Q4 2023 Liberty Media Corp Earnings Call - Q&A

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

Speaker Change: 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.

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

A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Under 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.

Shane Kleinstein: You may begin. Thank you. Good morning.

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

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

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.

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

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

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

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

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

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

Gregory B. Maffei: And Liberty's, Chief accounting and principal financial Officer, Brian Wendling.

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

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

Speaker Change: And what's actually Siri transaction is on schedule.

Speaker Change: We filed the preliminary proxy.

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

Speaker Change: The first.

Gregory B. Maffei: January 30th Robyn, we still expect to close by early Q3.

Gregory B. Maffei: And the NAV discount, which was about 42% prior to announcement is now close to about 25% as we had hoped and.

Gregory B. Maffei: And we expect it will continue to close.

Gregory B. Maffei: Looking at Sirius XM itself.

Gregory B. Maffei: The strong operating and financial performance that it had in 2023 showed the durability of the business.

Gregory B. Maffei: Self pay net adds were.

Gregory B. Maffei: In the second half as expected boosted by streaming.

Gregory B. Maffei: The strong margins and free cash flow generation remained largely through cost discipline.

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

Gregory B. Maffei: Importantly, they rebuilt their tech stack and relaunched their app in the fourth quarter and we are 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.

Gregory B. Maffei: At the 2024 priorities of the business first increasing 360, how adoption and boosting conversion and retention continuing to deliver engaging content recently, they signed quite popular smartwatch podcast with Jason Bateman, we learned that Shawn Hayes.

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

Gregory B. Maffei: We do expect self pay net adds improvement throughout the year.

Gregory B. Maffei: 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: An amazing 2023 F. One we.

Gregory B. Maffei: We saw double digit growth across all revenue streams and adjusted OIBDA up 22%.

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

Gregory B. Maffei: Horton heritage market.

Gregory B. Maffei: And a new race in Madrid, beginning in 2026, which will be a partial street race with convenience and access.

Gregory B. Maffei: We do see continued growth in sand.

Gregory B. Maffei: Recently this week F. One joined threat and $2 8 million followers were on board at the platform after half a day.

Gregory B. Maffei: We closed the quintet acquisition in January as we previously noted.

Gregory B. Maffei: 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.

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

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

Speaker Change: It was an incredible race, we were fortunate to have such a great outcome with a record 181 overtakes. The podium came down to the final lap. It was a great result for Formula one.

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

Speaker Change: New commercial opportunities and generated fantastic global bus.

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

Speaker Change: It drew marquee brands have one for example, American Express T mobile Moet Hennessy, Google and we think these brands any marquee aspects of joining Vegas will continue to help us in 'twenty 'twenty four and beyond.

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

Speaker Change: We look forward to building on the success of that'll be 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.

Gregory Maffei: The year-round commercialization efforts at Grand Prix Plaza are developing, but we will expect only a modest contribution from those in 2024. Corporate events at that site kicked off around the Super Bowl this year. In summary, the Vegas race exceeded our expectations on many levels, even though year one costs came in higher than we had anticipated. We do not intend to disclose race specifics on this race, consistent with our practice across all races. I would note that we are kicking off the F1 season with testing in Bahrain, which has already taken place, and look forward to the first race in Bahrain this weekend. Turn to Live Nation.

Speaker Change: The year round commercial.

Speaker Change: From a commercialization efforts.

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

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

Speaker Change: In summary, the Vegas rates exceeded our expectations on many levels, even though year one cost came in higher than we had anticipated we do not intend to close disclose specifics on 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.

Speaker Change: Curt.

Speaker Change: Turning to live nation.

Gregory Maffei: 2023 was the biggest year ever, where there were all-time highs for attendance, ticket sales, and sponsorship. Concert attendance grew 20% with 145 million fans. Global demand for concerts continues to grow.

Speaker Change: 2023, with the biggest year ever.

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

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

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

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

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

Speaker Change: Last year at this time.

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.

Gregory Maffei: Obviously, there was incredible team performance in 2023. So much to highlight. I know one; the 947 runs scored were the first in MLB, and it tied an MLB home run record as well.

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%.

Gregory Maffei: The Braves also experienced great financial growth for the year. Baseball revenue was up nine percent. We've seen continued success result in higher payments under MLB's revenue-sharing plan, so that is the one negative about our continued revenue growth. But I'd also note battery revenue was up 10%, and not just in its way, but it was up 11%. We clearly benefit from the strengths of the Braves Territory. In a recent study by YouGov, the Braves had 8.4 million fans in the South region, number one in MLB. And over 65% of all other local sports team fans support the Braves, which is the highest crossover of any fandom in Atlanta.

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

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

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

Speaker Change: In a recent study by you Gov.

