Q1 2025 Liberty Media Corp Earnings Call

May 7, 2025

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Thank you for watching.

Operator: Welcome to Liberty Media Corporation's 2025 Q1 earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press star 1 on your telephone. As a reminder, this conference will be recorded 7 May 2025. I would now like to turn the call over to Shane Kleinstein, Senior Vice President, Investor Relations. Please go ahead.

Operator: Welcome to Liberty Media Corporation's 2025 Q1 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a Q&A session. At that time, if you have a question, please press star one on your telephone. As a reminder, this conference will be recorded 7th of May 2025. I would now like to turn the call over to Shane Kleinstein, Senior Vice President, Investor Relations. Please go ahead.

Speaker Change: Welcome to Liberty Media Corporations 2025 Q1 earnings call. During the presentation, all participants will be in a listen only mode.

Afterwards, we will conduct a question and answer session.

Speaker Change: At that time, if you have a question, please press star 1 on your telephone.

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

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

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 Forms 10-K and 10-Q 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 foreign-looking statements within the meeting of the private security litigation reform act of 1995.

Speaker Change: Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent forms, 10K and 10Q, filed by Liberty Media with the SEC.

Speaker Change: These forward-looking statements speak only as of the date of this call in Liberty Media expressly described 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 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 the non-GAAP financial measures for Liberty Media, including Adjustment Avoid that. The required definition of reconciliation for Liberty Media, schedule one can be found at the beginning at the end of the earnings press release issue today, which is available on Liberty Media's website.

Shane Kleinstein: The required definition and reconciliation 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. 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. I'd like to turn the call over to Derek.

Speaker Change: 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 , Stafford Dominic Alley, and other members of Liberty Management will be available for Q&A. I'd like to turn the call over to Derek.

Derek Chang: Great. Thank you, Shane. Good morning, everyone. It has been a great start to the year at Liberty. Importantly, the priorities we have outlined for 2025 are progressing well. Namely, number 1, we are working towards the close of the Dorna acquisition. 2, continuing our path towards structural simplification. And 3, we continue to drive momentum at Formula One. Starting first with the Dorna acquisition, we are progressing with the Phase Two regulatory process and working constructively with the European Commission. We hope to receive approval by the Long-Stop Date of 30 June 2025. MotoGP kicked off 2025 with its first-ever season launch event in Bangkok. The event generated massive buzz, bringing together all 11 teams to showcase MotoGP as a thrilling sport and premium entertainment brand....

Derek Chang: Great. Thank you, Shane. Good morning, everyone. It has been a great start to the year of Liberty.

Speaker Change: Broadly the priorities we have outlined for 2025 are progressing well.

Derek Chang: Namely, number one, we are working towards the close of the DORNA acquisition to continuing our path towards structural simplification, and three, we continue to drive momentum at Formula One, starting first with the DORNA acquisition.

Derek Chang: We are progressing with the Phase 2 regulatory process and working constructively with the European Commission. We hope to receive approval by the long-stop date of June 30, 2025.

Derek Chang: MotoGP kicked off 2025 with its first double season launch event in Bangkok. The event generated massive buzz, bringing together all 11 teams to showcase MotoGP as a thrilling sport and premium entertainment brand. MotoGP will host a 22 race calendar 2025.

Derek Chang: MotoGP will host a 22-race calendar in 2025, compared to 20 races last year, which was impacted by race cancellations, necessitating 2 replacement races scheduled mid-season. The season is off to a great start, with incredible on-track action and growth in attendance across the first 5 races completed to date. The Argentina Grand Prix set a new attendance record for the track, with over 200,000 spectators. Thailand's attendance was up 15%, and COTA hosted its largest crowd since 2018, and Jerez saw its highest attendance since 2015, with 24% growth over 2023. The company announced several commercial agreements to start the season, including Pirelli as a new tire supplier starting in 2027, and the extensions of the Barcelona, French, and Valencia GPs through 2031.

Derek Chang: Compared to 20 races last year, which was impacted by race cancellations necessitating two replacement races scheduled mid-season. The season is off to a great start with incredible on-track action and growth independence across the first five races completed to date.

Derek Chang: The Argentina Grand Prix set a new attendance record for the track with over 200,000 spectators.

Thailand's already attendance was up 15%

and CODA hosted its largest crowds since 2018.

Derek Chang: In a red saw, it's highest attended since 2015 with 24% growth over 2023.

Derek Chang: Coupling out several commercial agreements to start the season including Pirelli as a new tire supplier starting in 2027 and the extensions of the Barcelona, French and Valenti of GPs through 2031.

Derek Chang: Our second priority is continuing to progress our structural simplification, including the planned split off of Liberty Live. Our third priority is continuing to drive momentum at Formula 1. The confluence of excellent racing and commercial momentum is benefiting engagement and financial results in 2025. There are several areas currently in focus worth highlighting. We are seeing continued momentum in sponsorship and licensing to start the year. An excellent showcase was the LEGO partnership last weekend in Miami, where all 10 teams rode in fully drivable LEGO F1 cars for the drivers' parade. The project took over a year to come to life and required 400,000 LEGO bricks per car. It was an amazing collaboration that captivated our fans and the internet, and our drivers loved it.

Derek Chang: Our second priority is continuing to progress our structural simplification, including the plans put off of Liberty Live.

Derek Chang: Our third priority is continuing to drive momentum at Formula One. The consequence of excellent racing and commercial momentum is benefiting engagement and financial results in 2025. There are several areas currently in focus worth highlighting.

Derek Chang: We are seeing continual momentum in sponsorship and licensing to start the year.

Derek Chang: An excellent showcase with the LEGO partnership last weekend in Miami. We're all 10 teams rode in fully drivable LEGO F1 cars for the driver's parade.

Derek Chang: The project took over a year to come to life and required 400,000 logo bricks per car.

Derek Chang: There was an amazing collaboration that captivated our fans and the internet and our drivers looked it.

Derek Chang: Looking ahead, pulling the sponsorship pipeline forward has allowed our team to focus on 2026 and beyond, and emphasize securing blue-chip names aligned with the F1 brand. The appeal and breadth of the F1 brand are uniquely resonating with sponsors across B2B and consumer brands alike. Second, we are focusing on improving LVGP standalone economics and maximizing the overall benefit to the F1 ecosystem. Tickets went on sale in early April, and volumes are trending ahead of this time last year. Lower initial ticket prices are driving momentum, which we expect will drive greater sell-through. With the first two years having demonstrated clear benefits to the wider Vegas ecosystem, we are engaged in encouraging discussions with key local stakeholders to ensure their support and best position the event for future growth.

Derek Chang: Looking ahead, filling the sponsorship pipeline forward has allowed our team to focus on 2026 and beyond and emphasize secure and blue ship names aligned with the F1 brand. The appeal and breadth of the F1 brand are uniquely resonating with sponsors across B2B and consumer brands alike.

Derek Chang: Second, we are focusing on improving LVGP standalone economics and maximizing the overall benefit to the F1 ecosystem.

Derek Chang: Tickets went on sale on early April and volumes are trending ahead of this time last year.

Derek Chang: Lumber initials ticket prices are driving momentum which we expect will drive greater

Derek Chang: With the first two years having demonstrated clear benefits to the wider Vegas ecosystem, we are engaged in encouraging discussions with key local stakeholders to ensure their support and best position in the event for future growth.

Derek Chang: Finally, our current US media rights agreement concludes at the end of 2025, and we are in active and productive discussions for a new deal. F1 is a strong product for broadcasters with solid growth in the US, including this season, and an attractive demographic, with 1/3 of viewers under age 35, females representing 42% of the fans. We remain focused on finding the right partner to continue to innovate on broadcast offerings and sustain our momentum in the US. While it's early in the year, performance to date is strong. The contractual nature of Formula 1's cash flow provides high visibility into our business performance for the next several years and will be especially important in this macroeconomic climate. As of March 31, Formula 1 had $14.2 billion of future revenue secured under contract.

Derek Chang: Finally, our current US media rights agreement concludes at the end of 2025.

Derek Chang: And we are an active and productive discussion for a new deal. F1 is a strong product for broadcasters with solid growth in the US, including the season, and an attractive demographic with one-third of viewers under age 35, females representing 42% of the fans.

Derek Chang: We remain focused on finding the right partner to continue to innovate on broadcast offerings and sustain elements in the US.

Derek Chang: Well, it's early in the year performance today is strong. The contractual nature of that Formula One cash flow provides high visibility into our business performance for the next several years.

Derek Chang: and will be especially important in this macro economic climate. As of March 31, Formula One has $14.2 billion of future revenue secured under contract.

Derek Chang: Advanced ticket sales for our promoters and hospitality tickets for the remainder of the season remain strong. We continue to actively monitor changes in consumer sentiment, though historically, Formula 1's business model has proven resilient in times of economic uncertainty. We are encouraged by the strength of the business and look forward to completing the rest of an exciting season. Now I'll turn it over to Brian for more on Liberty's financial results.

Derek Chang: We are encouraged by the strength of the business and look forward to completing the rest of an exciting season.

Derek Chang: Now, I'll turn it over to Brian for more on Liberty's financial results. Thanks, Derek, and good morning, everyone.

Brian Wendling: Thanks, Derek, and good morning, everyone. At quarter end, Formula 1 Group had attributable cash and liquid investments of $2.8 billion, which includes $1.5 billion of cash at F1 and $69 million of cash at Quint. Total Formula 1 Group attributable principal amount of debt was $2.9 billion at quarter end, which includes $2.4 billion of debt at F1, leaving $526 million at the corporate level. F1's $500 million revolver is undrawn, and their leverage at March 31 was 1.2 times. As a reminder, all MotoGP transaction-related financing is in place and deal contingent. Turning to the Formula 1 business, I'll make brief comments on the quarterly results, though, as we all know, the business is best analyzed on an annual basis, given variability in the year-over-year race calendar and timing of events.

Brian Wendling: A quarter-end Formula One Group had a trivited cash and liquid investments of $2.8 billion, which includes $1.5 billion of cash at F1 and $69 million of cash at Quent.

Brian Wendling: Total Formula One group attributed principal amount of debt was 2.9 billion a quarter end which includes 2.4 billion of data at F1, leaving 526 million at the corporate level.

Brian Wendling: F-1500 million dollar revolvers on drawn and their leverage at 331 was 1.2 times.

Brian Wendling: As a reminder, all MotoGP transaction-related financing is in place and deal contingent.

Brian Wendling: Turning to the Formula One business, I'll make brief comments on the quarterly results. Though, as we all know, the business is best analyzed on an annual basis given variability in the year over your race calendar and timing of events.

Brian Wendling: Note that every quarter in 2025 will have incomparable race count and mix, which will impact year-over-year comparisons of quarterly results throughout the year. Most of the variability in year-over-year results is due to the 2 races held in Q1 2025, compared to 3 races in Q1 2024. Race promotion revenue decreased due to the mix of races, with Australia and China occurring in the current period, compared to Bahrain, Saudi Arabia, and Australia in the prior year. Media rights and sponsorship declined, as only 2/24ths of projected season-based revenue was recognized, compared to 3/24ths last year. Sponsorship is also impacted by the calendar shift, as the Saudi Arabia and Bahrain races both have race-specific local titles, title sponsorships, and recognition of that race-specific revenue shifted with the timing of those races.

Brian Wendling: Note that every quarter in 2025 will have incomparable race count and mix, which will impact year-over-year comparisons of quarterly results throughout the year.

