Q3 2024 Liberty Media Corp Earnings Call

November 7, 2024

One key pad.

As a reminder, this conference will be recorded November 7th.

Speaker Change: I would now like to turn the call over to Shane clients team Senior Vice President of Investor Relations. Please go ahead.

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 forms 10-K 10-Q, followed by Liberty media with the SEC.

Speaker Change: These forward looking statements speak only as of the date of this call and Liberty media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in liberty Media's expectations with regard there to or any change in events conditions or circumstances on which any such statement is based on.

Okay.

Welcome to Liberty Media Corporation, 2024 third quarter earnings call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press star one on your telephone keypad.

Speaker Change: Today's call, we will discuss certain non-GAAP financial measures for Liberty media, including adjusted OIBDA, the required definitions and reconciliations for Liberty media schedule. One can be found at the end of the earnings press release issued today, which is available on our website now I would like to turn the call over to Greg, Let's say Liberty's President and CEO.

A reminder, this conference will be recorded November 7th.

I would now like to turn the call over to Shane clients Qi Senior Vice President of Investor Relations. Please go ahead.

Greg: Thank you good morning today speaking on the call. We will also have formula one's president and CEO Stefano Domenicali.

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 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent forms 10-K, and 10-Q filed by Liberty media with the FTC.

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

Speaker Change: So let me start with a couple of corporate updates.

Speaker Change: May recall, we completed the OSX I'm Siri merger on the ninth of September.

Speaker Change: I look forward to remaining involved as board chair and a shareholder theory, but liberty's ties or cut we also announced updates to our voting and governance of the Atlanta Braves Holdings, and we are transitioning services directly to the Atlanta team.

These forward looking statements speak only as of the date of this call and Liberty media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in liberty Media's expectations with regard there too or any change in events conditions or circumstances on which any such statement is based.

Speaker Change: Their earnings call yesterday.

Speaker Change: This is the next step in their evolution as a standalone private company and.

Speaker Change: And I want to thank all the Braves management team for their partnership over the years, it's been fruitful.

On today's call, we will discuss certain non-GAAP financial measures for Liberty media and putting adjusted OIBDA the required definitions and reconciliations for Liberty media schedule. One can be found at the end of the earnings press release issued today, which is available on our website now I would like to turn the call over to Greg Mustang, Liberty's President and CEO.

Speaker Change: Now, let me turn to the underlying businesses beginning with the Formula One group looking at from some corporate update perspective, we refinanced the <unk>. The term loan B was refinanced at silver plus 200 bps.

Speaker Change: We expect to step down to sulfur plus 175 bps upon the deleveraging post the Moto GP transaction.

Thank you good morning today speaking on the call. We will also have formula one's president and CEO definitely Timna, Kelly and Liberty's, Chief accounting and principal financial Officer, Brian Wendling.

Speaker Change: We raised an incremental 850, <unk> term loan b and $150 million term loan a commitments to fund that motor GP transaction.

So let me start with a couple of corporate updates.

As you May recall, we completed the L. S X M series merger on the <unk>.

Speaker Change: All of that is deal contingent.

Ninth of September <unk>.

Speaker Change: We also issued $949 million of flock shares.

I look forward to remaining involved as board chair and a shareholder in theory, but liberty's ties or cut we also announced updates to our voting and governance of the Atlanta Braves Holdings, and we are transitioning services directly to the Atlanta team.

Speaker Change: Replacing the equity consideration to the sellers and the transactions that will directly pay them cash.

Speaker Change: We issued that stock at only a 4% discount to the market price and it was placed with long term holders.

Speaker Change: That completes those transactions complete the necessary funding for our motor GP acquisition, and we expect <unk> leverage to be between three and a half to four times, assuming a year end close on that <unk> deal.

Their earnings call yesterday.

This is the next step in their evolution as a standalone private company.

And I want to thank all the breaks management team for their partnership over the years, it's been so far.

Now, let me turn to the underlying businesses beginning with Formula One group looking at from some corporate update perspective, we refinanced the F. One the term loan B was refinanced itself of plus 200 bps.

Speaker Change: The F. One season itself remains highly competitive both of the constructors and drivers championship are coming down to the final races.

Speaker Change: We've seen also some really incredible financial performance at Formula one year to date with revenue up 15% and adjusted OIBDA up 21%.

We expect to step down to sovereign plus 175, bips upon the deleveraging post the Moto G P transaction.

Speaker Change: We've seen double digit growth across all of our revenue streams boosted by two additional races, and we benefited from new partners signed contractual uplifts in our contracts and the performance F. One TV and our hospitality products.

We raised an incremental 850 terminal b and 150 million term loan a commitments to fund that Moto G. P transaction.

All of that is deal contingent.

We also issued $949 million walk shares.

Speaker Change: I know, we signed several new commercial agreements, which we begin next year.

Replacing the equity consideration to the sellers in the transaction so all directly pay them cash.

Speaker Change: Lv MH and Amex were introduced to <unk> through <unk> in terms of their relationship, but now they've become broader partners with F. One.

We issued that stock at only a 4% discount to the market price and it was placed with long term holders.

That completes those transactions complete the necessary funding for our Moto G. P acquisition, and we expect that leverage to be between three and a half went to four times, assuming your yearend close on that at a G. P deal.

Speaker Change: We feel that partners continue to be attracted to the growth of the sport in the U S and our younger demographic, which is also growth.

Speaker Change: And correspondingly we feel good about the pipeline for commercial activity in 2026.

The F. One season itself remains highly competitive both the constructors and drivers championship for coming down to the final races.

Speaker Change: We all look forward to the <unk> in the coming weeks.

Speaker Change: That will be another great tactical for spam spectacle for fans attending and watching at home.

We've seen also some really incredible financial performance at Formula one year to date with revenue up 15%.

Speaker Change: We will have a free daytime fan experience, which.

And adjusted OIBDA up 21%.

Speaker Change: Which will bring energy and welcomed local Las Vegas fans to F. One and we expect great entertainment, including Ludacris, a lessor and one Republic.

We've seen double digit growth across all of our revenue streams boosted by two additional races, and we benefited from new partners signed contractual uplifts in our contracts and the performance of F. One T D at our hospitality products.

Speaker Change: Now, let me turn briefly and give you a moto GP transaction update we are making progress with the European Commission, which is our only remaining regulatory jurisdictional hurdle.

I know, we signed several new commercial agreements, which we begin next year.

Speaker Change: And we continue to expect a year end close and.

L B M H and Amex for introduced F. One through L. P. G. P. In terms of their relationship, but now they've become broader partners with F. One.

Speaker Change: And looking at the underlying Moto GP business.

Speaker Change: The Valencia race was canceled due to the tragic flooding in that region, our thoughts for the entire community.

We feel that partners continue to be attracted to the growth of the sport in the U S and our younger demographic, which is also crop.

Speaker Change: We give credit to Carmelo and the management team at <unk> for their quick and thoughtful response.

And correspondingly we feel good about the pipeline for commercial activity in 2020 six.

Speaker Change: They will pivot such as the final race will be in Barcelona will be hosted there in solidarity with Valencia.

We all look forward to the L. B G P in the coming weeks.

Speaker Change: And that will be the final race of the season.

That will be another great spectacle for spam spectacle for fans attending and watching at home.

Speaker Change: Various initiatives are also underway there to support relief efforts for Oberland Sia during that weekend.

We will have a free daytime fan experience, which.

Speaker Change: Otp racing has continued to be great with only 24 separating the title fight participants.

Which will bring energy and welcomed local Las Vegas fans to F. One.

And we expect great entertainment, including Ludacris, a lessor with one Republican.

Speaker Change: <unk> is trading well.

Speaker Change: With $2 9 million attendees year to date, which is plus 9% on a like for like races and.

Now, let me turn briefly and give you a moto G P transaction update.

Speaker Change: And six races have set all time attendance records this year.

We're making progress with the European Commission, which is our only remaining regulatory jurisdictional hurdle.

Speaker Change: And looking at the business updates.

And we continue to expect a year end close.

Speaker Change: <unk>.

