Q4 2024 Liberty Media Corp Earnings Call and Business Update

February 27, 2025

Operator: Greetings and welcome to the Liberty Media Corporation 2024 year-end earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Shane Clancy, Senior Vice President, Investor Relations. Thank you. You may begin.

Greetings and welcome to the Liberty Media Corporation 2024 year end earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Speaker Change: Once you require operator assistance. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded its now my pleasure to introduce Shane Classy Senior Vice President Investor Relations. Thank you you may begin.

Shane Kleinstein: 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 the most recent Form 10-K filed by Liberty Media with the SEC. 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 statement contained herein to reflect any change in Liberty Media's expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including Adjusted OIBDA.

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: That's our results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent Form 10-K Liberty media with the SEC. 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.

Speaker Change: 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.

Speaker Change: On today's call, we will discuss certain non-GAAP financial measures for Liberty media, including adjusted OIBDA.

Shane Kleinstein: The required definition and reconciliation for Liberty Media, Schedule I, can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Speaking on the call today, we have Liberty's President and CEO, Derek Chang; Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling; Formula One's President and CEO, Stefano Domenicali; and other members of Liberty Management will be available for Q&A. With that, I will turn the call over to Derek.

Speaker Change: Acquired definition and reconciliations for Liberty media schedule, one can be found at the end of the earnings press release issued today, which is available on Liberty Media's website.

Brian Wendling: Speaking on the call today, we have Liberty's, president and CEO, Derek Chang Liberty's, Chief accounting and principal financial Officer, Brian Wendling Formula One as president and CEO Stefano Domenicali and other members of Liberty management will be available for Q&A.

Derek Chang: I will turn the call over to Derek.

Derek Chang: Great. Thank you, Shane. Good morning, everyone. It's great to be speaking with all of you today. For those of you who don't know, while I officially started as Liberty's CEO 27 days ago, my relationship with Liberty Media goes back to 1997 when I first met John while working for TCI. We've had many points of professional overlap over the years at DirecTV, Starz, and more. Most recently, I've been fortunate to serve on Liberty's board since 2021. As a board member, I am uniquely familiar with the Liberty structure, culture, and mandate, which has enabled a seamless and efficient transition to CEO as we've hit the ground running with a busy year ahead.

Speaker Change: Thank you Shane and good morning, everyone. It's great to be speaking with all of you today.

Speaker Change: For those of you, who don't know well I officially started on celebrity C. 27 days ago My relationship with Liberty Media goes back to 1997.

Speaker Change: When I first met John while working to Dci, we had many points of professional overlap over the years at Directv stars and more most recently I've been fortunate to serve Hot Liberty's Board since 2021, as a board member I am uniquely familiar with the Liberty structure culture, and mandate, which has enabled a seamless and efficient.

Speaker Change: Fashion transition to CEO.

Speaker Change: As we've hit the ground running with a busy year ahead, even though the director for years. We've been asked what is the long term that the playbook. The answer has been consistent Liberty playbook is one of constant evolution maximum flexibility and appreciation for change to drive long term shareholder value.

Derek Chang: Even as a director, for years we've been asked, "What is the long-term Liberty playbook?" The answer has been consistent: the Liberty playbook is one of constant evolution, maximum flexibility, and an appreciation for change to drive long-term shareholder value. That is and will remain true going forward. Our team will speak in more detail about the businesses, but I'll make some brief remarks first regarding our near-term priorities for 2025. First, we are working towards the close of the Dorna acquisition. The MotoGP season kicks off in Thailand on 2 March and will be a 22-race calendar compared to 20 races in 2024, featuring a new track in Hungary and a return to the Czech Republic for the first time since 2020. We expect an exciting season ahead.

Speaker Change: That is and will remain true going forward.

Speaker Change: Our team will speak in more detail about the businesses and I'll make some brief remarks first regarding our near term priorities for 2025.

Speaker Change: First we are working towards the close of the door and the acquisition the Moto GP season kicks off in Thailand on March 2nd, albeit 22 race calendar compared to 20 races. In 2024, featuring a new track in Hungary, and a return to the Czech Republic for the first time since 2020, we expect an exciting season ahead, Moto GP unveiled a new brand refresh.

Derek Chang: MotoGP unveiled a new brand refresh and identity at the end of last season, aimed at expanding its cultural relevance beyond racing. We look forward to working with Dorna to take the sport to the next level on closing. The Phase II regulatory process is progressing, which is a more in-depth review by the European Commission, and not uncommon in major transactions like these. We extended the Long-stop date for regulatory clearance to 30 June 2025, and are working constructively with the regulators towards approval. Our second priority is continuing our path towards structural simplification and better highlighting the value of our Live Nation equity stake. And finally, we will continue to drive the momentum at Formula One. The sport is coming off a record 2024 with high visibility into an excellent year ahead.

Speaker Change: And identity at the end of last season aimed at expanding its cultural relevance relevance beyond racing, we look forward to working with door not to take the sports to the next level on closing.

Speaker Change: The phase two regulatory process is progressing which is a more in depth review by the European Commission and not uncommon in major transaction transactions like these we extended the long stop date for regulatory clearance to June 30 of 2025.

Speaker Change: And are working constructively with the regulators towards the crews.

Speaker Change: Our second priority is continuing our path towards structural simplification and better highlighting the value of our live nation equity stake.

Speaker Change: And finally, we will continue to drive the momentum that formula one the sport is coming off a record 2024 with high visibility into an excellent year ahead, I've spent a significant amount of time with Stefano and the S. One management team since I started this year and look forward to supporting them going forward change carries involvement and partnership.

Derek Chang: I have spent a significant amount of time with Stefano and the F1 management team since the start of this year and look forward to supporting them going forward. Chase Carey's involvement and partnership as a Liberty board member has and will continue to be important as we leverage his expertise to continue momentum at F1. I do want to touch specifically on the Las Vegas Grand Prix as this is a key area of focus. Please note that we don't provide race-specific economics for any Grand Prix. Particularly for Vegas, we see material benefit accrue from LBGP to the broader F1 ecosystem: cross-sponsorship, hospitality, live entertainment, licensing, and data. Vegas has served as a very successful testbed for product expansion and plays a key role in F1's growth in the Americas, which is a continued focus.

Speaker Change: As a Liberty Board member has and will continue to be important as we leverage his expertise to continue momentum at Epsilon.

Speaker Change: I do want to touch specifically on the Las Vegas Grand Prix.

Speaker Change: Key areas of focus. Please note that we don't provide raise specific economics for any Grand Prix, particularly for Vegas, we see material benefit accrue from LP GPA to the broader F. One ecosystem cross sponsorship hospitality live entertainment licensing and data.

Speaker Change: I guess I served as a very successful testbed for product expansion and plays a key role on <unk> growth in the Americas, which they continued focus.

Derek Chang: The event we held recently at The O2 in London and the upcoming F1 movie are also powerful marketing engines for all of our F1 fans, but particularly for the Vegas and the North American fans. 2024's standalone event economics for Vegas missed internal expectations on revenue and OIBDA. The team has moved very quickly, however, to enact changes that will benefit 2025 and support a financially successful race for F1 and continued growth and positive impact for the Las Vegas community. We now have two years of real data to understand what tickets and products sold well, the demographics of the fan base, and the overall cost structure of the event. As a result, we are making further revisions to the ticket product and pricing strategy, leveraging this data, and more and as importantly, we are actively managing our cost structure.

Speaker Change: The event, we held recently at the O two in London, and the upcoming F. One busy are also powerful marketing engine for all of our F. One fans, but particularly for dead for Vegas, and then North American fans.

Speaker Change: 'twenty 'twenty four Standalone event economics for Vegas met internal expectations on revenue and OIBDA.

Speaker Change: The team has moved very quickly however to enact changes that will benefit 2025, and supported financially successful race for F. One.

<unk> growth and positive impact of the Las Vegas community. We now have two years of real data to understand what ticket to products sold well the demographics of the fan base and the overall cost structure of the event as a result, we are making further revisions to ticket product and pricing strategy leveraging this data and more and as importantly, we are actively managing our call.

Speaker Change: Structure, given the Halo effect half one we've discussed we reorganized the structure of L. V. G. P last month to integrate it fully into our London team and maximize those continued benefit.

Derek Chang: Given the halo effect to F1 we've discussed, we reorganized the structure of LBGP last month to integrate it fully into our London team and maximize those continued benefits. This change leverages the strong organization we have in London today across commercial, finance, and more. At the same time, we are bolstering certain parts of the local Vegas team. This includes bringing the ticketing sales function back in-house and offering a high-touch, on-the-ground presence, which was a key learning from last year. We will continue our partnership with Quint and benefit from their expertise in VIP hospitality and F1 experiences. Finally, we are also bolstering our partnership with local players. We believe that continuing to expand the F1 platform in bold and new ways is critical and ultimately leads to both increased and new sources of revenue.

Speaker Change: That's changed Leverages the strong organization, we have in London today across commercial finance and more at the same time, we are bolstering certain parts of the local Vegas. Jean This includes bringing the ticketing sales function back in house and offering a high touch on the ground presence, which was a key learning from last year.

Speaker Change: We'll continue our partnership with Quint and benefit from their expertise in VIP hospitality and F. One experiences.

Speaker Change: Finally, we are also bolstering our partnership with local players.

Speaker Change: We believe that continuing to expand the F. One platform and all the new ways is critical and ultimately leads to both increase and new sources of revenue we want to take these opportunities for long term benefit even if there are early bumps in the road, we have a clear handle on near term priorities there Vegas to improve and we are confident in the value it.

Derek Chang: We want to take these opportunities for long-term benefit, even if there are early bumps in the road. We have a clear handle on near-term priorities for Vegas to improve, and we are confident in the value it provides. I look forward to sharing more as we progress. With that, I want to thank John, the board, and the Liberty team once again for this opportunity. To our analysts and shareholders, I look forward to getting to know you better in the months and years ahead. Now I'll turn it over to Brian for more on our financial results.

Speaker Change: I look forward to sharing more as we progress with that I want to thank John the board and the Liberty team once again for this opportunity to our analysts and shareholders I look forward to getting to know you better in the months and years ahead.

Speaker Change: Now I'll turn it over to Brian for more on our financial results. Thank.

Brian Wendling: Thank you, Derek, and good morning, everyone. Just a quick reminder that the merger of SiriusXM with Liberty SiriusXM closed on 9 September. Therefore, the results of SiriusXM Holdings are presented as discontinued operations in our consolidated financial statements. At year-end, Formula One Group had attributed cash and liquid investments of $2.6 billion, which includes $1.3 billion of cash at F1 and $78 million of cash at Quint. The cash balance as of year-end includes proceeds from the previously mentioned FWONK share issuance, which was completed in August. Total Formula One Group attributed principal amount of debt was $2.9 billion at quarter-end, which includes $2.4 billion of debt at F1, leaving $528 million at the corporate level. F1's $500 million revolvers undrawn, and their leverage at 1.3x was 1.3 times. As a reminder, all MotoGP transaction-related financing is in place and deal contingent.

Brian Wendling: Thank you Derek and good morning, everyone.

Brian Wendling: Just a quick reminder, that the merger of Sirius XM with Liberty Sirius XM closed on September 9th.

Brian Wendling: Therefore, the results of Siriusxm holdings are presented as discontinued operations in our consolidated financial statements.

Brian Wendling: Yearend Formula One group had attributed cash and liquid investments of $2 6 billion, which includes $1 3 billion of cash at F. One and $78 million of cash at Quint the cash balance as of year end includes proceeds from the previously mentioned loss share issuance, which was completed.

Brian Wendling: In August.

Brian Wendling: Total Formula One group attributed principal amount of debt was $2 9 billion at quarter end, which includes $2 4 billion of debt at F. One, leaving $528 million at the corporate level.

Brian Wendling: F. One $500 million revolver is undrawn and their leverage at 12 31 was one three times as a reminder, all Moto G. P transaction related financing is in place and deal contingent.

Brian Wendling: Turning to the F1 business, just a reminder that it's best analyzed on an annual basis given variability in year-over-year race calendar. Total revenue grew 6% in 2024 with growth across all primary revenue streams. Revenue growth was primarily driven by the 2 additional races held, and contractual increases across all of our revenue streams, as well as the benefit of new sponsors, which drove a 10% increase in sponsorship revenue year-over-year. As Derek mentioned, the Las Vegas Grand Prix did miss expectations, primarily on ticket sales, offsetting some of the race promotion revenue growth year-over-year despite the 2 additional races. Other F1 revenue was relatively flat in 2024. We saw strong growth in Paddock Club revenue at most events in 2024, as well as increases in freight, and licensing. This was offset by softness in certain hospitality offerings at the Las Vegas Grand Prix.

Brian Wendling: Turning to the F one business.

Brian Wendling: Just a reminder, that it's best analyzed on an annual basis given variability in year over year race calendar total revenue grew 6% in 2024 with growth across all primary revenue streams revenue growth was primarily driven by the two additional races held and contractual increases across all of our revenue streams.

Brian Wendling: As well as the benefit of new sponsors, which drove a 10% increase in sponsorship revenue year over year.

Speaker Change: Derek mentioned, the Las Vegas Grand Prix you did miss expectations, primarily on ticket sales offsetting some of the race promotion revenue growth year over year. Despite the two additional raises other.

Speaker Change: Other F. One revenue was relatively flat in 2024, we saw strong growth and Paddock club revenue at most events in 2024 as well as increases in freight and licensing this was offset by softness in certain hospitality offerings at the Las Vegas Grand Prix.