Brian Wendling: Most of the variability in year-over-year results is due to the two races held in Q-1 2025 compared to three races in Q-1 2024.

Brian Wendling: Race promotion revenue decreased due to the mix of races with Australia and China occurring in the current period compared to Bahrain, Saudi Arabia and Australia in the prior year.

Brian Wendling: Media rights and sponsorship declined as only 224 projected season-based revenue was recognized compared to 324's last year.

Brian Wendling: Sponsorship is also impacted by the calendar shift as the Saudi Arabia and Bahrain races both have race-specific local title sponsorships and recognition of that race-specific revenue shifted with the timing of those races.

Brian Wendling: However, the decline in sponsorship revenue was largely offset by strong underlying growth from new and renewed deals impacting 2025. Media rights revenue is benefiting from contractual increases in rights fees, and continued growth in F1 TV, benefiting from the launch of the new premium subscription tier. Other revenue declined during Q1 as a result of one less Paddock Club event and the mix of races held. Adjusted revenue declined alongside revenue during the quarter, driven by the calendar variance. Other costs of F1 revenue increased due to higher freight costs, with longer routes flown, and increased commissions and partner servicing costs servicing the overall primary F1 revenue growth, as well as higher costs for Grand Prix Plaza due to more activity compared to Q1 2024.

Brian Wendling: However, the decline in sponsorship revenue was largely offset by strong underlying growth from new and renewed deals impacting 2025.

Brian Wendling: Media rights revenue is benefiting from contractual increases in rights fees and continued growth in F1 TV, benefiting from the launch of the new premium subscriptions here.

much.

Brian Wendling: Other revenue declined during the first quarter as a result of one last paddock club event and a mix of races held.

Brian Wendling: The Justice Department has declined alongside revenue during the quarter driven by the counterbearance.

Brian Wendling: Other costs of F1 revenue increase due to higher freight costs with longer revs blown, and increased commissions and partner servicing costs, servicing the overall primary F1 revenue growth, as well as higher costs for Grand Prix Plaza due to more activity compared to Q1 2024.

Brian Wendling: On a full year basis, we expect other costs of F1 revenue to be consistent with prior years as a percentage of total revenue. SG&A increased in the first quarter due to marketing costs associated with the season launch event at the O2, and should be viewed as a percentage of total revenue for the full year. Team payments decreased in the first quarter due to the lower pro rata recognition, with one less race held, partially offset by the expectation of higher full-year team payments. As a reminder that team payments as a percent of pre-team adjusted OIBDA was 61.5% in 2024, and we expect that percentage to continue to come down as we complete the term of the current Concorde agreement at the end of 2025.

Brian Wendling: On an employer basis, we expect other costs of F1 revenue to be consistent with prior years as a percentage of total revenue.

Brian Wendling: SGNA increased in the first quarter due to marketing costs associated with the season launch event at the O2 and should be viewed as a percentage of total revenue for the

Brian Wendling: Team Payments decreased in the first quarter due to the lower pro-radar recognition with one less race hell partially offset by the expectation of higher full year team payments.

Brian Wendling: As a reminder, a reminder that team payments as a pre-team adjusted to Waibato was 61.5 in 2024, and we expect that percentage to continue to come down as we complete the term of the Carrot Concord Agreement at the end of 2025.

Brian Wendling: In connection with all 10 teams signing the 2026 Concorde Agreement, Formula One paid a total of $50 million to the teams in Q1. This cost is excluded from Adjusted OIBDA and presented separately from team payments. Although revenue and Adjusted OIBDA were lower year-over-year due to the calendar variance, we are seeing a strong financial start to the year and are tracking well against our internal plan. Grand Prix Plaza in Las Vegas officially opened its new year-round activations on 2 May. Revenue from these activations will be recognized at the F1 OpCo level, though we expect results will have a modest impact in 2025 as we scale that business. The vast majority of the CapEx required to build out Grand Prix Plaza activations was incurred in Q1.

Brian Wendling: In connection with all 10 teams signing the 2026 Concord Commercial Agreement, Formula One paid a total of 50 million to the teams in the first quarter.

Brian Wendling: This cost is excluded from adjusted wipe it in, presented separately from team payments.

Brian Wendling: Although revenue and adjusted employment are lower a year over a year due to the calendar variance, we are seeing strong, a strong financial start to the year and are tracking well against our internal plan.

Brian Wendling: The vast majority of the CAPEX required to build up Grand Prix Plaza activations was incurred in the first quarter. Total up 1.5 CAPEX was approximately 33 million year today, including slightly less than 20 million incurred related to GPP.

Brian Wendling: Total F1 CapEx was approximately $33 million year to date, including slightly less than $20 million incurred related to GPP. Looking briefly at corporate and other results in the first quarter, revenue was $53 million, which includes Quint results and approximately $6 million of rental income related to the Las Vegas Grand Prix Plaza. Corporate and other adjusted OIBDA loss was $12 million and includes Grand Prix Plaza rental income, Quint results, and corporate expenses. Reminder that Quint's business is seasonal, with the largest and most profitable events taking place in Q2 and Q4. Q1 has modest event activity while still incurring ordinary course operating expenses. Quickly turning to the Liberty Live Group, there is attributed cash of $314 million, and $400 million of undrawn margin loan capacity relating to our Live Nation margin loan.

Brian Wendling: Looking briefly at corporate and other results in the first quarter revenue was 53 million, which includes queprosal and approximately 6 million rental income related to the Las Vegas Grand Prix Plaza.

Brian Wendling: Corporate another adjusted oil gloss is 12 million and includes Grand Prix Plaza rental income, quint results, and corporate expenses.

Brian Wendling: Quickly turning to the Liberty Live Group, there is a turbidity cast of 314 million and 400 million of undrawn marginal capacity relating to our live nation, Margin Home.

Brian Wendling: As of 6 May, the value of our Live Nation stock held at Liberty Live Group was $9.3 billion. We have $1.5- $1.15 billion in principal amount of debt against these holdings. Liberty and F1 are in compliance with their debt covenants at quarter end. With that, I'll turn the call over to Stefano to discuss Formula One.

Brian Wendling: As of May 6th, the value of our live nation's stock held a Liberty Live group was 9.3 billion. We have 1.5, 1.15 billion in principal amount of debt against these holdings.

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

Stefano Domenicali: Thanks, Brian. Formula One is off to a great start in 2025. We are 6 races into the season and continue to see exciting on-track action. The wins have been spread across teams, and the racing is tighter than expected. While early in the season, we expect the action to continue. The strong on-track performance has fueled fan engagement. Attendance is up over last year, with sellout crowds at nearly all races to date. We reached a new record crowd for the Australian Grand Prix with an outstanding 465,000 weekend attendees. Demand for the balance of the year is strong as well. Mexico sold out in a matter of hours for the 10th year in a row, and Montreal again experienced strong demand, with the majority of their 2024 guests returning in 2025. Demand for hospitality products also remain high.

Stefano Domenicali: Thanks Brian , Formula One is opt to a great start in 2025. We are a six raises into the season and continue to see exciting on track action.

Stefano Domenicali: The winds have been spread across the teams and the race is tighter than expected. While early in the season, we expect the action to continue. The strong contractor-formers has fueled fighting engagement.

Stefano Domenicali: Antendices is up over last year with sell-out crowds and nearly all races to date. We reach a new rocket crowd for the Australian robbery with an outstanding 465,000 weekend attendees.

Stefano Domenicali: The man's, for the balance of the year, is strong as well. Mexico sold out in a matter of hours for the attendees in the row and Montreal again experienced strong demand with the majority of their 2020 forecast returning to 25.

Stefano Domenicali: The man for hospitality products holds for a main high. Season to date, we sold over 12,000 tickets at Padau Tower, Padau Club and we have seen strong advance sales across the remainder of the season.

Stefano Domenicali: Season to date, we sold over 12,000 tickets at our Paddock Club, and we are seeing strong advanced sales across the remainder of the season. We remain focused on opportunities to increase capacity and are working on alternative and innovative hospitality products where demand outstrips supply. Turning to viewership statistics. Across our top 50 markets, live TV viewership grew for the first five races of the season. We had over 60 million cumulative linear TV viewers for the opening Grand Prix weekend in Australia. The US, in particular, has seen strong growth, with ESPN viewership up 45% across the first five races. The Australian Grand Prix was the most viewed edition of the race ever for the US audience. Other markets with notable linear viewership growth include Brazil, France, and Australia.

Stefano Domenicali: We remain focused on opportunities to increase capacity and are working with alternative and innovative hospitality products where the men, our strips supply.

Stefano Domenicali: Turning to leadership statistics across our top 50 markets like the viewership grew for the first five races of the season.

Stefano Domenicali: We have over 60 million cumulative linear TV viewers for the opening Grand Prix Weekend in Australia. The US in particular has seen strong growth, with ESPN viewership up 45% across the first five races.

Stefano Domenicali: The Australian grumpy was the most viewed edition of the race ever for the US audience.

Stefano Domenicali: Other markets with notable linear viewership growth include Brazil, France and Australia.

Stefano Domenicali: Highlights viewership on F1 YouTube channel has increased by 31% compared to last year, emphasizing the significance and growth in our digital channels as fans find new ways to engage with our footage on and off the track. Social media followers have now reached 100 million, growing 30% year-over-year. The Q1 growth was particularly driven by Instagram, TikTok, and YouTube. Looking more broadly, Nielsen released new fan data in March, showing the continuous surge in F1 fandom, with our total fan base as of year-end over 826 million, adding nearly 90 million new fans in 2024. These engagement figures are not just numbers. They represent the growing global appeal and genuine engagement with our sport and validate our initiatives to enhance F1 for our fans.

Stefano Domenicali: Highlights viewership on F1 YouTube channel has increased by 31% compared to last year. Infasized with the significance and growth in our digital channels has fans finds new ways to engage with our footage on and off the track.

Stefano Domenicali: Social Media followers have now reached 100 million, growing 30% year-over-year.

Stefano Domenicali: The first quarter growth was particularly driven by Instagram, TikTok and YouTube.

Stefano Domenicali: Rookie More Broadly, Nilsen released new fan data in March showing the continuous search in F1 fandom. With our total fanbase as of year end over 826 million, adding nearly 90 million new fans in 2024.

Stefano Domenicali: These engagement figures have not just numbers. They represent the growing global appeal and genuine engagement with our sport and validate our initiatives to enhance F1 for our fans.

Stefano Domenicali: The strong engagement figures are part of a broader picture of commercial success, where I'm pleased to report we continue to have strong momentum. On race promotion, we are working toward finalizing our 2026 calendar. We were excited to announce renewal of our Mexico race through 2028 and Miami through 2041, the longest contract currently secured and a testament to our success in the US market. The vast majority of our races are now secured under medium and long-term contracts. Demands from potential new race hosts remain robust, and we are evaluating various opportunities for the future. The Netherlands will host their final race in 2026, and Spa will race in alternate years from 2027, leaving an opening on the calendar in 2028.

Stefano Domenicali: We were excited to announce the renewal of our Mexico Race through 2028 and Miami through 2041, the longest count of currently secured and a statement to our success in the US market.

Stefano Domenicali: The vast majority of all the races are now secured under the medium and long term context.

The man's from potential neurases host remains robust.

Stefano Domenicali: and we are evaluating values opportunities for the future. The net data will host their final race in 2026 as part we race in alternative years from 2027, leaving an opening on the calendar in 2028.