Speaker Change: Motor GP extended its rights agreement with FIM their regulator until 2060.

And looking at the underlying Moto GP business.

The Valencia race was canceled due to the tragic flooding in that region, our thoughts are with the entire community.

Speaker Change: They have announced their 2025, Moto GP calendar with 22 races across 18 countries and they expect to.

Speaker Change: We released a new brand identity post season.

We give credit to Carmelo and the management team at Moto G P for their click and thoughtful response.

Speaker Change: We look forward to more exciting racing and Liberty's involvement.

They will pivot such as the final race will be in Barcelona will be hosted there in solidarity with Valencia.

Speaker Change: Turning briefly to quit.

Speaker Change: As you May recall Q3 is a seasonally light quarter, we've seen strong F. One experiences during the quarter and we are also seeing positive movement across Moto G kind of products that they are selling.

And that will be the final race of the season.

Various initiatives are also underway there to support relief efforts for Oberland to you during that weekend.

Speaker Change: Profitability in the quarter was partially by offset by softness at a different sporting again and there was an agreement with a rights holder, which was subsequently terminated by mutual agreement, which impacted our third quarter results.

Oh G. P racing has continued to be great with only 24 point separating the title fight participants.

Attendance is trending well.

With $2 9 million attendees year to date, which is plus 9% on a like for like races.

Speaker Change: And just touching on live nation.

Speaker Change: They've had strong performance through the first half despite fewer stadium concert.

And six races have set all time attendance records this year.

And looking at the business updates.

Speaker Change: They are set up very well for 2025, which will be a monster stadium here.

<unk>.

Moto G P extended its rights agreement with F. I am their regulator until 'twenty 60, they've announced their 2025 Moto G. P calendar with 22 races across 18 countries.

Speaker Change: But I won't comment further on results because <unk> did not released their earnings until Tuesday.

Speaker Change: And with that I'll turn it over to Brian for more on our financial results. Thank you, Greg and good morning, everyone. The merger of Liberty Sirius XM with Sirius XM closed on September 9th. Please note that Sirius XM Holdings is presented as a discontinued operation and Liberty's consolidated financial statements.

And they expect to.

Released a new brand identity post season.

We look forward to more exciting racing and Liberty's involvement.

Turning briefly to Quintin.

As you May recall Q3 is a seasonally light quarter.

We've seen strong half one experienced during the quarter and we are also seeing positive movement across Moto G kind of products that they are selling.

Speaker Change: Please also note that due to the timing of the live nation.

Speaker Change: Release of their reported results as Greg mentioned Liberty does not expect to file its 10-Q until Tuesday November 12.

Profitability in the quarter was partially by offset by softness at a different sporting again and there was an agreement with a rights holder, which was subsequently terminated by mutual agreement, which impacted our third quarter results.

Speaker Change: At quarter end Formula One group had attributed cash liquid investments and monetize will public holding $2 7 billion, which includes $1 4 billion of cash at up 1% and 65 million of cash it Quinn.

And just touching on live nation.

They've had strong performance through the first half despite fewer stadium concerts.

Speaker Change: The cash balances of 930 also includes proceeds from the previously mentioned <unk> share issuance.

They are set up very well for 2025, which will be a monstrous stadium here.

Speaker Change: Total Formula One group attributed principal amount of debt was $2 9 billion at quarter end, which includes $2 4 billion of debt at up one leaving $530 million at the corporate level.

But I won't comment further on our results because Oh IV did not released their earnings until Tuesday.

Speaker Change: F one $500 million.

And with that I'll turn it over to Brian for more on our financial results. Thank you, Greg and good morning, everyone. The merger of Liberty Sirius XM with Sirius XM.

Speaker Change: Revolver is undrawn and their leverage at 930 was one one times.

Speaker Change: During the quarter Liberty entered into additional interest rate swaps and as of quarter end $2 2 billion to two of the $2 4 billion of F. One.

Brian: Closed on September 9th please note that Sirius XM holdings is presented as a discontinued operation and Liberty's consolidated financial statements.

Speaker Change: That was at a fixed rate.

Speaker Change: In September of one refinanced its term loan b and extended the maturities of its debt facilities. The term loan a and revolving credit facility now mature in September 29, and the term loan B matures in September 2031.

Please also note that due to the timing of the live nation.

Release of their reported results as Greg mentioned Liberty's does not expect to file its 10-Q until Tuesday November 12.

Speaker Change: The margin on <unk> term loan B was permanently reduced from $2, two 5% to 2% with a potential to step down to 175% of certain leverage is Matt after the Moto GP acquisition closes.

Brian: At quarter end Formula One group had attributed cash liquid investments and monetize public holding $2 7 billion, which includes $1 4 billion of cash at F. One and 65 million of cash it Quinn.

Cash balance as of 930 also includes proceeds from the previously mentioned work share issuance.

Speaker Change: In connection with the refinance F. One secured incremental funding for the new Moto GP transaction and all acquisition related financing is now complete.

Total Formula One group attributed principal amount of debt was $2 9 billion at quarter end, which includes $2 4 billion of debt at up one leaving $530 million at the corporate level.

Speaker Change: A reminder, that we also obtained commitments for an incremental $150 million euro.

Speaker Change: <unk> million dollars term loan a and an upsize of $100 million.

Brian: F one $500 million revolve.

Others, Undrawn and their leverage at 930 was one one times during.

Speaker Change: Euro revolver at door not to be entered into subject to the transaction close.

Brian: During the quarter Liberty entered into additional interest rate swaps and as of quarter end $2 2 billion 2.2 of the $2 4 billion of F. One.

Speaker Change: Turning to the <unk> business I'll make comments on Q3, but remind you that the business is best analyzed on an annual basis given the impact.

That was at a fixed rate.

Speaker Change: Both the race count and mix can have on quarterly results.

In September at one refinanced its term loan b and extended the maturities of its debt facilities. The term loan a and revolving credit facility now mature in September 29, and the term loan B matures in September 2031.

Speaker Change: During the third quarter <unk> recognized a lower proportion of season based income was 724 races for 29%.

Speaker Change: Occurring during the period compared to eight out of 22 or 36% in the prior year period.

The margin on F ones term loan B was permanently reduced from 2.25% to 2% with a potential to step down to 175% if certain leverage is Matt after the Moto G. P acquisition closes.

Speaker Change: <unk> revenue declined due to this lower pro rata revenue recognition. The recognition of sponsorship income varies based on the mix of races during the quarter, including the allocation of title sponsorship and other races specific sponsorship packages.

Brian: In connection with the refinance F. One secured incremental funding for the new Moto G. P transaction and all acquisition related financing is now complete.

Speaker Change: To a lesser extent. This also contributed to the sponsorship revenue decline for the third quarter.

Brian: A reminder, that we also obtained commitments for an incremental 150 million Euro a million a term loan a and an upsized 200 million.

Speaker Change: This was partially offset by revenue from new partners compared to the prior year period.

Speaker Change: The decline in pro rata recognition of media rights revenue was partially offset by contractual fee increases and continued F. One TV growth.

Euro revolver at door not to be entered into subject to the transaction close.

Speaker Change: Race promotion revenue increased in the third quarter, despite one less rates being held due to the mix of events year over year with Azerbaijan This year compared to Austin <unk>.

Brian: Turning to the F. One business I'll make comments on Q3, but remind you that the business is best analyzed on an annual basis, given the impact there.

Speaker Change: Australia Pardon me and Japan last year.

Both the race count in Mexican have on quarterly results.

Speaker Change: Other revenue increased due to the higher licensing revenue.

During the third quarter up one recognized a lower proportion of season based income with seven out of 24 races for 29% occurring during the period compared to eight out of 22 or 36% in the prior year period.

Speaker Change: And revenue from third party events and Grand Prix Plaza.

Speaker Change: Hospitality experiences income decreased due to the mix of events in Q3. So note that the paddock club is seeing very strong growth year to date.

Sponsorship revenue declined due to this lower pro rata revenue recognition. The recognition of sponsorship income varies based on the mix of races during the quarter, including the allocation of title sponsorship and other races specific sponsorship packages.

