Q4 2023 Liberty Media Corp Earnings Call - Q&A
Brian J. Wendling: Also, during Q4, Liberty Sirius XM paid down $80 million under the... Margin loans, $61 million of which was from the monetization of its $1.8 million better case share. 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. We have $1.3 billion in principal amount of debt against these holdings. 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 XM.
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.
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.
Speaker Change: 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 90 to 95.
Brian J. Wendling: Turning to the Formula One Group. At quarter end, Formula One Group had attributed cash and liquid investment, which includes $1 billion of cash held directly at... Note, the Quinn Acquisition closed in January, which will be a use of Formula One 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 $536 billion. NF1's $500 million revolver remains undrawn, and leverage at the end of the year was $1.9. As we've said in the past, the F1 business is best analyzed on an annual basis, so we'll only be speaking to full-year results.
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, followed 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: Sanchez on which any such statement is based.
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 release issued today, which are available on Liberty media.
Brian J. Wendling: 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 Las Vegas, 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.
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.
Gregory B. Maffei: And Liberty's, Chief accounting and principal financial Officer, Brian Wendling.
Gregory B. Maffei: Also during the Q&A, we will answer any questions related to Atlanta Braves holdings, and brace management will be available to.
Gregory B. Maffei: So let me begin with Liberty Sirius XM.
Gregory B. Maffei: I want to ask Siri transaction is on schedule.
Gregory B. Maffei: We filed the preliminary proxy.
Gregory B. Maffei: The first.
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.
Brian J. Wendling: Team payments as a percent of pre-team adjusted OIBD as reported was 63% in 2023, down from 66%. Other costs of F1 revenue increased from 23% of total revenue prior year to 32% of total revenue, primarily driven by promoting, organizing, and delivering, as well as increased costs of servicing addition. SG&A at 7% of total revenue was in line with historic averages.
Speaker Change: The strong operating and financial performance than 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.
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.
Brian J. Wendling: 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 weekend. 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 adjusted oil. 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.
Speaker Change: Going into 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.
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 F. One we.
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: Horton heritage market.
Speaker Change: And a new race in Madrid, beginning in 2026, which will be a partial street race when convenience fan access.
Brian J. Wendling: 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 this. Total CapEx incurred at the Formula One Group in 2023 was $426 million, approximately $390 million of which related to the development of LVC, the majority incurred at the Liberty Live!
Speaker Change: We do see continued growth in sandals.
Speaker Change: Recently this week F. One joined threat and $2 8 million followers were on board at the platform after half a day of use.
Speaker Change: We closed the Quinta acquisition in January as we previously noted and it's that growing partnership opportunities from Quint with F. One L. B G P and other sports properties, including the Kentucky Derby and the NBA All Star game.
Brian J. Wendling: Group, there's attributed cash, liquid investments, and monetizable public, $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 $6.5 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.
Speaker Change: Let me turn to a minute to Vegas.
Speaker Change: It was an incredible race, we were fortunate to have such a great outcome with a record of 181 overtakes. The podium came down to the final well. It was a great result for Formula one and created new commercial opportunities and generated fantastic Global bus Ah ha.
Speaker Change: High percentage for the first time F. One attendees and massive audiences tuned into this race it.
Speaker Change: Hey, drew marquee brands to have one for example, American Express T mobile Moet Hennessy, Google and we think these brands and the marquee aspects of joining Vegas will continue to help us in 'twenty 'twenty four and beyond.
Brian J. Wendling: 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.
Speaker Change: It was also hugely successful 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 event.
Brian J. Wendling: 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 OIBDF for the mixed-use development increased 11% in 2023. And just a reminder that SG&A was elevated for the full year due to the split-off costs. We would anticipate a $10-15 million annual run rate for corporate overhead at SG&A. With that, I'll turn it over to Stefano to discuss Formula 1. Thanks, Brian.
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 our cost structure.
Speaker Change: The year round commercial.
Speaker Change: From a commercialization efforts at 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 disclose race specifics on.
Speaker Change: This race consistent with our practice across all races.
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 weekend.
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.
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 glue.
Speaker Change: Global demand for concerts continues to grow the top 50 tours do 50% more international acts in 2023, we.
Stefano Domenicali: The race for second in the Constructor Championship came down to the final lap of the season between Mercedes and Ferrari. McLaren and Aston Martin battled for fourth, with McLaren intensifying the competition after a solid mid-season upgrade. Oscar Piastri had a stellar rookie season, securing 97 points, including two podiums and a sprint race win.
Speaker Change: We have an incredible pipeline for 2024 with no sign of consumer slowdown.
Speaker Change: 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.
Stefano Domenicali: Album fans had much to cheer about as he scored points in a number of races in 2023, helping Williams finish in seventh, showing good progress under James Doll's leadership. 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 year.
Speaker Change: The number of shows at amphitheaters 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.
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 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%.
Stefano Domenicali: All primary revenue streams grew, 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 Inaugural Las Vegas Drums.
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 banjo and Atlanta.
Speaker Change: We've seen encouraging early season trades, including for.
Speaker Change: For seven time all-star crisil.