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

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

Gregory Maffei: We've seen encouraging early-season trades, including for seven-time All-Star Chris Hill and outfielder Jared Kalenic. We are well positioned for future commercial and on-field success. For example, 2024 season tickets are already sold out, and there is a 16,000 person wait. We are looking forward with bated breath to the home opener against the D-backs on April 5th. And with that, let me turn it over to Brian for more on our finances. Thank you, Greg, and good morning, everyone. At year-end, Liberty SiriusXM Group had attributed cash, liquid investments, and monetizable public holdings of $9.5 billion. This excludes $216 million of cash held directly.

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

Speaker Change: For seven time all-star crisil.

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

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

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

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

Brian J. Wendling: Thank you, Greg and good morning, everyone at year end Liberty Siriusxm group had attributed cash liquid investments and monetize 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 SiriusXM repaid the remaining $199 million outstanding principal of its 1.375 basket convertible notes using cash. Also, during Q4, Liberty SiriusXM paid down $80 million under Margin loans, $61 million of which was from the monetization of its $1.5 billion... $8 million better case year. 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 SiriusXM group attributed principal amount of debt is $11.1 billion, which includes $9.3 billion of debt held directly at SiriusXM.

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, our Liberty Sirius XM paid down $80 million under the margin loan 61 million of which was from the monetization of its one point.

Brian J. Wendling: 8 million better case shares.

Brian J. Wendling: Quarter end Theres $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 Siriusxm 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 had attributed cash and liquid investment, which includes $1 billion of cash held directly. Note the Quinn Acquisition closed in January, which will be a use of Formula One Group cash. Total Formula 1 Group attributed principal amount of debt was $2.9 billion, which includes $2.5 billion of debt at Formula 1, leaving $500 billion. NF1's $500 million revolver remains undrawn, and leverage at the end of the year was $1.2. 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.

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 now Quint 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: N F. One 500 million dollar 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 the best analogue annualized 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. 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 commercial arrangements. Other F-1 revenue grew 42%, or $196 million, driven by hospitality and experiences, largely attributed to the Las Vegas event, as well as growth in the paddock club and other events, partially offset by reduced freight income due to the easing of freight cost inflation. Team payments as a percent of pre-team adjusted OIVD as reported were 63% in 2023, down from 66%.

Brian J. Wendling: Total revenue grew 25% and 20 twenty-three without 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.

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

Brian 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: 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 and SG&A at 7% of total revenue was in line with historic averages. Corporate and other adjusted OIVD was a loss of $39 million in 2023, which includes $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.

Brian J. Wendling: Other costs about one revenue increased from 23% of total revenue in the prior year to 32% of total revenue this year.

Brian J. Wendling: Merrily, driven by promoting organizing and delivering to Las Vegas Grand Prix as well as increased cost 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 years the building wasn't occupied until closer to the race. Corporate level expense at Formula One Group was also elevated due to the split off and reclassification. 2024 Formula One Group Corporate and other tests. Quinn Acquisition that closed in January as well as a full year. Looking to 2024, F1 will host 24 races with the return of China and Imola compared to. 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 OEBD, increasing towards low double digits in future years as a result of F1. Total CapEx incurred at the Formula One Group in 2023 was $426 million At the Liberty Live group, there's attributed cash, liquid investments, and monetizable million, which includes ETF assets.

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

Brian J. Wendling: <unk> closer to the race weekend.

Brian J. Wendling: Corporate level expense at Formula One group was also elevated due to the split off and reclassification costs in 2020 for Formula One group corporate and other adjusted OIBDA will benefit from the Quin acquisition.

Brian J. Wendling: Closed in January as well as a full year of the rent payments.

Brian J. Wendling: Looking to 2024 F. One was 24 races with the 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 weighted up increasing towards low double digits in future years as a result of the U K tax rate increase.

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. But the majority of incurred at the Formula One group corporate level.

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

Brian J. Wendling: There's 400 million of undrawn margin loan capacity related to our live nation, and as of February 27th, the value of the Live Nation stock was $6.2 billion. We have $1.2 billion in principal amount of debt. Liberty and our consolidated subsidiaries are in compliance with their debt covenants at quarter end. And then, quickly, looking at the Braves.

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

Brian J. Wendling: And as of February 27th the value of live nation 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 brake business is also best analyzed on an annual basis due to fluctuations in game count.

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

Brian J. Wendling: Baseball revenue increased 9% in 2020, three 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 concert held compared to the prior year.

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

Brian J. Wendling: The battery 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.

Brian J. Wendling: Enterprise Holdings.

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

Stefano Domenicali: Thanks, Brian.

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

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

Stefano Domenicali: On the track, we want to recognize and Mexico, stopping and was once again on this who put before us.

Stefano Domenicali: The Greek basalt until yet.

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

Stefano Domenicali: So at least for this cycle in the construct of temporary she came down to the final lap of the season between the savings and survive it.

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

Stefano Domenicali: I was kept yesterday at the teller rukia season, securing 97 points.

Stefano Domenicali: These two programs in the spring to basically.