Speaker Change: Adjusted OIBDA grew in the quarter due to the lower pro rata recognition of team payments, partially offset by the expectation of increased impairments for the full year over 2023 <unk>.

Speaker Change: Payments represented 62% of pre team adjusted OIBDA year to date through Q3 compared to $64 six in the prior year.

Brian: To a lesser extent. This also contributed to the sponsorship revenue decline for the third quarter.

Brian: This was partially offset by revenue from new partners compared to the prior year period.

Speaker Change: Reminder, that Q2 and Q3 tend to have the highest.

Brian: The decline in pro rata recognition media rights revenue was partially offset by contractual fee increases and continued F. One TV growth.

Speaker Change: Percentage payout ratios based on the greater mix of European races.

Speaker Change: We continue to expect slight leverage on <unk> payments for the full year 'twenty four relative to.

Brian: Race promotion revenue increased in the third quarter. Despite one less race being held due to the mix of events year over year with Azerbaijan This year compared to Austin.

Speaker Change: Our year to date payout as a percent of pre team sure one of them.

Speaker Change: That's consistent with the message we communicated on our Q2 call.

Austria Pardon me in Japan last year.

Speaker Change: Other cost about one revenue and SG&A should be viewed as a percent of total revenue and looking out a year to date basis. The adjusted OIBDA margin improved from 24, 4% to 25, 8% through Q3 'twenty four.

Other revenue increased due to the higher licensing revenue.

Brian: And revenue from third party events and Grand Prix Plaza hospitality experiences income decreased due to the mix of events in Q3, though note that the paddock club is seeing very strong growth year to date.

Speaker Change: Looking briefly at corporate and other results in the third quarter corporate and other revenue was $70 million, which includes <unk> results and approximately $7 million of rental income related to the Las Vegas Grand Prix Plaza.

Brian: Adjusted OIBDA grew in the quarter due to the lower pro rata recognition of team payments, partially offset by the expectation of increased team payments for the full year over 2023.

Speaker Change: Corporate and other adjusted OIBDA loss was $14 million and includes a.

Brian: <unk> payments represented 62, 2% of pre team adjusted OIBDA to year to date through Q3 compared to $64 six in the prior year.

Speaker Change: Grand Prix Plaza rental income results in corporate expenses.

Speaker Change: When results in the third quarter were primarily driven by a point experiences across the seven races held <unk>.

Reminder, that Q2, and Q3 tend to have the highest percentage.

Speaker Change: Q3 is a seasonally light quarter for Quinn.

Brian: Percentage payout ratios based on the greater mix of European races.

Speaker Change: Yeah.

Speaker Change: Turning to the Liberty Live group, there was attributed cash of $388 million.

Brian: We continue to expect slight leverage on team payments for the full year 'twenty four relative.

Speaker Change: There is $400 million of Undrawn margin loan capacity related to our live nation margin loan.

Brian: Two our year to date payout as a percent of pre team Sherwood.

Speaker Change: As of November six the value of the live nation stock held at Liberty Life Group was $8 8 billion we.

Brian: Oh, that's consistent with the message we communicated on our Q2 call.

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

Other cost about one revenue and SG&A should be viewed as a percent of total revenue and looking out a year to date basis. The adjusted OIBDA margin improved from 24, 4% to 25, 8% through Q3 'twenty four.

Speaker Change: In August Liberty issued a redemption notice for all of its <unk>, 5% live nation exchangeable debentures, approximately $12 million of debentures were redeemed and settled in the third quarter and the remainder were exchange by holders in September but did not settle out until October.

Brian: Looking briefly at corporate and other results in the third quarter corporate and other revenue was $70 million, which includes quite results and approximately 7 million of rental income related to the Las Vegas Grand Prix Plaza.

Speaker Change: The $50 million remaining debentures that settled in October with funded with cash on hand.

Speaker Change: In half one our liberty in F. One are in compliance with our debt covenants at quarter end.

Brian: Corporate and other adjusted OIBDA loss was $14 million and includes a Grand Prix Plaza rental income quick results in corporate expenses.

Stefano Domenicali: And with that I'll turn it over to Stefano to discuss Formula one.

Brian: Results in the third quarter were primarily driven by a point experiences across the seven races held and note that Q3 is a seasonally light quarter for Quinn.

Stefano Domenicali: Thanks, Brian.

Stefano Domenicali: Been a fantastic season at that point.

Stefano Domenicali: The competition across the greed is captivating audiences in the sense and on the screen. We just completed the three people out there in the Americas with amazing that shouldn't excitement on and off the track.

Brian: Yes.

Brian: Turning to the Liberty Life group, there was attributed cash of $388 million.

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

Stefano Domenicali: We have a three way battle for the constructive chimp wish you between the cloud and for the Red Bull and the drivers championship is still very alive as we head into the final races between the first step in the noise fully included events in Austin, Mexico, and Brazil in front of huge crowds.

Brian: As of November six the value of the live nation stock held at Liberty Life Group was $8 8 billion, we have $1 2 billion in principal amount of debt against these holdings.

Brian: In August Liberty issued a redemption notice for all of its 0.5% live nation exchangeable debentures, approximately 12 million of debentures were redeemed and settled in the third quarter.

Stefano Domenicali: It's been great to see that but I had to witness this year something that is threatening fans and raises excitement and the participation from our special season in 2025.

Speaker Change: Mandar, where exchange by holders in September, but did not settle out until October.

Brian: The $50 million remaining debentures that settled in October was funded with cash on hand.

Stefano Domenicali: Looking at our engagement across the season.

Stefano Domenicali: Five in medium fans out of a tender ground places through Brazil.

Brian: Liberty enough, one or Liberty in F. One are in compliance with our debt covenants at quarter end and with that I'll turn it over to Stefano to discuss formula one.

Stefano Domenicali: Attendees up season to date with sellout crowds and maybe leases and 70 basis setting new attendance records, including the British Grand Prix, which welcomed 480000 fans over the weekend the largest crop for the season.

Stefano: Thanks, Brian.

Stefano: It's been a fantastic season at that point.

Stefano: The competition across degrees East kept debating all this is in defense and on the screen. We just completed the three people out there in the Americas with amazing that shouldn't excitement on and off the track.

Stefano Domenicali: In the third quarter, we have massive crowds of over 300000 of them gallium, Belgium, that's in beta than grocery.

Stefano Domenicali: We have also have strong Bob hope that Brazil will be ceased with attendance up across almost all races, and 14 sold out.

Stefano: We have a three way battle for the constructive chimp wishing between Mcleod in Sudan, Red Bull and the drivers championship is still very alive as we head into the final races between the bus stop in the Noughties fully included events in Austin in Mexico, and Brazil, you felt of huge crowds. It does.

Stefano Domenicali: We have been expanding and innovating, our let's be turning to promise like the F. One garage and the monocle yacht to continue to provide premium experience to our offense.

Stefano Domenicali: We're promoting and investing in improved infrastructure and enhanced funding speed as well.

Stefano: It's been great to see that but I have to witness this year something that is threatening fans dam raises excitement and the participation for a special seasonings it doesn't justify it.

Stefano Domenicali: Live entertainment and the answer I'd like to be better.

Stefano Domenicali: That's a fun experience benefit the promoters and the broad F. One brand in.

Stefano: Looking at our engagement across the season.

Stefano Domenicali: You can see the most Don Carson with Kings of lie in those phones.

Stefano: Five when a medium fans out of a tender ground leases through Brazil, a tender.

Stefano Domenicali: Crowds on Thursday, and Friday evenings, and Singapore. They had the first people standing up with over 100 hours of live Entertainment. In addition to the on track action, including concept with the Kylie Minogue and Lenny Kravitz.

Stefano: <unk> Zap season to date with sellout crowds of many leases and 70 basis setting new attendance records, including the British Grand Prix, which welcomed 480000 fans over the weekend the largest crop for the seats.

Stefano: In the third quarter, we have massive crowds of over 300000, Adam Gadahn, Belgium, Dodge and they cut and Grand Prix.

Stefano Domenicali: In Austin.