Speaker Change: And I feel or Jared Kalinic, we are well positioned for future commercial and unfilled success.
Speaker Change: For example, 2020 for 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.
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 his second-place finish, the race-generated, fan-riching, multi-platform bus and drew in new viewers who hadn't engaged with the whole series.
Speaker Change: And with that let me turn it over to Brian for more on our financial results.
Brian J. Wendling: Thank you, Greg and good morning, everyone at year end Liberty Sirius XM group had attributed cash liquid investments and monetize them go public holdings of $90 million.
Brian J. Wendling: This excludes $216 million of cash held directly at Sirius XM.
Brian J. Wendling: During the quarter Liberty Sirius XM repaid the remaining 199 million outstanding principal of its one 375 basket convertible notes using cash on hand also during Q4 Liberty Sirius XM paid down $80 million under the margin loan 61 million of which was from the monetization of its one point.
Stefano Domenicali: The local economic benefit generated by this race 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. Tapping back to the broader calendar, the 2023 season overall delivered another year of record attendance. Six million total fans attended the race weekend, up 5% compared to the 2022 season. Twelve 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 partner 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 weekend.
Brian J. Wendling: 8 million better case shares.
Brian J. Wendling: Quarter end, there was $1 1 billion of Undrawn margin loan capacity at the parent level related to our <unk>.
Brian J. Wendling: Sirius XM margin level.
Brian J. Wendling: As of February 27th the value of our Sirius XM stock was $10 15 billion.
Brian J. Wendling: We have $1 3 billion in principal amount of debt against these holdings 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 XM.
Brian J. Wendling: 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 note. The Quin acquisition closed in January which will be a use of formula One group cash totaled.
Brian J. Wendling: Total 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 and.
Brian J. Wendling: In F. One $500 million revolver remains undrawn and leverage at the end of the year was one nine times.
Brian J. Wendling: 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 J. Wendling: Total revenue grew 25% in 2023 with 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, including ticketing revenue, which is included in race promotion sponsorship revenue, which is recognized accordingly.
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 J. Wendling: And hospitality and experienced income which is included in other F. One revenue.
Brian J. Wendling: 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.
Brian J. Wendling: 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 J. Wendling: Other F. 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.
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 sixth event in 2024. 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.
Brian J. Wendling: Same payments as a percent of pre team adjusted OIBDA as reported was 63% in 2023 down from 66% in 2022.
Brian J. Wendling: Cost 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 as well as increased cost of servicing additional hospitality offerings.
Brian J. Wendling: SG&A at 7% of total revenue was in line with historic averages.
Brian J. Wendling: 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 Formula one incurs a fixed monthly rent payment that approximates depreciation plus a variable rent component during the race weekend.
Brian J. Wendling: Note that the fixed rent payment in 2023 reflects only a portion of the year as the building wasn't occupied until closer to the race weekend.
Stefano Domenicali: For our F1.com and F1 app platforms, over 100 million unique visitors view it on 3.1 billion pages, an increase of plus 10% over 2022. 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 J. Wendling: Level of 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 J. Wendling: Looking to 2024 F. One will those 24 races, with a return of China, and MLR compared to 22 races. In this past year.
Brian J. Wendling: Quickly looking at a few cash items F. One estimated 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.
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 maximum of 24 races, early this month, we announced a 10 year extension with Silverstone and look forward to enhancement to the Paddle Club and other physical infrastructure upgrades at the Circus. 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 J. Wendling: Total 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.
Brian J. Wendling: The majority of incurred at the Formula One group corporate level.
Brian J. Wendling: At the Liberty Life group, there's attributed cash liquid investments and monetize will public holdings of $419 million, which includes ETF assets.
Brian J. Wendling: There's $400 million of Undrawn margin loan capacity related to our live nation marching along and as of February 27th the valuable admission stock was $6 5 billion.
Brian J. Wendling: We have $1 2 billion in principal amount of debt against these holdings.
Brian J. Wendling: Liberty and our consolidated subsidiaries are in compliance with our debt covenants at quarter end and then quickly looking at the Braves are the.
Brian J. Wendling: The branch business is also best analyzed on an annual basis due to fluctuations in game count.
Stefano Domenicali: We also announce 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 sports platform being Sport. 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.
Brian J. Wendling: Baseball revenue increased 9% in 2023, primarily due to increased ticket demand and attendance leading to a 14% growth in baseball that revenue and 8% growth in retail and licensing revenue.
Brian J. Wendling: Other baseball revenue declined primarily due to fewer concerts held compared to the prior year.
Brian J. Wendling: <unk> had another great year with mixed use revenue increasing 10%.
Brian J. Wendling: Total adjusted OIBDA decreased for the year, primarily due to.
Brian J. Wendling: Increased player payroll expense as braised management continues to invest in its all field success, including a number of trades and accelerated player signings in December of 2023.
Brian J. Wendling: Adjusted OIBDA for the mixed use development increased 11% in 2023.
Brian J. Wendling: 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 J. Wendling: Annual run rate for corporate overhead at the Atlanta Braves Holdings.