Brian Wendling: Team payments as a percent of pre-team adjusted OIBDA was 61.5% in 2024, down from 62.6% in 2023. We continue to expect incremental leverage to the term of the current Concorde Agreement, which runs through the end of the 2025 season. Other costs of F1 revenue was broadly flat at 31% of total revenue, and SG&A was 8% of total revenue, both in line with historical averages. Adjusted OIBDA margin improved nearly 70 basis points year over year. And then looking briefly at corporate and other results in the fourth quarter, revenue was $118 million, which includes Quint results, and approximately $13 million of rental income related to the Las Vegas Grand Prix Plaza, approximately half of which is variable and recognized in the fourth quarter in connection with the event.

Speaker Change: Jim payments as a percent of pre team adjusted OIBDA was 61, 5% in 2024 down from $62 six and 2023, we continue to expect incremental leverage to determine the current Concorde agreement, which runs through the end of the 2025 season.

Speaker Change: Other cost of half one revenue was broadly flat at 31% of total revenue and SG&A was 8% of total revenue both in line with historical averages.

Speaker Change: Adjusted OIBDA margin improved nearly 70 basis points year over year.

Speaker Change: And then looking briefly at corporate and other results in the fourth quarter revenue was $118 million, which includes quint results and approximately $13 million of rental income related to the Las Vegas Grand Prix Plaza.

Speaker Change: Approximately half of which is variable and recognized in the fourth quarter in connection with you Matt.

Brian Wendling: Corporate and other adjusted OIBDA loss was $2 million and includes Grand Prix Plaza rental income, Quint results, and corporate expenses. Quint results in the fourth quarter were primarily driven by F1 experiences across the 6 races held, including Vegas as well as the NBA Cup. Looking to 2025, F1 will host 24 races consistent with 2024. And while I'm reticent to encourage quarterly modeling, please note that the race count and composition will be different in each of the 4 quarters this year compared to 2024. In part, this is due to our efforts to increase regionalization of the calendar in support of our net zero pledge by 2030 and for enhanced efficiency in our freight logistics. We are in a strong financial position as we head into 2025.

Speaker Change: Corporate and other adjusted OIBDA loss was $2 million and includes Grand Prix Plaza rental income.

Speaker Change: <unk> results and corporate expenses were.

Speaker Change: <unk> results in the fourth quarter were primarily driven by the F. One by one experiences across the six races held including Vegas as well as the MBA Cup.

Speaker Change: Looking to 2025 F. One will host 24 races, consistent with 2024.

Speaker Change: And while I'm reticent to encourage quarterly modeling.

Speaker Change: Please note that the race count composition will be different in each of the four quarters this year compared to 2024 and.

Speaker Change: In part this is due to our efforts to increase reach regionalization of the calendar and support of our net zero pledge by 2030 and four enhanced.

Speaker Change: <unk> in our freight logistics.

Speaker Change: We are in a strong financial position as we head into 2025. The majority of our revenue is under contract, including our sponsorship revenue, which has been derisked by pulling the pipeline forward given the level of announcements made prior to the season.

Brian Wendling: The majority of our revenue is under contract, including our sponsorship revenue, which has been de-risked by pulling the pipeline forward given the level of announcements made prior to the season. This also allows our team to focus on future sponsorship pipeline with an emphasis on high value and high-quality partners. The other revenue streams will predominantly be driven by renewals and escalators this season. On Vegas, we are very focused on top and bottom line improvement relative to 2024 results, and there are clear steps already taken and in process to achieve this. Turning to a few cash items, F1 estimates its cash tax rate in 2025 to be low double-digit % of Adjusted OIBDA, increasing modestly in future years.

Speaker Change: This also allows our team to focus on future sponsorship pipeline with an emphasis on high value and high quality partners.

Speaker Change: Other revenue streams will predominantly be driven by renewals and escalators this season.

Speaker Change: On Vegas, we were very focused on top and bottom line improvement relative to 2024 results and there are clear steps already taken in and put in process to achieve this.

Speaker Change: Turning to a few cash items F. One estimated cash tax rate in 2025 to be low double digit percent of adjusted OIBDA, increasing modestly in future years.

Brian Wendling: Total CapEx incurred at the Formula One Group in 2024 was $75 million, approximately $73 million of which was incurred at Formula One and includes CapEx related to technical improvement projects for IT and F1 TV, as well as the Las Vegas Grand Prix track and paddock building improvements. Note that the operating company CapEx is historically trended at 1% to 2% of total F1 revenue, excluding one-time Vegas-related CapEx, and we expect this range to be broadly consistent in 2025. Turning to the Liberty Live Group, there's attributed cash of $325 million and $400 million of undrawn margin loan capacity related to our Live Nation margin loan. As of 26 February, the value of the Live Nation stock held at Liberty Live was $9.9 billion, and we have $1.15 billion in principal amount of debt against these holdings.

Speaker Change: Total capex incurred at the Formula One group in 2024 was $75 million approximately 73 million of which was incurred at formula One and includes capex related to technical improvement projects right now.

Speaker Change: On television as well as for Las Vegas Grand Prix track impact building improvements.

Speaker Change: Note that the operating company Capex has historically trended up 1% to 2% of total F. One revenue.

Speaker Change: Excluding a onetime Vegas related Capex and we expect this range to be broadly consistent with 2025.

Speaker Change: Turning to the Liberty Life group, there was attributed cash of $325 million and $400 million of Undrawn margin loan capacity related to our lead nation of ours alone.

Speaker Change: As of February 26, the value of the live nation stock held at Liberty Live was $9 9 billion and we have 1.15 billion in principal amount of debt against these holdings Liberty.

Brian Wendling: Liberty and F1 are in compliance with their debt covenants at quarter-end. And with that, I'll turn the call over to Stefano to discuss Formula One.

Liberty enough one are in compliance with our debt covenants at quarter end and with that I'll turn the call over to Stefano to discuss formula one.

Stefano Domenicali: Thanks, Brian. Formula One finished 2024 with solid financial results, excellent racing, and in a very strong position heading into 2025. The on-track competition intensified throughout the season, and we expect an even closer fight when we begin the new season in Melbourne. The strength of our brand and fandom translated to strong financial results in 2024. We continue to benefit from favorable supply and demand dynamics across our revenue streams. There is strong demand to be part of the F1 ecosystem, whether in hosting races, airing our content, partnering on sponsorship activation, or enjoying our hospitality products. This is met with relatively limited supply across the board. We've seen this benefit commercial agreements, where our teams made incredible progress in 2024, signing a number of agreements that provide clear visibility for near-term financial and momentum beyond.

Stefano: Thanks, Brian.

Stefano: Put them on one the senior should the 2020 food with solid financial results excellent racing in a very strong position heading into 2025, the on track competition intensified throughout the season, and we expect an even closer fight when we begin the new season remember.

Stefano: The strength of our brand and fandom translated to some financial results in 2024.

Stefano: We continued to benefit from favorable supply and demand dynamics across our revenue streams that has strong demand to be part of the F. One ecosystem, whether he knows who embraces airing our content, but then they have their own sponsorship activation or enjoying the outdoors pwc profits.

Stefano: This is met with a relatively limited the supply across the board. We've seen these benefits commercial agreements with our opinions made incredible progress in a dozen twenty-four signing a number of books that you missed that provides clear visibility from near term financial and momentum beyond.

Stefano Domenicali: As of year-end, F1 had $14.4 billion in future revenue contracted under multi-year agreements. On race promotion, we remain focused on balancing growth and heritage markets, as reflected in the extension of our agreement to race in Shanghai throughout 2030 and the renewals of both Monza and Monaco throughout 2031. We also extended the Netherlands for one year and Belgium under a multi-year rotational deal, with the opportunity for another race to fill the alternating year slots. We remain in a strong position with demand from potential future race venues across the globe and will assess any potential new calendar addition against strategic requirements for both the business and the sport. Turning to media rights, our F1 TV product continued to grow at a healthy rate, with subscribers up 15%. The US remains its largest market.

Stefano: As of year end, if one had $14.4 billion in future revenue contracted under multi year agreements.

Stefano: Well raise promotion, we remain focused on balancing growth and hazardous markets as reflected in the extension of our real good he meant to lace in Sungai throughout 2030, and then the news of both small zim Monica throughout 2031.

Stefano: We also extended the Netherlands for one year and Belgium under a multiyear rotational deal with the opportunity to put another ways to fill the alternating years slots.

Stefano: We remain in a strong position with demand from potential future race venues across the globe and will assess any potential new calendar addition against the desert requirements for both the business and this port.

Stefano: Turning to media rights our F. One TD product continued to grow at a healthy rate with subscribers.

Stefano: 15%.

Stefano: The U S remains its largest market capitalizing on the success, we are launching a new higher priced premium tier this year to targets have it says. It will also then has functionality, including full cable was the high definition multi view, our batesville pizza walk and the ability to watch a cross.

Stefano Domenicali: Capitalizing on this success, we are launching a new higher-priced premium tier this year to target avid fans. It will offer enhanced functionality, including 4K ultra-high definition, multiview, a virtual pit wall, and the ability to watch across up to six devices. Brian, touch on some financial inputs for the season. Entering 2025, I am particularly proud of the growth in sponsorship, both in renewal terms and new partnerships that will take effect this year. This includes our landmark deal with LVMH as a global partner, Lenovo becoming a global partner after being an official partner since 2022, our renewal with Pirelli, as well as bringing on Amex, Santander, and KitKat as official partners. More recently, we announced the extension of our partnership with Crypto.com through 2030 and Allwyn, a global lottery operator, as an official partner.

Stefano: After six devices.

Stefano: Brian touch on some financial inputs for the season.

Stefano: Entering 2025, I am, particularly proud of the growth in sponsorship both season, you'll tubes, and new partnership that will take effect this year.

Stefano: This includes our landmark deal with L. D M H as a global partner Lenovo the call me like global partner, often being an official partner since 2022.

Stefano: It wasn't a new world with B Riley as well as bringing on Omics something that and keep the cats as official partners.

Stefano: More recently, we announced the extension of our partnership with creep with Dot Com through 2030, and all when our global lottery, operator as little seafood pasta.

Stefano Domenicali: Our success in signing this partnership ahead of the season now allows the team to spend 2025 focusing on growing and executing a pipeline of new deal and renewal uplift opportunities for 2026 and beyond. While 2025 is clearly a standout year in sponsorship, I am optimistic about the discussion we have in developing new regional deals, upsells, and the potential for movement of our existing sponsor within tiers as the bar has been raised across the board. The team is also continuing to innovate on our hospitality products. The Vegas race allows us to test different concepts and target the hospitality offerings, and we expect variation to be deployed at races this year. Michelin star chef Gordon Ramsay was announced as the partner of our most premium hospitality product, F1 Garage.

Stefano: Our success in signing these partnership ahead of the season now allows the team to spend 2035 focus is on growing the skus in our pipeline of new deal and then you will I believe opportunity for 2026 and beyond.

Stefano: While 2025 is clearly a standout year and sponsorship I am optimistic about the discussion we have in developing through the new original deals upsells and the potential for movement above that existence parcel within Ts is the bar has been raised across the board.

Stefano: The team is also continuing to innovate on our hospitality products. The Vegas race allow us to test different concepts and salaried hospitality offerings and we expect the variation to be deployed races. This year Michelin Star chefs Gordon Ramsay was announced as the positive of our most premium hospitality.

Speaker Change: F. One get rich. We're also pleased to extend our move to the case relationship with doing co for another 10 years of public cloud delivery, we will continue to work with them on enhancing our public cloud offerings looking at the Las Vegas Grand Prix, we delivered another outstanding spectacle track, creating buzzer throughout North America.

Stefano Domenicali: We are also pleased to extend our multi-decade relationship with DO & CO for another 10 years of Paddock Club delivery. We will continue to work with them on enhancing our Paddock Club offerings. Looking at the Las Vegas Grand Prix, we delivered another outstanding spectacle on track, creating buzz throughout North America and earning the Promoter of the Year award from Autosport. Moving into 2025, we are taking an important step in the race evolution and are fully integrating its operation into our F1 team in London. This will further maximize the value we believe the Vegas race provides for F1 business' commercial activities. In addition to being an excellent lead generator for a commercial deal, Vegas has been a successful testbed of innovation that we are now extending elsewhere in Formula One.

Speaker Change: And earning the promoter of the year award from Ultra sports moving into 2025, we are taking an important step in the race evolution and then fully integrating these operations into our F. One team in London.

Speaker Change: This will further maximize the value we believe the biggest release provides for F. One brothers commercial activities. In addition to being an excellent Legion at each of our commercial deal Vegas has been a successful test bed of innovation that we have now extending as aware informal one.

Stefano Domenicali: A few recent examples include expanding our licensed product and merchandise offering, the global partnership with Gordon Ramsay after his involvement in Vegas, and building a new CRM system for all of F1, which will enhance our fan targeting. We also know the Vegas race is key to our expansion strategy in the US. Following the second year of the race, we have a clear vision of the changes needed to improve the race standalone economics and maximize the overall value accruing to Formula One. Turning to broader fan engagement, Nielsen published a set of fan data in December 2024, confirming F1 is the most popular annual sporting series globally, with over 750 million fans and growing. Younger and female fans are growing the fastest, a statistic that few sports can claim.

Speaker Change: A few recent examples include the expanding our licensed product and merchandise offering. They go about Bob that she would go to the M. C. After his involvement in Vegas and building a new CRM system for all of F. One, which will enhance our fund targeting we also know the Vegas race is key to our expansion.

Speaker Change: In the U S.

Speaker Change: Following the second year of the race, we have a clear vision of the changes needed to improve the risk Standalone economics, and maximize the overall value accruing to formula one.

Speaker Change: Turning to broader fan engagement Nielsen publishes set the fan data in December 2020 form twenty-four confirming if one is the most popular animal sport as heaters globally with over 750 medium fence enrolling younger.

Speaker Change: Younger females plans are growing the fastest I statistics that few sport gently.