Stefano Domenicali: 100000 fans attended Zamin performance.

Stefano Domenicali: The sprint races are also successfully drawing incremental notices.

Stefano: We have also that has trumped by the plant, Brazil disease with attendance up across almost all races. In 14, so that we.

Stefano Domenicali: Schism Friday of Springs weekends up approximately 30% compared to non sprint Cup weekends.

Stefano: We have been expanding and innovating our must be Tennessee brothers like the F. One garage and the monocle yacht to continue to provide premium experience to our offense.

Stefano Domenicali: TV viewership on screen. The weekend. These also on average 10% greater than non sprint weekends.

Stefano Domenicali: Discounted offers incremental benefits for our promo.

Stefano: Our promoting partners on investing and improve infrastructure and enhanced funding speed is with the live entertainment in the onsite activation.

Stefano Domenicali: <unk> partners and sponsors with increased exposure.

Stefano Domenicali: On screens average viewership for race weekend to Singapore that but it's $65 million on linear TV channels with around 20 million of incremental views on digital channels, including Youtube and F. One TD.

Speaker Change: That's a fun experience benefited the promoters and the broad that F. One brand.

Speaker Change: Consumers, Don Carson with Kings of lie in those phones, the Duke crowds on Thursday, and Friday evenings, Singapore. They had the festivals dialing up with over 100 hours of live Entertainment. In addition to the on track action, including concept, we the Kylie Minogue and Lenny Kravitz.

Stefano Domenicali: Viewership on digital channels continued to increase year over year.

Stefano Domenicali: Looking a few races in particular, the British Grand Prix was the most viewed the European recent ABA in the UK and do what they can viewership in the U S for the EBIT.

Stefano Domenicali: <unk> subscriber growth continued to be robust with subscribers up 10% year over year, and particularly strong in the U S market.

Speaker Change: In Austin.

Speaker Change: 100000 fans attended Zamin named performance must.

Stefano: The sprint races, and also successfully drawing incremental notices.

Stefano Domenicali: We continue to innovate on digital platforms, we granted wasteful fans to experience the world of platform or one.

Stefano: Schism Friday of Springs weekends at approximately 30% compared to no screens that weekends T.

Stefano Domenicali: For example, this season, we introduced video episodes for our F. One beyond the great bulk because and what time is up over 30%. Since this format was introduced.

Stefano: T V live sheep on screen. The weekend. These also on average 10% greater than know sprint do we get.

Stefano: Discounted offers incremental benefits for our promo broadcast partners and sponsor we decreased the exposure.

Stefano Domenicali: Social media followers grew 38% year over year to 94 million in part due to the new platform launches like <unk> and Whatsapp.

Stefano: Beyond screens average viewership for race weekend to Singapore that but it is a 65 million. So neither TD channels with around 20 million of incremental views on digital channels, including Youtube and F. One TD.

Stefano Domenicali: I will whatsapp partnership enables a closer direct relationship with fence to the messaging platform.

Stefano Domenicali: On the F. One app, we registered a 6 million unique users in the third quarter and we have seen continued growth from the platform contributed to a younger audience and higher engagement.

Stefano: Viewership on digital channels continue to increase year over year.

Stefano: Looking at a few races in particular, the British Grand Prix was the most viewed the European recent ever in the U K and do what they can viewership in the U S for the E bet F. One TD subscriber growth continued to be robust with subscribers up 10% year over year, and particularly strong in the U S market.

Stefano Domenicali: And when I was thrilled to open there in Washington DC location.

Stefano Domenicali: The second vendor in the U S that opening party on October 9th and nearly 1000 guests. The dislocation is hosted in a number of Grand Prix Watch party. This season, including one last month for the Austin Grumbling Net's inviting fast pool.

Stefano: We continue to innovate on digital platforms, we granted wasteful fans to experience the world of that full rollout.

Stefano: For example, this season, we introduced video episodes for our F. One beyond the greif pulp costs and what's the I'm ease up over 30% since this format was introduced.

Stefano Domenicali: If one spot gatherings like the Libra recording of the F. When they split baucus during the Mexican umbrella.

Stefano Domenicali: F. One of Kate is on track to open each Las Vegas locations in the third quarter of 2025.

Stefano: Social media followers grew 38% year over year to 94 million in part due to the new platform launches like <unk> and Whatsapp.

Stefano Domenicali: We have one exhibition reached the full stop of its global tour in London opening on August 23rd with Great reviews from these of course the location is already seen incredible demand with 135000 tickets sold and as a result of the exhibition stays at the location has been extended through the first quarter of 2020.

Stefano: Our Whatsapp partnership enables a clue.

Speaker Change: Is that a good relationship with fans to the messaging platform.

Speaker Change: On the F. One app, we registered a 6 million unique users in the took border and we have seen continued growth from the platform contributed to a younger audience and Hyatt engagement.

Stefano Domenicali: Right.

Stefano Domenicali: Turning to commercial updates we have had incredible momentum in 2024 and that continued this quarter.

Speaker Change: And for Kate was three two opened in Washington D. C. Locational double 13th the second venue in the US Then opening party on October 9th and nearly 1000 guests. The D. C location is hosted in a number of Grand Prix watch body. This season, including one last month for the Austin Grumbling any t's inviting fast.

Stefano Domenicali: Most notably our new partnership with <unk> for 2025 and expanded the agreement with American Express and Lenovo demonstrate our ability to bring an iconic brands and scale, our partnership into broader and larger deals and the MH first partner with Formula one for the last using macro less thing is growing with a presentation primarily.

Stefano: For Oh, the F. One who spies gatherings like the library coding of the F. When they split bonkers you wouldn't the Mexican hombre.

Stefano Domenicali: From its vodka Tequila brand.

Stefano Domenicali: We will now welcome as the MH is a global Department and then a groundbreaking 10 years beginning in 2025.

Stefano: F. One a Cape is on track to open each Las Vegas location in the third quarter of 2025.

Stefano: We have one exhibition reach into the full stop of its global tour in London opening on August 23rd with greater the views from these of course the location. He has already seen incredible demand with 135000 tickets sold and as a result of the exhibition stays at the location has been extended through the first quarter 2025.

Stefano Domenicali: We'll see as partners with their iconic <unk> zone, and we we don't.

Stefano Domenicali: In his seat and secondly, we will provide additional details on specific activation by these brands, adding next year.

Stefano Domenicali: American Express initially partnered with the F. One and 2023 as the original sponsor with branding activation rates in the Americas, but you need 25, we will expand our relationship with nobody with American Express, becoming an official partner and compassion, Australia Asia Europe, the Americas and the Middle East.

Stefano: Right.

Stefano: Turning to commercial updates we have had incredible momentum in 2024 and that continues this quarter.

Stefano: Most notably our new partnership with out of the <unk> for 2025 and expanded the agreement with American Express and Lenovo demonstrate our ability to bring an iconic brands and scale our partnership into broader and larger deals as the MH first partner with Formula one for the last easy macro Las Vegas Grand Prix with representation primarily.

Stefano Domenicali: Similarly, we have announced that beginning in 2025, and Lenovo will be expanded to a global bought them from their previous official partner sponsorship.

Stefano Domenicali: We are also actively adding partners shipments a new vertical something deb join us in our own retail banking partners and our multiyear agreement beginning this pleasant certified these.

Stefano: From his Vulcan Tequila brand.

Stefano: We will now welcome nvme to as a global partner and then a groundbreaking 10 years. These beginning in 2025, which will see a spot that we then iconic mizzone. We don't lay in his seat and secondly, we will provide additional details on specific activation by these brands, adding next year.

Stefano Domenicali: This partnership to support something that's open bank product the digital bank that is particularly focused on U S market expansion.

Stefano Domenicali: For more success in the U S market was a key factor in securing the symptoms that passage one other area of focus is gaining momentum these licensing.

Stefano Domenicali: We're thrilled to announce recent partnership with both legal and let them both of which bring the world of F. One into our fence day to day lips and extend our brand to new World. This is the.