Stefano Domenicali: As we have said, alternative bidders, including digital players, are increasingly showing interest in live sports and increasing competition from scarce media rights. Our F1 TV product has grown significantly since launch, with active F1 TV Pro subscribers growing 37% in 2023 compared to 2022. The product has been boosted by growing the F1 calendars, 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 price increases across markets for the first time since product launch in 2018 to bring the pricing in line with the market rates for the qualifying of the offering. Turning to sponsorship, we are successful in 2023 in growing existing partnerships while securing new brands, including leveraging new assets like Las Vegas and F1 Academy to generate incremental demand. Puma and Tommy Lippicke were recently announced as official partners of the F1 Academy and will have a design livery for this season.
Brian J. Wendling: With that I'll turn it over to Stefano to discuss Formula one.
Stefano Domenicali: Thanks, Brian.
Stefano Domenicali: So it doesn't think it's the season delivers incredible raising a record financial results.
Stefano Domenicali: On the track, we want to recognize the Mexico stuff.
Stefano Domenicali: And once again on this before.
Stefano Domenicali: But I suppose the Greek baffled until you get.
Stefano Domenicali: So at least for the second in the construct of temporary she came down to define the lap of this season between let's say this and so Robert Maclean.
Stefano Domenicali: Mclaren Aston Martin Buffalo full force.
Stefano Domenicali: 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 spring to basically.
Stefano Domenicali: Album fence as much to cheer about as this court points in the number of races in 2016 suite, helping Williams things the seventh showing good progress under James Dolls Leaderships.
Stefano Domenicali: Across the entire it doesn't see season six themes were represented on the podium a reflection of the talent up and down.
Stefano Domenicali: The new regulation easy benefiting competition, because the steel and we believe this will continue in 2024.
Stefano Domenicali: That is all of the cost cap and the technical regulations continue to mature.
Stefano Domenicali: Financially the business generated record revenue and adjusted OIBDA.
Stefano Domenicali: Well the old primary revenue stream grew benefiting from new and renewed commercial agreement. Furthermore, our public cloud as an incredibly strong year with hospitality experiences revenue growing nearly 100% year on year. These were driven by the extensive suite of hospitality.
Stefano Domenicali: Speed is all things at Las Vegas lumpy as well as growth in our core public blip with a public let's sell out at 10 19 events.
Stefano Domenicali: 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 raise 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.
Stefano Domenicali: Did the why do the F. One committed to deliver an incredible event on on and off the track.
Stefano Domenicali: I don't think it saves with three on the 16000 for the weekend that as was trading from the start to finish Charlotte passive Pat us on the last lots of securities second place finish.
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 this week. Going forward, we are optimizing our existing inventory to maximize impact, exclusivity, and value for our part. We are also actively creating new assets to capitalize on our growing demand and sponsor preference for tailored opportunities in live events. There are 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.
Stefano Domenicali: The race generated funds, reaching multiplatform bus and doing new viewers, who hasn't engaged old season.
Stefano Domenicali: The local economic benefit generated by these waste is remarkable local casino partners had to break up that Avenue with mostly gaming revenue for Clark County at all time high for the month of November.
Stefano Domenicali: Stepping back to the broader calendar 2023 season overall delivered another year of record attendance 6 million total sense attended that as we get up 5% compared to the 2022 season whoever he was promoted with both the new attentiveness, including 480400.
Stefano Domenicali: 45000, the mobile well under the zero to 5000 in Mexico, and three out of the 8000 in Belgium.
Stefano Domenicali: Recent tenders remain strong through the end of the season with record crowds and somehow and Abu Dhabi.
Stefano Domenicali: That's one tool in a cross platform last season, we worked 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 finding suggests an additional 29% of voters have not currently covered by the additional measurement globally representing.
Stefano Domenicali: Almost $20 million on average per race weekend. This.
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 partners and F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F11, F12, F12, F13. 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 over 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 Formula 1. 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%.
Stefano Domenicali: The share of digital viewership is much higher for markets like the U S.
Stefano Domenicali: Rely more on video on demand as premier fastest dwarfs races, especially those with 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 orders.
Stefano Domenicali: Look at that broke STV cumulative studio. This for 2023 season, excluding digital viewership was one 5 billion and average viewership per race was approximately 70 million.
Stefano Domenicali: 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, but he made the most of the graphics grew across all of our markets I was putting serious continue to do.
Stefano Domenicali: I think these engagements throughout the season, which boosted television audience as a race weekend of businesses, but our sponsor there was an over 50% it could easily nevers Brent exposure during this peak weekends.
Stefano Domenicali: We look forward to the 60 bed for 2010 before.
Stefano Domenicali: Furthermore, one was once again the fastest growing major sports league on 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 we.
Stefano Domenicali: We grew to 71 5 million followers on social media up 17% from the prior year with continued growth, especially in the U S with social media follower with Apple.
Stefano Domenicali: 38%.
Stefano Domenicali: The U S continues to make up of our largest oldest on Youtube.
Stefano Domenicali: Those.
Stefano Domenicali: What I would add one comment F. One platforms over hundred million unique visitors viewing over people 1 billion pages I think these are plus 10% over 2022.