Stefano Domenicali: And album fans have much to cheer about as he scored points in a number of races in 2023, helping Williams finish 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 oil bidder for the year. All primary revenue streams grew, benefiting from new and renewed commercial agreements.

Stefano Domenicali: Album fence as much to cheer about these core points and the number of races in 2000, and said busy 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 board a reflection of the talent up and down.

Stefano Domenicali: The new regulation.

Stefano Domenicali: But if he think competition because we see them and we believe this will continue in 2024.

Stefano Domenicali: 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: Oh, Yeah, Oh primary revenue stream grew benefiting from new and renewed commercial liberty.

Stefano Domenicali: 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 sellout at 10 of 19 events. Towards the end of the season, we had the spectacular Inagola-Las Vegas round.

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

Stefano Domenicali: And you don't get these were driven by the expansive suites almost pathetically low speed is all things at Las Vegas lumpy as well as growth in our core public blip problem with a public clips allows 10 19 beds.

Stefano Domenicali: Towards the end of the season, we had this spectacular and I go to the Las Vegas Grumphie.

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 trading from the start of... Charlie Clapp passed Paris on the last lap to secure his second place, the race-generated, fan-riching, multi-platform bus and drew in new viewers who hadn't engaged all, 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.

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 I think reasonably proud of the Las Vegas team worked with multiple stakeholders in the city. We did the why do the F. One completed the libre an incredible event on all of that off the track.

Stefano Domenicali: Total ticket sales with three on the 16000 for the weekend that Ace was trading from the start to finish Charlotte passive Pat us on the last lap two securities second place finish.

Stefano Domenicali: The raised at a rate that's finally, 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, the 2023 season overall delivered another year of record attendance. 6 million total fans attended the race weekend, up 5% compared to the 2022 season. 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 remains 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 weekly.

Stefano Domenicali: Stepping back to the Buda in calendar 2023 season overall delivered another year of what they call. The attendance 6 million total fans attended the race weekend.

Stefano Domenicali: 5% compared to the 2022 season to have at least as promoted with both the new attentiveness, including 480440, 5000 up mobile well under the <unk> 5000 in Mexico and three out of the 8000 in Belgium.

Stefano Domenicali: Racist tenders remain strong through the end of the season with record crowds and somehow and Abu Dhabi.

Stefano Domenicali: That's one SKU in a cross platform last season, we worked closely with our media partners and create a new tools to estimate these the viewership on platforms and channels not covered by Nielsen I would've finding suggests an additional 29% of orders are not currently covered by traditional measurement globally representative.

Stefano Domenicali: Almost 20 million on average per race weekend. This.

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 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 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.

Stefano Domenicali: She had a digital viewership is much higher for a market like the U S.

Stefano Domenicali: Rely more on video on demand as twilio fastest towards wages, especially those with less convenient time spas live viewing we will keep working with Nielsen. This year to incorporate more of these beach below gives us into their standard reporting to provide the most accurate picture of our total audience.

Stefano Domenicali: Looking at brokers T V cumulative studio. This for 2023 season exclusive digital viewership was one 5 billion and average viewership of race was approximately 70 million.

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

Stefano Domenicali: The U S cumulative viewership was up 40%, 4% compared to the prior year setting a new season cumulative T V orders record importantly, viewership of moldy under 35, and he made the mobile graphics grew across all of our markets I was putting serious continues to do.

Stefano Domenicali: I think these engagements throughout this season, which boosted television audience as a race weekend.

Stefano Domenicali: Our sponsor there was an over 50% he could easily that was Brent exposure during this peak weekends.

Stefano Domenicali: We look forward to the 60 bed could 2024.

Stefano Domenicali: Furthermore, one of them 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.

Stefano Domenicali: We grew to 70.5 million followers on social media, up 17% from the prior year. With continued growth, especially in the U.S., where social media followers were up 28%. The US continues to make up our largest audience on YouTube and TikTok social. On our F1.com and F1 app platforms, over 100 million unique visitors viewed over 3.1 billion pages, an increase of plus 10% over 2020.

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, where social media followers with Apple.

Stefano Domenicali: 28%.

Stefano Domenicali: The U S continues to make up of our largest oldest on Youtube social buses.

Stefano Domenicali: What I would add one comment F. One platforms over hundred million unique visitors viewing over people. One video pages I think these are lost 10% over 2022.

Stefano Domenicali: 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.

Stefano Domenicali: Samsung 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: 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 years extension with Silverstone and look forward to enhancements to the Paddock Lab and other physical infrastructure upgrades at the. We are excited to welcome the Madrid-Grand Prix under a 10 years agreement on 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.

Stefano Domenicali: I'll race promotion, we are prioritizing the quality and the value of every race slots have you reached what we believe is a comfortable with me at a Max of 24 races.

Stefano Domenicali: Earlier this month, we announced that he is extension with Silverstone and look forward with enhancements to the other club and other physical infrastructure upgrades of the sugar.

Speaker Change: I'm excited to welcome them.