Stefano Domenicali: Tickets for Las Vegas went on sale 9 April, featuring new ticket pricing and offerings. Tickets now start at $50 for a single-day general admission, and $400 for three-day general admission in Flamingo Zone. And we've communicated to fans that the price will not be going down from their initial on sale, helping to drive urgency and momentum in sale. To date, we are very pleased that our sales velocity in Vegas is meaningfully outpacing last year. Our media rights business continues to demonstrate the growing competition for marquee sport rights. F1 TV subscriber growth continues to be robust, with total subscriber up 4% year-over-year, led by the US market, up 20%. The launch of our new F1 TV premium tier has outperformed expectation, especially in key market like the US.

Stefano Domenicali: Tickets for Las Vegas went on sale April 9th, featuring new ticket pricing and offerings.

Stefano Domenicali: Take it now, start at $50 for a single-day general admission and $400 for three-day general admission in Flamingo Zone, and we've communicated to fans that the prize will not be going down from their initial own sale, helping to drive urgency and momentum in sale.

Stefano Domenicali: To date, we are very pleased that our city Velocity Vegas is meaningful outpacing last year.

Stefano Domenicali: Our MediaRide business continues to demonstrate the growing competition for marquee sport rights. If one TV subscriber growth continues to be robust, we total subscriber up 4% year-over-year. Led by the US market up 20%.

Stefano Domenicali: The launch of our new F1 TV Premium, tier has outperform expectation, especially in the market like the U.S.

Stefano Domenicali: We are in active and positive discussion for our US media right with multiple partners, and look forward to sharing updates once final. Of course, there's more content to watch than just the race. Additional series like Formula 2 and Formula 3, the Sprint and F1 Academy, are providing broadcaster with more content and value. Viewership for Sprint races consistently show strong year-over-year growth, with the sprint at the Chinese Grand Prix seeing over 1 million viewers for the live broadcast on CCTV in China, and viewership doubling in Italy as Lewis Hamilton celebrate his maiden win for Ferrari. Outside of the race weekend, Drive to Survive Season 7 reached Netflix global top 10 for another year and appeared in the top 10 list across 39 countries. The F1 Academy docuseries with official sanction is going live on Netflix on May 28.

Stefano Domenicali: We are in active and positive discussion for our U.S. media rights with multiple partners and look forward to sharing updates once more.

Stefano Domenicali: Of course there's more content to watch than just the race. Additional series like Formula 2 and Formula 3, the SPREET and F1 Academy are providing broadcasted with more content and value.

Stefano Domenicali: Viewership for Sprint Races consistently shows strong year-over-year growth. With the Sprint at the Chinese Grand Prix, seen over one million viewers for the live broadcasts on CCTV in China, and viewership doubly in Italy as Lewis Hamilton celebrates his maiden

Stefano Domenicali: Outside of the race weekend, dry to survive season 7 reached Netflix Global Top 10 for another year and appeared in the Top 10 list across 39 countries.

Stefano Domenicali: The F1 Academy DocuSeries without sanction is going live on Netflix on May 28th. The Apple Movie announcement is premiere date on June 16th with a film soundtrack and film merchandising released just last week at Miami.

Stefano Domenicali: The Apple movie announcement, its premiere date on June 16, with the film soundtrack and film merchandising released just last weekend in Miami. On the sponsorship front, we entered the year with high visibility for 2025, and a strong pipeline for additional growth potential. Recent new deal announcements include Barilla Pasta as an official partner and PwC as our official consulting partner. As part of the PwC agreement, they will provide strategic consulting to our global business to help enhance our performance and drive operational efficiency and excellence. Our team continues to focus on both 2025 and 2026 pipeline, with progress being made on a number of high-value renewals and new partnership. Licensing continues to be an area of focus and growth.

Stefano Domenicali: On the sponsorship front, we entered the year with high visibility for 2025 and a strong pipeline for additional growth potential.

Stefano Domenicali: Recent new deal announcement include Barila Pasta, as an official partner, and BWC as our official consultant partner. As part of the BWC agreement, they will provide strategic consulting to our global business to help enhance our performance and drive operational efficiency and excellence.

Stefano Domenicali: Our team continues to focus on both 25 and 26 pipeline with progress being made on a number of high value renewals and new partnership.

Stefano Domenicali: Licensing continues to be a net of focus and growth. Our new license partner, Lego, has seen high demand for its F1 products selling on average our one piece of Lego every second in the month of March.

Stefano Domenicali: Our new license partner, LEGO, has seen high demand for its F1 products, selling on average one piece of LEGO every second in the month of March. We saw an exciting activation in Miami, where all the drivers took part in the regular drivers parade in fully drivable LEGO cars. On the experiential licensing front, F1 Arcade continues to expand to new location. The Boston and Washington, D.C. venues held sold-out watch party for the Australian Grand Prix to kick off the season. A new arcade is opening in Philadelphia on 29 May, with Denver, Las Vegas, and Chicago opening in Q4. The F1 Exhibition has sold more than 530,000 tickets in the last twelve months. Buenos Aires opened on 22 March and sold over 40,000 tickets in its first month.

Stefano Domenicali: We saw an exciting activation in Miami where all the drivers took part in the regular drivers parade in fully drivable LEGO cars.

Speaker Change: On the experiential license in front, a former Kate continues to expand to new location.

Stefano Domenicali: The Boston and Washington DC venue's whole health sold out watch party for the Australian group re to kick off the season and your kid is opening Philadelphia May 29. With Denver Las Vegas and Chicago opening in the fourth quarter.

Stefano Domenicali: The F1 Exhibition has sold more than 530,000 tickets in the last 12 months, where those adders are open on March 22nd and sold over 40,000 tickets in its first month. Amsterdam opened in April , with the 45,000 tickets sold in advance on its first day.

Stefano Domenicali: Amsterdam opened in April, with 45,000 tickets sold in advance on its first day. In March, we held a launch event for new activation experiences at the Grand Prix Plaza in Las Vegas, which opened to the public last week. The venue now offer an opportunity to immerse fans in F1 year-round and provide the Las Vegas community with a new, fun, and engaging daytime activity center. Grand Prix Plaza feature an F1-inspired karting experience, incorporating part of the Las Vegas Grand Prix circuit, an immersive F1 exhibit, the latest F1 racing simulator, a fast casual eatery, a retail store, and three private event spaces. These activation are set to operate through Q1, Q2, Q3 of the year annually, generating revenue from the site when it is not required for the Grand Prix.

Stefano Domenicali: In March, we held a launch event for new activation experiences at the Grand Prix Paris in Las Vegas, which opened to the public last week.

Stefano Domenicali: The venue now offers an opportunity to immerse fans in F1E around and provide the Las Vegas community with a new, fun and engaging day time activity center.

Stefano Domenicali: Grand Prix Plaza feature an F1's part-court and experience incorporating part of the Las Vegas Grand Prix circuit. An immersive F1 exhibit, the latest F1 racing simulator of fast-casual iterative are retail store and three private event spaces.

Stefano Domenicali: These activations are set to operate through the first three quarters of the year annually generating revenue from the site when it is not required for the grumpy.

Stefano Domenicali: On Formula One sustainability effort, I'm proud to say that we recently issued a report on our progress from the 2024 season, with a full impact report due to be published later this year. We made significant investment in sustainable aviation fuel. 90% of our promoters improved fan access and travel option, and 100% of promoters work with local community organization on programs targeting the next generation. In addition, from 2026, the F1 cars will be powered by a 100% sustainable fuel, a technology that is becoming increasingly important for the automotive sector as country look for solution to reduce greenhouse gas emission from road transportation.

Stefano Domenicali: On former one sustainability effort, I'm proud to say that we recently issued a report on our progress from the 2034 season with a full impact report due to this published later this year.

Stefano Domenicali: We made significant investment in sustainable aviation fuel, 90% of our promoters improved fan access and travel option and 100% of promoters worked with local community organization on programs targeting the next generation.

Stefano Domenicali: In addition, from 2026 the F1 cars will be powered by 100% sustainable fuel, a technology that is becoming increasingly important for the automated sector as country looked for solution to reduce greenhouse gas emission from road transportation.

Stefano Domenicali: A recent Power Unit manufacturer meeting held in Bahrain demonstrated a clear commitment to the planned 2026 engine regulation and maximizing the success of those new rules with all parties working together to ensure the best racing for the championship. We expect all the F1 teams to start shifting their focus to the 2026 engine as the season progresses.

Stefano Domenicali: A recent power-earning manufacturing meeting held in Bahrain demonstrated a clear commitment to the plan 2026 engine regulation and maximized the success of those new roles with all parties working together to ensure the best racing for the championship.

Stefano Domenicali: We expect all the F1 teams to start shifting their focus to the 2026 engine as the season progresses.

Stefano Domenicali: ... Looking forward, while we are early in our 2025 calendar, we already have an eye toward 2026. We have agreed the basis on which Cadillac will enter the championship in 2026. We have also agreed to a new Concorde commercial agreement with the teams for 2026 through 2030, and are making good progress on the governance term. Both the commercial and proposed governance terms are financially attractive for the entire F1 ecosystem and represent the collaboration and partnership we have built with the FIA, F1 teams, with the shared goal of growing F1 for our mutual benefit. In closing, we are very pleased with our start to 2025 season. Our strong on-track performance, growing fan base, and robust financial results position us well to deliver an excellent 2025 and beyond. Avanti tutta, full speed ahead.

Stefano Domenicali: Looking forward, while we are early in our 25th calendar, we already have an eye toward 26.

Stefano Domenicali: We have agreed the basis on which Cadillac will enter the championship in 26th.

Stefano Domenicali: We have also greeted to a new Concord commercial agreement with the teams who are in 2026

Stefano Domenicali: through 2030 and are making good progress on the governor's term.

Stefano Domenicali: Both the commercial and proposed governance terms are financially attractive for the entire F1 ecosystem. A representative collaboration and partnership we have built with the FIA F1 teams with the shared goal of growing F1 for our mutual benefit.

Stefano Domenicali: In closing, we are very pleased with our start 2025 season. Our strong contract performance growing fan base and repost financial results position as well to deliver an excellent 2025 and beyond.

Stefano Domenicali: Now I will turn the call back over to Derek. Thank you. Ciao.

Speaker Change: Avantituta for speed ahead and now I will turn the call back over to Derek. Thank you. Ciao

Derek Chang: Thank you, Stefano and Brian. Very quick note and exciting news. Please save the date for this year's Liberty Media Investor Day. Changing things up this year, Investor Day will be held alongside the Las Vegas Grand Prix on Thursday, 20 November in Las Vegas. We will have more details to share in due course and look forward to seeing many of you there. We appreciate your continued interest in Liberty Media, and now I'd like to open the call for questions. Operator?

Bye.

Thank you, Stefan. I would buy him.

Speaker Change: Very quick note and exciting news. Please say the date for this year's Liberty Media investor day. Changing things up this year, a better day will be held alongside the Las Vegas Grand Prix on Thursday, November 20 in Las Vegas.

Speaker Change: We will have more details to share and do course and look forward to seeing many of you there. We appreciate your continued interest in Liberty Media and now I'd like to open the call for questions. Operator?

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question today is from Stefan Lasik of Goldman Sachs. Please proceed with your question.

Speaker Change: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker Change: For participants using speaker equipment it may be necessary to pick up your hands that before pressing the star keys.

Speaker Change: Our first question today is from Stefan Lasik of Goldman Sachs. Please proceed with your question.