Stefano: American Express initially partnered with the F. One and 2023 as a regional sponsor with branding activation of vaccines. The Americas, but you need 25, we will expand our relationship with nobody with American Express, becoming an official partner and compassion, Australia Asia Europe, the Americas and the Middle East Similarly.

Stefano Domenicali: Illegal product range of feature all F. One teams engaging content across legal digital platform versus a FY races weekend, including a fanzone activation.

Stefano Domenicali: Our Martel partnership kick off the season with the release of a one off kind F. One car and the full range of hot wheels product, we release next year.

Stefano: We have announced that beginning pleasant twenty-five lenovo will be expanded to a global bought them from their previous official partner sponsorship.

Stefano Domenicali: Looking to the rest of the season, we had a weeks away from the second less because we're opening the Las Vegas race has continued to serve as a testbed of innovation that we can leverage across the broader F. One Colombian include the opportunities in the hospitality they introduce partial ship and licensee.

Stefano: We are also actively adding partnership the new verticals something Deb join us our official retail banking partners in a multiyear agreement beginning this pleasant 25, the sponsorship support something that's open bank product their digital bank that is particularly focused on U S market expansion.

Stefano Domenicali: Last week, we announced the first of its kind special merchandise collection from those biggest ranging from a street web collaboration with the Peanuts brand to one of our cat in the Vegas Golden Knights and read this flow.

Stefano: A lot of success in the U S market was a key factor in securing the simple desktop one other area of focus is gaining momentum. These licensee we were thrilled to announce recent partnership with both legal and let them both of which bring the warden F. One into our fence day to day life lips and extend our brand into new World. This is the league.

Stefano Domenicali: Posting these in merchandize collaboration on the GB social channels with garden over one 2 million were getting impressions across the post with more than 93000 engagement and 86000 lives. This she is Las Vegas Grand Prix Leverages learnings from last year that caused the wall event, including hospitality logistic.

Stefano: Product range of feature all F. One teams engaging content that goes legal digital platform facets of F. One races weekend, including a fanzone activation.

Stefano: Our Martel partnership kick off the season with the release of a one off kind F. One car and the full range of hot wheels product, we release next year.

Stefano Domenicali: They are getting them more.

Stefano Domenicali: We'll continue to test learn and innovate in this year ahead.

Stefano Domenicali: We are proud that our sustainability strategy and continued to make progress throughout the organization on our environmental social and governance affords is.

Stefano: Looking to the rest of the season, we got a weeks away from the second less because we're opening the Las Vegas race has continued to serve as a testbed of innovation that we can leverage across the broader F. Uncollected include the opportunities in the hospitality. They entered a new sponsorship and licensing just last week, we announced.

Stefano Domenicali: In September we made our first investment these sustainable aviation fuels working with our pastor via chip. These purchases cover approximately 11% of the estimated capital flight missions across the 2034 seasons and the flights powered by sustainable aviation fuel to have an estimated 80% reduction in carbon emissions overnight.

Stefano: The first of its kind special merchandise collection for Las Vegas, ranging from streetwear collaboration with the Peanuts brand to one of a kind the Vegas Golden Knights Andrey this flow sheet.

Stefano Domenicali: We look forward to more progress through the end of this year and into 2025.

Speaker Change: She said posting these emotions nice collaboration them as the G. P. Social channels, we've gotten over one 2 million were getting impressions across the post with more than 93000 engagement and 86000 likes this year's Las Vegas grow pre leverages, our learnings from last year that caused the wood event, including hospitality.

Speaker Change: In closing for one is in a great position with a strong financial growth and incredible on track action is looking like the three way battle for the constructor will come down to the final basis.

Stefano Domenicali: We think our fence teams and partners for their support in these regular season and look forward to more action to come Avanti to full speed ahead.

Speaker Change: They're getting them more.

Speaker Change: We will continue to test learn and innovate in this year that we are proud that I was just at an ability strategy and continued to make drugs throughout the organization, while now would've been environmental social and governance affords you September when we made our first investment these sustainable aviation fuels working with our partner via chip These purchases covered our Prost.

Speaker Change: And now I will turn the call back over to Barry. Thank you Joe.

Speaker Change: Thanks, Stefano and Brian.

Speaker Change: I want to clear up one thing I might have misspoken during our corporate upgrade on the Braves. They are transitioning to a standalone public company.

Stefano Domenicali: We look forward to seeing you on Thursday November 14th for our annual Investor meeting you can Tony virtually or join us in person at our new location jazz at Lincoln Center. If you plan to attend in person. Please make sure to register by Monday November 11th as there will be no onsite residue registration the link to register it can be found on our website.

Speaker Change: 11% of the estimated capital side the mission across the 2034 seasons and the flights powered by sustainable Aviation food lab and nice to meet the 80% reduction in carbon emission brooklynite.

Stefano: We look forward to more progress through the end of this year and into 2025.

Stefano: In closing for one is in a great position with a strong financial growth and incredible on track action is looking like the Seaway battle for the constructively come down to the final basis.

Speaker Change: John Malone, and I will be hosting our annual Q&A session. If you would like to submit questions. In advance you can email investor day at Liberty Media Dot com.

Speaker Change: We appreciate your continued interest in Liberty media and.

Stefano: We think our fence deems important for this reported these regular season and look forward to more actions to come a multitude of full speed ahead.

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

Speaker Change: Thank you, ladies and gentlemen, as a reminder, if you'd like to join the question queue. Please press star one on your telephone keypad. Our next question. Our first question sorry. It comes from the line of David Karnofsky with Jpmorgan. Please proceed with your question.

Speaker Change: And now I will turn the call back over to Beth Thank you Joe.

Beth: Thanks, Stefano and Brian.

Beth: I wanted to clear up one thing I might have misspoken during our corporate upgrade on the braised. They are transitioning to a standalone public company.

Speaker Change: Hey, Thanks for the question first for Greg or Stefano just on Concorde.

Speaker Change: Any potential updates to provide their own progress toner talks or expected timing and then a second one for Brian just on the team payment accrual in the quarter or even year to date.

Beth: We look forward to seeing you on Thursday November 14th for our annual Investor meeting you can Tony virtually or join us in person at our new location jazz at Lincoln Center. If you plan to attend in person. Please make sure to register by Monday November 11th as there will be no onsite residue registration the link to register it can be found on our website.

Speaker Change: Curious do imply a lower full year figure relative to what you would given at Q1 or Q2 I just wanted to see if there's anything specific to call out intra quarter that shifted as far as you are.

Speaker Change: Our assumptions on pre teen profit for the year. Thank you.

Speaker Change: John Malone, and I will be hosting our annual Q&A session. If you would like to submit questions. In advance you can email investor day at Liberty Media Dot com.

Speaker Change: Stefano I'll, let you take a first cut at the Concord.

Stefano Domenicali: Yes. Thank you Greg Thanks, David I mean, as we said first of all is first of all it's very important to remember that we have still plenty of time under the existing cohort.

Beth: We appreciate your continued interest in Liberty media.

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

Stefano Domenicali: Urgent rush conversation that are progressing very well and as we said before very very positive because at this moment.

Stefano Domenicali: The ecosystem is very solid and also all the teams and those developments to quota at the had the huge benefit from from everyone. In this moment, so the financial security for the future and stability that we have today, even though it's underlining into work we are preparing and as soon as we have everything ready of course, we will employ.

Speaker Change: Hey, Thanks for the question first for Greg or Stefano just on Concorde any potential updates you can provide there on progress tone of talks or or expected timing and then a second one for Brian just on the team payment accrual in the quarter or even year to date figures do imply a lower full year figure relative to.

Stefano Domenicali: But as always as I said, we want to do that I think in the consider Theres no rush everything is progressing well as we said and looking forward to confirm to you when we're going to announce something.

Speaker Change: What you would given at Q1 or Q2 I just wanted to see if there's anything specific to call out intra quarter that shifted as far as.

Speaker Change: Great.

Speaker Change: So I would just add that to Stefanos point, the most important thing for everybody, including ourselves and the teams is to get it right and so we are progressing at a good pace with the expectation that everyone will sign with Glee on their face.