Stefano Domenicali: In the last five years, the under 35 years old and female fan demographics have both increased by over 50%, with steady growth, especially in markets like the US and China. In 2024, 1.6 billion cumulative TV viewers tuned in for races, with the number of unique viewers up 9% year-over-year. An additional aggregate audience of almost 500 million watched the F1 content on streaming platforms, including 230 million watching YouTube highlights reels on the F1 channel. We saw TV growth, especially in China, Canada, Australia, Argentina, and the Middle East, as we are increasing our global fanbase. At the same time, our European stronghold markets, Italy, UK, Germany, were also up year-over-year. Average viewership per race was 66 million on linear platforms, with an additional 20 million estimated on digital platforms, including F1 TV.

Speaker Change: In the last five years, the under 35 years old and female fund demographics to have both increased by over 50% with steady growth, especially in markets like the U S and China.

Speaker Change: In 2020, 416 billion cumulative TV viewers tuned in for races with.

Speaker Change: With the number of unique if you were up 9% year over year and Additionally, the gate, though this of most of our almost 500 million watched the F. One content on streaming platforms, including 230 million watching Youtube highlights wheels on the F. One channel we.

Speaker Change: We saw TV growth, especially in China, Canada, Australia, Argentina, and the Middle East as we are increasing our global fan base at the same time, our European stronghold markets, Italy, UK, Germany were also up year over year.

Speaker Change: Average viewership for race was 66 million no linear platforms with an additional 20 meaningless to meet it on digital platform, including the four T D.

Stefano Domenicali: Nielsen is now capturing YouTube audiences in the measurement, which will be included in our reported viewership numbers beginning 2025. This will provide a more comprehensive view on how current fans consume sport content, and we aim to integrate new sources and platforms over time. On social media, Formula One ended the year with 97 million followers across the platforms, up 38% year-over-year. If we look at the comparable social media platforms where all major sports operate, for the fifth consecutive year, F1 has been the fastest-growing global sports league for follower growth. We also reached an audience of 4 billion globally through our proactive media activity in 2024, showing the breadth of our reach. At races, strong attendance trends continue throughout the season, with 2024 seeing 17 sellout crowds and 10 new attendance records.

Speaker Change: Nielsen is in is now capturing Youtube does is in these in the measurement, which will be included in our report the viewership numbers begin in 2025.

Speaker Change: This will provide a more comprehensive view on how current fund consume sports content and we aim to integrate new sources and platform overtime.

Speaker Change: On social media for more one ended the year with the 97 billion footwear across the platforms up 38% year over year. If you look at the comparable social media platforms, where all major sports operate for.

Speaker Change: For the fifth consecutive years F. One that's been the fastest growing global sports League for fall over growth.

Speaker Change: We also reached an audience of 4 billion globally through our proactive media activity in 2024, showing the breadth of our reach.

At races stronger emphasis trends continued throughout the season with the 2024 seems 17 sellout crowds and 10, new attendance records over $6 5 million people attended the races in 2020 for a new record growing 9% over 2023 four.

Stefano Domenicali: Over 6.5 million people attended races in 2024, a new record, growing 9% over 2023. Four races welcomed crowds of over 400,000. The Paddock Club also saw record attendance, hosting 58,000 total guests across the season, up 20% on 2023. Despite the strength of these metrics, we know that only a fraction of our fanbase is able to attend a race. A key focus of our ongoing growth strategy is to reach fans in new, creative ways to maintain their interest, raise awareness, and continue the growth momentum. This is our F1 always-on strategy, ensuring F1 is present beyond the 24 races calendar. This approach is supported by our experiential licensing initiatives. Following successful international venues in Boston, DC in 2024, F1 Arcade is planning to open four additional US locations in 2025, including Las Vegas and Denver.

Speaker Change: Four races welcomed crowd of over 400000.

Speaker Change: The bulk of that goes to saw record attendance hosting 58000 total guest across the season up 20% on 2023.

Speaker Change: Despite the strength of these metrics, we know that only a fraction of our fund basis able to attend the race I think a key focus of our ongoing growth strategy is to reach fans in new creative ways to maintain their interest raise awareness and continue the growth momentum. This is our F. One always on strategy and shooting F. One is.

Speaker Change: Present beyond the 24 raises calendar these approaches supported by Albert exponential licensees initiatives.

Speaker Change: Following the successful installation of vendors in Boston D. C 2024 F. When a case is planning to open four additional U S location in 2025, including Las Vegas and Denver.

Stefano Domenicali: The F1 Exhibition sold almost 600,000 tickets across all venues in 2024, connecting our fans with F1-rich history. Buenos Aires will be the fifth city to host the exhibition when it's open on 22 March 2025 and is the first stop of a planned multi-country South American tour. Amsterdam was recently announced as the sixth location, set to open in April 2025. Leveraging learnings from other licenses' activation, Grand Prix Plaza in Las Vegas is launching a series of new year-round activities beginning at the end of March. The site will be the North American home of the sport, especially serving our growth US fanbase. In partnership with Round Room Live, our partner in the F1 Exhibition, Grand Prix Plaza will host three unique and immersive experiences: F1 Drive, F1 X, and F1 Hub, and will also have three new private event spaces available for rent.

Speaker Change: The F. One exhibition sold almost 600000 tickets across all venues 2020 for connecting our Fabs with F one which history.

Speaker Change: He knows how this will be the fifth seeded to Jose exhibition when it's open on March 22nd and he's the first stop of a planned multi country yourself to American tool.

Speaker Change: So that was recently announced as the six locations set to open in April 2025.

Speaker Change: Leveraging learnings from other license activation granberry browser in Las Vegas is launching a series of new year round activities beginning at the end of March the site will be the North America home of the sport, especially serving our growth U U S fan base.

Speaker Change: In partnership with the round room lives our partner in the F. One exhibition Grand Prix Plaza will host to see unique and immersive big speed is F. One drive F. One X and therefore hub and we also had three new private demand spaces available for rent.

Stefano Domenicali: We are building momentum in consumer products and other licensing areas, which we expect will be both economically lucrative and provide new touchpoints for our diverse fanbase. Our partnership with Lego, launched with a product range featuring all 10 teams, engages content across Lego digital platforms and presents at race weekends, including fan zone activations. Our partnership with Mattel is launching throughout 2025, with 8 F1 teams brought to life across a range of products and presents at select races, including Hot Wheels activation and retail opportunities. Sustainability initiatives remain a priority, and we are on track to be Net Zero by 2030. In 2024, we began our investment in Sustainable Aviation Fuel, and respecting our initiative here, we have provided an approximately 19% reduction in 2024 relative emissions compared to traditional aviation fuel.

Speaker Change: We're building momentum in consumer products and other licensing areas, which we expect will be both economic a lucrative and provide new touch points for our diverse fan base.

Speaker Change: Our partnership with Lego launched with a product range featuring the old 10 teams engaged gone to the closed legal digital platform and presence at race weekends, including fan zone Activations.

Speaker Change: Our partnership with Mattel is launching throughout 2025 with eight F. One these brought to life across a range of product and presence and select races include the hot wheels activation their retail opportunities.

Speaker Change: Sustainability initiatives remain a priority and we are on track to be net zero by 2000 to 2030 in.

Speaker Change: In 2024, we began our investment these sustainable aviation fuel and they state that with initiatives here, we lapped provided an approximately 19% reduction in 2024 relative emissions compared to traditional aviation pillar, we are already well advanced in our plans to expand that theyre sustainable aviation fuel initiatives further in.

Stefano Domenicali: We are already well advanced in our plans to expand the sustainable aviation fuel initiative further in 2025. Also, in November, we announced a formal diversity and inclusion charter agreed by all 10 teams, F1 and the FIA. This is an important step and invites collaboration across the ecosystem to produce impactful results. Looking ahead to the 2025 season and beyond, we are working to capitalize on our momentum and establish key building blocks for future growth. I am confident our brand awareness will continue growing, especially as we look to the Apple movie, which will premiere in June, and the impact of our recent high-profile season launch event held at the O2 in London. The launch event was the first of its kind, featuring all 10 teams revealing their 2025 deliveries, top-tier entertainment, and a gathering of the entire Formula One community to celebrate our 75th anniversary.

Speaker Change: 2025.

Speaker Change: Also in November we announced the former diversity and inclusion charter agreed to by all 10 teams F. One and the FIA. This is an important step and invites collaboration across the ecosystem to produce impactful results.

Speaker Change: Looking ahead to the 2025 season and beyond we are working to capitalize on our momentum and establish key building blocks for future growth I'm confident that our brand awareness will continue growing, especially as we look to the Apple movie, which will premiere in June and the impact of our recent high profile seasonal launch event held.

Speaker Change: Oh two in London.

Speaker Change: The launch event towards the first of its kind featuring olten teams, revealing their 2045, Liberty's top theater entertainment and the gathering of the entire pool, one community to celebrate our 70 <unk> anniversary.

Stefano Domenicali: Over 15,000 fans packed The O2, while over 40 global broadcasters aired the show live. F1 digital channels, including YouTube, drew 7.5 million total live viewers, making it F1's most successful livestream ever. The media buzz was incredible, and over 2,000 pieces of global content were published within 24 hours of the event. From a sporting perspective, this year, we expect an intense fight on the track as teams continue to converge after a very competitive 2024 season. Talent changes are painful, with many rookies entering the grid, demonstrating the success of the F2 and F3 support series in preparing drivers for Formula One. We also expect an interesting balance, as the teams have to focus both on 2025 performance but also prepare for the significant changes required by the new technical regulation taking effect in 2026. We look forward to seeing the cars take to the track this weekend.

Speaker Change: Over 15000 fans packed the O two while over 40 global broadcast it air the show live F. One digital channels, including Youtube drill 7.5 million total light viewers, making it F. One most successful I assume ever the media buyers was incredible and over 2000 pieces of global content what popped.

Speaker Change: We ship within 24 hours of the event.

Speaker Change: From a reporting perspective this year, we expect an intensified on the track as teams continues to converge after a very competitive 2024 season.

Speaker Change: Changes are painful.

Speaker Change: With the many Rockies entering the greed demonstrated the success of the F. Two and half three Super Cedars in preparing drivers for four months. We also expect an interesting balance as the teams have to focus both on 2025 performers, but also prepare the significant changes required by the new technical regulations, taking effect in 2020.

Speaker Change: Six.

Speaker Change: We look forward to see the caustic to detract this weekend.

Stefano Domenicali: Avanti tutta, full speed ahead. Now I will turn the call back over to Derek. Thank you. Bye-bye. Great. Thank you, Stefano. I think we'd like now to open the call for questions. Thank you. We'll now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your questions. Thanks. I have two questions, one for Derek and one hopefully for Stefano. I know he said bye, but hopefully he's still there.

Stefano Domenicali: Avanti tutta, full speed ahead. Now I will turn the call back over to Derek. Thank you. Bye-bye.

Derek Chang: Wanted to touch full speed ahead, and now I will turn the call back over to Derek. Thank you Bye bye.

Derek Chang: Great. Thank you, Stefano. I think we'd like now to open the call for questions.

Speaker Change: Great. Thank you Stefano I think we'd like now like to open the call for questions.

Operator: Thank you. We'll now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your questions.

Speaker Change: Thank you well now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.

Speaker Change: Confirmation tone will indicate your line is in the question queue you may.

Speaker Change: Press Star two to remove yourself from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Speaker Change: Our first questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your questions.

Ben Swinburne: Thanks. I have two questions, one for Derek and one hopefully for Stefano. I know he said bye, but hopefully he's still there.

Ben Swinburne: Thanks, I have two questions one for Derek one when hopefully for Stefano I know he said by but hopefully he is still is still there Derek welcome to the wonderful world of quarterly earnings calls.

Stefano Domenicali: Derek, welcome to the wonderful world of quarterly earnings calls. Nice to talk to you again. Could you talk a little bit about sort of the message you have to Liberty shareholders around kind of strategy? I know you talked a little bit about it in your prepared remarks, but what are your strategic priorities for the year? And any comment you can share on sort of your philosophy around M&A? I think Liberty, obviously, has a tremendous track record on the M&A front. At the same time, investors really like the kind of pure plays that you have and are continuing to create. So I would love to hear some thoughts there. And then I have an F1 question for Stefano if he's there. Sure. Thank you, Ben. Good to hear your. Thank you. What was that? Oh, Stefano. Sorry. Thanks, Ben. And thanks for the warm welcome there.

Ben Swinburne: Derek, welcome to the wonderful world of quarterly earnings calls. Nice to talk to you again. Could you talk a little bit about sort of the message you have to Liberty shareholders around kind of strategy? I know you talked a little bit about it in your prepared remarks, but what are your strategic priorities for the year? And any comment you can share on sort of your philosophy around M&A? I think Liberty, obviously, has a tremendous track record on the M&A front. At the same time, investors really like the kind of pure plays that you have and are continuing to create. So I would love to hear some thoughts there. And then I have an F1 question for Stefano if he's there.

Ben Swinburne: Talk to you again could you talk a little bit about you know sort of the message you have to you know liberty shareholders around kind of strategy I know you talked a little bit of it in your prepared remarks, but like what are your strategic priorities for the year and any comment you can share on sort of your philosophy around M&A I think liberty obviously.

Speaker Change: Tremendous track record on the M&A front at the same time investors really like the kind of pure plays that you have and are continuing to create so we'd love to hear some thoughts there and then I have an F. One question for Stefano if he's there.

Derek Chang: Sure. Thank you, Ben. Good to hear your. Thank you. What was that? Oh, Stefano. Sorry. Thanks, Ben. And thanks for the warm welcome there.

Speaker Change: Thank you Pat down to hear you.

Speaker Change: What's that.

Speaker Change: Sorry.

Speaker Change: Thanks, Pat and thanks for the warm welcome that I guess I would say that.