Stephen Laszczyk: Hey, guys. Thanks for taking the questions. Maybe to start, just on team payments and the budget for the year. Brian, curious if you could talk a little bit more about how the team payment budget is structured for the year, and if there were opportunities for upside in that budget, in terms of what you pay the teams, what some of the larger opportunities out there could be over the course of 2025 as you execute against them and reach the potential of what you think this business could produce this year?

Bye.

Speaker Change: Hey guys, thanks for taking the questions. Maybe to start just on team payments and the budget for the year. Brian , curious if you could talk a little bit more about how the team payment budget is structured for the year and if there were opportunities for society in that budget.

Speaker Change: In terms of what you paid the teams, what's some of the larger opportunities out there could be over the course of 2025 as you execute against them and and receive potential of what you think this business could produce this year.

Brian Wendling: Yeah. Thank you. Thank you for the question. You know, it's the beginning of the year, and as, as we've talked about in the past, there's always prudent financial forecasting at the beginning of the year. You know, we do think that there's opportunities for upside, but we, you know, we wanna be conservative in thinking about the variables that we have out there, which are the Las Vegas Grand Prix towards the end of the year and then, sponsorship. Everything else is contracted. And as you've seen in the past and, and we've talked about in recent quarters, you know, the, the company's moving away from large go-gets and sponsorship in the current year and focusing on future years. Are there still opportunities?

Yeah, thank you. Thank you for the question.

Speaker Change: You know, it's the beginning of the year, and as we've talked about in the past, there's always prudent financial forecasting at the beginning of the year.

Speaker Change: You know, we do think that there's opportunities for upside, but you know, we want to be conservative and thinking about.

Speaker Change: The variables that we have out there which are the Las Vegas brand pre towards the end of the year and then sponsorship everything else is contracted.

Speaker Change: And as you've seen in the past and we've talked about recent quarters

Speaker Change: You know, the companies moving away from large-go-gits and sponsorship in the current year and focusing on future years are there still opportunities, yes, there's probably some opportunities there, but the biggest unknown will ultimately be ticket sales which you've heard are trending well currently.

Brian Wendling: Yes, there's probably some opportunities there, but the biggest, the biggest unknown will ultimately be ticket sales, which you've heard are trending well currently.

Stephen Laszczyk: That's great. Thanks for that. And then maybe just a follow-up on the sponsorship business. It sounds like there's still some focus on bringing in sponsors or renewing in 25. Would be curious if you could just comment on what those are and to what extent those could still move the needle. And then I guess as we look out into 26, it sounds like your attention focus there as well, longer sales cycles on the sponsorship side is something you've been focused on. Just curious if you could give us an early read or early look into the 26 sponsorship funnel and to the extent you think that could grow off of 25, what the bands of outcome could potentially look like on that? Thank you.

Speaker Change: That's great. Thanks for that. And then maybe just a follow up on the sponsorship business. It sounds like there's still some focus on bringing in sponsors or renewing in 25 would be curious you just comment on what those are and what extent is good could still move the needle and then. I guess as we look out into 26 it sounds like your your attention focus there as well longer cell cycles and the sponsorship side. Something you've been focused on just curious if you give us an early read early look into the 26 sponsorship funnel into the extent you think.

Speaker Change: I could grow off of 25. What the bands of outcome could potentially look like on that. Thank you.

Brian Wendling: I'll just turn it over to Stefano quickly.

Stefano Domenicali: I'm getting into that,

I'll just, I'll turn it over to Stem and get in. We did that too.

Brian Wendling: Yeah, I was just gonna say, we're at-

Stefano Domenicali: Thank you, Brian. Thanks, Stefan, for the question.

Speaker Change: Yeah, thank you very much. Thank you for the question.

Brian Wendling: Okay. Go ahead, Stefano.

Okay.

Go ahead, Stevenham.

Stefano Domenicali: Thank you. I mean, I think that we have proven in the last couple of years that our strategy with regard to the sponsorship is quite solid. The main focus is, for sure, to maximize our revenues, but we need to make sure that the partners that we have are stronger and invested with us, with our experiential world. You know, we have a strong pipeline, and what we have said already, and it's confirmed to be here, is the quality over quantity and a very, very genuine, active activation with our partners. Because, you know, this is crucial in this moment where we want to make sure that our platform is what really our sponsor wants. And the evolution between the structure of our partnership between global, official, regional, and technical is getting stronger and stronger.

Stefano Domenicali: Thank you. I mean, I think that we have proven in the last couple of years that our strategy would have gotten the response sheet was quite solid.

Stefano Domenicali: The main focus is for sure to maximize our revenues but we need to make sure that the partners that we have are stronger and invested with us with our experience of world.

Stefano Domenicali: You know, we have a strong pipeline and that what we have said already and is conferred to be here is the quality over quantity and very, very genuine active the activation with our purpose because you know this is crucial in this moment where we want to make sure that our platform is what we are supposed to want.

Stefano Domenicali: And the evolution between the structure of our partnership between global official regional and technical is getting stronger and stronger. So the focus is definitely to see if we have seen some opportunities 25, but the big one is keep going on in the next couple of years. And it just we made to all of us where we were just the four or five years ago, and now what we have today that is still a long way to go and we are very optimistic on the fact that we will continue to grow back.

Stefano Domenicali: So the focus is definitely to see if we have some opportunities in 25, but the big one is keep going on in the next couple of years. And it just reminds to all of us where we were just four or five years ago and now where we are today. There is still a long way to go, and we are very optimistic on the fact that we will continue to grow that as a revenue stream and also as a potential awareness increase through them, through our partners of our products.

Stefano Domenicali: in your stream and also as a potential, a wornness increased through them to our partners of our products.

Derek Chang: Thanks, Stefano. This is Derek. I'd just like to add, you know, I've had the opportunity to spend some time with Stefano at the track over the last couple of races. And in speaking to both sort of current sponsors as well as potential sponsors, I don't think I've been in a situation where I've seen this sort of energy and excitement around the possibilities to engage with the sport, to keep, to engage with F1. Normally, well, not normally, but in some of my other experiences, having been around, you know, major sports leagues and such, you kind of are always in a bit more of a balanced state where you've got guys coming in and guys going out here.

Derek Chang: Thanks, Stephanie. This is Derek. I just like to add, you know, I've been able to have the opportunity to spend some time.

Speaker Change: with stuff to know at the track of the last couple races and speaking to both sort of current sponsors

Speaker Change: as well as the potential sponsors. I don't think I've been in a situation where I've seen this sort of

Speaker Change: energy and excitement around the possibilities to engage with the sport to engage with F1.

Speaker Change: normally not normally but in some of my other experiences having been around you know major sports leagues and such you kind of are always in a bit more of a balanced state where you've got guys coming in and guys going out here

Derek Chang: It feels like for the most part, the energy is up, and it's great to see. And look, it goes obviously beyond F1, but to the entire sport. You see what the teams themselves are doing, and they themselves are also expanding their sponsor bases, which is great. I spent some time with Zac Brown last week, who probably is one of the more prolific marketers in the paddock, and he was telling me about his plans to sell the underside of his shoe. So we'll see if that happens.

Speaker Change: It feels like for the most part the energy is is up and it's great to see. And look it goes obviously on F1 but to the entire sport and you see what the teams themselves are doing.

Speaker Change: and made themselves are also expanding their sponsor bases, which is great. I spent some time with Zach Brown last week, probably one of the more political marketers in the panic, and he was telling me about his plans to sell the underside of his shoe. So we'll see that happens.

Spencer Amer: That's great. Thank you all.

That's great. Thank you all.

Operator: The next question is from Ben Swinburne of Morgan Stanley. Please proceed with your question.

Bye.

Thank you.

Speaker Change: The next question is from Ben Swinburne of Morgan Stanley . Please proceed with your question.

Ben Swinburne: Thanks. Good morning. I don't know if Stefano or Derek, I don't know if either of you want to take this or which one wants to take it. But on the media rights process in the US, I mean, one of the things that I think has happened for the business is F1 TV has been growing really nicely for a number of years, and it sounds like in particular in the US. And I'm just wondering how you think about that as an asset or a chip to play, so to speak, in your US media rights deal. Are you open to bundling that in a broader agreement, you know, with potentially a streaming partner? Or do you think that business now is so large and sort of differentiated that you want to keep it as a standalone product?

Benjamin Swinburne: Thanks. Good morning. I don't know if Stefano or Derek, I don't know if either of you want to take this or which one wants to take it. But on the media rights process in the US, I mean, one of the things that I think has happened for the business is F1 TV has been growing really nicely for a number of years, and it sounds like in particular in the US. And I'm just wondering how you think about that as an asset or a chip to play, so to speak, in your US media rights deal. Are you open to bundling that in a broader agreement, you know, with potentially a streaming partner? Or do you think that business now is so large and sort of differentiated that you want to keep it as a standalone product?

Thanks. Good morning.

Speaker Change: I don't know if it's Stefano or Derek either do you want to take this or which one won't take it, but on on the media rights process in the US and one of the things that I think has happened for the businesses F1 TV. Has been growing really nicely for a number of years and it sounds like in particularly in the US I'm just wondering how you think about that.

Speaker Change: As an asset or chip to play so to speak in your US media rights deal are you open to Fundling that in a broader agreement you know with essentially a streaming partner do you think that business now is so large

Speaker Change: And so the differentiated that you want to keep it as a standalone product. And then I don't know if I couldn't tell if the concrete agreement is finalized enough, but I think that as Brian .

Ben Swinburne: And then I don't know if... I couldn't tell if the Concorde Agreement is finalized enough, but I thought I'd ask Brian, are you able to tell us whether or not you expect any team payment leverage to take place in the 2026 through 2030 timeframe? Any color, given some of the previous comments over the last few earnings calls on the topic, would be helpful. Thanks so much.

Benjamin Swinburne: And then I don't know if... I couldn't tell if the Concorde Agreement is finalized enough, but I thought I'd ask Brian, are you able to tell us whether or not you expect any team payment leverage to take place in the 2026 through 2030 timeframe? Any color, given some of the previous comments over the last few earnings calls on the topic, would be helpful. Thanks so much.

Speaker Change: Are you able to tell us whether or not you expect any team payment leverage to take place in the 26 to 30 time for him any color given. In some of the previous comments, we will ask your names called on the topic. It would be helpful.

Derek Chang: Stefano, why don't you go ahead and start?

Devin, why don't you go ahead and start?

Stefano Domenicali: Yeah. I mean, thanks, thanks, Ben, for the question. I mean, on media rights, first of all, it's always interesting to see the speculation going around with regard to moments where there were optimistic, negative comments and so on. But apart from that, I would say we come back from this weekend in Miami really with the fact that we are engaging with the multiple partners, and there is a lot of potential interest from many of them, on which we need to hammer down because we have the time to do it with the proper proposal. As you were correctly saying, you know, F1 TV product is growing, and it's very, very positive, and the feedback, mainly in US, is very, very strong.

Speaker Change: Yeah, I mean, thanks to thanks Ben for the question. I mean, let me get right. First of all, it's always interesting to see the speculation are going around in regard to moments where they were up to me, seeing negative comments and so on, but from that, I would say we come back from this weekend in Miami. Really with with with with with with with with with the fact.

that we are engaging with the multiple partners.