Beth: Your assumptions on pre teen profit for the year. Thank you.

Speaker Change: But for now I'll, let you take a first cut at the Congress.

Speaker Change: Yes, Thank you Greg and thanks, David I mean, as we said first of all in first of all it's very important to remember that we have still plenty of time on did these eastern coal.

Speaker Change: Yes, David on the on the T payments as you rightly point out point out they've come down just a little bit on a per race basis, I think that that represents some.

Speaker Change: Urgent rush.

Speaker Change: The station that are progressing very well and as we said before it very very positive because at this moment you know it's the ecosystem is very solid and also all the teams and those developers get quota at the had the huge benefit from.

Speaker Change: Some conservatism towards Vegas, because really that's the last remaining contracted revenue stream that we have for the year.

Speaker Change: Everyone in this moment, so the financial security for the future and stability that we have today, even though it's it's underlining into whilst we are preparing and that as soon as we have everything ready of course, we will inform everyone, but as always as I said, we want to do that I think in the consider there's no rush everything is progressing well as we said and looking.

Speaker Change: And <unk>.

Speaker Change: Largely reflects typical year two trends that promoter CS so that would be the primary reason.

Speaker Change: Okay.

Speaker Change: Thank you. Our next question comes from the line of.

Speaker Change: <unk> with Evercore ISI. Please proceed with your question.

Beth: Forward to concern to you when we're going to announce something concrete.

Speaker Change: Good morning, and thanks for taking the question just on Formula one sponsorship.

Beth: So I would just add that to Stefanos point, the most important thing for everybody, including ourselves and the team just to get it right and so we're progressing at a good pace with the expectation that everyone will sign with Glee on their face.

Speaker Change: Clearly theres a lot of momentum there you've announced a number of new and expanded agreements seems like 2025 is going to be a banner year and Greg I think you commented that you feel good.

Speaker Change: The pipeline for commercial activity in 2026, as well can you help us just think about how meaningful the sponsorship revenue growth outlook can be in the coming years. Thank you.

Beth: Yeah, and David on the on the T payments as you rightly point out point out they've come down just a little bit on a per race basis, I think that that represents.

Speaker Change: I'll take a first cut if it's okay ethanol.

Beth: Some conservatism towards the Vegas, because really that's the last remaining contracted revenue stream that we have for the year.

Speaker Change: Yes, absolutely you have seen the announcements here theyre, mostly 25 related it's unusual one would not expect to be making announcements yet about 26 related deals, but we have a lot of activity going on.

Beth: And it largely reflects typical year two trends that promoter seat so that that would be the primary reason.

Speaker Change: Around potential sponsorship around licensing and other activities. So it's very hard.

Beth: Okay.

Speaker Change: Still quite a ways out from those but I feel good about the progress I don't know if you'd add anything is definitely.

Speaker Change: Thank you. Our next question comes from the line of Kirk and morale with Evercore ISI. Please proceed with your question.

Speaker Change: No I would say for sure.

Speaker Change: Always we need to remember we will have just a couple of years ago until one P. And also poised to have a partnership now we have grown significantly in terms of quantity and of course now the timing is really to check in terms of restructuring the deals in terms of global the regional official partner due to the fact that we have a strong interest.

Speaker Change: Good morning, and thanks for taking the question I'm sort of Formula one sponsorship could clearly there's a lot of momentum there you have it.

Beth: A number of new and expanded agreements. It seems like 2025 is going to be a banner year and Greg I think you commented that you feel good about the pipeline for commercial activity in 2026 as well can you help us just think about how meaningful the sponsorship revenue growth outlook can be in the coming years. Thank you.

Speaker Change: So far so that up with shorter either that we will exploit in the future.

Speaker Change: The only thing that I can confirm that it was mentioned is really.

Speaker Change: I'll take a first cut if it's okay.

Speaker Change: Really bringing in the interest that we are having from partners.

Speaker Change: Okay, Yeah, no obsolete you've seen the announcement to hear their mostly twenty-five related it's unusual one would not expect to be making announcements yet about 26 related deals, but we have a lot of activity going on.

Speaker Change: Hi, Hi high value in the market and that would be another leverage be go through a b to b business growth. It seems that eventually we can create with other partners. We can create even more interest in our platform. So as I said.

Beth: Around potential sponsorship around licensing and other activities. So it's very hard.

Speaker Change: Look back and see where we were and look where we are and I think that the future is always it will be very positive again.

Speaker Change: Still quite a ways out from those but I feel good about the progress I don't know if you'd add anything Stefano.

Speaker Change: Yes, and one thing I would add.

Speaker Change: Almost more towards David's question that the sponsorship that we've announced for 2025, you've also seen.

Stefano: No I would say for sure and as always we need to remember where we had just a couple of years ago until one P and they'll support each other partnership now we have grown significantly in terms of quantity and of course now the timing is really to check in terms of restructuring the deals in terms of global the regional official partner.

Speaker Change: That's all that's all moving into 'twenty five so any expectations that we had for those new agreements for 24 also have that impact on prepayments.

Speaker Change: Perfect. Thank you.

Speaker Change: Due to the fact that we have a strong interest in our mind. So far so there are puts sort of either that we will exploit in the future.

Speaker Change: Thank you. Our next question comes from the line of Stephen <unk> with Goldman Sachs. Please proceed with your question.

Speaker Change: The only thing that I can confirm I spoke with mentioned these really you know we are really bringing him that the interest that we are having from partners that they have a high high high value in the market and that would be another leverage to go through our b to b business growth. It seems that at least we can create with other partners we can create even more.

Speaker Change: Hey, great. Thanks for taking the questions two on Formula One maybe first for Greg on media rights just curious for your latest thoughts on the sports media rights landscape heading into the U S renewal next year and maybe how youre approaching here in negotiations with ESPN.

Speaker Change: And then second on Vegas, Bryan you mentioned.

Speaker Change: So as I said, you know look back and see where we were and look where we are and I think that the future is always it will be very positive again.

Speaker Change: Las Vegas Grand Prix being the last on contracted piece of the puzzle here just curious.

Speaker Change: If there's anything more you can say on demand for Vegas heading into the final few weeks and any expectations around revenue and profitability for the event. This year. Thank you.

Speaker Change: Yeah, and one thing I would add that.

Speaker Change: Almost more towards David's question that the sponsorship that we've announced for 2025, you've also seen.

Speaker Change: Stephen Thanks for the question I'll start on the media side.

Speaker Change: That's all that's all moving into 'twenty five so any expectations that we had for those new agreements for 24 also had that impact on team payments.

Speaker Change: As I think as well no we have it.

Speaker Change: Partnership with ESPN that runs to the end of 'twenty five.

Speaker Change: Not atypical that theres, some negotiating period with them I'm, obviously not going to disclose the specifics.

Speaker Change: Perfect. Thank you.

Speaker Change: It's been a great partner.

Speaker Change: Thank you. Our next question comes from the line of Stephen <unk> with Goldman Sachs. Please proceed with your question.

Speaker Change: We will look to see what we can do with them, but there's also a lot of other interest from partners and we'll try and construct.

Speaker Change: The deal that manages to bring both the best economic opportunity for F. One, but even more importantly, perhaps expose our fans the best experience in a logical way across as much breath as possible. So as always we're going to play between.

Speaker Change: And then second on Vegas, Brian You mentioned.

Speaker Change: Economics and reach.

Speaker Change: The Las Vegas Grand Prix being the last on contracted piece of the puzzle here just curious if.

Speaker Change: And hopefully come up with the best result for our F. One fans and ourselves.

Speaker Change: I'll, let Renee talk a little bit about Las Vegas.

Speaker Change: Thanks, Greg.

Speaker Change: We can take a step back.

Speaker Change: Based on what we've been working on here in your tail.

Stephen: Stephen Thanks for the question I'll start on the media side.

Speaker Change: I'd say year, one we are very much focused on the quality of the fan experience.

Stephen: As I think as well no we have it.

Speaker Change: <unk> has been a lot of focus around cost structure and optimizing our product ladder, we do expect that to continue going into years three and beyond.