Stefano Domenicali: The first cohort of students from the F1 engineering scholarship embarked on their first work 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.
Stefano Domenicali: <unk> highlight videos or novel Web and App also grew by 35%.
Stefano Domenicali: And we made greater commercial progress in 2023, securing conflicts that will underpin our continued future success.
Stefano Domenicali: As of year end, we had over $12 billion in future revenue under multiyear contracts our momentum continued during the off season and into 2024.
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 10 will have their liveries displayed on one F1 Academy car each and will each nominate one female driver to race in the series.
Stefano Domenicali: Our 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.
Stefano Domenicali: Earlier this month, we announced 10 years extension would Silverstone and look forward with enhancements to the public cloud and other physical infrastructure upgrades of the circuit.
Stefano Domenicali: We are excited to welcome the mother.
Stefano Domenicali: 10 years agreement in a brand new stupid with both sweetened no suites segment from 2006 that Ace is planned by the 110000 sense initially and that has potential to expand to over 140000 over several years.
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 keeps traveling globally, in support of our 2030 Net Zero Commitment. China returned to the calendar for the first time since 2019.
Stefano Domenicali: We also announced five years are essential for our Japan, and Brazil races. With these announcements we have now finalized the old concept of negotiation for the 2025 season, and we've turned our attention to optimized at least calendar for 2026 and beyond.
Stefano Domenicali: The six spring series will take place in Miami, Austria, Austin, Brazil, Qatar, and China. We made small changes to the format this season with sprint qualifying on Friday, the sprint race followed by race qualifying on Saturday, and the Grand Prix as normal on Saturday. 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 Orange remaining in McLaren at least through 2026. Capturing headlines, Lewis Hamilton will lead Mercedes for Ferrari in 2025 after an incredible 12 seasons with the Silver Arrow.
Stefano Domenicali: Recently, 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 that support. These is on the heels of over half of those renewals signed in 2023.
Stefano Domenicali: That's one continues to benefit from the demand pull live global premium gun.
Stefano Domenicali: We're broke us the 230 threes and have a well diversified portfolio of media rights corporates across markets typically ranging from three to five years.
Stefano Domenicali: 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: That's one PD process does grow significantly since launch without T. F. One television pro subscribers growing 37% in 2023 compared to 2022, the product has been boosted by growing in the S. One Columbus and for sprint races, new in depth chose all 20 onboard camera.
Stefano Domenicali: In closing, I'm incredibly proud of the accomplishment in 2023 and eager to begin our 24-season 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!
Stefano Domenicali: This team radios and continuously adding life programming around every season plus have you bumped mobile friendly design, we believe it delivers the best in class product for fans and is now available in 20 countries.
Stefano Domenicali: 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 of the offering.
Stefano Domenicali: Turning to sponsorship we had a successful 2023 and growing the exact existing partnership while securing new brands, including leveraging new assets like Las Vegas N F. One academy to generate incremental demand.
Stefano Domenicali: Woman told me he took the recently announced as officials bothered also have while academy and will have designed liberty for the season and beauty brands like Charlotte Tilbury also became a official father, though that's what I can marking the first E ever global support partnership we also announced an attractive multi year renewal with our global partner.
Gregory B. Maffei: And now, I will turn the call back over to Greg. Bye-bye. Ciao.
Stefano Domenicali: DHL.
Operator: Thank you, Stefano, and thank you, Bryan. 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. Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
Stefano Domenicali: Going forward, we are optimizing all with existing inventory to maximize <unk>, but excludes EBT and value for our partners we have.
Stefano Domenicali: We're also actively creating new assets to capitalize our growing demand as both sort of preface for Taylor opportunity and a lot of debates.
Stefano Domenicali: There are targets vertical where we are on this.
Stefano Domenicali: Exposed, including financial services and betting to name a few.
Stefano Domenicali: Our funnel engagement activities off the track.
Stefano Domenicali: <unk> continued to gain momentum F 100 cases per location in London are recorded 400000 digital in this first year and our second UK location opening in the stomach.
Stefano Domenicali: First U S venue will open in Boston and D. C. This year with 20 venues targets 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 of that.
Ben Swinburne: You may press star 2 if you'd like to remove your question. For participants using speaker equipment, it may be necessary to pick up your hand stick before pressing start. Our first question is from Ben Swinburne with Morgan Stanley. Please proceed with your question. Thanks. Good morning and congratulations to Rene 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.
Stefano Domenicali: Yes.
Stefano Domenicali: Sustainability remains a large priority for formal one across our organization commercial buffer and therefore more that they will be provided in the coming weeks detailing our progress towards reaching the sustainability strategy, we laid out in 2019.
Stefano Domenicali: There are a number of sustainability accomplishment to highlight from a philosophy to name a few progress continuing to develop over 100% sustainable library.
Stefano Domenicali: We'll be introducing doesn't 36 and that will be a drop in fuel usable invoke cause without modification, which provides broader global benefits to the automotive industry well beyond they picked up a little but the non European events of the 2023 season to use the fleet transportation by DHL on the new fleet of biofuel the truck.
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.