Speaker Change: And there is a lot of potential interest from many of them, or which we need to hammer down because we have the time to do it with the proper with the proper with the proper proposal. As you were correctly saying, you know, Affron TV product is growing and is very, very positive at the feedback mainly in US is very, very strong. And therefore, we need to make sure that this is asset is right and very valuable.

Stefano Domenicali: Therefore, we need to make sure that this, this asset is right and very valuable. Therefore, we are open to any kind of possible discussion, depending what will be the end and what we believe is the right way to make sure that we keep the penetration of the market as high as possible and making sure that we can monetize out of it. But the, the dynamics are very positive, so we keep, we keep working on with them, and I think that the next month will be crucial to see really where we're gonna be. But we come back from Miami, as I said at the beginning, Ben, with a very good positive vibes, because I think the US audience figure in Miami that were very, very strong shows the potential that we have.

Speaker Change: Therefore, we are open to any kind of possible discussion depending what will be the end and what we believe is the right way to make sure that we keep the penetration on the market as high as possible and make sure that we can monetize out of it.

Speaker Change: But the dynamics are very positive. So we keep working with them. And I think that the next month will be crucial to see really where we're going to be. But we come back from Miami as I said at the beginning, Ben, with a very good and partly vibes because I think the US audience figured in Miami that we're very, very strong shows the potential that we have. And I'm sure that the media partners understand that for the possible us, it also prevents the development of the sport business together.

Stefano Domenicali: I'm sure that the media partners understand that for a possible asset, also for them to develop another sport business together. Derek, you want to add something on that?

and there you will play out in on that.

Derek Chang: Yeah, I'd like to. This is Derek. You know, following up on what Stefano just said, it, you know, we are having good conversations with potential partners on the US media rights deal. I think what's been sort of interesting here is, the sport itself continues to grow, as Stefano mentioned, and particularly in the US. As Stefano mentioned in his comments earlier, you know, viewership across the weekend is up sort of 45%, year-over-year. I think F1 TV's growth is up 20% here in the US. I think the overall health of the business continues to resonate. And what that means, I think, putting aside even this year, but and this renewal negotiation, but I think what that means for the long term is pretty significant.

Speaker Change: Yeah, I'd like to, this is Derek, you know, filing up on what Stefano just said. You know, we are having good conversations with potential partners on the U.S. Media Rights deal. I think what's getting

Speaker Change: Sort of interesting here is the sport itself continues to grow as Stefano mentioned and in particularly in the US the Stefano mentioned in his comments earlier you know viewership across the weekend is up sort of 45%

Speaker Change: year over year. I think F1 TV's growth is up 20% here in the US. I think the overall health of the business continues to resonate. And what that means I think 20% even this year but

Derek Chang: I still think we're in the early stages of growth for F1 in the US. And having the take-up of F1 TV be what it is in the US at this early stage, I think speaks volumes about the passion for the sport, and I think puts us in a great position well into the future. When you zoom back in and think about how you balance F1 TV and a broader media rights deal, look, we will see how things play out.

Speaker Change: and having the take up of F1 TV, what it is in the U.S. at this early stage. I think it's valued about.

Speaker Change: The passion for the sport and I think puts us in a great position well into the future. When you zoom back in and think about how you balance F1 TV and a broader media rights deal.

Derek Chang: We will see what partners want in their deals, and we will see what, you know, makes the most sense for F1 in terms of balancing things like reach, but also having products like this for ourselves, so that we can actually understand our customers as well as we can, because it goes beyond sort of what we're delivering to them on the content side, but what also we can deliver the most engaged fans, you know, across the board, in terms of engaging with F1. So I think that the answer here from my standpoint is we actually see sort of a ton of...

Speaker Change: Things play out, we will see what partners want in their deals and we will see what makes the most sense for F1 in terms of balancing.

Speaker Change: Things like Reach, but also having products like this for ourselves.

Speaker Change: So that we can actually understand our customers as well as we can because it goes beyond sort of what we're delivering to them on the content side.

Speaker Change: But also we can deliver the most engaged fans across the board in terms of engaging with that one. So, I think that the answer here from my standpoint is we actually see...

Derek Chang: different ways this can go play out, but underneath it all, or underlying it all is extremely strong demand for F1 and the engagement from the fans here in the US, which is great to see.

Speaker Change: Sort of a ton of a different way this can go play out but underneath it all underlying it all is is extremely strong demand for F1 and engagement from the fans here at the U.S. which is great to feed.

Brian Wendling: Ben, on your second question, on the 2026 commercial agreement, Concorde commercial agreement, yeah, we do expect leverage in 2026 to versus where we finish the full year of 2025. And then going forward, we, you know, expect a more simplified structure that benefits all the parties in the ecosystem.

I've been on your your second question.

Speaker Change: on the 26th commercial agreement, Concord Commercial Agreement, yeah we do expect leverage [inaudible]

versus where we finish.

Speaker Change: the full year of 2025 and then going forward we expect a more simplified structure that benefits all the parties in the ecosystem.

Ben Swinburne: Thanks so much.

Benjamin Swinburne: Thanks so much.

Thanks so much

Operator: The next question is from Kutgan Mural of Evercore ISI. Please proceed with your question.

Speaker Change: The next question is from Cutgun Moral of Evercore ISI. Please proceed with your question.

Kutgun Maral: Good morning, and thanks for taking the question. I just want to ask about MotoGP. I think it's encouraging that we're getting closer to regulatory approval there. Now that maybe there's a bit more clarity on getting that deal done, if you could talk a little bit about if anything's changed since the deal was initially announced in terms of the broader opportunity that you see ahead with Moto. Thanks.

Speaker Change: Good morning. I think I'm taking a question. I just want to ask about MotoGP. I think it's encouraging that we're getting closer to our regulatory approval there. Now that maybe there's a bit more clarity on getting that deal done. You could talk a little bit about if anything's changed since the deal was initially announced in terms of the broader opportunity that you see edge with Moto. Thanks.

Derek Chang: This is Derek. I'll take this one. Obviously, the deal's not done until it's done, and we continue to work with the European Commission to get to the finish line here and are hopeful that we will do so. I think from our perspective, we continue to see upside in MotoGP and are probably, you know, just as bullish, if not little more, having spent more time with them, or the time that we are allowed to spend with them. And look, I think with any of these premium sports assets, the trick is how you take these and make them sort of mainstream entertainment assets. And you've seen us do that with Formula One. You've seen it too. You've seen this happen across multiples of other sports.

This is Derek, I'll take this one.

Speaker Change: Obviously, the deal is not done until it's done and we continue to work with the European Commission to get to the finish line here and are hopeful that we will do so. I think from our perspective, we continue to see.

Speaker Change: outside in MotoGP and are probably, you know, just as bullish as not, but we're having spent more time with them at the time that we are allowed to spend with them. And look, I think with any of these premium sports assets.

Speaker Change: The trick is is how you take these and make them sort of mainstream entertainment assets and you've seen us do that with Formula One. You've seen this happen across multiple of other sports.

Derek Chang: And I think there is that opportunity here, and as soon as the deal closes, we will be actively engaged with management at MotoGP to start executing on that plan.

Speaker Change: And I think there is that opportunity here, and as soon as the deal closes, we will be actively engaged with management at MotoGP to start executing on that plan.

Kutgun Maral: Perfect. Thank you.

Thank you.

Operator: The next question comes from Peter Supino of Wolfe Research. Please proceed with your question.

Speaker Change: The next question comes from Peter Sapino of Wolf Research. Please proceed with your question.

Peter Supino: Hi, good morning, and thanks. A question on sponsorship and one back to the media rights. On sponsorship, 50% fewer races so far year-over-year, and so of course, sponsorship revenue has that headwind, and yet it looks largely offset by growth from new sponsors. And so we're wondering, maybe this is too simplistic, but does that imply that sponsorship growth must have been close to 50% on an underlying basis, adjusted for races? As we think about modeling the year, is that a useful number? And then, on the media rights, we're of the opinion that the media rights are sort of uniquely misunderstood because the race times mean that the casual fan struggles to engage with the live broadcast. And so maybe the nonlinear format of streaming could really expand access for casual fans.

Peter L. Supino: Hi, good morning, and thanks. A question on sponsorship and one back to the media rights. On sponsorship, 50% fewer races so far year-over-year, and so of course, sponsorship revenue has that headwind, and yet it looks largely offset by growth from new sponsors. And so we're wondering, maybe this is too simplistic, but does that imply that sponsorship growth must have been close to 50% on an underlying basis, adjusted for races? As we think about modeling the year, is that a useful number? And then, on the media rights, we're of the opinion that the media rights are sort of uniquely misunderstood because the race times mean that the casual fan struggles to engage with the live broadcast. And so maybe the nonlinear format of streaming could really expand access for casual fans.

Peter Cepino: Hi, good morning and thanks. A question on sponsorship and one back to the media right on sponsorship.

50% fewer races.

so far you're here and

Peter Cepino: So of course sponsorship revenue has that headland and yet it looks largely offset by growth from new sponsors and so we're wondering

Peter Cepino: Maybe this is too simplistic, but does that imply that sponsorship growth must have been close to 50% on an underlying basis, suggested for races those we think about modeling the year is that a useful member and then.

on the media rights.

Peter Cepino: We're on the opinion that the media rights are sort of uniquely misunderstood because

The race times mean that the casual fan struggles to engage.

Peter Cepino: with the live broadcast and so maybe the nonlinear format of streaming could really expand access for casual fans and of course the media rights don't have any advertising and so I wonder if you could comment on both of those opportunities for the media rights. Thank you.

Peter Supino: And then, of course, the media rights don't have any advertising. And so I wonder if you could comment on, on both of those opportunities for the media rights. Thank you.

Peter L. Supino: And then, of course, the media rights don't have any advertising. And so I wonder if you could comment on, on both of those opportunities for the media rights. Thank you.

Derek Chang: Stefano, you want to start on the media rights?

Devina, you might start on the media rights.

Stefano Domenicali: Yeah. Thanks, thanks, Derek. I mean, I can start definitely with the media rights. I think that it's definitely very important to recognize one thing, and that it is clear in our situation, where we saw the growth in our on all our social platform. We saw definitely the interest of the young generation to access to our content through YouTube or other form of engagement. But this is relevant, and we need to make sure that this is becoming part of the global strategy on media right, not only US, but all around the world.

Yeah.

Stefano Domenicali: Thanks, Derek. I mean, I can start definitely with the media, but I think that is definitely very important to recognize one thing and that it is clear in our in our in our situation where we saw the growth on all our social platform. We saw definitely the interest of the young generation to access to our contents through YouTube or other form of engagement.

Stefano Domenicali: But it's definitely important to make sure that the clarity of the fact that our fans that are getting more engaged with us will have the chance to connect, you know, with the right product, is really the key for our strategy and our decision. I think that what we need to make sure that because now we have different typology of fans, they need to have the possibility to engage through different options that we need to offer to them. That's the biggest strategic thing that we want to put in place. And of course, this is relevant to the partner where we need to choose and work together into the future. It is relevant because we see the dynamics that are different.

Stefano Domenicali: of the fact that our fact that it gets me more engaged with us.

will have the the chance to connect.

Stefano Domenicali: You know with with the right process is really the key for our strategy and our and our decision.

Stefano Domenicali: And I think that what we need to make sure that because now we have different types of fans

Stefano Domenicali: They need to have the possibility to engage through different options that we need to offer to them. That's the biggest strategic thing that we want to put in place.

Stefano Domenicali: And, of course, data is relevant to the partner, but we need to choose and work together into the future.