Stephen: Ship with ESPN that runs to the end of 'twenty five.

Speaker Change: Not atypical that theres, some negotiating period was that I'm, obviously not going to disclose the specifics.

Speaker Change: We made a number of improvements coming into this year, which have allowed us to continue to be dynamic and adjusting product and pricing based on real time feedback, we're receiving from the market.

Speaker Change: It's been a great partner.

Speaker Change: We will look to see what we can do with them, but there's also a lot of other interest from partners and we'll try and construct.

Speaker Change: No. The all in cost of our Vegas race weekend has come into line with the other U S races, and we refer you to the commentary from our hotel partners when in Caesars regarding the continued strength of F. One.

Speaker Change: Economics and reach.

Speaker Change: And hopefully come up with the best result for our F. One fans and ourselves.

Speaker Change: I'll, let Renee talk a little bit about Las Vegas.

Speaker Change: We are of course benefiting from the very competitive championship. This year and we have seen success with our recent promotions, including Lewis Hamilton package and some special offerings that we've run in partnership with our sponsors T Mo and Amex, we still have room to grow on ticket sales, but we are very excited to see or to come together over the next.

Speaker Change: Greg.

Speaker Change: Maybe we can take a step back and focus on what we've been working on here in your tail I'm, obviously year. One do we are very much focused on the quality of the fan experience year or two has been a lot of focus around cost structure and optimizing our product ladder. We didn't expect that to continue going into years three and beyond we.

Speaker Change: Couple of weeks and of course, we remain very positive on the benefits of that Vegas is providing to the broader ecosystem of formula one.

Speaker Change: We made a number of improvements coming into this year, which have allowed us to continue to be dynamic and adjusting products and pricing based on real time feedback, we're receiving from the market.

Speaker Change: Including the LDL HDL American express and getting back to the media rights renewal, we're looking to see the benefit of Vegas next year as well and great start those discussions.

Speaker Change: We would note the all in cost of a Vegas race weekend has come into line with the other U S races, and we would refer you to the commentary from our hotel partners went in Caesars regarding the continued strength of F. One.

Speaker Change: Okay.

Speaker Change: That's great. Thank you both.

Speaker Change: Yeah.

Speaker Change: Thank you. Our next question comes from the line of Ben Swinburne with Morgan Stanley. Please proceed with your question.

Speaker Change: In terms of recent activity as expected we are seeing an uptick in traffic and conversion rate around tickets out and we expect that to continue as we get closer to the race weekend. We are of course benefiting from the very competitive championship. This year and we have seen success with our recent promotions, including the Lewis Hamilton pack.

Speaker Change: Thanks, Good morning.

Speaker Change: I'm not sure Greg how much are we willing to comment but live nation stock has been quite strong last few months some of that I think in anticipation correctly I guess of the election outcome, what do you think.

Speaker Change: Public and Doj means for the range of outcomes for the lawsuit against live nation and its ability to navigate that successfully from a shareholder point of view.

Speaker Change: And some special offerings that we've run in partnership with our sponsors T Mo and Amex.

Speaker Change: We'll have room to grow on tickets out, though we are very excited to see or to come together over the next couple of weeks and of course, we remain very positive on the benefits that Vegas is providing to the broader ecosystem of formula one, including the L. D M H D American Express.

Speaker Change: And then at the risk of beating.

Speaker Change: Beating team payments to death, Brian.

Brian Wendling: Thank you.

Speaker Change: You've shown over of over 200 basis points of leverage year to date.

Speaker Change: How are you thinking about the full year versus that and how much of a swing factor is Las Vegas is that sort of at a.

Speaker Change: And getting back to the media rights renewal, we're looking to see the benefit of Vegas next year as well and great start those discussions.

Speaker Change: A larger than normal variable when you think about your business as we think about the full year. Thanks, so much.

Speaker Change: Okay.

Speaker Change: That's great. Thank you both.

Speaker Change: And it was nice of you to set up an acknowledged it would be very difficult for me to comment on I think.

Speaker Change: Thank you. Our next question comes from the line of Ben Swinburne with Morgan Stanley. Please proceed with your question.

Speaker Change: <unk>.

Speaker Change: But five nation continues to prosper as a business and continue to believe it serves customers well and there is no basis for the lawsuit and I don't think that's going to change their view is not going to change regardless of administration.

Speaker Change: Yeah.

Ben Swinburne: Thanks, Good morning.

Speaker Change: I'm not sure Greg how much you would be willing to comment but live nation stock has been quite strong last few months some of that I think in anticipation correctly I guess of the election outcome. What do you think a Republican Doj means for the range of outcomes for the lawsuit against live nation and its ability to navigate that.

Speaker Change: Brett Bryan, Yes, I've seen payments.

Speaker Change: Like we said like we said last quarter been slight leverage I think de Minimis might've been the words I used when we were at 61, 9% at.

Speaker Change: Really from a shareholder point of view.

Speaker Change: Year to date Q Q2, so we're going to stick with that.

Speaker Change: And then at the risk of beating team payments to death, Brian.

Speaker Change: In terms of Vegas being a swing factor I mean, if you think about our business. Most of the revenues are contracted most of the costs are contracted the two big swing factors in any given year are the sponsorship go gurt and then Vegas ticket sales.

Speaker Change: I think you're you've shown over of over 200 basis points of leverage year to date.

Speaker Change: How do you think about the full year versus that and how much of a swing factor is Las Vegas is that sort of in a larger than normal variable. When you think about your business as we think about the full year. Thanks, so much.

Speaker Change: Because those have the highest volatility so yes as you get closer to the end of the year you start to get more clarity on both of those although vegas being a last minute market as we've pointed out many times, there's there's lots of work to be done.

Speaker Change: And it was nice of you to set up an acknowledged it would be very difficult for me to comment on it.

Speaker Change:

Speaker Change: Live nation continues to prosper as a business and continue to believe it serves customers well.

Speaker Change: As you enter Q4 so.

Speaker Change: It can be a swing factor, but we continue to be optimistic here.

Speaker Change: There is no basis for the lawsuit and I don't think that's going to change their view is not going to change regardless of administration.

Speaker Change: Thanks, a lot.

Speaker Change: Brett Bryan Yeah, I've seen payments.

Speaker Change: Thank you. Our next question comes from the line of Ryan <unk> with.

Speaker Change: <unk>.

Speaker Change: Like we said like we said last quarter been slight leverage I think a de minimis might've been the the words I used to when we were at 61, 9% at our year to date Q Q2, So we're going to stick with that.

Speaker Change: With UBS. Please proceed with your question.

Speaker Change: Alright, great. Thank you.

Speaker Change: Not to look too far ahead, but I guess, how are you thinking about the opportunity for race promotion in the race calendar in 2026.

Speaker Change:

Speaker Change: Is that a year when we could start to see some new venues added to the calendar.

Speaker Change: And just more broadly how you are thinking about your positioning for renewals given the elevated attendance you've seen over the past few years. Thanks.

Stefano Domenicali: Stefano do you want to take a cut.

Speaker Change: Because you know that those have the highest volatility so yeah as you get closer to the end of the year you start to get more clarity on both of those although Vegas beam.

Stefano Domenicali: Okay. Thanks, Thanks, Greg of course, 26 race promotion as you know we have Madrid will be part of the of the calendar. We have long term deals on the other side as you know that is represented the vast majority of our situation today and these allow us of course to work with them in order to promote better.

Speaker Change: In the last minute market as we've pointed out many times, there's there's lots of work to be done.

Speaker Change: As you enter Q4, so that it can be a swing factor, but we continue to be optimistic here.

Stefano Domenicali: Quality to make sure that what we want to offer to our customer level is the highest tablet in 'twenty six.

Stefano Domenicali: And further beyond of course, we have some some news to share very very soon with regard to the possibility in the mid term to have some rotational European grocery and some of the new option coming later and this is something that of course, we've refined the due course it is true that we add.

Speaker Change: A large demand of even new possible venues that wants to come in and now we chose will deal was balanced between the right <unk>.

Speaker Change: Columbia will benefit that we can have as a system and also due.