Stefano Domenicali: Reducing <unk> related logistic carbon emission by 83% 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 F. One Kevin the old thing they've driver category to develop in preferred.
Stefano Domenicali: Female drivers to progress to higher levels of competition. The second season in 2024, we see F. One Academy race as a supports heaters at 740 bps.
Stefano Domenicali: The F. 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 that whilst they may drive at least in the cities.
Stefano Domenicali: We look forward to beginning to our 2024 season next month.
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, but it was at our cost which will not be reincurred.
Stefano Domenicali: The 24 race calendar has greater digitalization and more efficiently flows of races, which we use the distance our freight keeps travel globally in support of our 2013 net zero commitment shine.
Stefano Domenicali: China returned to the calendar for the first time since 2019. This is sprint's Cedars will take place in Miami, Austria, Austrian Brazil, Qatar in China.
Stefano Domenicali: We made small changes to the form of the seasonal with sprint qualify on Friday Sprint race, followed by re qualified on Saturday and the Grand Prix as normal on something.
Stefano Domenicali: And much to the life of our fence. These out season that suddenly the riva of exciting young for led to secured seats for years to come with Charlotte class committing to this good idea at least through 2035 in London, Lloyd's, but many macleod at least through 2026 cap to the headlights Lewis Hamilton, let's say this pool.
Unnamed Speaker: 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. So to Greg's point, we really did lean in on planning and security. No one knew just how traffic would flow.
Stefano Domenicali: <unk> 2025.
Stefano Domenicali: An incredible two with 12 seasons with the Silverado and Clos.
Stefano Domenicali: I'm incredibly proud of the accomplishments in 2023 and eager to begin our 24 season.
Stefano Domenicali: We have a solid financial foundation and an attractive growing fan base. Our team is focused on deepening these fun Dom with optimized content and platforms to boost engagements, while capturing more data. So we can better tailor our commercial outreach.
Unnamed Speaker: We were hoping for the best but planning for the worst, and it did turn out to be significantly better than anyone feared. That will hopefully allow us this year to start looking for areas that we can cut back on. We also have the benefit in year two of having a playbook.
Stefano Domenicali: These efforts are spread across protecting our establishes fat neutering newly acquired fast and growing into new cohorts, especially younger audiences and underserved growth markets like Asia, We will continue to invest in our sport to capitalize on our momentum.
Unnamed Speaker: Again, we had to lean in on the 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. Some of that will be, I think most of that will be direct costs, some of that will be in G&A, but most... I would think most of them, yeah, most would be in the outbreak.
Stefano Domenicali: Altitude.
Stefano Domenicali: Full speed ahead.
Stefano Domenicali: Now I will turn the call back over to per day Bye bye.
Per Day: Thank you Stefano and thank you Brian.
Per Day: Listening audience. We appreciate your continued interest in Liberty media and the Atlanta Braves Holdings.
Speaker Change: With that operator, I'd like to open the line for questions.
Speaker Change: Thank you.
Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Inflammation Tonawanda Kate your line is in the question queue.
Unnamed Speaker: Stefano, do you want to touch on the Cochrane Agreement? Yeah, thank you, Greg. Yes, Ben.
Speaker Change: 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.
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.
Tonawanda Kate: Our first question is from.
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 and 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's willing to entertain it.
Unnamed Speaker: 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 normal rate is, and what 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 overdue. 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.
Barton Crockett: 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.
Speaker Change: And I'm going to touch on the optimizing the cost structure, then let renee add to it.
Speaker Change: And on the Cochrane agreement I'll, let Stefano cover where we stand so on the optimizing the cost structure look because we moved with real speed <unk> to.
Bryan D. Kraft: Our next question is from Bryan Kraft with Deutsche Bank. Please proceed with your question. Hi, good morning. I had one for Greg, Stefano, and Brian.
Speaker Change: To try and get our Las Vegas.
Speaker Change: He gets up in a record time.
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 SiriusXM. 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.
Speaker Change: Many things were done to accommodate a great fan experience and make sure we got done on time.
Speaker Change: 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 one.
Speaker Change: The roads that will become but it was our cost that will not be re incurred.
Speaker Change: There are.
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: Sure. Thanks, Greg.
Renee: So to Greg's point, we really lean in on transportation planning and security no. One knew just how traffic with floor. We were hoping for the best 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 in play.
Stefano Domenicali: 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, any estimate of revenue and EBITDA from last year and any color on seasonality. 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.
Renee: Dark 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 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.
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.
Renee: Cut back on some of those costs.
Renee: Some of that will be I think most of that will be direct cost some of that will be in G&A, but mostly directed great Brian.
Renee: I would think most of them yeah, most would be in the operating costs again.
Speaker Change: Stefano would you like to touch on the Cochrane agreement.
Stefano Domenicali: Yep. Thank you Greg Yes, Ben So we expect to address the renewal of the concert agreement with the teams very very shortly.
Stefano Domenicali: 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.
Stefano Domenicali: We had priority to finalize before the end of the season is talking about.
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 in 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.
Stefano Domenicali: Relation and other staff with them with regard to other things that need to be sold before so now we're getting close to the time will be done is to have this discussion very very shortly as I said that.