Speaker Change: N years agreement and a brand new stupid with both sweetened no switch segments in 2006 that asos glass by the 110000 sense initially and that has potential to expand to over 140000 over several years.

Stefano Domenicali: We also announced a five-year extension for our Japan and Brazil races. With this announcement, we have now finalized all contract negotiations for the 2025 season and will turn our attention to optimizing the risk calendar for 2026 and beyond. Additionally, on Meteorite, 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 of those renewals signed in 2023.

Stefano Domenicali: Also now five years are essential for our Japan and Brazilian races.

Stefano Domenicali: With these announcements we have now finalized the old contract negotiation for the 2025 season, and we turn our attention to optimized at least calendar for 2026 and beyond.

Stefano Domenicali: Additionally, our media right. We are delighted to have recently secured a long term part of regional deal I suppose the Mena region with its biggest port platform being that support. These is on the heels of over half of those renewals signed in 2023.

Stefano Domenicali: F1 continues to benefit from the demand for live global premium content. We are broadcasting in 200 territories and have a well diversified portfolio of media rights contracts across markets, typically ranging from 3 to 5 years. As we have said, alternative bidders, including digital players, are increasingly showing interest in live sports and increasing competition from scarce media rights.

Stefano Domenicali: That's one continues to benefit from the demand pull live global premium coffee.

Stefano Domenicali: I broke out the 230 threes and have a well diversified portfolio of media rights concepts across markets typically ranging from three to five years.

Stefano Domenicali: Set alternative bidders included digital players I think visually show an interest in live sports and it eases competition, So Scott media rights.

Stefano Domenicali: Our F1 TV product has grown significantly since launch, with active F1 TV Pro subscribers growing 37% in 2023 compared to 2020. The product has been boosted by adding more 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 our price increase across markets for the first time since product launch in 2018 to bring the pricing in line with the market rates for the qualification of the offer. Turning to sponsorship, we have a successful 2023 growing existing partnership while securing new brands, including leveraging new assets like Las Vegas and F1 Academy to generate incremental demand. Puma and Tommy Rifkin recently announced as official partners of F1 Academy and will have a design livery for this season, and beauty brands like Charlotte Tilbury also became an official partner of F1 Academy, marking their first ever global sport partnership.

Stefano Domenicali: Oh, that's one PD product that's grown significantly since launch with the F. One TV subscribers growing 37% in 2023 compared to 2022, the product has been boosted by growing in the S. One Columbus and fostering traces new in depth chose old plenty on board.

Stefano Domenicali: Catalyst team radios and continuously adding life programming around every season plus have you bumped mobile friendly design.

Stefano Domenicali: We believe you believe is the best in class product for fans and is now available in 20 countries.

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

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: Puma and told me he took the recently announced as officials pop at all to have won Academy and we love designed Liberty for the season and beauty brands like Charlotte Tilbury also became a officials bother, though that's what I can.

Stefano Domenicali: Kim the first E ever Global Sports Apis, we also in the house and attractive multi year renewal with our Google powered with DHL.

Stefano Domenicali: We also announced an attractive multi-year renewal with our global partner DHL. Going forward, we are optimizing our existing inventory to maximize impact, exclusivity, and value for our partners. We are also actively creating new assets to capitalise on our growing demand and sponsor preference for tailored opportunities in live events. There are verticals where we are underexposed, including financial services and betting, to name a few. Our fun engagement activities off the track continued 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: Going forward, we are optimizing our existing embed suite to maximize impact exclusivity and value for our buses. We are also actively creating new assets to capitalize our growing demand as opposed to a preference for the theater opportunity and a lot of debates.

Stefano Domenicali: There are pockets vertical where we are exposed including financial services and betting to name a few.

Stefano Domenicali: Our funnel engagement activities off the track.

Stefano Domenicali: To gain momentum F 100 cases per location in London are recorded for hundreds of thousands of these are still in this first year and the second U K location opening in the stomach.

Stefano Domenicali: First U S Baby will open in Boston and D. C. This year with 20 by new styles get this over the next five years. The F. One exhibition moved from a dream wedding welcome 117000 visitors.

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 FOMO1 across our organization, commercial partners, and F1P. 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 home ownership. The nine European events of the 2023 season used freight transportation by DHL on a new fleet of bio-fueled trucks, reducing related logistic carbon emissions by 83 percent.

Stefano Domenicali: Opened its second location, Indiana, that'd be the smoke and we'll continue touring iconic global seating to inspire the next generation of that purpose.

Stefano Domenicali: Sustainability remains a large priority for a while across our organization commercial path and therefore.

Stefano Domenicali: 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 to see what that would be to do since doesn't 36 and that will be a drop in fuel usable in Gulf coast without modification, which provides bloated global benefits to delta.

Stefano Domenicali: Interesting well beyond deepest blah blah blah blah.