Stefano Domenicali: Of course, of course, if we see where we are in Europe, in Europe, we have a long-term deal with our broadcaster that will enable us to understand what will be the evolution on that market. And we know that there's a different situation that we need to monitor all around the world. But in a nutshell, I think that our strategy will fit with the right partner that will be part of us in developing the knowledge of our sport. This is what I can say on the media side. On the sponsorship side, if I may, Peter, I think that the relevancy of what we are doing is confirmed by the quality and the numbers that we put in place every year.

in developing the knowledge of our sport.

Stefano Domenicali: This is what I can say on the media side, on the sportsmanship side.

Stefano Domenicali: If I may, Peter, I think that the relevance you will be doing is by the quality and the numbers that we put in place every year. That means that as correctly that I was saying before, you know, the part that are working together with us before one, are really different from B2B opportunity to consumer and we are offering an incredible opportunity of engagement that I would say without being disrespectful, that our platform is becoming...

Stefano Domenicali: That means that as correctly that it was said before, you know, the partners that are working together with us in Formula One are really different from B2B opportunity to consumer, and we are offering an incredible opportunity of engagement that I would say, without being disrespectful, that our platform is becoming really very, very relevant. And this is the reason why we feel very, very positive and strong with our future, even the next couple of years.

Stefano Domenicali: is really very, very relevant and this is the reason why we feel very, very positive and strong with our future, even the next couple of years.

Derek Chang: Thanks, Stefano. This is Derek. Peter, that's, you know, that's a... Your comment about F1 being unique, I agree with that. I think that we are uniquely positioned, and I think when you, again, think about media rights in this day and age, it's not about sort of just what's happening on race day for the, you know, 1.5 to 2 hours of the race. It's what's happening over the entire weekend. It's also sort of the way different demographics will engage with the property, and that's what we are focused on, is continuing to deliver, not just sort of the content of the race or even the practices and the qualifying, but other content around the sport, but also delivering it across multiple platforms, so that there are multiple ways that-...

Derek Chang: Thanks, Stephanie. I was there. Peter, that's a, you know, that's a, you're coming about of one being unique. I agree with that. I think that we are uniquely professional. I think when you, again, think about

Derek Chang: Media right in this day and age it's not about sort of just what's happening on race day for the for the you know I want to have two hours of the race. It's what's happening over the entire weekend.

Derek Chang: It's also sort of the way different demographics will engage with the property and that's what we are focused on is continuing to deliver.

Derek Chang: Not just sort of the content of the race or even the practices in the qualifying but other content around the sport but also delivering it across multiple platforms.

Derek Chang: Fans of any age, of any demographic, of any interest can engage with the sport. Because as soon as I mentioned earlier on MotoGP, as soon as you're sort of a broad-based entertainment product, you know, you have to recognize that, and you have to be able to touch all of those people and all of those fans. I'll let Brian finish up on this.

Derek Chang: so that there are multiple ways that man's of any age or any demographic of any

Derek Chang: can engage with the sport because as soon as as I mentioned earlier on on MotoGP as soon as you're sort of a broad based entertainment product.

Brian Wendling: You know, you have to recognize that and you have to be able to touch all those people and all those fans. I want Brian finish up on that. Yeah, just just add on to the sponsorship side, Peter, we're not going to give you a specific number in terms of.

Brian Wendling: Yeah, and just to add on to the sponsorship side, Peter, we're not gonna give you a specific number in terms of of that, but what I would encourage is patience, because when you get to Q2 on a year-to-date basis, you'll have 11 races year to date. They'll be the exact same races. You should get a really good feel for the trend in sponsorship. But there's lots of different revenue recognition aspects to full year sponsorship that impact it. There's the calendar change, there's new sponsors, there's contract uplifts, there's, you know, lost contracts from last year that rolled off. So there's lots of different things in there that make it more complex than how you described it. It is still Q2.

Brian Wendling: of that. But what I would encourage is patience because when you get to Q2 on a year-to-date basis.

Brian Wendling: You have 11 races here today, there will be the exact same races you should get a really good feel for the trend in sponsorship. But there's lots of...

Brian Wendling: There's different revenue recognition aspects to your full-year sponsorship that impacted. There's the calendar change. There's new sponsors. There's contract up lists.

Brian Wendling: You know, lost contracts from last year that rolled off, so there's lots of different things in there that make it more complex than how you described it.

Yes, don't queue too.

Operator: The next question is from Stephen Cahill of Wells Fargo. Please proceed with your question.

Speaker Change: The next question is from Stephen Cahill of Wells Fargo. Please proceed with your question.

Steven Cahall: Thank you. Brian, thank you for the guidance on other costs of revenue. Just thinking about that guidance, so I think you said it's gonna be consistent with prior years as a percentage of revenue. I think most of us think revenue is gonna be up sort of high single digits this year. I think that's an acceleration in other costs versus what you saw last year. So I was wondering if you could just help us understand what's in that. Is that due to labor? Is that the Las Vegas Grand Prix Plaza or, or something else? And then congratulations on the, on the new Concorde Agreement.

Stephen Cahill: Thank you, Brian . Thank you for the guidance on other costs of revenue. Just thinking about that guidance. So I think you said it's going to be consistent with prior years as a percentage of revenue. I think most of us think revenue is going to be up sort of high single digit this year. I think that's an acceleration in other costs versus what you saw last year. So I was wondering if you could just help us understand what in that is that due to labor is that the Las Vegas Grand Plaza or something else. And then congratulations on the on the new Concord Green.

Steven Cahall: I'm wondering, how it contemplates continued focus on competitive balance, and, if there's anything in the new agreement that might help start to improve the structure of some of the second-tier teams, you know, eventually moving up into more competition with the top-tier teams. Thank you.

Speaker Change: I'm wondering how it contemplates continued focus on competitive balance and if there's anything in the new agreement that might help start to improve the structure of some of the second tier teams, you know, eventually moving up into more competition with the top tier teams. Thank you

Brian Wendling: Yeah, I'll start with other costs. So on a full year basis, you know, there's gonna be items that increase. We always see that. We have increased partner servicing and commission costs that support the overall revenue growth of the business that are in there. You have some increased GPP costs as we start the year-round activations. Obviously, those will be offset by the revenue that's being generated there. Otherwise, you know, those are kind of the big things that you would expect, and as we've talked about in the past, you know, we continue to focus on the growth of the business, and so there's growth initiatives that are in there as well to drive future revenue growth in the upcoming years.

Yeah, I'll start with other costs.

Speaker Change: So, on a full-year basis, there's going to be items that increase. We always see that we have increased partner servicing and commission costs.

Speaker Change: That support the overall revenue growth of the business that are in there. You have some increased GPP costs as we start the year-round activations. Obviously those will be all set by the revenue that's being generated there.

Derek Chang: Stefano, you want to talk about the Concorde?

Stephanie, do you want to talk about the Concord?

Stefano Domenicali: Yeah. I mean, thanks, Stephen. I think that, as you know, for us, is essential to make sure that the growth of the sport is done in an organic way and in a way that we can take on mainly three bullet points. The first one, on the sporting side, to make sure that the teams can be competitive. We need to make sure that the regulation is done in a way that if there is gaps of performance, there is the chance for everyone to recover that.

Speaker Change: Yeah, I mean, thanks Stephen, I think that as you know for us is essential to make sure that the growth of the sport is done in an organic way. And a way that we can take on mainly three.

Speaker Change: The first one on the sporting site to make sure that the teams can be competitive. We need to make sure that the regulation is done in a way that if there is gaps performance, there is the chance for everyone to recover that.

Stefano Domenicali: Second part, related to the sporting side, I think that we have seen already the massive importance of having the Budget Cap or the Cost Cap that has given the possibility to the team to understand the level of performance from the technical perspective that they can reach through the money that they have. On the other side, point number two, you know, it's the financial. And we see definitely that a healthy system allow through also Concorde and other sponsorships that are becoming important for the teams, we have a solid team that wants to stay and be even stronger and be competitive for the future. Third point is the awareness that the sport is living, is bringing interest, money to all the ecosystem that will regenerate the possibility of these organic growth through what we're doing.

Speaker Change: Techno probably little to the sporting side, I think that we have seen already the massive importance of having the budget cap or the cost cap that has given the possibilities to the team to understand the level of performance from the techno perspective that they can have used through the money that they have.

Speaker Change: On the other side, point on the tool, you know, it's the financial.

Speaker Change: And we see definitely that the healthy system allow through also conquered and other spaces that are becoming important for the teams where the solid team that wants to stay and be even stronger and be competitive for the future.

Speaker Change: Her point is the awareness that the sport is living is bringing interest money to all the ecosystem that will regenerate the possibility of these organic growth through what we are doing. And therefore, I think that what we have done with a fair and balanced approach to longer has just brought the right approach and the right settings.

Stefano Domenicali: Therefore, I think that what we have done with a fair and balanced approach to Concorde, I just brought the right approach and the right settings for a very, very healthy ecosystem that will be there for the future, and the next couple of years will be characterized by these kind of elements.

Speaker Change: for a very very healthy ecosystem that will be there for the future in the next couple of years will be characterized by these kind of elements.

Steven Cahall: Thank you.

Operator: The next question is from Ryan Gravett of UBS. Please proceed with your question.

Thank you.

Speaker Change: The next question is from Ryan Gravitt of UBS. Please proceed with your question.

Ryan Gravett: Great, thanks. Curious if you can give us an update on how renewal discussions are progressing for some of your non-US media rights. I believe there are some deals coming up in Latin America and some Asian markets. So any color on the competitive tension you're seeing for those rights, and if, you know, you're likewise seeing any interest from digital players? Thanks.

Speaker Change: Great. Thanks. I'm curious if you can give us an update on our renewal discussions are progressing for some of your non-US media rights. I believe there are some deals coming up in Latin America and some Asian markets.

Speaker Change: So any color on the competitive tension you're seeing for those rights and if you're likewise seeing any interest from digital players. Thanks.

Derek Chang: Stefano?

Thank you.

Bye-bye.

Stefano Domenicali: Yeah. Yeah, thank you, Ryan. Yes, of course, that is a more dynamic and, I would say year-by-year situation. We have so many countries around the world, but then in certain areas, we can start to see some competition with regard to the streaming side of it. They are still smaller than what you can imagine, but it's definitely a healthy situation. We have countries like Japan, for example, that is quite big for us, other area in the Far East Asia, and also in Brazil, for example, that will have an evolution, and we will have a positive impact in our relationship in the starting from next year.

Speaker Change: Yeah, yeah, thank you, Brian . Yes, of course, that is a more dynamic and I would say year by year situation. We have so many contours around the world, but then in certain area, we can start to see some competition with regard to the streaming side of it. There are kids smaller than what you can imagine, but it's definitely a healthy situation. We have countries like Japan, for example, that is quite big for us. What are there in the Southeast Asia?

Speaker Change: And also in Brazil, for example, that we'll have an evolution and we'll have a positive impact in our relationship in starting from next year.

Ryan Gravett: Got it. Thank you.

Got it. Thank you.

Operator: The next question is Joe Stoff of Susquehanna International Group. Please proceed with your question.

[inaudible]

Speaker Change: The next question is Joe Stoff, a Susquehanna International Group. Please proceed with your question.

Joe Stauff: Thank you. Good morning. I was wondering, first question on whether or not you could share with us any organic or same race commentary, you know, any KPIs you have with respect to the two races in the first quarter? And then secondarily, Stefano, maybe a follow-up, you know, on an earlier question about team competition. It certainly seems parity where the competition has increased, you know, especially last season and maybe season to date. And I was just wondering, of those three buckets you mentioned, you know, what were the most important reasons or improvements that you have made thus far?