Speaker Change: Due to leverage in the growth of the market that we can see potential will be beneficial for us to grow even further our business. So it's something that we are managing in the right way and safeguard today, we have a quality problem to amber.

Speaker Change: It was not the case, just a couple of years ago.

Speaker Change: Great. Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you. Our next question comes from the line of Bryan Kraft with Deutsche Bank. Please proceed with your question.

Speaker Change: Hi, good morning.

Speaker Change: Two if I could first on media rights are there are other major markets in the Americas that have media rights contracts coming up for renewal around the same time as the U S.

Speaker Change: Might we consequently see in Americas media rights deal rather than just the U S contract this time around.

Speaker Change: And then also related to that how has what you've value from your U S media partner change since the renewal with ESPN given just how streaming has become such a larger part of the business now.

Speaker Change: Then just separately as sort of a follow up on Vegas.

Speaker Change: Maybe to ask a little more bluntly I mean, it sounds like promotion revenue is clearly going to be up but ticket prices are going to be down so probably overall.

Speaker Change: Overall ticket revenue is going to be down is that a fair interpretation of what Rene was going through before thank you.

Speaker Change: So if it's okay Stefan I'll take a cut on the media look we absolutely.

Speaker Change: They would love to find a partner.

Speaker Change: Who would take on more.

Speaker Change: Markets, that's always very interesting and make the ease of perhaps for them and us.

Speaker Change: There are no huge renewals in the Americas that make it logical not to say it wouldn't happen, but I don't think it would be an enormous economic swing in any case, if we bundled with somebody for all of the Americas. We certainly have had rumors of larger deals and in some cases, we certainly do have regional deals, but I am not sure thats going to work for the Americas that way that Theres some partner.

Speaker Change: Who is going to take all of it that way.

Speaker Change: As far as streaming obviously, we see the rise of streaming we've noticed a couple of Kosovo.

Speaker Change: Across a couple of our businesses, we certainly notice.

Speaker Change: The.

Speaker Change: <unk>.

Speaker Change: The reality is we have a great stream product in F. One TV ourselves.

Speaker Change: Which has shown tremendous growth.

Speaker Change: And we would look to consider whether a media partner, how we interacted with them on both a linear side of that existed in the streaming side and how our F. One TV fit in but clearly streaming is going to be.

Speaker Change: More major component of all sports rights packages going forward.

Speaker Change: Hi, Thank you in Vegas.

Speaker Change: I'm sorry.

Speaker Change: Sure, Yes happy to I guess just to reiterate we generally do not give race specific economics, but with regard to your question on ticket revenue aggregate ticket revenue will be down from what we originally budgeted in Q1. However, it throughout the course of 'twenty. Four we have also continued to reduce cost from what we budgeted.

Speaker Change: In Q1.

Speaker Change: I would say that we're working hard to focus on getting the best profitability that we can from Vegas and again, we would refer you to the broader benefit but it does bring to the <unk>.

Speaker Change: Thank you.

Speaker Change: Thank you. Our next question comes from the line of David Joyce with Seaport Research Partners. Please proceed with your question.

Speaker Change: Thank you two questions. Please one.

Speaker Change: Just a little bit more on the media rights just given that some of your recent deals.

Speaker Change: They've been extended beyond the typical kind of three year period, we used to see in other sports leagues have done that as well just wondering.

Speaker Change: How youre thinking about your objectives with these upcoming rights deals and then the second question is on just a little one on the accounting of how.

Speaker Change: You'll be recognizing the one moving next year. Thanks.

Speaker Change: So I think on the media rights deals I outlined some of our goals in terms of growing reach.

Speaker Change: And making it a great experience for our fans as well as payments to us.

Speaker Change: So I think all of those goals remain the same.

Speaker Change: We've chosen market by market longer or shorter deals based on.

Speaker Change: Where we sit in the market what our growth was what our partners. We're doing what we wanted to go and obviously one of the reasons, we cut a shorter deal in the U S. Last time as we were confident and really betting on ourselves that we would get a larger renewal down the road.

Speaker Change: That didn't work the first time, we did a three year deal I'm optimistic it will work again.

Speaker Change: Not projecting whether the deal will be shorter or longer I would note, it's likely particularly if you went to another partner, which gotcha thats going to happen you probably would cut a longer deal just because that partner would want to have some period to grow into it and work together, but that's just observing on the media market, that's not projecting what we will or won't do on the U S.

Speaker Change: And on the F. One movie.

Speaker Change: We've been paid in 2023 and 2024 for their use of.

Speaker Change: The panic building and having access to certain races, I think going forward. The revenues that you would expect there would be pretty small.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you. Our next question comes from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your question.

Speaker Change: Okay, great. Thanks for taking the question.

Speaker Change: I guess a couple if I can one is turning.

Speaker Change: Turning to Vegas.

Speaker Change: Looking beyond the rates I know theres been some hope that the.

Speaker Change: Our season could be monetized at Vegas in that could help maybe the margin profile and I was just wondering if you could give us an update of.

Speaker Change: We are progress and are you really doing anything meaningful in the off season, you mentioned the film I'm, just wondering if theres anything else meaningful happening.

Speaker Change: Sure. So we are working hard to launch a year round business beyond just that conference.

Speaker Change: Beginning and I'd say late Q1 of 'twenty five.

Speaker Change: It's going to be actually very much focused around educating youth and bringing the new fans deeper into the sport, obviously Las Vegas is a destination.

Speaker Change: And we wanted to try to leverage that and bring these visitors to learn more about formula one.

Speaker Change: Coming deeper into the U S culture, there will there will be according to their it will also be assigned the interactive experience <unk>.

Speaker Change: <unk>.

Speaker Change: Type of offering which will also include a little bit of the legacy F. One exhibition.

Speaker Change: Type educational experience as well and then we will be looking to package those experiences to enhance the nonconference space. So a lot more to come and we hope to be giving more specifics around that business during race week.

Speaker Change: Okay and then.

Speaker Change: If I could just follow up also on sponsorship.

Speaker Change: Just to be clear I mean, if all of these announcements starting in 2025.

Speaker Change: It sounds like 2025, it's going to be a strong year for sponsorship.

Speaker Change: But I'm just wondering if you could comment on that more directly is that what we're seeing.

Speaker Change: Yes.

Speaker Change: Okay, great. Thank you.

Speaker Change: Alright got it.

Speaker Change: Goodyear Barton you called it correctly.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Thank you ladies and gentlemen, our final question. This morning comes from the line of Jonathan.

Speaker Change: TD Cowen. Please proceed with your question.

Speaker Change: Hey, good morning.

Speaker Change: My question is about the.

Speaker Change: New markets and expansion are there any plans to expand the race calendar, especially in emerging markets.

Speaker Change: What I'm trying to get at is I'm trying to get a sense of what your approach to balancing market expansion, while maintaining the exclusivity the allure of Formula one.

Stefano Domenicali: Stefan how do you want to talk about expanding race count I think I know the answer but I'll, let you go off on it.

Stefano Domenicali: Thanks, Thanks, Greg I would say as we've said we believe that the balance we have internal numbers that I've won.

Stefano Domenicali: So 2014.

Speaker Change: Balanced number that would feel if the right to keep exactly what would you say, Jonathan and I do believe that all of the proposition about coming in.

Speaker Change: On our table is just giving us the possibility to make even the better choice, but although future so as always needs to be balanced knowing that.

Speaker Change: We cannot follow only the pure data financial proposition because that seems different from region to region, but these up led to propose that to our stakeholders. The right choice and I think that we are in a good momentum to make sure that the strategies for the future.

Speaker Change: It's even stronger and that's why we are so confident about the fact that this will help to enhance our platform on the sport on social and business perspective.

Speaker Change: Thank you.

Speaker Change: So I think that operator, we're done on questions.

Speaker Change: And we're done with the conference today as I mentioned we.

Speaker Change: Look forward to seeing many of you either virtually or in person next week at our Investor day.

Speaker Change: Thanks for joining and your interest in Liberty media.

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

Q3 2024 Liberty Media Corp Earnings Call

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