Stefano Domenicali: I guess I would say that I touched on some of the points in terms of our near-term priorities: closing Dorna, the structural simplification that we've discussed, and obviously, a huge focus right now on F1 and continuing sort of the growth trajectory that that's been on and helping Stefano and his team sort of accomplish that. We've got a lot sort of on our plate. But as you get through the year and we sort of roll forward, I would think that a lot of what we've done in the past would sort of reflect on what we might do in the future. We've always been an opportunistic place. And I think as those opportunities present themselves, we will certainly, hopefully, be active and be able to continue to sort of build on the assets that we have in terms of tuck-ins or adjacencies and things like that.

Derek Chang: I guess I would say that I touched on some of the points in terms of our near-term priorities: closing Dorna, the structural simplification that we've discussed, and obviously, a huge focus right now on F1 and continuing sort of the growth trajectory that that's been on and helping Stefano and his team sort of accomplish that. We've got a lot sort of on our plate. But as you get through the year and we sort of roll forward, I would think that a lot of what we've done in the past would sort of reflect on what we might do in the future. We've always been an opportunistic place. And I think as those opportunities present themselves, we will certainly, hopefully, be active and be able to continue to sort of build on the assets that we have in terms of tuck-ins or adjacencies and things like that.

Speaker Change: I've touched on some of the points in terms of our near term priorities.

Speaker Change: Clothing doorn are structural.

Speaker Change: Structural simplification that we've discussed.

Speaker Change: Obviously, a huge focus right now on an F on continuing the growth trajectory that that's been on it and helping stephane.

Speaker Change: Team sort of accomplish that we've got a lot sort of on our plate but.

Speaker Change: But as you get through the year and when you sort of roll forward I would think that a lot of what we've done in the past what sort of reflect on what we might do in the future. We've always been an opportunistic.

Speaker Change: And I think as those opportunities present themselves, we will certainly hopefully be active.

Speaker Change: Okay.

Speaker Change: To sort of build on the assets that we have.

Speaker Change: In terms of tuck.

Speaker Change: Tuck ins orange agencies, and things like that but that as we start to talk beyond that.

Stefano Domenicali: But then, as we start to look beyond that, where there are sort of opportunities that involve premium IT abilities to monetize and commercialize along the way that we've done with some of the assets like F1, those we would look at pretty seriously. But for now, again, back to sort of the near-term priorities that we've already discussed. Stefano or Ben, do you want to ask Stefano your next question? Yeah. Yeah, Stefano. You guys have a lot going on between Concorde and media rights and everything else. But there's a lot of focus, as you can imagine, on the US media rights right now. There's some press reports that F1 and ESPN have sort of moved on from each other.

Derek Chang: But then, as we start to look beyond that, where there are sort of opportunities that involve premium IT abilities to monetize and commercialize along the way that we've done with some of the assets like F1, those we would look at pretty seriously. But for now, again, back to sort of the near-term priorities that we've already discussed. Stefano or Ben, do you want to ask Stefano your next question?

Speaker Change: You know where they are is sort of opportunities that involve premium.

Speaker Change:

Speaker Change: Our ability to monetize and commercialize along the way that we've done with some of the assets I guess one of those we would look at pretty seriously.

Speaker Change: But for now again back to sort of the near term priorities that we've already discussed.

Stefano or do you want to have stuff at all you know yeah, Yes, definitely you guys yes.

Ben Swinburne: Yeah. Yeah, Stefano. You guys have a lot going on between Concorde and media rights and everything else. But there's a lot of focus, as you can imagine, on the US media rights right now. There's some press reports that F1 and ESPN have sort of moved on from each other.

Speaker Change: Going on between you know Concord and.

Speaker Change: Media rights everything else, but theres a lot of focus as you can imagine on the U S media rights right now there's some press reports that F. One in E. S. P. N as have sort of moved on from each other and I guess I'm. Just curious if you could talk a little bit about how you're feeling about the demand for the U S broadcast rights for F. One today.

Stefano Domenicali: And I guess I'm just curious if you could talk a little bit about how you're feeling about the demand for the US broadcast rights for F1 today, whether we still should think there's going to be an increase from your current deal, and any thoughts on including or excluding F1 TV in the package that you're bringing to market would be appreciated. Thank you. No. Thanks, Ben. As you said, there's lots going on in these months, but that's the life of Formula One. Every day is a new day with a lot of things that are always opportunities. First of all, let me say that with regard to ESPN and Formula One, let me say that I can't deny the sort of situation that is negative because, first of all, we need to be thankful for what ESPN is providing to us.

Ben Swinburne: And I guess I'm just curious if you could talk a little bit about how you're feeling about the demand for the US broadcast rights for F1 today, whether we still should think there's going to be an increase from your current deal, and any thoughts on including or excluding F1 TV in the package that you're bringing to market would be appreciated. Thank you.

Speaker Change: Now, whether we still should think there's going to be an increase from your current deal and then your thoughts on including or excluding F. One T V. In the package that you're that you're bringing to market would be appreciate it. Thank you.

Stefano Domenicali: No. Thanks, Ben. As you said, there's lots going on in these months, but that's the life of Formula One. Every day is a new day with a lot of things that are always opportunities. First of all, let me say that with regard to ESPN and Formula One, let me say that I can't deny the sort of situation that is negative because, first of all, we need to be thankful for what ESPN is providing to us.

Speaker Change: No. Thanks, Ben as you said these are lots of going on in this month, but that's the light the formal what every day is a new day with a lot of things that are always opportunities first of all let me say that you know with regard to ESPN and pool, one let me say that the you know I cannot deny.

Speaker Change: There's sort of a situation that is negative because first of all we need to be thankful for Walter Yes D. N is providing to US we are very happy about the quality of the service we need to always remember that they were first to believe in our project. So therefore, the fact that at the end of the exclusivity period, they have not put in.

Stefano Domenicali: We are very happy about the quality of the service. We need to always remember that they were first to believe in our project. So therefore, the fact that at the end of the exclusivity period, they have not put in place a formal offer. It doesn't mean that the discussions are going ahead. Actually, it's the other way around. So there are still a lot of discussions to try to find the best solution. And of course, now, as we always said, are the months where other players are around the table. And we cannot deny the fact that there is a lot of interest around our product. We are fortunate enough to have compelling contents, a growing fanbase, and a strong demand for different situations from various parties.

Speaker Change: Please and a formal offer it doesn't mean that the discussion that I had actually it's the other way around so that is still a lot of discussion to try to find the best solution and of course now as we always said is that.

Speaker Change: Are the months, where other players around the table and that we cannot deny the fact that there is a lot of interest around our products. We have are fortunate enough to have a compelling continents contents and growing fan base and the strong demand for different situation from various parties as do we.

Stefano Domenicali: As we always said, there is the big point related to the fact that from one side, we always want to maximize the monetization of our media rights, but on the other side, we need to make sure that also in terms of awareness, in terms of growth of our fanbase, we need to try to find the best way in terms of reach. Therefore, these are the two questions, the two points that are on the table. We have a lot of players that we are discussing with. I think the hot months will be the next one before summer when we should have a better picture.

Speaker Change: Always said you know there is a the big.

Speaker Change: A point related to the fact that for one side, we always want to maximize the monetization of our media right, but on the other side, we need to make sure that also in terms of awareness in terms of growth of our Sundays, we need to tried to find the best way in terms of reach therefore these are the two questions.

Speaker Change: The two points that are on the table. We have a lot of players that are we are discussing with I think the hot months will be the next one before summer well, we should have a better picture and that's for sure something that I believe it will happen because as I said, we are really in a situation where our hour.

Stefano Domenicali: And that's for sure something that I believe it will happen because, as I said, we are really in a situation where our possibility to grow and also to offer to them the possibility to give to our broadcaster partner any better commercialization on how they can explore their rights are possible. And I can say that the digitalization and also the experience of other broadcasters doing in Europe and other parts of the world could be an essential part of what could be the discussion we're going to have with them. And that's what I would say with regard to the media rights. I'm sure that Derek, if you want to say something more on that before I can touch base on the situation on Concorde. Thanks, Stefano.

Speaker Change: Hey, good possibilities to grow and also can offer to them is the possibility to given the two hours of Augusta Boston any lateral commercialization on how they can explore their rights are possible and I can I can say that the digitalization and also the experience about the broker dealers in Europe other parts of the world.

Derek Chang: Could be an essential part on what could be the discount you were going to have with them and that's what I would say with regard to the media right I'm sure that the Derek if you want to say something more on that before I can.

Speaker Change: The situation on comfort.

Derek Chang: Thanks, Stefano.

Derek Chang: Thanks, Stefan out Yeah, I mean, I love talking about media right.

Stefano Domenicali: Yeah, I mean, I love talking about media rights, but I would add to that that people tend to look at these sorts of discussions somewhat simplistically sometimes and really focus on sort of the race and the race broadcast. But when you think about sort of media rights in today's world, the broadcasters, the distribution partners, and the IP holders, I think it's a much more involved relationship than just sort of the event. And I think that's to everyone's benefit in the ecosystem and how people can use sort of our IP, not just through the event, but through the other forms of content, through the activations and hospitality even, and things like that come into play. And I think that we at F1 continue to be very well positioned with respect to the content offering we have.

Derek Chang: Yeah, I mean, I love talking about media rights, but I would add to that that people tend to look at these sorts of discussions somewhat simplistically sometimes and really focus on sort of the race and the race broadcast. But when you think about sort of media rights in today's world, the broadcasters, the distribution partners, and the IP holders, I think it's a much more involved relationship than just sort of the event. And I think that's to everyone's benefit in the ecosystem and how people can use sort of our IP, not just through the event, but through the other forms of content, through the activations and hospitality even, and things like that come into play. And I think that we at F1 continue to be very well positioned with respect to the content offering we have.

Speaker Change: Yeah.

Speaker Change: I would add to that that you know people tend to look at at the touch of discussion somewhat simplistically, sometimes and and really focus on sort of the race in the race broadcast, but when you think about sort of media rights and in today's world.

Speaker Change: You know the broadcasters the distribution partners.

Speaker Change: And the IP holders I think that's a much more involved relationship then and just sort of any of that and I think that everyone benefits.

Speaker Change: And how people can use sort of our IP, not just really bad but to the other forms of content.

Speaker Change: Activation and hospitality and things like that come into play and I think that.

Speaker Change: We.

Speaker Change: Continue to be very well positioned with respect to the content offer we have we've invested a lot of money in our own content production, which which can also be very helpful to the potential broadcast partners ultimately as everyone knows in this world things sort of hinge up a little bit on supply and demand and the competitive process that unfold.

Stefano Domenicali: We've invested a lot of money in our own content production, which can also be very helpful to the potential broadcast partners. Ultimately, as everyone knows in this world, things sort of hinge upon a little bit on supply and demand and the competitive process that unfolds in situations like this and sort of what the availability is of other rights around this time frame vis-à-vis sort of which of our potential partners may be looking for IP like ours at this time. So not to overcomplicate the answer, but I think we do believe that there is a robust process that will unfold here. I think to use an F1 analogy, we're early in the race and people are still feeling out the track, per se.

Derek Chang: We've invested a lot of money in our own content production, which can also be very helpful to the potential broadcast partners. Ultimately, as everyone knows in this world, things sort of hinge upon a little bit on supply and demand and the competitive process that unfolds in situations like this and sort of what the availability is of other rights around this time frame vis-à-vis sort of which of our potential partners may be looking for IP like ours at this time. So not to overcomplicate the answer, but I think we do believe that there is a robust process that will unfold here. I think to use an F1 analogy, we're early in the race and people are still feeling out the track, per se.

Speaker Change: <unk> like that and sort of what the availability is off.

Speaker Change: You know other Reits are around this timeframe.

Speaker Change: The sort of which of our potential partners and maybe looking for IP like ours at this time.

Speaker Change: And so.

Speaker Change: You know not that not that all of a complicated answer but I think we do believe that there is a robust.

Speaker Change: Process that will unfold here I think.

Speaker Change: Using an analogy where early in Iraq and people are still filling up attract per se, but I think Austin or you have an analogy.

Stefano Domenicali: But I think also to use an F1 analogy, it's going to be a fast race and we're going to move pretty quickly, hopefully, to come to conclusion as we get to sort of the end of or the middle of the year and into the later part of the year. And just to echo one thing that Stefano said, a lot of times, the people on the outside tend to frame these things as, "Oh, ESPN said they didn't want the F1 rights going forward." And it's a very, again, soundbite sort of way to describe a relationship. It's actually been quite a productive and constructive relationship. And I personally have had a long-term relationship with ESPN. F1 has had a great relationship with ESPN and we'll continue to see how these conversations unfold. Thank you. Thank you.

Derek Chang: But I think also to use an F1 analogy, it's going to be a fast race and we're going to move pretty quickly, hopefully, to come to conclusion as we get to sort of the end of or the middle of the year and into the later part of the year. And just to echo one thing that Stefano said, a lot of times, the people on the outside tend to frame these things as, "Oh, ESPN said they didn't want the F1 rights going forward." And it's a very, again, soundbite sort of way to describe a relationship. It's actually been quite a productive and constructive relationship. And I personally have had a long-term relationship with ESPN. F1 has had a great relationship with ESPN and we'll continue to see how these conversations unfold. Thank you.

Speaker Change: It's gonna be a pass rates and wait on them pretty quickly hopefully to come to conclusion as we get to sort of the end of the middle of the year.

Speaker Change: And part of the year and just to Echo one thing that that Stefano sad.

Speaker Change: You know a lot of times people on the outside tend to frame these things as O U.

Speaker Change: Now ESPN said they didn't want the athlon rights going forward and it's a very I can soundbites sort of way to describe that relationship, but it's actually been quite a productive and constructive relationship and I personally have had a long term relationship with ESPN F. One has had a great relationship.

Speaker Change: With ESPN and we will continue to see how these conversations unfold.

Operator: Thank you.

Speaker Change: Thank you.

Speaker Change: Thank you. Our next question is come from the line of David Karnofsky with J P. Morgan. Please proceed with your questions.