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

Stefano Domenicali: The first cohort of students from the F1 Engineering Scholarship embarked on their first work placement with the F1 teams, and 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: The third cohort this year finally, we launched the F. One Kevin the old female driver category to developing preferred young female drivers to progress to higher levels of competition. The second season in 2024, we see F. One Academy race, either supports heaters at 740 minutes.

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

Stefano Domenicali: One teams are getting more involved in supporting to see this in 2024 old 10 will have that anybody's displayed on one F. One academy car, each and each nominate a wealthy make drive at least in the figures.

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 2013 Net Zero Commitment. China returned to the calendar for the first time since 2019.

Stefano Domenicali: We look forward to beginning to our 2024 season next month.

Stefano Domenicali: The 24 race calendar has basically generalization and motor fishing, the flaws of races, which we use the distance of a fight to keep travel globally in support of our 2013 net Zero Commission.

Stefano Domenicali: China, let's turn to the calendar for the first time since 2019. This explains cedars will take place in Miami, Austin, Austin, Brazil, Qatar in China.

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 Spring Qualifying on Friday, Spring Race followed by Race Qualifying on Saturday, and the Grand Prix as normal on Sunday. And much to the delight of our fans, this off-season has certainly delivered excitement. Young talent secured seats for years to come, with Charlie Clares committing to the Scuderia at least through 2025 and Landon Norris remaining in McLaren at least through 2026. Capturing the headlines, Lewis Hamilton will leave Mercedes for Ferrari in 2025 after an incredible 12 seasons with a silver arrow.

Stefano Domenicali: We made small changes to the Puma the seasonal with sprint qualify on Friday, Sprint's res followed by waste qualifying on Saturday and the Grand Prix is normally on something.

Stefano Domenicali: And much to the life of our offense. These all season that suddenly the rebuild of exciting young for led to secured seats for years to come with Charlotte classical meeting to discuss the idea at least through 2055 of London, Lloyd's, but many macleod at least through 2036 cap to the headlights Lewis Hamilton, Let's say this fall.

Stefano Domenicali: Regarding 2025 after an incredible with 12 seasons with the Silverado and Clos.

Stefano Domenicali: I'm incredibly proud of the accomplishment in 2020 and eager to begin our 24 season.

Stefano Domenicali: In closing, I'm incredibly proud of the accomplishments in 2023 and eager to begin our 24th season. We have a solid financial foundation and an attractive, growing fan base. Our team is focused on deepening this fandom with optimized content and platforms to boost engagement 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. Aval Pituta, Full Speed Ahead!

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.

Stefano Domenicali: These airports are spread across protecting our establishes fat neutering newly acquired fast and growing into new cohorts, especially younger audiences and under self growth markets like Asia.

Stefano Domenicali: We'll continue to invest in our sport to capitalize on our momentum.

Stefano Domenicali: Altitude.

Stefano Domenicali: Full speed ahead.

Gregory Maffei: And now, I will turn the call back over to Greg. Bye-bye, ciao. Thank you, Stefano, and thank you, Brian. We appreciate your continued interest in Liberty Media and the Atlanta Braves Holdings. 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 time will indicate your line is in the question queue. 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 the start button.

Stefano Domenicali: Now I was told the call back over to Greg Bye-bye Joe.

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

Speaker Change: 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 you a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.

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 two.

Speaker Change: Our first question is from Brett.

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

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

Benjamin Daniel Swinburne: 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.

Benjamin Daniel Swinburne: Greg I had a couple for you and maybe one for Brian if he's willing to entertain it.

Gregory 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. I was 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.

Benjamin Daniel Swinburne: 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.

Benjamin Daniel Swinburne: 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.

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

Speaker Change: Thanks, so much.

Speaker Change: And I'm going to touch on the optimizing the cost structure, then let renee add to it.

Gregory Maffei: So, Ben, I'm going to touch on optimizing the cost structure and let Renee 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, is a temporary structure or a bridge that was put over one of the roads that will become what was our cost that will not be re-incurred.

Speaker Change: And on the Cochrane agreement I'll, let Stefano cover where we stand so on the optimizing cost structure look because we moved with real speed.

Speaker Change: To try and get a.

Benjamin Daniel Swinburne: Las Vegas up in a record time.

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

Benjamin Daniel Swinburne: One of the roads that will become but it was our cost that will not be re incurred there are 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 Wilm: 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 Renee touch on other items that she thinks we might. Sure. Thanks, Greg. So to Greg's point, we really did lean in. Lighting and security. No one knew just how traffic would flow.

Renee: Sure. Thanks, Greg.

Renee: So to Greg's point, we really good lean in.

Renee: Rotation planning and security no one knew just how traffic with floor, we were hoping for the best of 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 and we also have the benefit in year two of having a playbook them again, we had to lean in organic spear.

Renee Wilm: 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. We also have the benefit, in year two, of having a playbook. 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... I would think most of them, yeah, most would be in operations.

Renee: Rents 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 cut back on some of those desktop.

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

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

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

Speaker Change: Yep. Thank you Greg.

