarter if not sooner.

Speaker Change: Okay.

Jeffrey: Okay.

Speaker Change: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.