Stefano Domenicali: Our next questions come from the line of David Karnovsky with JPMorgan. Please proceed with your questions. All right. Thank you and welcome to Derek. On Las Vegas, as you noted, the race missed your budgeting. I get the need to look at this holistically given its impact to sponsorship and other rights. But I wanted to see if you could dig in a bit on the path here in 2025, in the next few years, specifically growing revenue and kind of also managing the cost base to get the event back towards some of those original standalone targets you had laid out, if that's still the goal. Thanks. Stefano, do you want to start? Yeah. Thanks, Derek. I would say thanks, David.

Operator: Our next questions come from the line of David Karnovsky with JPMorgan. Please proceed with your questions. All right.

David Karnovsky: Thank you and welcome to Derek. On Las Vegas, as you noted, the race missed your budgeting. I get the need to look at this holistically given its impact to sponsorship and other rights. But I wanted to see if you could dig in a bit on the path here in 2025, in the next few years, specifically growing revenue and kind of also managing the cost base to get the event back towards some of those original standalone targets you had laid out, if that's still the goal. Thanks.

Derek Chang: Alright, Thank you and welcome to Derek.

Speaker Change: On Las Vegas, as you noted the Reis, Mr budgeting and I get the need to look at this holistically given.

Speaker Change: Its impact of sponsorship and other Reits, but I wanted to see if you could take a little bit on the path here in 2025 in the next few years spin.

Speaker Change: Specifically growing revenue and kind of also managing the cost base to get you to add back towards some of those original Standalone targets you had laid out if that's still the goal.

Derek Chang: Stefano, do you want to start?

Speaker Change: Definitely what do you want to start.

Stefano Domenicali: Yeah. Thanks, Derek. I would say thanks, David.

Speaker Change: Yeah. Thanks, Derik I would say eh. Thanks, David I mean, I, we do believe that as we always said that D. C is an incredible Grand Prix, which we need to keep working and make sure that he will stay as we believe at the top of the range because there is that the benefits of these Grand Prix.

Stefano Domenicali: I mean, we do believe that, as we always said, this is an incredible Grand Prix on which we need to keep working and make sure that it will stay, as we believe, at the top of the range because the benefit of this Grand Prix, as we said, provides a broader financial benefit to the whole ecosystem of Formula One. What we are focusing with the action that we have delivered is to make sure that, as you said correctly, we need to make sure that we focus our attention on the cost structure of the situation that we have to manage in Vegas. We need to have even a better local relationship because that's the key of the success.

Speaker Change: As we said that provides a broader financial benefit to deal with all the old vehicle season. The football one what we are focusing with the actions that we have delivered is to make sure that you said correctly, we need to make sure that we focus our attention the cost structure of the situations that we have to manage in Vegas, we need to have a you know a even a better.

Speaker Change: Local relationship because that's the key of this success them by the way on that respect one news that I believe that it's an important for the ecosystem, but the communities that we have moved the race time two hours earlier and that's why because we believe that is important always to be connected to the community and we do not forget that the committee is benefiting with a big impact.

Stefano Domenicali: And by the way, on that respect, one news that I believe it's important for the ecosystem of the community is that we have moved the race time two hours earlier. And that's why because we believe that it's important always to be connected to the community. And we don't have to forget that the community is benefiting with a big impact on their economic P&L on the weekend of the races. And then the fact that we believe that by integrating all the functions of Vegas LBGP together with London will help to boost the synergy that we can use by knowing the system and the experience that all the other Grand Prix are, let's say, in vertical given to us. We don't have to forget that we were having, as Derek was mentioning in his speech at the beginning, any data relevant for that community.

Speaker Change: Their economics in the P&L.

Speaker Change: P N L on the weekend of the races, and then of the fact that we believe that the buy and eat in integrating their older function.

Speaker Change: Of Vegas, LPG be together with London will help to boost the synergy that we can use by knowing the system and the speed is that all the other Grand Prix out at let's say the government given to US we don't have to forget that we were having is as.

Speaker Change: With that it was mentioned in it and it needs to.

Speaker Change: Speech at the beginning and the data relevant for that community and now we have taken that in the way to build the system in order to formalize the right packaging the right offer and nobody ever said I own they're on the other side. We have always said that since the beginning that we know that when there is a new approach has really not had you know the first he is a learning curve.

Stefano Domenicali: Now we are taking that in the way to build the system in order to formalize the right packages, the right offer. On the other side, we have always said since the beginning that we know that when there is a new approach going ahead, the first year is a learning curve that will take the right time to make the right strategic decision because, as we said, this is an incredible event that will continue to be one of the most important events in the future. That's what I could say on that respect, David. Derek? Yeah. And yeah, I'd like to just add that if you step back for a second, I think that LBGP has been a huge success.

Speaker Change: We'll take the right time to make the right strategic decision because as we said these incredible event that will continue to be one of the most important event in the future that's what I could say on that perspective.

Derek Chang: Yeah. And yeah, I'd like to just add that if you step back for a second, I think that LBGP has been a huge success.

Speaker Change: Dairy and yeah, I I'd like to just add that you know if you step back for a second I think that LPG P has been a huge success.

Stefano Domenicali: To put on an event like that in the short amount of time that our team here in Denver and London were able to do that over the last couple of years has been pretty impressive. I think we've talked at length about sort of the benefit to the F1 ecosystem as a whole, whether it's the media, the sponsorship, fandom growing here in the US, all that sort of stuff has been hugely impacted by what we've been able to accomplish in Las Vegas. I think we all here, we're disappointed by sort of some of the financial metrics in the early going here. But those, in my mind, are all sort of durable and fixable.

Derek Chang: To put on an event like that in the short amount of time that our team here in Denver and London were able to do that over the last couple of years has been pretty impressive. I think we've talked at length about sort of the benefit to the F1 ecosystem as a whole, whether it's the media, the sponsorship, fandom growing here in the US, all that sort of stuff has been hugely impacted by what we've been able to accomplish in Las Vegas. I think we all here, we're disappointed by sort of some of the financial metrics in the early going here. But those, in my mind, are all sort of durable and fixable.

To put on an event like that in the short amount of time that that our team here in Denver, and London, we're able to do that over the last couple of years, it's been pretty impressive and I think we've talked at length about sort of the benefit to the <unk> ecosystem as a whole whether it's it's the media the sponsorship.

Speaker Change: Fan you know Adam growing here in the U S. All that sort of stuff as it had been hugely impacted by.

Speaker Change: What we've been able to accomplish in a N. Las Vegas, I think we all hear or disappointed by sort of the are some of the financial metrics in the early going here, but that was in my mind are all sort of terrible extra ball and as Stephane.

Stefano Domenicali: As both Stefano and I have already alluded to, we're already sort of working on those plans and feel comfortable that we will see nice improvement there over the course of the year. Thank you. Okay. And then, Stefano, I was interested to get your expanded view on GM Cadillac and the decision to admit them as an 11th team. We had the perception of some resistance to this in the past, so I was interested to understand better any change in your thinking and what this can add to the sport, especially in the US. Can you just refresh us on how the entry fee works to the teams and what role F1 has, if any, there? No, thanks for that. It's important to clarify that position. We always said that Cadillac is giving and will give an incredible boost to the ecosystem of Formula One.

Speaker Change: And I have already alluded to and I already talked about working on those plans and feel comfortable that we will see a nice improvement there.

Speaker Change: Over the course of the year.

David Karnovsky: Okay. And then, Stefano, I was interested to get your expanded view on GM Cadillac and the decision to admit them as an 11th team. We had the perception of some resistance to this in the past, so I was interested to understand better any change in your thinking and what this can add to the sport, especially in the US. Can you just refresh us on how the entry fee works to the teams and what role F1 has, if any, there?

Speaker Change: Kim.

Speaker Change: Okay, and then Stefan who is interested to get your expanded beyond June Cadillac and the decision to admit them as a team.

Speaker Change: Had the perception of some resistance to this in the past.

Speaker Change: I was interested to understand better any change in your thinking and what this can add to the sport, especially in the U S and.

Speaker Change: Can you just refresh us on how the entry fee. It works to the teams and what role if one asset there.

Stefano Domenicali: No, thanks for that. It's important to clarify that position. We always said that Cadillac is giving and will give an incredible boost to the ecosystem of Formula One.

Speaker Change: No. Thanks for that is very important to public fight that position that we always said that Cadillac is given that he will give an incredible boon to the ecosystem of formal one we were referring to other situation. The word handled before but now that the picture is total different therefore, you know I think the Catholics.

Stefano Domenicali: We were referring to other situations that were handled before, but now the picture is totally different. Therefore, I think that Cadillac is preparing the entry in terms of preparing the season because it will not be an easy situation for them to be in such a high-tech and evolved sporting platform. They are doing everything in order to show how Cadillac is really involved into the sport. Now, there is the formality that is related to the process that it's almost ready together with the FIA. There's to be an update. And whenever this will be ready, it should be not too long. There will be a sort of an update to formalize what basically is already happening. So they will be ready to fight together with the other teams for next year.

Speaker Change: Preparing the entry and in term of preparing the season, because it would not be an easy situation for them to be you know in in such a high tech and embolden. The sporting platform. They are doing everything in order to show how Cabo is really evolving into the into.

Speaker Change: The into the sport now that he is the formality that is related to the process that the you know it's almost a ready together with the FAA does to be you know an update and whenever this will be ready should be not too long there would be a sort of a beta to formalize what basically is already.

Speaker Change: So they will be ready.

Speaker Change: In a in a fight.

Speaker Change: Against all together with the other teams for next year and that is the evolution that as you know G M mistaken as yet.

Stefano Domenicali: And that is the evolution that, as you know, GM has taken as a fact that they want to be a real constructor or a manufacturer that will invest in our sport because they do believe in the technological platform that the F1 can provide to their system. So very, very happy that now this is on board, moving forward, and looking forward to see them on the track together with the other teams to fight for a great championship. Thank you. Thank you. Our next question has come from the line of Kutgun Maral with Evercore ISI. Please proceed with your questions. Good morning. And thanks for taking the questions. 2, if I could. First, on sponsorship, I know 2025 will already be very robust given the partnerships that you've already inked.

Speaker Change: As a fact that they want to be you know a real cost structure for the manufacturer that will invest in our sport because they do believe in the technological platform that you have one can provide to their to their system. So very very happy that now. This is a board moving forward and looking forward to see them on the tracks together.

Speaker Change: The other teams are tough to fight for for a great Championship.

David Karnovsky: Thank you.

Operator: Thank you. Our next question has come from the line of Kutgun Maral with Evercore ISI. Please proceed with your questions.

Speaker Change: Okay.

Speaker Change: Thank you. Our next question is coming from the line of Carter marrow with Evercore ISI. Please proceed with your questions.

Kutgun Maral: Good morning. And thanks for taking the questions. 2, if I could. First, on sponsorship, I know 2025 will already be very robust given the partnerships that you've already inked.

Carter Marrow: Good morning, and thanks for taking the questions two if I could first on sponsorship I know 2025 log be already be very robust and given the partnerships that you've already inked and it doesn't seem like the team has stopped either with the recent all in deal and bringing on tags warrior as a title partner for monochrome I guess looking ahead do you see even more opportunities.

Stefano Domenicali: And it doesn't seem like the team has stopped either with the recent all-in deal and bringing on TAG Heuer as a title partner for Monaco. I guess looking ahead, do you see even more opportunities as you look to the balance of this year, or are you largely set for 2025 based on the pipeline? And given the tenor of your conversations, is there anything you can share about how sponsorship could look like in 2026 as well? And then I have a follow-up on GM Cadillac. Yep. Thank you, Ben. I mean, as we said, we are very robust with regard to the pipeline to 2025 because basically, in terms of achievement, the entry of the robust partnership that we have announced has been, I would say, impressive.

Kutgun Maral: And it doesn't seem like the team has stopped either with the recent all-in deal and bringing on TAG Heuer as a title partner for Monaco. I guess looking ahead, do you see even more opportunities as you look to the balance of this year, or are you largely set for 2025 based on the pipeline? And given the tenor of your conversations, is there anything you can share about how sponsorship could look like in 2026 as well? And then I have a follow-up on GM Cadillac.

Carter Marrow: As you look to the balance of this year or are you largely set for 225 based on the pipeline and given the tenor of your conversations there or anything you can share about how sponsorship could look like in 2026 as well and then I have a follow up on them GM Cadillac.

Stefano Domenicali: Yep. Thank you, Ben. I mean, as we said, we are very robust with regard to the pipeline to 2025 because basically, in terms of achievement, the entry of the robust partnership that we have announced has been, I would say, impressive.

Carter Marrow: Yep. Thank you that I mean this is as we said we have very robust are with regards to the pipeline for 2025, because basically in terms of achieving.

Carter Marrow: Achievement of the entry of the robust partnerships that we've announced has been I would say impressive impressive with regard to the quality of the brand and of course, not only about the bullets about the investment that bringing to US what for me is relevant is that these new partnership as broking and Westborough team.

Stefano Domenicali: Impressive with regard to the quality of the brand and, of course, not only about the quality, but the investment they're bringing to us. What, for me, is relevant is that this new partnership has brought in and will bring in a new way of activating the partnership. It's not only visibility. It's not only awareness. It's all what is behind that. And now everyone is working together to make sure that this platform will offer to their needs in terms of business development what we can offer to them. So that is an important assessment that we have done together, and we will see already with facts. With regard to the other possibility, what we lived and we don't have to forget where we were just a couple of years ago.

Carter Marrow: New way all the activating the partnership is not only visibility is not totally awareness. It's oh, what is behind that and now everyone is working together to make sure that this platform will offer to their needs in terms of business development. What we can offer to them. So that is an important.

Carter Marrow: Our assessment that we have that together, we will see already with facts.

Carter Marrow: With regard to the other possibility what do we lived and we don't have to forget where we lap just couple of years ago. We have moved to not only in terms of quantity, but also in quality or partnership that debt. So that was the need now to restructure they could take in order to me show there was a possibility to develop regional deals or two.