Renee Wilm: Stefano, do you want to touch on the Cochrane Agreement? with the teams very, very shortly. We have a view, which is basically shared with the teams, that basically the Concord Agreement would need, would not need any substantial changes this time around. So we're going to start very, very soon.

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

Brian J. Wendling: We add to our view that these basically shared with the things that 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 and we have priority to finalize before the end of the season talking about you know a regulation and other stuff with them with regard.

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

Speaker Change: Two other things that need to be sold before so now we're getting close to the time well done establish discussion very very shortly as I said that.

Speaker Change: Got it.

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

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

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

Brian J. Wendling: So those opportunities might arise. But overall, we wouldn't expect it to be over. Thanks so much.

Speaker Change: Thanks, so much.

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

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

Bryan Kraft: Hi, good morning.

Bryan Kraft: One for Greg and Stefano and Brian.

Gregory 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.

Bryan 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 with Sirius XM.

Bryan Kraft: Stefano I was wondering if you could just clarify what the Madrid grandpre bring in the race count to 25, and 'twenty 'twenty six or substitute for Barcelona or another race.

Bryan Kraft: And then also as Stefano if you could.

Bryan Kraft: Just comment I mean, just qualitatively on the media rights outlook. It seems like 'twenty 'twenty four 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.

Bryan Kraft: Brian I was wondering if you could just help us with some baseline numbers are quite do that so that we could you know trying to model that correctly, you know any any estimate of revenue and EBITDA from last year and any color on seasonality. Thanks.

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, you know, any estimate of revenue and EBITDA from last year and any color on seasonality. Thanks. I'll touch on the first one. We received initial comments from the SEC on the proxy, and I think those were relatively light.

Brian J. Wendling: So I'll touch on the first one Oh, we received initial comments from the SEC on the proxy.

Bryan Kraft: I think those were relatively light.

Gregory 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 Series 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.

Bryan Kraft: Credit the legal and.

Bryan Kraft: Accounting teams for.

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

Bryan Kraft: At Liberty Siri level.

Bryan Kraft: We also have a parallel process with the FCC that I think is relatively pro forma we do not believe that will be the long pole in the tent. So we are still targeting.

Gregory Maffei: So we're still targeting early third quarter, some chance we may be able to get it done quicker, but we're trying to manage your expectations and ours. Question, 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 behind is also there in the old continent where everyone was thinking, oh, you know, we need to move out of Europe because there's no longer any interest. Madrid showed the opposite.

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

Bryan Kraft: Next question, but the next part of the questions.

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

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

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

Stefano Domenicali: I think you're going to see something interesting. We 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.

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

Gregory B. Maffei: The sort of track and a place where we'll be around the convention that to allow us to gives 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 will need them to do a big lumpy. There in the next couple of years, but with regards to the media right I would say.

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

Gregory B. Maffei: There are two points that I think that the we cannot concede the light the 2020 full because we just signed a very important deal with Dean foods.

Gregory B. Maffei: For the next 10 years and we do believe that also the F. One blast T V. We're going very very well. This year. So I think that's for sure. It is in the year. What are you going to see another growth and of course, Oh, we're 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 imports.

Gregory B. Maffei: The deal we need to discuss at the right moment, where are we going to believe what we believe this will be another step into more of a growth in that landscape.

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

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

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

Brian 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 closing the transaction? They...circa two months.

Speaker Change: Yeah.

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

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

Speaker Change: Okay circuit too much.

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

Speaker Change: Okay got you. Thanks.

Speaker Change: Thanks very much appreciate it.

Speaker Change: Yeah.

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

David Karnofsky: Alright, thank you.

David Karnovsky: For Gregory and Renee, I think your biggest hotel partners were consistent in their views on their earnings calls that 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 I think some investors had anticipated, you know, the release. You called out a reduction in the team payout percentage as part of 2021 Concord. Just want to make sure that was the main driver and there weren't kind of any one-time adjustments to consider.

David Karnofsky: Gregor a day I think your biggest hotel partners were consistent in their views on their earnings calls, but the rates should have a pause.

David Karnofsky: Broader appeal and benefits 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.

David Karnofsky: F. One operating leverage for the year was a little better than we got I think some investors had anticipated you know in the release you called out a reduction in machine payout percentage as part of 2021 Concord, just want to make sure that was the main driver or weren't kind of any one time adjustments to consider.

Speaker Change: I'll, let renee to touch on the Vegas partners.

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

Renee: Yeah. Thanks for the question. So we will be going on sale pretty soon and when you go and sell you'll see that we have a significantly higher number of general admission.

Renee: 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 the all D. C D a to actually engage downtown different types of Dr.

Brian J. Wendling: 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.

Renee: The nation's potentially watch parties, but really just spreads as benefit of what was an incredible weekend throughout the entirety of the Bali.

David Karnofsky: Okay.

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

Speaker Change: Great. Thank you.