Joseph Stauff: Thank you. Good morning. I was wondering, first question on whether or not you could share with us any organic or same race commentary, you know, any KPIs you have with respect to the two races in the first quarter? And then secondarily, Stefano, maybe a follow-up, you know, on an earlier question about team competition. It certainly seems parity where the competition has increased, you know, especially last season and maybe season to date. And I was just wondering, of those three buckets you mentioned, you know, what were the most important reasons or improvements that you have made thus far?

Joe Stauff: Thank you, good morning. I was wondering first question on whether or not you could share with us any organic or same race commentary, you know, penny.

Speaker Change: any KPIs you have with respect to the two races in the first quarter. And then secondarily, Stefano, maybe you'll follow up on an earlier question about team competition. It certainly seems parody or the competition has increased.

Speaker Change: you know especially last season and maybe season today and I was just wondering all those three buckets you mentioned you know what what were the most important reasons or improvements that you have made thus far.

Bye.

Brian Wendling: Stefano, do you want anything to add on KPI?

Stefano Domenicali: Or, Brian, this-

Step note, do you want to do anything else? Okay, boy, fine, this...

Brian Wendling: I mean, all I would say on KPI-

Stefano Domenicali: If you want to go ahead with that, Brian, maybe I-

Speaker Change: I mean, I would want to go ahead and maybe I...

Brian Wendling: Sorry, go ahead, Stefano.

Sorry, go ahead, step it up.

Stefano Domenicali: No, no, I was saying, Brian, if you want to give your comment on the organic and KPI as a first question, and then we'll jump in on the second question.

Speaker Change: That I was saying, Brian , if you want to give your comment on the organic and KPI is the first question that I would jump in on the on the second question of Joe.

Brian Wendling: Sure.

Stefano Domenicali: Of Joe.

Brian Wendling: Yeah. All I would say is, you know, do the math on what we've reported here. We can't give you anything more specific than kind of what we're already showing, but there's a mix of races, obviously. And so you've got Australia and China this year. You've got the two Middle Eastern races last year with China not being in the mix. And you can see the impact that you have there on revenue and OIBDA. In terms of-

Yeah, I would say is, you know.

Speaker Change: Do the math on what we've reported here. We can't give you anything more specific than kind of what we're already showing but

Speaker Change: There's a mix of races obviously and so you've got Australian China this year. You've got the two Middle Eastern races last year with China not being in the mix and you can see the impact that you have there on revenue and wipe it off.

Stefano Domenicali: Brian, if I go to the second question, Joe.

Thank you.

Brian Wendling: What? Yeah, I was just gonna say, Stefano, if there's anything you want to add on attendance or, or Paddock Club at the, at the one race where we had it, you can add that, but that'd be about it.

Speaker Change: Yeah, I was just going to say, stepping up, there's anything you want to add on attendance or pat a club at the one race where we had it, you can add that. But

Stefano Domenicali: No, I think that's. I think, Brian, you were absolutely spot on. I mean, the dimension of comparing Apple with peers, it is pretty clear that it's not even the same kind of balance. I think that, as you already mentioned, there will be a clear situation when the more we go ahead into the next quarter, because there will be... You will see the organic growth that we are having everywhere, and that's, it will be very, very clear. So on that, just, I want to share good news that is happening all around the world also in that respect. There is not only the content that we have in term of commercial agreement, but there are also all the other activities that are related to Grand Prix that are different to place to place.

Let's be about it.

No, I think that's it.

Speaker Change: I think Brian , you were absolutely spot on. I mean the dimension of comparing Apple with Pears, it is pretty clear that he's not the same kind of baller. So I think that as you already mentioned, there will be a clear situation where the more we go ahead into the next quarter because there will be, you will see there are galley growths that we are having everywhere.

Speaker Change: and and and that's it would be very very clear so on that just just just

Speaker Change: I want to share good news that is happening all around the world also in that respect.

Speaker Change: There is not only the counter that we have in term of...

Speaker Change: commercial agreement but also all the other activities that are related to ground credit are different to place to place so the right companies will be done exactly when we are going to have at the end of the year the final results but everything is progressing absolutely in the right way.

Stefano Domenicali: So the right comparison will be done exactly when we're going to have, at the end of the year, the final results, but everything is progressing absolutely in the right way. Going back to the second question with Joe about the team competition. We don't have to forget that, on top of the three points that I said, there is also the things that after many years, naturally, the cycle of having, the evolution that is becoming close to the tangent is bringing the teams to be very close. If you see this year, mainly in qualifying, the gaps are milliseconds, so that is really impressive.

Speaker Change: Going back to the second question of Joe about the team competition. We don't have to forget that on top of the three points that I said that is also the things that after many years naturally the cycle of having the evolution that is becoming close to the tangent is bringing the teams to be very close. If you see this year mainly in qualifying the gaps out of milliseconds so that is really impressive.

Stefano Domenicali: And so that is part of what we see today, and it's also even more relevant to say that when we take the decision to change regulation, it is normal, and there are reasons for that, of course, that potentially there will be more gaps in performance at the beginning. But the regulation what we are putting in place will try to minimize or the time on which the teams and the new power unit manufacturers that were allowed to come in, and also new teams that are coming in, will have the time to react to that. So I think that the three pillars are very relevant, even more when there is a step change of regulation, as it will be done next year.

Speaker Change: That's what that is part of what we see today. And it's also even more relevant to say that when we take the decision to change regulation, it is normal. And there are reasons for that, of course, that the potential there will be more gaps in performance at the beginning, but the regulation what we are putting in place will try to minimize or the time on which the teams and the new power unit to manufacture that they were allowed to come in and also new team that will come in will have the time to react to that.

Speaker Change: So I think that the tripping of our very relevant even more when there is a step change of regulation as it will be done next year, as we remember to all of us.

Stefano Domenicali: But as we remember too, all of us, we're down to allow a new Power Unit manufacturing team to come in and also to have the focus on the sustainable fuel and hybrid engine that was relevant for us to keep in a sort of keeping the technology relevancy for the future in our sport.

Speaker Change: We're down to allow to new power units manufacturing the team to get in and also to have their focus on the sustainable fuel and hybrid energy that was relevant for us to keep in the technology relevancy for the future in our sport.

Joe Stauff: Thanks very much.

Joseph Stauff: Thanks very much.

Thanks very much.

Operator: The next question is from Spencer Amir of Deutsche Bank. Please proceed with your question.

Speaker Change: The next question is from Spencer Amir of Deutsche Bank. Please proceed with your question.

Spencer Amer: Hi, thanks for the question. You announced a ten-year extension for the Miami Grand Prix with a number of years left on the current deal. I was wondering if you could shed some color on what made you decide to extend the Grand Prix so early?

Spencer Amir: Hi, thanks for the question. You announced a 10 year extension for the Miami Grand Prix with a number of years left on the current deal. I was wondering if you could shed some color on what made you decide to extend the Grand Prix so early.

Brian Wendling: Stefano?

Derek Chang: Stefano?

Stefano Domenicali: I can answer to that, direct. Yes, thanks, Spencer, for the question. You know, we believe that the Miami Grand Prix is a very important pillar of our strategy in US. I mean, the job done is really very, very impressive. And of course, we want to give the possibility for them also to keep investing. And the more we are able to give that kind of certainty, the more they will invest to grow together, not only on their business evolution, but also in order to together, in order to have the right partnership to develop, you know, the American strategy together with them. They've been proved to be a very, very solid and strong partner, and that's the reason why we have anticipated now, because there was no reason to wait.

Speaker Change: I can answer to that. Yes, thanks for the question. You know, we believe that the Miami Grand Prix is a very important pillar of our strategy in U.S. I mean, that the job done is really very, very impressive. And of course, we want to give the possibility for them also to keep invested.

Speaker Change: And the more we are able to give that kind of certainty the more they will invest to grow together not only on their business evolution but also.

In order to better in order to have the right

Speaker Change: partnership but to develop you know the American society together with them. They've been proved to be a very very solid and strong partner and that's the reason why we haven't dissipated now because there was no reason to wait.

Brian Wendling: Yeah, and just from my standpoint, you know, I went to the first Miami race and then just this last one, and I think the improvement and what has happened there on the ground has been pretty impressive. So, you know, kudos to our partners in Miami for what they've done, and we look forward to their continued investment in the race.

Speaker Change: Yeah, and just from my standpoint, you know, into the first Miami race and then just this last one I think the improvement and what has happened there on the ground has been pretty impressive. So, you know, kudos to our partners in Miami for what they've done and we look forward to their continued investment in the in the race.

Operator: Our next question is from Jason Bissonnette of Citibank. Please proceed with your question.

Speaker Change: Our next question is from Jason Bisonett of City Bank. Please proceed with your question.

Jason Bazinet: I just had a very simple question. You rightly pointed out that your business is defensive and is viewed as defensive by investors. The one question we get is, people aren't quite sure how to think about... the defensiveness of the sponsorship revenue if there was an economic slowdown?

Jason Bissonnette: I just had a very simple question. You rightly pointed out that your business is defensive and is viewed as defensive.

Jason Bissonnette: by investors. The one question we get is people aren't quite sure how to think about.

Jason Bissonnette: The defensive miss of the sponsorship revenue if there was an economic slowdown.

Stefano Domenicali: Jason, I think that the answer for that is, no one has a magic ball, but what we have in front of us, but what we can see is that the credibility of our platform and the fact that we are very close to them with the fact that we are discussing on a daily basis what are the need that we need to supply to them is our strength. And the fact that we are long-term agree with sponsors is of course a financial coverage in term of the risks that we have, but it's more the relationship we have that has been built on the trust and understanding each other, what are the needs.

Jason Bissonnette: Jason, I think that the answer for that is no one has been able to what we have in front of us, but what we can see is that the credibility of our platform and the fact that we are very close to them with the with the fact that we are discussing on a daily basis, what are the need that we need to supply to that is our strength.

Jason Bissonnette: And the fact that we are long-term agreed with sponsors is of course a financial covering the term of the risks that we have but that is more relation that we have that has been built on the trust and understanding each other what are the needs.

Stefano Domenicali: That's why, you know, as I said, that we are always very prudent, but the relationship we have with, and the quality of the partners that are working together with us allow us to be very, very positive. We have long-term content that of course will reduce that financial risk. And the good thing is to stay connected and to try to see that is happening, how we can adjust together to make sure that our platform will offer to them what they need.

Jason Bissonnette: That's why, you know, as I said, that we are always very proven, but the relational we have and the quality of the parts that are working together with us allow us to be very, very positive. We have known to our count that, of course, that we reduce that financial risk.

Jason Bissonnette: And the good thing is to stay connected and to try to see that is happening how we can adjust together to make sure that our platform will offer to them what they need.

Derek Chang: Yeah, and just, you know, a continuation of what Stefano just said, I mean, the quality of our partners and sort of the longer-term nature of these deals, I think certainly in the near term, hopefully insulates us from any potential macro headwinds here. You know, I think the way to think about it is that the partners we have are really looking for broad global exposure, and we provide that, and we provide that, frankly, a little better than anyone else out there.

Speaker Change: Yeah, and this uh, you know, a continuation with stuff in our just said, I mean the Saturday

Jason Bissonnette: of our partners and sort of the longer term nature of the deals I think certainly in the near term.