Stefano Domenicali: We have moved not only in terms of quantity but also in quality of partnership that, for us, was the need now to restructure the category in order to make sure there was the possibility to develop regional deals or to uplift, as we did, from official to global partners. And of course, there are different possibilities to maximize this through the digitalization that can be applied to our presentation, our product on TV, and not only on TV, on the track. And on top of that, of course, the fan engagement that we are bringing with new partners is pushing us to move. And this is the reason why, for example, once more, Vegas was important to create different opportunities with the hospitality packages and hospitality and experience that we are offering to our fans.

Speaker Change: <unk> uplift with either Thermo Fisher to global partners and of course that either different possibility to do to maximize these.

Speaker Change: Through the digitalization, a that can be applied to our presentation, our processes on television and not only on to be able to track and on top of that of course, the final engagement that we're bringing with new partners.

Speaker Change: It is pushing us to move them and this is the reason why for example, one once more Vegas was important to create the opportunity with your speed quality packages. They will just be tallied and experience that we're offering to our fans looking ahead.

Stefano Domenicali: Looking ahead, I would say the pipeline already for the next year is very strong, and that's what we need to do. Work together. If we work well, the activation program that we are activating with them with facts is showing that our strategy is right. Otherwise, it wouldn't be in such a good position. I do believe that this position will keep going like that even in the future. That's very helpful. Thank you so much. Then maybe if I could just follow up on the GM Cadillac discussion. There have been some questions on what this could mean to the Concorde Agreement discussions and ultimately what it does to the splits and economics that the teams are pushing for.

Speaker Change: I would say the pipeline already for the next year is very strong and that's what we need to do work together and if we would well the activation program that we are that we are activating with them with facts. It is showing that our strategy is right otherwise it wouldn't be such a good position and I do believe that this project will keep the.

Speaker Change: Going like that even in the future.

Kutgun Maral: That's very helpful. Thank you so much. Then maybe if I could just follow up on the GM Cadillac discussion. There have been some questions on what this could mean to the Concorde Agreement discussions and ultimately what it does to the splits and economics that the teams are pushing for.

Speaker Change: That's very helpful. Thank you so much and then maybe if I could just follow up on the GM Cadillac discussion you know there've been some questions on what this could mean for the Concorde agreement discussions and ultimately.

Speaker Change: What it does to the splits and economics that the teams are pushing for I know that there's not much you can share on the Concorde right now, but how should we think about the financial impact of welcoming GM Cadillac to the grid and ease of hope that the long term topline opportunity through sponsorship and maybe media rights would offset any margin pressure or is it just wrong even assume.

Stefano Domenicali: I know that there's not much you can share on the Concorde Agreement right now, but how should we think about the financial impact of welcoming GM Cadillac to the grid? And is the hope that the long-term top-line opportunity through sponsorship and maybe merchandise would offset any margin pressure, or is it just wrong to even assume that there would be margin degradation? Thank you. No, thanks. I mean, with regard to the first question, there's no impact at all with the current discussion on the Concorde Agreement. As you know, Concorde is done by two major elements. One is the financial one that is related to the commercialization and the marketing side of it. That discussion is between us and the teams, and we are in a good position on that.

Kutgun Maral: I know that there's not much you can share on the Concorde Agreement right now, but how should we think about the financial impact of welcoming GM Cadillac to the grid? And is the hope that the long-term top-line opportunity through sponsorship and maybe merchandise would offset any margin pressure, or is it just wrong to even assume that there would be margin degradation? Thank you.

Speaker Change: There would be margin degradation. Thank you.

Stefano Domenicali: No, thanks. I mean, with regard to the first question, there's no impact at all with the current discussion on the Concorde Agreement. As you know, Concorde is done by two major elements. One is the financial one that is related to the commercialization and the marketing side of it. That discussion is between us and the teams, and we are in a good position on that.

Speaker Change: No. Thanks, I mean with regard to the first question Theres no impact at all with the current discussion that comfortably that's been that as you know Comcast is done by two major elements. One is the financial one.

Speaker Change: And that is related to the commercialization and the and and and the marketing side with that discussion between the you know us and the and the teams and we are in a good position on that and the other topic Oh. The other part of it is the Governor said that of course that we need to work together with the FAA.

Stefano Domenicali: The other topic or the other part of it is the governance that, of course, we need to work together with the FIA and the teams. And on that, we are working in order to respect the dates. As you know, there's no time pressure on that because we are all working as partners, and we want to find the best solution for the sport. And this is something that we're going to do even with one more team together into the future because, of course, Cadillac will be part of it, and we'll have a voice as the others into the future. Then, with regard to the fact that Cadillac will bring a new US branch, I think that we can bring opportunities. And I'm totally positive because the sport is growing in such a magnitude that everyone will exploit the best out of it.

Speaker Change: And the teams that were working in order to respect the dates as you know there's no time pressure on that because we are we are all working as partners and we want to find the best solution for the sport and this is something that we're gonna do.

Speaker Change: Even with one more team together into the future because of course, the Cadillac will be part of it and they will have a voice.

Speaker Change: Others into the future that we see.

Speaker Change: Augusta to the fact that Caldolor will bring to our new U S branch I think that we can bring opportunities and I'm totally policy because they support is growing at such a magnitude that that you know everyone will exploit the best out of it and I'm sure that the Italian like GM group will benefit from being part of this group.

Stefano Domenicali: And I'm sure that the Cadillac GM Group will benefit from being part of this group. Can I just add, thanks, Stefano, that in my early days here, I have had the opportunity to meet with some of the teams, certainly over the last month or so. And look, I don't think the relationship between Formula One and the teams has never been stronger. I've heard a lot of good, positive affirmation of that in terms of what Liberty has done since we acquired F1. And I think people really are excited about the future and sort of growing the overall pie in terms of the economics of what the sport can deliver. I think very specifically on the Concorde Agreement and our splits with the teams, Stefano already remarked on the fact that hopefully we get the Concorde Agreement done soon.

Stefano Domenicali: And I'm sure that the Cadillac GM Group will benefit from being part of this group.

Derek Chang: Can I just add, thanks, Stefano, that in my early days here, I have had the opportunity to meet with some of the teams, certainly over the last month or so. And look, I don't think the relationship between Formula One and the teams has never been stronger. I've heard a lot of good, positive affirmation of that in terms of what Liberty has done since we acquired F1. And I think people really are excited about the future and sort of growing the overall pie in terms of the economics of what the sport can deliver. I think very specifically on the Concorde Agreement and our splits with the teams, Stefano already remarked on the fact that hopefully we get the Concorde Agreement done soon.

Speaker Change: Can I just add thanks Stefan out that.

Speaker Change: In my early days here I have had the opportunity to meet with some of the teams.

Speaker Change: Certainly over the last month, or so and look out.

Speaker Change: Don't think that I think the relationship between Formula one and the team has never been stronger heard a lot of good positive affirmation.

Speaker Change: Affirmation of that in terms of what Liberty has done since since we acquired F. One and I think people really.

Speaker Change: We're excited about the future.

Speaker Change: And sort of growing the overall pie.

Speaker Change: In terms of the economics of what the Spa.

Speaker Change: Bart can deliver I think very specifically on the.

Speaker Change: Concorde agreement and our splits with the teams.

Speaker Change: Now already remarked on the fact that hopefully we kept the Concorde agreement that soon at.

Stefano Domenicali: At this point, the entry of an 11th team has not really impacted sort of that discussion per se. And if you think about it, it doesn't impact the splits between us and the teams. It certainly is an 11th team in terms of the allocations amongst the teams themselves. But again, I think with the entry of a group like GM, the hope and the thought here is that we continue to grow the overall pie for Formula One and the Formula One ecosystem. Thank you both. Very helpful. Thank you. Our next question has come from the line of Jeffrey Wlodarczak with Pivotal Research Group. Please proceed with your questions. Good morning. And first of all, congrats, Derek, on the new position. I had a couple related to Formula One. I guess a follow-up on the Concorde Agreement.

Derek Chang: At this point, the entry of an 11th team has not really impacted sort of that discussion per se. And if you think about it, it doesn't impact the splits between us and the teams. It certainly is an 11th team in terms of the allocations amongst the teams themselves. But again, I think with the entry of a group like GM, the hope and the thought here is that we continue to grow the overall pie for Formula One and the Formula One ecosystem.

Speaker Change: At this point.

Speaker Change: The entry of an 11 5 million.

Speaker Change: Really impacted sort of that discussion per say and if you think about it.

Speaker Change: It doesn't impact the splits between us and the team it certainly isn't all that our team in terms of the allocation suboxone.

Speaker Change: Teams themselves, but again I think with the entry of a group like yeah.

Speaker Change: Hello.

Speaker Change: Out here is that we continue.

Speaker Change: Hi for our Formula one and the Formula one ecosystem.

Kutgun Maral: Thank you both. Very helpful.

Thank you both very helpful.

Operator: Thank you. Our next question has come from the line of Jeffrey Wlodarczak with Pivotal Research Group. Please proceed with your questions.

Speaker Change: Thank you. Our next question is come from the line of Jeffrey Volta check with pivotal Research group. Please proceed with your questions.

Jeffrey Wlodarczak: Good morning. And first of all, congrats, Derek, on the new position. I had a couple related to Formula One. I guess a follow-up on the Concorde Agreement.

Speaker Change: Good morning first of all congrats here.

Speaker Change: On the new position.

Speaker Change: Couple related to Formula one I guess, a follow up on the Concorde agreement. So I mean should we expect that's going to be pretty similar to the current deal.

Stefano Domenicali: So I mean, should we expect that's going to be pretty similar to the current deal, or can you make changes that really help move the sport forward? And then, I guess, Stefano, on the 2026 powertrains, as you talk to the team as they develop that, are there any major surprises, positive or negative, that you're seeing from the development of the powertrains? I think Jeffrey has a follow-up. I mean, I didn't get the second question properly, to be honest. The first related to Concorde. I think that is worth to say without saying anything that we cannot say so far is the basic fundamentals are quite similar to the actual structure. That is definitely the way that we are working on, and the way we are progressing with that. The second one, I heard something related to the 2026 cars.

Jeffrey Wlodarczak: So I mean, should we expect that's going to be pretty similar to the current deal, or can you make changes that really help move the sport forward? And then, I guess, Stefano, on the 2026 powertrains, as you talk to the team as they develop that, are there any major surprises, positive or negative, that you're seeing from the development of the powertrains?

Speaker Change: Have you made changes that really help the sport forward.

Speaker Change: Stefano on the 2026 powertrains, you talked with you as they develop that.

Speaker Change: Are there any major surprises positive or negative that you're seeing.

Stefano Domenicali: I think Jeffrey has a follow-up. I mean, I didn't get the second question properly, to be honest. The first related to Concorde. I think that is worth to say without saying anything that we cannot say so far is the basic fundamentals are quite similar to the actual structure. That is definitely the way that we are working on, and the way we are progressing with that. The second one, I heard something related to the 2026 cars.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Sure I think I think Jeffrey I mean.

Speaker Change: I didn't get the second question properly to be honest the first related to cohort I think that's it it's worth to say without you know, saying that anything that we can say so far is this is the basic fundamentals that are out of it.

Speaker Change: Similar to the actual structure that is definitely the way that we are working on that the way we are progressing with that the second one I've heard some people related to the 2026 cars Geoffrey he Kim if you can repeat because the line was not great sorry for that.

Stefano Domenicali: Jeffrey, if you can repeat because the line was not great. Sorry for that. Yeah, no worries. Hopefully, you can hear me now. I was just wondering if there were any major surprises on the development of those 26 powertrains that you've heard from the team, either positive or negative. Yeah. Oh, no. Thank you. Now I understand. Thank you very much. I think that, as always, when there is a change of regulation, there is a lot of things that are related to who is working the best, who knows, or has been able to maximize the performance out of the regulation that is totally new. So a lot of expectation.

Stefano Domenicali: Jeffrey, if you can repeat because the line was not great. Sorry for that.

Jeffrey Wlodarczak: Yeah, no worries. Hopefully, you can hear me now. I was just wondering if there were any major surprises on the development of those 26 powertrains that you've heard from the team, either positive or negative.

Speaker Change: Yeah, No worries hopefully you can hear me now.

Speaker Change: I was just wondering if there were any major surprises on the development of those 26 powertrains that you've heard from explorer.

Speaker Change: He is a popular coffee.

Stefano Domenicali: Yeah. Oh, no. Thank you. Now I understand. Thank you very much. I think that, as always, when there is a change of regulation, there is a lot of things that are related to who is working the best, who knows, or has been able to maximize the performance out of the regulation that is totally new. So a lot of expectation.

Speaker Change: Yeah no. Thank you know understood. Thank you very much I think that that's always where there is a change of regulation. There is a lot of a lot of things that are related to always working the best who knows Oh has it been able to do to maximize the full myself to the regulation that is totally new so a lot of expectation.

Stefano Domenicali: It is normal that a part of the ecosystem at that stage is trying to say, "Why are we changing the things in a moment where the championship is so competitive?" That has been always the case in the cycle of Formula One. I do believe that the fact that now, with regard to the technological development, we put at the center the sustainable fuel is something that will give the future boost of a different thinking of a technological implication of the future in Formula One. That's what I'm pretty convinced about. We need to keep at the center the show, the fact that the drivers need to be at the center of the stage, and the technological choices for the futures need to be relevant for that.

Speaker Change: And then it is normal that are a part of the of the ecosystem at that stage is trying to see why we are changing the things at the moment, whether the champions is so competitive that that's been always the case in this cycle a formal one I do believe that the fact that now with regard to the little technological development, we put at the center of the sustainable.

Speaker Change: Fuel is something that will give us the future boost of a different thinking of a technological implication of the future and formal one that's one pretty convinced about it we need to keep at the center to show. The fact that the drivers' needs to be the center of the at the center of the stage and they take the neurological.