David Joyce: Great, thank you. Our next question is from David Joyce with Seaport Resource Partners. Please proceed with your question. Thank you. I just wanted to try to get a finer point on the team payments there. Would Quint be excluded from team share payments, or would some of those activities, if they're only, if one related, be involved?

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

David Joyce: Thank you just wanted to try to get a finer point on the team payments. There would 15 that'd be excluded from teams share payments or would some of those activities. If thoroughly if one related that'd be involved I guess the same would go for any other acquisitions what went into it with any tuck.

Gregory Maffei: 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? So I think Quint has an arm's length deal existing prior to our purchase of F1, and we would expect that arm's length deal to continue, but the Quint results are part of the F1 tracking stock, not part of F1. And that would likely be the case for any other acquisition, can't say absolutely because it would depend on the company, but likely that would be outside the F-1 group or the F-1 operating statement 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.

David Joyce: <unk> be outside of the Concorde agreement and related to that how are you balancing reinvesting in the business now versus thinking about capital returns from here. Thanks.

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

David Joyce: 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.

Speaker Change: <unk>.

Speaker Change: 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.

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

Gregory 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, please, on where the process is with the bankruptcy courts and the RSNs. Derek, do you want to touch on that?

Speaker Change: And people approach us because of those skills.

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

Speaker Change: Third party alternatives that we might have right that might arise with that.

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

Speaker Change: Yeah with the with the bankruptcy court something or a sense. Thanks.

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

Derek: Sure. Thanks for your question, we're watching that closely and what we see as the bankruptcy.

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

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

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

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

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

Derek: Operating the agreement.

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

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

Speaker Change: Alright, Thank you very much.

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

Speaker Change: 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 you're not going to break out Vegas and any specificity.

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

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

Crockett: Up down or was it no impact.

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

Crockett: Picks that was very big kind of your either your growth and that was in the race.

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

Crockett: Secondarily I D a.

Crockett: Coming up on the Braves kind of questioning.

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

Crockett: Potentially enrolling up sports local team rights.

Crockett: So I'm kind of streaming service.

Crockett: And that that could potentially.

Crockett: You know be a roadblock or something to be resolved as you go through this diamond restructuring.

Crockett: You talked about kind of your views your support for that idea. Thank you.

Gregory Maffei: So touching on LVGP, I can say that LVGP was a positive contributor to funds earnings for 2023. And with the cost optimization, measures we've discussed, and frankly, you know, improved interest in the raise 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.

Crockett: So touching on L. B G. P. I can say that L V. Chile V. G. P was a positive contributor to one's earnings for 2023 and with the cost optimization measures, we've discussed and frankly you know.

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

Crockett: That's where we'll leave that on M. L. B I think I'm reluctant to comment you've seen some of the public actions that MLP has was against some of the diamond proposed restructurings, but other than that I think.

Derek Schiller: 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 should leave it alone. Other than Derek, if you want to add... 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.

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

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

Derek: The current agreement with Diamond does not include streaming rights. So those streaming rights continue to be held at the league level, that's not necessarily the case for all teams, but in our case. It is and so we're obviously differential to what the league is going to do as a whole but.

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

Stephen Laszczyk: Okay, great. Thank you. Our next question is from Stephen Laszczyk with Goldman Sachs. Please proceed with your question. Thanks, good morning.

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 of the pricing increase from where we're at for panic, it's been a pretty nice tailwind over the last few years and then are there any areas across the.

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

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: Slide in particular, where do you think there's opportunity to grow capacity.

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

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

Stefano Domenicali: I'd be curious if you talked a little bit more about that and what verticals remain large opportunities. Thank you. Stefano, do you want to start on hospitality? Yeah. Yeah. Thank you, Greg. Thank you, Stephen.

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

Stefano Domenicali: Yes. Thank you Greg. Thank you Steven I think that what that's been amazing. These in the last couple of years, but the fact that the 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.

Stefano Domenicali: I think that what has been amazing in the last couple of years is that our offer in terms of Paddock Lab 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 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're going to 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.

Stefano Domenicali: Very importantly that is just simply seems to do.

Stefano Domenicali: Or to apply and therefore I think that's what we have done these shoots that he's 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.

Stefano Domenicali: 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 quinn's begun to exploit the maximum opportunity to make sure that the depaolo Catholics Peter's can grow also in data of entertainment because that's another place where we have a exploit in a different way.

Speaker Change: The reason, we can experience for our fans and with regard to the sponsorship I think that what we have seen in the last couple of years has been an incredible growth in term of quality and quantity of our partners that means that we need to keep it.

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

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

Speaker Change: 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 over the last year and in a way has been digital.

Speaker Change: Possibilities to differentiate from our.

Speaker Change: Added to add add these are deferred the option for our partners on the other side of course, there are two main edit whether that we believe that has potential to do both we need to add the right competence and we need to find the right partners calls here the complexity that these one out of these the gambling and that the other areas on the financial services.