Speaker Change: Got it.
Stefano Domenicali: And then lastly ban on the on the Capex.
Stefano Domenicali: 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.
Stefano Domenicali: 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.
Speaker Change: Our next question is from Bryan Kraft with Deutsche Bank. Please proceed with your question.
Bryan D. Kraft: Hi, good morning.
Bryan D. Kraft: One for Greg and Stefano and Brian.
Stefano Domenicali: I think you're going to see something interesting. We are discussing 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. There is a big commitment to do a great Grand Prix there in the next couple of years. But with regard to the meteorite, I would say there are two points that I think that we cannot consider light, the 2024, because we just found a very important deal that we'll be in for the next 10 years.
Bryan D. Kraft: 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 from Sirius XM.
Bryan D. Kraft: Stefano I was wondering if you could just clarify.
Stefano Domenicali: Well the Madrid Grand Prix APRA in the race count to 25 in 2026 or substitute for Barcelona or another race.
Stefano Domenicali: And then also as Stefano if you could.
Stefano Domenicali: 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.
Stefano Domenicali: Brian I was wondering if you could just help us with some baseline numbers are quite advanced 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.
Stefano Domenicali: And we do believe that also the F1 Plus TV is going very, very well this year. So I think that, for sure, 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, you know, 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 man's world. Yeah, and then Brian on Quint, we're not going to give the 2024 numbers, but what we would say So you can kind of do the math from there.
Brian J. Wendling: So I'll touch on the first one.
Speaker Change: We received initial comments from the SEC on the proxy.
Speaker Change: I think those were relatively light.
Speaker Change: Credit the legal and.
Speaker Change: Accounting teams for.
Speaker Change: Answering those are having a proxy that was clear and transparent and we'll be able to answer those relatively quickly. So that we will need to be cleared the final proxy by the SEC before we can go forward with a vote.
Speaker Change: At Liberty Siri level.
Speaker Change: 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.
Brian J. Wendling: 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: Early third quarter, some chance, we may be able to get it done quicker, but we're trying to manage your expectations and ours.
Speaker Change: Next question with next part of the questions.
Speaker Change: It's a I would say I think I can come in and Greg to answer Brian.
Speaker Change: Due to the point of Madrid, Madrid, 26, and that that is a year, where there will be a lot of Grand Prix were mainly euro we have different options there'll be can take over it. Therefore, I think Madrid shows once he does was very important for us to see that the attention. That's one easy there also.
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.
David Karnovsky: For Gregory, I think your Vegas 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, 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 kind of any one-time adjustments to consider.
Speaker Change: In the in the old continent, where everyone was thinking though.
Speaker Change: 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.
Speaker Change: It will be announced as soon as we close for sure, but <unk> will be.
Speaker Change: A big boost because the event will be organized in a place where as Greg was mentioning the a D. A.
Speaker Change: The beginning of his speech will be sort of track and a place where we will be around the convention area to allow us to give the opportunity to the fast to lead that event in an incredible way back 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 lease that we do.
Speaker Change: Regards to the media right I would say there are two points that I think that we cannot consider like the 2020 full because we just signed a very important deal with Dean.
Unnamed Speaker: I'll let Renee touch on the Vegas part. Yes, 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 significantly higher number of general admission tickets. 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 Las Vegas Grand Prix. This is largely driven to accommodate the lower-end properties and also to bring downtown into the mix.
Speaker Change: The next 10 years and we do believe that also the <unk> blast Tvs were 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, 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.
Speaker Change: Deal, we need to discuss in 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.
Unnamed Speaker: 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.
Speaker Change: Yes, and then Brian on Quinn, we're not going to give the 2024 numbers, but.
Brian J. Wendling: 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.
Speaker Change: Thank you and then maybe just one follow up for Greg just Greg Whats the.
Unnamed Speaker: 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 Quimps be excluded from team share payments, or would some of those activities, if one related, be involved?
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.
Speaker Change: Okay Gotcha.
Speaker Change: Very much appreciate it.
Speaker Change: Yeah.
Brian J. Wendling: Our next question is from David Karnofsky with J P. Morgan. Please proceed with your question.
David Karnofsky: Alright, thank you.
David Karnofsky: For Gregory.
David Karnofsky: Thank you Vegas Hotel partners were consistent in their views on their earnings calls that the rates should have a broader appeal and benefit some of the lower end or further properties on the strip so.
Unnamed Speaker: I guess the same would go for any other acquisitions. Would any tuck-ins be outside of the Concord Agreement? 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.
David Karnofsky: Interested in how youre thinking about potentially accommodating that and what it means for the race in terms of ticket in your 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 the teen payout percentage as per the 2021 Concord just want to make sure that was the main driver or kind of any one time adjustments to consider.
Speaker Change: I'll, let renee to touch on the Vegas partners.
Renee: Yeah. Thanks for the question. So we will be going on sale pretty soon and when we go and sell you'll see that we have a significantly higher number of general admission.
Gregory B. Maffei: 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... 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.
Renee: We're actually creating a brand new general admission only zone waste, which will have a 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 B L. D. C D a to actually engage downtown different types of.