Speaker Change: The choices for the future needs to be relevant for that you need to keep that clearly because it is relevant to say that that was 10 basis. He is shifting into moving to this that we need to have the duty to make sure that he is the right balance between the let's say the so called traditional fast versus the new Fabs and that's the focus that we want to keep them together.

Stefano Domenicali: We need to keep that clearly because it is relevant to say that our fan base is shifting in terms of interest, and we need to have the duty to make sure there is the right balance between, let's say, the so-called traditional fans versus the new fans. And that's the focus that we want to keep together. All right. Thank you. Thank you. Our next questions come from the line of Brian Kraft with Deutsche Bank. Please proceed with your questions. Hey, Brian, are you able to check if you're self-muted, please? Our next questions come from the line of Stephen Laszczyk with Goldman Sachs. Please proceed with your questions. Hey, guys. Thanks for taking the questions. Two, if I could. First, on the media rights opportunity internationally for Stefano and Derek, if he wants to jump in on this one.

Jeffrey Wlodarczak: All right. Thank you.

Speaker Change: Alright, thank you.

Operator: Thank you. Our next questions come from the line of Brian Kraft with Deutsche Bank. Please proceed with your questions. Hey, Brian, are you able to check if you're self-muted, please? Our next questions come from the line of Stephen Laszczyk with Goldman Sachs. Please proceed with your questions.

Bryan Kraft: Thank you our next questions come from the line of Bryan Kraft with Deutsche Bank. Please proceed with your questions.

Speaker Change: Hey, Brian are you able to check up yourself muted. Please.

Bryan Kraft: Okay.

Stephen Laws: Our next questions come from the line of Stephen laws to check with Goldman Sachs. Please proceed with your questions.

Stephen Laszczyk: Hey, guys. Thanks for taking the questions. Two, if I could. First, on the media rights opportunity internationally for Stefano and Derek, if he wants to jump in on this one.

Speaker Change: Hey, guys. Thanks for taking the questions two if I could first on the media rights opportunity internationally for Stefano and Derek if you want to jump in on this one I'm curious if there's anything you've learned so far through your U S. Media rights negotiation that has made you more or less optimistic on the demand backdrop for media rights for F. One more.

Stefano Domenicali: I'm curious if there's anything you've learned so far through your US media rights negotiation that has made you more or less optimistic on the demand backdrop for media rights for F1 more globally. Thanks, Steven. I mean, from my side, I see that as a nonstop great opportunity to exploit the maximum out of it. I'm not really worried about that because I do believe that it's potentially not potentially, actually. Actually, we have a growing fan base, and we need to make sure we find the right product and the right partner in order to engage with them. And that's really crucial. One thing that we need to we don't have to forget that is part of the equation is our F1 TV product because it's something that it is relevant. It is really an incredible tool of engagement.

Stephen Laszczyk: I'm curious if there's anything you've learned so far through your US media rights negotiation that has made you more or less optimistic on the demand backdrop for media rights for F1 more globally.

Stefano Domenicali: Thanks, Steven. I mean, from my side, I see that as a nonstop great opportunity to exploit the maximum out of it. I'm not really worried about that because I do believe that it's potentially not potentially, actually. Actually, we have a growing fan base, and we need to make sure we find the right product and the right partner in order to engage with them. And that's really crucial. One thing that we need to we don't have to forget that is part of the equation is our F1 TV product because it's something that it is relevant. It is really an incredible tool of engagement.

Stephen Laws: More globally.

Speaker Change: Thanks, Steven I mean from my side that I see that as a non stop a great opportunity to exploit the masks are moved out of it I'm not really worried about that because I do believe that it's potentially you know we would not potentially actually.

Speaker Change: Actually we have a growing some days that we need to make sure we find the right product and they liked it.

Speaker Change: Partner in order to engage with them and that's really crucial and one thing that we need to with enough to forget that as part of the equation is our F. One to be brought up because it's something that the S. E. T is irrelevant to it is really an incredible tool all the engagements and and this is something that we want to keep that inside the discussion.

Stefano Domenicali: This is something that we want to keep that inside the discussion, whoever will be the partner of the future because we believe of the value. We truly believe in the value of this platform. I would say that, I'm not so sure the US rights is necessarily correlated to or what we learned through this experience is necessarily correlated to other markets per se because each of them have their own individual characteristics, both in terms of demand, as well as sort of players in the market. I would say that one thing that has obviously transpired over the last several years as some of the large streaming platforms have gotten engaged in sports is sort of a demand on their part for sort of worldwide rights, for lack of a better term.

Speaker Change: Whoever will be the part of the future because we believe of the value we truly believe the value of this platform.

Derek Chang: I would say that, I'm not so sure the US rights is necessarily correlated to or what we learned through this experience is necessarily correlated to other markets per se because each of them have their own individual characteristics, both in terms of demand, as well as sort of players in the market. I would say that one thing that has obviously transpired over the last several years as some of the large streaming platforms have gotten engaged in sports is sort of a demand on their part for sort of worldwide rights, for lack of a better term.

Speaker Change: I would say that that the I'm not so sure that U S. Reits, that's highly correlated to what we've learned through this experience isn't necessarily correlate it to you now.

Speaker Change: Other markets per se because each of them have their own individual characteristics. Both in terms of demand as well as sort of players in the market I would say that that one thing that is obviously transpired over the last several years as some of the large streaming platforms have gotten engaged in sports.

Speaker Change: And it's sort of a demand on their part for first sort of worldwide rights for lack of better term and and hopefully that will well certainly drive some of the demand as we walk you know around the globe if you see the.

Stefano Domenicali: And hopefully, that will certainly drive some of the demand as we look around the globe. If you see one of the big selling points of the Netflix sort of taking on the NFL Christmas games was that they delivered those globally. So this is clearly an evolving space that we'll keep an eye on. Got it. Thanks for that. And then a second question just on Vegas for Brian. I appreciate you're not commenting on very specific economics, but I was just curious if there's anything you can give us on the magnitude of the decline year-over-year in revenue and profit at the race, just given the focus at the moment by the market that could maybe give us confidence that some of the underperformance in the quarter was isolated to Vegas specifically and maybe not more broadly throughout the F1 core business. Thank you. Yeah, thanks.

Derek Chang: And hopefully, that will certainly drive some of the demand as we look around the globe. If you see one of the big selling points of the Netflix sort of taking on the NFL Christmas games was that they delivered those globally. So this is clearly an evolving space that we'll keep an eye on.

Speaker Change: One of the big selling points of the Netflix sort of taking on the NFL Christmas games was deliberate.

Speaker Change: So you know this is a.

Speaker Change: Clearly an evolving space that we'll keep an eye on.

Stephen Laszczyk: Got it. Thanks for that. And then a second question just on Vegas for Brian. I appreciate you're not commenting on very specific economics, but I was just curious if there's anything you can give us on the magnitude of the decline year-over-year in revenue and profit at the race, just given the focus at the moment by the market that could maybe give us confidence that some of the underperformance in the quarter was isolated to Vegas specifically and maybe not more broadly throughout the F1 core business. Thank you.

Speaker Change: Got it thanks for that and then.

Speaker Change: Second question just on Vegas for Brian.

Speaker Change: I appreciate youre not commenting on very specific economics, but I was just curious if there's anything you can give us on the magnitude of the decline year over year in revenue and profit at the rates just given the focus at the moment by the market.

Speaker Change: I can maybe give us confidence that some of the underperformance in the quarter was isolated to Vegas, specifically and maybe not more broadly throughout the half one core business. Thank you.

Brian Wendling: Yeah, thanks.

Speaker Change: Yes, we can't comment on the specifics, but the majority of the.

Stefano Domenicali: We can't comment on the specifics, but the majority of the math that you guys are calculating based on the team payment was Vegas-related. Got it. That's helpful. Thank you both. Thank you. Our next question has come from the line of Brian Kraft with Deutsche Bank. Please proceed with your questions. Hi. Can you hear me now? Yes. Okay. Great. Well, thanks for letting me back in. Welcome, Derek, and congratulations. I had two questions. So first, on the heels of several high-profile race promotion renewals, how did the results of those renewals line up with your expectations that race promotion is increasingly becoming a revenue growth opportunity? And then the second one is I know you don't want to give guidance, but could you just talk broadly about the media rights revenue outlook in 2025 relative to 2024? It seems like growth in that line should accelerate this year.

Brian Wendling: We can't comment on the specifics, but the majority of the math that you guys are calculating based on the team payment was Vegas-related.

Speaker Change: Of the Miss that you guys are calculating based on the team payment was Vegas related.

Stephen Laszczyk: Got it. That's helpful. Thank you both.

Speaker Change: Got it that's helpful. Thank you both.

Operator: Thank you. Our next question has come from the line of Brian Kraft with Deutsche Bank. Please proceed with your questions.

Speaker Change: Thank you our next questions come from the line of Bryan Kraft with Deutsche Bank. Please proceed with your questions.

Bryan Kraft: Hi. Can you hear me now? Yes. Okay. Great. Well, thanks for letting me back in. Welcome, Derek, and congratulations. I had two questions. So first, on the heels of several high-profile race promotion renewals, how did the results of those renewals line up with your expectations that race promotion is increasingly becoming a revenue growth opportunity? And then the second one is I know you don't want to give guidance, but could you just talk broadly about the media rights revenue outlook in 2025 relative to 2024? It seems like growth in that line should accelerate this year.

Bryan Kraft: Hi can you hear me now.

Speaker Change: Yes.

Speaker Change: Great.

Thanks for letting me back and welcomed Eric and congratulations.

Speaker Change:

Speaker Change: I had two questions. So first on the heels of several high profile race promotion renewals how did the results of those renewals lineup with your expectations that race promotion is increasingly becoming a revenue growth opportunity and then the second one is I know you don't want to give guidance, but could you just talk broadly about the media rights revenue outlook in 2025 relative.

Speaker Change: For 2024, it seems like growth in that line should accelerate this year.

Stefano Domenicali: Would appreciate any color there. Thank you. Thanks, Brian. I mean, race promotion, as you know, we have, let's say, we have taken the decision to be strong and long-term agreement with the place where we do believe is relevant to stay focused and working together, because there is a possibility to increase even other revenue stream through this relationship. The other thing is, of course, every promoter is innovating, is investing. And I remember very well when I had my first earnings calls; there were a lot of doubt that this revenue stream would be able to grow, because there was a lot of thinking that that was not possible. Actually, we proved the other way around.

Bryan Kraft: Would appreciate any color there. Thank you.

Speaker Change: Would appreciate any color there. Thank you.

Stefano Domenicali: Thanks, Brian. I mean, race promotion, as you know, we have, let's say, we have taken the decision to be strong and long-term agreement with the place where we do believe is relevant to stay focused and working together, because there is a possibility to increase even other revenue stream through this relationship. The other thing is, of course, every promoter is innovating, is investing. And I remember very well when I had my first earnings calls; there were a lot of doubt that this revenue stream would be able to grow, because there was a lot of thinking that that was not possible. Actually, we proved the other way around.

Speaker Change: Yeah.

Speaker Change: Thanks, Brian I mean, the right promotion.

Speaker Change: As you know we have a let's say we have taken the decision to be stronger long term agreement with the place where we do believe it is that is it relevant to stay focused and working together because that is supposed to be two to increase even other revenue stream.

Speaker Change: So these are our relationship with the other thing is of course at every promoter ease at ease that innovating investing and I remember very well when I had my first earnings calls there were a lot of doubt.

That that this revenue stream would be able to grow because it was a lot of thinking that that was not possible actually we've proven that they have to go wrong and I do believe that the due to the tension pozzi attention of the market because we want a lot of a lot of countries wants to host the Grand Prix and they've been well was to basically show that they are committed to long term.

Stefano Domenicali: I do believe that, due to the positive tension of the market, because a lot of countries want to host the Grand Prix, and everyone wants to basically show that they are committed to long-term, there is the possibility to keep growing this revenue stream. This is our focus. Of course, what is good is that everyone has now the focus on the fans who is attending the race. So everyone has to improve the different segmentation that the fans require in terms of GA, in terms of medium hospitality, higher-profile hospitality, working on the marginality, of course, working on the experience of the fans together with the promotion. So on that respect, I do believe the expectation, even if we are not giving any kind of guidelines on that, are in the direction of being very strong even in the future.

Speaker Change: There is the possibility to keep growing interest in our revenue stream. This is our focus of course what is good is that we everyone. A house now the focus on defense Who's attended the race, so everyone loves to improve the different segmentation that defense Ah requires in terms of a G. A in some of our media must be <unk>.

Speaker Change: Yeah, Hi providers pathology working the marginality of course working on the experience of the fast together with the promotions. So in that respect I do believe the expectation even if we had not given any kind of guidelines on that to all of them are in the direction of being very strong even in the future.

Stefano Domenicali: With regard to the media rights, if I may say, Derek, I would say on that, if you have a good package, if you have a good sport, if you have a good fan base, the media rights should keep growing in that respect. And I do believe that what is important for the future is to see how the fans want to capture the content we are producing. And there will be not only the so-called traditional media rights, but there are other platforms that will have a big effect on not only growing that but also growing the different possibility of engaging with the fans. And this is, for me, in our opinion, very, very peculiar to the fact that this is relevant to the growth in that landscape. Yeah.

Speaker Change: With regard to the media right that if I may say, Derek I would say on that.

Speaker Change: If you have a good package if you have a good sport. If you have a good fan base you know the media rights should keep growing are in and in that respect and I do believe that that what pieces are important for the future is to see how the first wants to capture the content. We have produced and there would be not only that.

The so called traditional media right, but there are other platforms that they will have a big effect.

Speaker Change: On that not only drove in depth, but also growing the different possible to engagement with a fast and this is for me a in our opinion very very peculiar to the fact that this is relevant to the growth in that landscape.

Derek Chang: Yeah.