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

Speaker Change: It's been already taking a big step last year with the IMAX, but I think that is huge opportunity that we can take into the future and that's really what I believe in the old term that has the potential to even grow he sees that and it would be and we'll be there.

Speaker Change: Got it thank you.

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

Speaker Change: 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 there.

Peter Cipino: 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: Last quarter, I guess, we have seen contracts locked in for five or 10 years.

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

Stefano Domenicali: And then Greg, if you could please comment on the bigger picture for sports rights. It's become very controversial, this topic that was once only driven by optimists. And if you could let us know how you see sports rights values playing out over the next several years, given the puts and takes of when you're in streaming. Thank you. First of all, the financial aspect is relevant, no doubt, and the fact that we are able to stabilize with certain promoters, which we believe represent an incredible opportunity in terms of our stability on this market, is a relevant element to consider.

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

Greg: Only driven by Optimists.

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

Greg: Yeah.

Speaker Change: Well Peter Thank you for the with regard to the first question I think as always while we take the decision with regard to the renewal.

Greg: Local vendors so that we need to consider first of all of course are the financial expertise relevant no doubt and I and the fact that we are able to stabilize with sort of promoter, which we believe are presented and credible opportunities in in a in terms of our stability on this market. These are relevant.

Greg: Element to consider.

Stefano Domenicali: The fact that, in the last couple of years, we have been able to ratify incredible agreements with certain promoters means that there is, from one side, of course, a very interesting financial package, but on the other side, an incredible opportunity to develop our business in areas that are on top of the one that is related to the promotional fee, and that's really our approach. 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: The fact that to in that you have seen in the last couple of years that we were able to read these five incredible agreements with certain promoted Ms. Bad Daddy's from one side of course that are very interesting financial package, but on the other side that incredible opportunities to develop our business in that the add of the tablet.

Greg: 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 authorization of the Callender, we have moved out from being a European centric to a very worldwide basic development that needs to be kept into.

Greg: The future I just want to confirm the fact that that we believe 24 races is the right number and I think that we do not play in that 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.

Gregory 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... Now I don't like their sports rights question, which I'll get to in a sec. You weigh in... What's the appeal of the venue?

Greg: Woods.

Speaker Change: So I could just add on what Stefano said look your way.

Speaker Change: It's.

Speaker Change: Not unlike the sports rights question, which I'll get to in a SEC you way what's.

Speaker Change: What's the appeal of the venue and what what are the economic opportunities for us and in general if you see us cut a very long deal you must think it's 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.

Gregory Maffei: 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. You see a shorter-term deal, that's open to question. And so we weigh all of those. On sports rights, clearly, the world has gotten more muddled, as you suggested.

Speaker Change: But really the world has gotten more muddled as you suggested.

Speaker Change: In general.

Gregory 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.

Speaker Change: More people bidding that's a positive.

Speaker Change: Also more sports that may be a challenge.

Speaker Change: And then the issue of fragmentation and trying to find where are 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.

Greg: So lots of factors there overall on whether you are positive or negative I Wouldnt know I feel very positive about the sports properties were involved with why both have incredible fan demand have high ratings are relative to what they get paid both have a passionate fan base as I suggested.

Greg: Look at the ratings for the Braves or look at who is watching F. One and where they want to get up and watch it early in the morning, both of them both of them are not hugely monetize relative to what some of their peers are monetized and I think if you look at sports market in general you've seen renewals on properties that did not necessarily have massive growth.

Greg: I mean, it's still get more money. So 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 we're involved in.

Gregory 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.

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

Peter Cipino: 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.

Greg: Yeah.

Speaker Change: I think the case you know when I, 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.

Gregory 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. Thanks, you all.

Speaker Change: <unk>, we have a younger audience 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.

Operator: Thank you. Our last question is from Jeffrey Wouzesak with Pivotal Research Group. Please proceed with your question. Good morning, guys.

Speaker Change: Okay.

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

Jeffrey Wouzesak: I had a follow-up question 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 in an 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 accuracy level to make more teams more palatable for the existing teams? Thanks. Thanks, Jeff.

Jeffrey: And then specifically on your decision not to let into the lab team.

Jeffrey Wlodarczak: 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.

Gregory Maffei: I'll touch on the first part about promotion or co-promoting or what else, you'll see my answer. And then Stefano, maybe you will comment on the 11th, uh, go on with promotion. Look, I think we went in and promoted Vegas for a variety of reasons. We thought it was a unique opportunity to promote the sport. We thought it was a unique economic opportunity. We thought we would learn a lot about being a promoter and make us more credible with other promoters. I do not know that there are many opportunities out there like Vegas where we're going to say we absolutely want to do it. There may be opportunities in the future where we can partner with promoters. Some promoters are short on capital.

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

Stefan: Yeah. So 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.

Stefan: 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.

Gregory Maffei: 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.

Jeffrey: That are very valuable and we you know.

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

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

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

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

Speaker Change: Thank you.

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

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

Speaker Change: Yeah.

Jeffrey: Okay.

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