Renee: Activations potentially watch parties, but really just spreads as benefit of what wasn't 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 onetime items.
Speaker Change: Great. Thank you.
Speaker Change: Yeah.
David Karnofsky: Our next question is from David Joyce with Seaport Research Partners. Please proceed with your question.
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 Carl Joyce: Thank you just wanted to try to get a finer point on the team payments. There would 15 that'd be excluded from teams share payments or with some of those activities if thoroughly if one related.
David Carl Joyce: Be involved.
David Carl Joyce: The same would go for any other acquisitions, what went into it with any tuck ins be outside of the Concorde agreement.
Unnamed Speaker: 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.
David Karnofsky: And related to that how are you balancing reinvesting in the business now 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 arm's length deal to continue with the <unk> results are part of the one <unk>.
David Karnofsky: <unk> stock now part of F. One.
Unnamed Speaker: 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.
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.
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.
R. M. Crockett: Our next question is from R. M. Crockett with Rosenblatt Securities. Please proceed with your question. Okay, thank you for taking the question. I'm just wondering about the EBITDA growth year over year, 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, up or down, or had no impact?
David Karnofsky: What we have been able to achieve it F. One and we think there are some things that we can bring forward to other sports properties, but we're judicious in 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 third party alternatives that we might arrive that might arise with that.
Speaker Change: Thanks, and if I could add one on the Braves could just get an update please on where that the process is with the.
David Karnofsky: With the bankruptcy courts on the RF sense. Thanks.
David Karnofsky: Derek do you want to touch on that.
Derek: Sure. Thanks for your question.
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 or some 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. 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: 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.
David Karnofsky: For our purposes, we're still getting full payment.
David Karnofsky: Operating the agreement.
David Karnofsky: As normal so at this point in time, nothing is deviating from that and we don't expect that.
David Karnofsky: Especially as they've laid out for their plant.
Speaker Change: Alright, Thank you very much.
David Karnofsky: 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.
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: Provided any material impact on that EBITDA change did it.
Crockett: Up down or was it no impact.
Crockett: Thanks that was very big kind of year over year growth and that was in the race that was obviously meaningful so that's one and then <unk>.
Crockett: Secondarily I D.
David Karnofsky: Following up on the Braves kind of questioning.
David Karnofsky: I was wondering if you could comment on some of the discussion that major League baseball is interested.
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 anything.
David Karnofsky: Essentially enrolling up.
David Karnofsky: Courts local team rights.
David Karnofsky: So I'm kind of streaming service.
David Karnofsky: And that that could potentially.
Unnamed Speaker: No, 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 Laszczyk with Goldman Sachs. Please proceed with your question. Thanks, Good morning. Two in Formula One, maybe for both Greg and Stefano.
David Karnofsky: 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.
David Karnofsky: 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 have discussed and frankly you know.
David Karnofsky: 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.
Speaker Change: 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.
Speaker Change: Posed restructurings, but other than that I think wed.
Stephen Neild Laszczyk: 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 what on the pricing increase front we're at for Patek. It's been a pretty nice tailwind over the last few years.
Speaker Change: We'd leave it alone other than Derek if you want to add anything.
Speaker Change: No. The only other thing I might say just point of clarification, if youre not aware of.
Speaker Change: The current agreement with Diamond does not include streaming rights so that.
Speaker Change: 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.
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.
Speaker Change: We're obviously differential to what the league is going to do as a whole but right.
Speaker Change: Right now our streaming remains at 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 hospitality revenues in 'twenty four I'm curious what inning.
Stephen: <unk> increased from where we're at for Patrick 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: 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.
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 the increased inventory without diluting the existing sponsorship.
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 ParapLab 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 and 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 areas 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 paddle cable 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.
Stephen: Value add Stefano I think you mentioned, creating some new assets be curious can you talk a little bit more about that and what verticals remain large opportunities. Thank you.
Speaker Change: Definitely do you want to start on hospitality.
Stefano Domenicali: Yes. Thank you Greg Thank you Steven I think that.
Stephen: What that's been amazing these in the last couple of years, but the fact that our offer in term of pattern play that's been always appreciated by the customer we did some adjustment on pricing not everywhere because of course, we understand that Oh of course, the prices are very important but it's is simply it's the things to do at all to apply.
Stephen: And therefore I think that's what we have done this year that he has 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 there is availability of space and the other teams.
Stephen: 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 that dip.
Stephen: <unk> can grow also in data of entertainment because that's another place where we have a exploit in a different way. The reason we can experience for our fans and with regard to the sponsorship I think thats. What we have seen the last couple of years has been an incredible growth in terms of quality and in terms of quantity.
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 towards 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, has been the digital possibility to differentiate from area to area these different options for our partners.
Stephen: <unk> of our partners that means that we need to keep it.
Stephen: Having the right attention towards these kind of revenue stream, but that means that also we need to be ready to increase our possibilities to having the right offer into in terms of new opportunity I think that the one that is pretty clear that we are able to optimize that we've done already last year and in a way has been the digital part.
Stephen: The ability to differentiate from EDA.