Stefano Domenicali: And I'd just add, Brian, specifically on 2025 versus 2024 for media rights, you're largely going to be seeing just regular uplifts and standard renewals. We would expect continued growth in F1 TV, and we're launching our new premium F1 TV product too. So those will be the primary drivers in 2025. It's kind of similar in strength as last year from a growth perspective, or would you expect any acceleration this year, Brian? I'll leave it at what we've answered already, Brian. All right. Thanks to you both. Thank you. Our next question has come from the line of Steven Cahall with Wells Fargo. Please proceed with your question. Thank you for taking the question.

Brian Wendling: And= I'd just add, Brian, specifically on 2025 versus 2024 for media rights, you're largely going to be seeing just regular uplifts and standard renewals. We would expect continued growth in F1 TV, and we're launching our new premium F1 TV product too. So those will be the primary drivers in 2025.

Speaker Change: Yeah, I'd, just add Brian specifically on twenty-five versus 'twenty four for media rights.

Speaker Change: Or is it going to be seeing you know just regular uplifts in standard renewals. We would expect continued growth in F. One T V and we're launching our new premium F. One TV product too so those would be the primary drivers in 'twenty five.

Bryan Kraft: It's kind of similar in strength as last year from a growth perspective, or would you expect any acceleration this year, Brian?

Speaker Change: It's kind of similar in strength as last year from a growth perspective or would you expect any acceleration this year Brian.

Brian Wendling: I'll leave it at what we've answered already, Brian.

Speaker Change: I'll leave it at what we well we've answered already Brian.

Bryan Kraft: All right. Thanks to you both.

Speaker Change: Alright, Thanks to you both.

Operator: Thank you. Our next question has come from the line of Steven Cahall with Wells Fargo. Please proceed with your question.

Speaker Change: Thank you. Our next question is come from the line of Steven Kay Hall with Wells Fargo. Please proceed with your question.

Steven Cahall: Thank you for taking the question.

Speaker Change: Thank you for taking the question. So first just on media rights and with the expansion of premium F. One T. V. Can you just help us conceptualize how that products fits into the discussions that you have with some of the larger streaming companies I guess the expectation is that the streaming companies probably don't want to see a competing streaming product in <unk>.

Stefano Domenicali: So first, just on media rights and with the expansion of premium F1 TV, can you just help us conceptualize how that product fits into the discussions that you have with some of the larger streaming companies? I guess the expectation is that those streaming companies probably don't want to see a competing streaming product in market, even if it's your own. So how do you manage those dynamics as you look to maximize the value of what you can get for rights? And then just one on Concorde and maybe Concorde dynamics. I think the last Concorde had a big overhang from what was going on with the pandemic and maybe the team's expectation or need to limit some of their downside risk. You've grown the sport a lot since then. The teams have also added a lot to their calendar, both with media and with races.

Steven Cahall: So first, just on media rights and with the expansion of premium F1 TV, can you just help us conceptualize how that product fits into the discussions that you have with some of the larger streaming companies? I guess the expectation is that those streaming companies probably don't want to see a competing streaming product in market, even if it's your own. So how do you manage those dynamics as you look to maximize the value of what you can get for rights? And then just one on Concorde and maybe Concorde dynamics. I think the last Concorde had a big overhang from what was going on with the pandemic and maybe the team's expectation or need to limit some of their downside risk. You've grown the sport a lot since then. The teams have also added a lot to their calendar, both with media and with races.

Speaker Change: It even if it's your own so how do you manage those dynamics as you look to maximize the value of of what you can get for Reits.

Speaker Change: Then just one on on Concord, and maybe Concord dynamics I think the last Concorde had a big overhang from what was going on with the pandemic and maybe the team's expectation or need to women. Some of their downside rescue grown the sport a lot. Since then the teams have also added a lot to their calendar both with media.

Speaker Change: And with races. So how do you think team dynamics are this time, what do you think their expectations are and do you think that they have any feelings about your ability to kind of hold team payments flat and would be willing to accept that thank you.

Stefano Domenicali: So how do you think team dynamics are this time? What do you think their expectations are? And do you think that they have any feelings about your ability to kind of hold team payments flat and would be willing to accept that? Thank you. Thanks, Steven. I mean, with regard to the, let's say, the value of the premium F1 TV Pro or what we are doing in terms of different propositions, as we said, we believe that this has to be considered as a landed value. And we found solutions. I give you one example. In a collaboration with Viaplay in the Dutch market, we were able to find a solution that has integrated that in the package. So I do believe that we are flexible to understand what will be the need of our future broadcaster, knowing that there's a value because it's an incredible package.

Steven Cahall: So how do you think team dynamics are this time? What do you think their expectations are? And do you think that they have any feelings about your ability to kind of hold team payments flat and would be willing to accept that? Thank you.

Stefano Domenicali: Thanks, Steven. I mean, with regard to the, let's say, the value of the premium F1 TV Pro or what we are doing in terms of different propositions, as we said, we believe that this has to be considered as a landed value. And we found solutions. I give you one example. In a collaboration with Viaplay in the Dutch market, we were able to find a solution that has integrated that in the package. So I do believe that we are flexible to understand what will be the need of our future broadcaster, knowing that there's a value because it's an incredible package.

Speaker Change: Yeah.

Speaker Change: Thanks, Steven I mean with regard to the to the to the let's say the value of the premium F. One TD or pro or without doing intermodal. Some propositions as we said that we believe that these as to the casinos around the value and then we find solution that I gave you. One example in in the in our in our Cola.

Speaker Change: Aberration that with a value play in the Dutch market, we were able to find a solution that is integrated that is a patch. So I do believe that we are flexible to understand what would be the need of our future broadcast so knowing that there's a value because he's an incredible package and the extended and the different packages that we're offering you know allows all our fans.

Stefano Domenicali: The extended and the different packs that we are offering allows all our fans to be connected with our world. I do believe this is relevant also. This element has to be considered in our negotiation with future partners. Concorde, I mean, the team dynamics, I would say everyone recognized huge growth all over the business. I mean, it's not only related to the fact that there is a lot of interest on eventually buying teams because they see the potential value of them. You see from the numbers and the quality of partners that are connected to each team. That means everyone recognized the huge job we are doing together. The dynamics are very constructive. It's part of the game that everyone wants to try to squeeze or maximize what they can bring home. That's part of the game.

Speaker Change: It will be connected with our world and I do believe this is relevant also.

Speaker Change: These elements has to be considering in our negotiation with Twitch, a part of a cohort I mean, the team dynamics I would say everyone recognized huge growth all of the business I mean that he is not totally related to the fact that there is a lot of interest on the eventually buying teams because they see the.

Speaker Change: Potential value of them you see from the numbers and the quality of partners that are connected to each team that he is definitely out of the chute zone, we're doing together and the dynamics are very constructive, but it's a it's part of the game that everyone wants to try 22222 to squeeze or maximize what they can bring home that's part of the game but.

Stefano Domenicali: But I would say the credibility that we have found that we have now together has allowed us to find the right balance. So happy to progress with this kind of relation because that's the key point of a future and very stable growth of the business together. We see everyone as a stakeholder of the business, the FIA, the teams, and all the partners that they have and all our partners. Great. Thank you. Thank you. Just our last. Just on the Concorde, the one aspect that you were asking about, we wouldn't expect to see degradation. We feel good with our relationship with the teams. So we would expect that, at a minimum, we'd be in a similar place on the next agreement to where we finish out 2025. Thank you. Our last questions will come from the line of Barton Crockett with Rosenblatt.

Speaker Change: I would say that for the bridge that we have found that we have now together.

Speaker Change: As allow us to find the right balance so happy to progress with does that kind of relationship because that's the key point to all the future and that very stable growth of the business together, we see everyone as a stakeholder of the business. The FAA the teams and all the partners do they have in all of our partners.

Steven Cahall: Great. Thank you.

Speaker Change: Great. Thank you.

Brian Wendling: Thank you. Just our last. Just on the Concorde, the one aspect that you were asking about, we wouldn't expect to see degradation. We feel good with our relationship with the teams. So we would expect that, at a minimum, we'd be in a similar place on the next agreement to where we finish out 2025.

Speaker Change: Thank you and just last one.

Speaker Change: Alright.

Speaker Change: On the Concorde the one aspect that you were asking about we wouldn't expect to see degradation, we feel good with our relationship with the teams. So we would expect at a minimum we'd be in a similar place on the next agreement to where we finish out 2025.

Operator: Thank you. Our last questions will come from the line of Barton Crockett with Rosenblatt.Please proceed with your questions.

Speaker Change: Thank you our last question will come from the line of Barton Crockett with Rosenblatt. Please proceed with your questions.

Stefano Domenicali: Please proceed with your questions. Okay. Thanks for taking the questions. I was interested in terms of the broadcast rights. There's been a lot of focus on the US as a solitary market, but there's rights that seem to be potentially up for renewal across the Americas, maybe even elsewhere, Japan. Are we at a place now where it could be more interesting, perhaps, to get closer with some of the global streamers to negotiate large regional packages, not exactly global, but large kind of regions that go just beyond the US? I was wondering if you could discuss that. I mean. Dennis, do you want to go or I can go as you wish? Yeah. No, no. I can just take this one, and we can wrap up since this is the last question.

Barton Crockett: Okay. Thanks for taking the questions. I was interested in terms of the broadcast rights. There's been a lot of focus on the US as a solitary market, but there's rights that seem to be potentially up for renewal across the Americas, maybe even elsewhere, Japan. Are we at a place now where it could be more interesting, perhaps, to get closer with some of the global streamers to negotiate large regional packages, not exactly global, but large kind of regions that go just beyond the US? I was wondering if you could discuss that. I mean.

Speaker Change: Okay. Thanks for taking the questions.

Speaker Change: Interested in terms of the broadcast rights you spent a lot of focus on the U S as a solitary market but.

Speaker Change: Now there's rights that seem to be you know potentially up for renewal across the Americas, you know, maybe even elsewhere in Japan.

Speaker Change: Are we at a place now where it could be more interesting, perhaps you know to get closer and with some of the top streamers.

Speaker Change: We negotiate globe large regional packages not exactly global but.

Speaker Change: A large kind of reagents that go just beyond like the U S.

Speaker Change: I'm, sorry, if you could discuss that.

Stefano Domenicali: Dennis, do you want to go or I can go as you wish?

Speaker Change: I mean, David do you want to go Oh I can go.

Derek Chang: Yeah. No, no. I can just take this one, and we can wrap up since this is the last question.

Speaker Change: I can just take the front end, we can wrap up this is the last question but.

Stefano Domenicali: But I think, again, what we've said, and I don't mean to keep repeating it, but it's an evolving situation in terms of what the media rights landscape looks like globally, what the different players out there want and want to try to achieve with their own platforms. I think, clearly, the large streamers have consistently said that they want global rights to everything. That may or may not be possible. And then on a regional basis, sort of similarly, it sort of depends on how you define these various regions. But I do think that if some of these players are strong across a region, then clearly, there could be benefit. And I think we do have some regional deals in play. I know we've got some deals with DAZN in various countries. For instance, obviously, Sky, we've got across multiple countries in Europe.

Derek Chang: But I think, again, what we've said, and I don't mean to keep repeating it, but it's an evolving situation in terms of what the media rights landscape looks like globally, what the different players out there want and want to try to achieve with their own platforms. I think, clearly, the large streamers have consistently said that they want global rights to everything. That may or may not be possible. And then on a regional basis, sort of similarly, it sort of depends on how you define these various regions. But I do think that if some of these players are strong across a region, then clearly, there could be benefit. And I think we do have some regional deals in play. I know we've got some deals with DAZN in various countries. For instance, obviously, Sky, we've got across multiple countries in Europe.

Speaker Change: Think that the I think again, as we said and I don't mean to keep repeating it but it's an evolving situation in terms of what.

Speaker Change: The media rights landscape look like globally, what the different players out there want and want to try to achieve with their own platforms. I think clearly the large streamers have consistently said that they want global rights to everything.

Speaker Change: That may or may not be possible that on a regional basis sort of similarly.

Speaker Change: Hand on how you define these various regions, but I do think that.

Speaker Change: If some of these players are strong across the region and then clearly.

Speaker Change: Clearly there could be benefit and I think we do have some regional deals in play.

Speaker Change: Sure.

Speaker Change: We've got I know, we've got some deals with Booz Allen in various countries.

Speaker Change: For instance, obviously sky, we've got across multiple countries in Europe. So.

Stefano Domenicali: So it really depends on sort of what their strength is and what their aspirations are in some of these markets because if the sum of all of those is greater than us going out individually, then we would have to look at that and pursue those opportunities seriously. I think with that, I appreciate everyone's time today. I appreciate everyone listening in and all the warm welcomes. I look forward to seeing more of everyone on future earnings calls. And thank you again. Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Derek Chang: So it really depends on sort of what their strength is and what their aspirations are in some of these markets because if the sum of all of those is greater than us going out individually, then we would have to look at that and pursue those opportunities seriously. I think with that, I appreciate everyone's time today. I appreciate everyone listening in and all the warm welcomes. I look forward to seeing more of everyone on future earnings calls. And thank you again.

Speaker Change: You you.

Speaker Change: It really depends on sort of what their strength is and what their aspirations are and some of these markets because.

Speaker Change: The sum.

Speaker Change: Of all of those is greater than us calling out individually than you would have to look at that.

Speaker Change: In pursuit of this opportunity seriously and.

Speaker Change: I think with that I appreciate everyone's time today I appreciate everyone listening in and all the warm welcome.

Speaker Change: And look forward and look forward to seeing more of everyone on future earnings calls and thank you again.

Operator: Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Speaker Change: Thank you. This does conclude today's teleconference. We appreciate your participation you may disconnect. Your lines at this time enjoy the rest of your day.

Speaker Change: [music].

Q4 2024 Liberty Media Corp Earnings Call and Business Update

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