Jason Bissonnette: Hopefully it's always us from some of the any potential macro headwinds here. I, you know, I think that the way to think about it is that the partners we have are really looking for broad global exposure. Yeah.

Jason Bissonnette: And we provide that and we provide that frankly on the better than anyone else out there and so, you know, the supply for them is is.

Derek Chang: And so, you know, the supply for them is not huge, and so we provide that, and we provide that in a way, as Stefano said, where we are actively working with our partners to maximize sort of the relationship for them and for their targets and initiatives that they have. And I think that, you know, again, this is somewhat qualitative, but just in the conversations with our partners and understanding what their needs are, their enthusiasm and these potential headwinds in the economy have—it's not like they came in yesterday.

Jason Bissonnette: is not huge. And so we provide that and we provide that our way of stuff. And also what we are actively working with our partners to maximize.

Jason Bissonnette: Sort of the relationship for them and for their targets and the initiatives that they have. And I think that, you know, again, this is somewhat all-pated, but just in the conversations with our partners and understanding what their needs are. They are enthusiasm.

Jason Bissonnette: And these potential headlines in the economy have, it's not like they came in yesterday. They've now been around for a couple of months or speculation over the way these guys continue to speak about their business and the way they want to grow their business and how we can help them achieve those targets has been very reassuring.

Derek Chang: They've now been around for a couple of months, or speculation of them, and the way these guys continue to speak about their business and the way they want to grow their business and how we can help them achieve those targets is, has been, you know, very reassuring.

Jason Bazinet: Is it fair to say it's not as contractual as media rights?

Derek Chang: And, if I may add-

Stefano Domenicali: And, if I may add-

Jason Bissonnette: Is it fair to say it's not as contractual as we do right now?

Jason Bazinet: Yeah. I was just gonna ask-

Stefano Domenicali: No, sorry, Jason, just to add that we haven't seen-

Yeah.

Jason Bissonnette: And I'm just going to add. Just to add that we haven't seen. Yeah.

Jason Bazinet: Yeah. Go ahead.

Bye. Bye. Bye.

Derek Chang: Go ahead, Jason.

Stefano Domenicali: Can you hear me?

Derek Chang: Go ahead, Jason. Why don't you just ask your next question, and then Stefano can answer both.

Thank God, Jason, can you hear me?

Speaker Change: Go ahead, Jason. Why don't you just ask your next question and then step up and I'll answer both.

Jason Bazinet: Okay. I was just gonna say, is it for investors, is it fair to say it's not as contractual as media rights, but maybe more defensive than if you had an advertising business? Is that the right framing of it?

Jason Bissonnette: Okay. I was just going to say if we're investors, is it fair to say it's not as contractual as media rights, but maybe more defensive than if you had an advertising business, is that the right framing of it?

Derek Chang: No. I think these are... It's not like, it's not like media deals in the sense of buying those sort of quarterly or even annually. These are long-term deals, just like our media rights deals. I think, you know, we're not going to get into the details of how long each one is. We've probably mentioned some of them. But I do think that, kind of like any media deals on the sponsorship side, and just like we talked about Miami, our partners want to invest in what they've partnered up with, and that takes multiple years to make the investment, activate on that investment, and reap the benefits of that. That's why from a partner standpoint, they want to come in longer term with us.

Now.

Jason Bissonnette: I think these are, it's not like, it's not like media.

Jason Bissonnette: media deals in a sense of our advertising deals in a sense of buying those sort of quarterly or even annually. These are long-term deals just like our media rights deals. I think, you know, we're not going to get into the details of how long each one is. We've probably mentioned some of them, but I do think that...

I don't like any media deals.

Jason Bissonnette: So, on the sponsorship side and just like we talked about Miami

Our partners want to invest.

Jason Bissonnette: in what they partnered up with. And that takes multiple years to make the investment activate on that investment and leave the benefits of that. That's why from a partner standpoint, they want to come in longer term with us.

Derek Chang: And I think, again, as a result, we have these sort of, you know, mid- to long-term contracts with most of these folks, and I think that helps us in times like this. But Stefano, do you want to finish up?

Stefano Domenicali: And I think, again, as a result, we have these sort of, you know, mid-to-long-term contracts with most of these folks. And I think that helps us in times like this. But definitely, do you want to finish up?

Stefano Domenicali: Yeah, I totally agree, Derek, and to be very transparent, we haven't seen any slowdown in our conversation, despite the market fluctuation we have today with the other potential. That is related to what we just said about the credibility of our platform, to the fact that, in any case, you know, we believe that being a worldwide sport, worldwide sport, we can be helpful for each of them to differentiate the strategy they need to do it. So I would say that's the situation that we live in today. So it's all good.

No, I, I totally agree there again.

Stefano Domenicali: to be to be very transparent. We haven't seen any slow down in our conversation despite the market situation that we have today as a potential.

Stefano Domenicali: That is related to what we just said about the credibility of our platform to the fact that in any case, you know, we believe that being a worldwide sport, worldwide sport, we can be perturbed for each of them to differentiate the strategy they need to do it. [inaudible]

Stefano Domenicali: So I would say that's the situation that we live in today so it's all good.

Jason Bazinet: Very helpful. Thank you.

Very helpful. Thank you.

Operator: Our last question today comes from Matthew Harrigan of Benchmark. Please proceed with your question.

Speaker Change: Our last question today comes from Matthew Harrigan of Benchmark. Please proceed with your question.

Matthew Harrigan: Thank you. As everyone knows, the LEGO drivers parade was marketing genius, incidentally. Hey, I have a question. You're really putting up, you know, great engagement metrics apart across the board. I mean, linear is encouraging as well as social, and I think you're probably breaking out maybe more than anyone else in social. But nonetheless, I mean, that doesn't really monetize, and sometimes it doesn't even really translate to people watching the linear channel. I think it's just younger people's, you know, way they consume content in shorter form, including sports and F1.

Matthew Harrigan: Thank you as everyone does the Lego drivers parade was marketing genius incidentally.

Speaker Change: I have a question. You're really putting up great engagement metrics across the board. I mean linear.

Speaker Change: uh... is encouraging as well as social and and i think you're probably breaking out maybe more than anyone else and social but nonetheless i mean that doesn't really monetize and sometimes it doesn't even really translate to people watching the

Speaker Change: The linear channel I think is just younger people's way they consume content in shorter form including sports and F1 give me thoughts on. [inaudible]

Matthew Harrigan: Do you have any thoughts on how you might be able to better engage, you know, people or, or better monetize rather, people who have shorter attention spans versus someone who's gonna get up and watch a race for two hours? Thank you.

Speaker Change: how you might be able to better engage, you know, people are better monetized rather. People who have shorter attention spans versus someone who's gonna get up and watch a race for two hours. Thank you.

Derek Chang: Stefano, you want to start?

Stefano Domenicali: Well, Matthew, can I see? Yeah, no, thanks, Derek. I think, thanks for the comment. We take with pride because we never stop. We try to be different from the other platform to create some sort of interest in what we are doing. And by the way, as Derek said at the beginning of the call, the great news is that we have our drivers and our partners that are embracing our strategy because they understand the value of it. It is clear that the more we are able to do these kind of things, the more we're gonna be able to monetize all what we are doing.

Stephanie, do you want to start?

Well, Matthew, can I sit?

Derek Chang: Yeah, well thanks, Eric. I think thanks for the comment we take with pride because we never stopped. We tried to be different from the other, the other platforms to create some sort of invisible way of doing it. And by the way, as that is said at the beginning of the call, the great news is that we have our drivers and our partners that are embracing our strategy because they understand the value of it.

Derek Chang: It is clear that the more we are able to do these kind of things that more we are going to be able to monetize all what we are doing.

Stefano Domenicali: It would be wrong to believe that you can monetize everything straight away, and that's why on that, we have a strategy that needs to be diverse, but also very, very, very, very complete. You know, we need to make sure that our engagement with our fans is not only two hours of the race on the Sunday, but we need to have 365 days a year of engagement, try to tailor the content. And this is really what we try to do in order to get access to the data we have available, in order to get into the consumer habits of our fans.

Derek Chang: It will be wrong to believe that you can monetize everything straight away and that's why on that we have a

Derek Chang: strategy that needs to be diverse but also very very very complete. We have a you know we need to make sure that our engagement with our fans is not only to also the race of the Sunday but we need to have a three almost 55 days a year of engagement.

Derek Chang: try to tell of the content and this is really what we try to do

Derek Chang: in order to get the access to the data we are available in order to get into the consumer habits of all our fans.

Stefano Domenicali: This is something new for us, so that's why I see potentially another important revenue stream that will allow us to be strong in an area where so far we were maybe a little bit weak, but the potential to grow is definitely there. And the only thing that can come is if we are able to be creative as much as we can in order to be different from the other proposition.

Derek Chang: This is something new for us, so that's why I see potentially another important revenue stream that will allow us to be strong in an area where so far we've made it a bit weak.

Derek Chang: But the potential to grow is definitely there and the only thing that can come is if you are able to be creative as much as we can in order to be different for the other proposition.

Spencer Amer: Thanks, Stefano. Thanks, Derek.

Derek Chang: Yeah, Matthew, thank you for the question. And just a, you know, follow-up on Stefano, and then we'll close it out here. But, you know, what Stefano is saying is absolutely right. You're building an ecosystem. You've got a funnel here where you are trying to bring in as many people as you can to engage with the sport. Certain platforms historically have been more monetizable directly than others, and but at the end of the day, we're not necessarily looking to maximize revenue on each particular platform or each particular content, contact that we have with a fan. We are building the, you know, the whole universe and the whole ecosystem here. So the fan sort of interacts with us on social media, that's not instantly monetizable. That fan may go and, you know, purchase an F1 shirt.

Thanks, sir. Thanks, sir.

Speaker Change: Yeah, Matthew, thank you for the question and I just follow up on stuff and then we'll close it out here, but

Peace.

Speaker Change: You know, what someone was saying is absolutely right. You're building an ecosystem. You've got a funnel here where you are trying to bring in as many people as you can do engage with the sport.

Speaker Change: Certain platforms historically have been more monetizable directly than others, but at the end of the day we're not necessarily looking to maximize revenue on each particular platform, each particular content, contact that we have with a fan.

We are building the

Speaker Change: You know, the whole universe and the whole ecosystem here. So the fan sort of interacts with. [inaudible]

Speaker Change: that's not instantly monetizable. That fan may go and purchase an F1 shirt. That fan may ultimately attend a race. That fan may end up in Las Vegas one day. I want to go to Grand Prix Plaza.

Derek Chang: That fan may ultimately attend a race. That fan may end up in Las Vegas one day and want to go to Grand Prix Plaza. That fan may tell their parents to start watching races. So I think that there are so many ways that we ultimately will monetize sort of any of these points of contact, but not every single point of contact that in itself has to be monetized. So with that, I will close the call for this quarter. I want to thank all of you on the call who have participated and all the great questions that we received. We appreciate your support and look forward to continuing the dialogue. Thank you very much.

That fan may tell their parents to start watching races.

Speaker Change: So I think that there are so many ways that we ultimately will monetize.

Speaker Change: Sort of any of these points of contact that not every single point of contact that in itself has to be monetized.

Speaker Change: So with that, I will close the call for this quarter. I want to thank all of you on the call who participated and all the questions, great questions that we received. We appreciate your support and look forward to continuing the dialogue. Thank you very much.

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