Stephen: <unk> to add at least deferred the option for our partners and on the other side of course, there are two main added whether that we believe that has potential to do both we need to add the right competences 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 complexities. That is one area, gambling, and the other area is financial services, which took a big step last year with Amex, but I think there 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.
Stephen: And then the other area is on the financial services said that Thats.
Stephen: It's been already taking a big step last year with Amex, but I think that is 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 would be and we'll be there.
Stefano Domenicali: Thank you. Thank you. Our next question is from Peter Supino with Wolf Research. Please proceed with your question. Hi, good morning.
Speaker Change: Got it thank you.
Stephen: Yeah.
Stephen: Okay.
Stephen: 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 San Paulo, Suzuka, all signs in the last quarter I guess, we have seen contracts locked in for five or 10 years.
Peter Lawler Supino: One for Stefano and one for Greg. Stefano, if you wouldn't mind, with Silverstone and Madrid and 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 rates 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.
Greg: Bigger picture for sports rights, it's become very controversial this topic that was once.
Stefano Domenicali: And then, Greg, if you could please comment on the following: Well, Peter, thank you. With regard to the first question, I think, as always, when we take the decision with regard to the renewal, there are a lot of elements that we need to consider. First of all, of course, 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, a very interesting financial package, but 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.
Greg: Only driven by Optimists.
Gregory B. Maffei: 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.
Gregory B. Maffei: Well Peter Thank you for the with regard to the first question I think as always.
Speaker Change: We take the decision with regard to the renewal.
Speaker Change: Local vendors so that we need to consider first of all of course, the financial expertise relevant no doubt and and the fact that we are able to stabilize with sort of promoter, which we believe will represent an incredible opportunities in in in terms of our stability on this market. These are relevant.
Speaker Change: Element to consider.
Stephen: The fact that you have seen in the last couple of years that we were able to ratify incredible agreements with certain promoted Ms bats that he'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 that added a tablet.
Stephen: On top of the one that is related to the promotional fee and that's really our our approach. It is clear that to ease that you see the development of our original Alization of the Callender, we have moved out from being a European centric to a very worldwide basic developer that needs to be kept into.
Gregory B. Maffei: 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 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. U.A.
Stephen: Future I just want to confirm the fact that that we believe 24 races is there a 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 starting from 2026.
Stephen: Woods.
Speaker Change: So I could just add on what Stefano said look your way.
Speaker Change: I think it's you.
Speaker Change: Not unlike the sports rights question, which I'll get to in effect 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.
Stephen: 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 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.
Stephen: But really 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 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 on the trade-off between reach and what we get paid So lots of factors there overall on whether you're 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 Relative to what they get paid both have Passionate fan base 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 both of them are not hugely monetized relative to what some of their peers are monetized, 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.
Stephen: In general.
Stephen: More people bidding that's a positive.
Stephen: Also more sports that may be a challenge.
Stephen: 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 tradeoff between reach and what we get paid.
Stephen: So 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.
Stephen: 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.
Stephen: Both of them both of them are not hugely monetize relative to what some of their peers are monetized.
Stephen: And I think if you look at sports market in general you've seen renewals on properties that did not necessarily have massive growth.
Gregory B. Maffei: 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.
Stephen: They'll get more money.
Stephen: I remain in general bullish on sports rights, given the multiplicity of buyers and in particular are bullish on the sports rights for 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.
Peter Lawler Supino: 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: We'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.
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: Thank you all.
Speaker Change: Okay.
Operator: Thank you. Our last question is from Jeffrey Woodzisak with Pivotal Research Group. Please proceed with your question. Good morning, guys.
Speaker Change: Thank you.
Speaker Change: Our last question is from Jeffrey will just all with pivotal Research group. Please proceed with your question.
Jeffrey Will: Good morning, guys I had a follow up on Vegas do you anticipate after your base experienced taking a promoter role and more races, I guess post 'twenty five.
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 on 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. I'll cut to the chase on the first part about promotion or co-promoting or what else. You'll see my answer.
Jeffrey: And then specifically on your decision not to let into 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.
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 <unk>.
Gregory B. Maffei: And then, Stefano, maybe you will comment on the 11th. I think we went in and promoted Vegas for a variety of reasons. We thought it was a unique opportunity to promote the sport. In fact, 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 that. There may be opportunities in the future where we can partner with promoters. Some promoters are short on capital. Some promoters are short of 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 those.
Speaker Change: Yep go on on 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.
Jeffrey: I do not know what 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.
Gregory B. Maffei: So in some ways, to think about enhancing that and working together, I think that's the, 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 teams, with the right commercial and technical proposition that will be discussed accordingly this year.
Jeffrey: And yes, Jeff with regard to the second question <unk> for short is ease of bonds related to the concrete agreement. These are points of.
Jeffrey: A joint work that has to be done between the FAA in SLM in regard to the different kind of evaluation that we need to do so I think that with regards to 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 as a matter of discussion of course with the teams with the right commercial.
Jeffrey: <unk> and technical position that will be discussed accordingly in there within this year.
Stefano Domenicali: 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.
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.
Speaker Change: Okay.
Speaker Change: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
Jeffrey: Okay.