Q1 2025 Liberty Media Corp Earnings Call

May 7, 2025

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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 one 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.

Speaker Change: Welcome to Liberty Media Corporation's 2025 Q1 Erdings 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 meaning of the private security's 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 four-looking statements speak only as of the date of this come, and Liberty Media expressly described any obligation or undertaking to disseminate any updates or revisions to any four-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 certain non-GAAP financial measures for Liberty Media, including adjusted with 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 1's President and CEO, Stefano Domenicali, and other members of Liberty Management, who 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's Dr. Domenicali, 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 1. 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 at Liberty. Broadly, the priorities we have outlined for 2025 are progressing well.

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

Derek Chang: 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 June 30, 2025.

Speaker Change: 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. MotoGP will host a 22 race calendar in 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. 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.

Speaker Change: 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.

Speaker Change: The Argentina Grand Prix set a new attendance record for the track with over 200,000 spectators. Thailand's attendance was up 15% and CODA hosted its largest crowds since 2018.

Speaker Change: Company and 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 One. 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.

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

Speaker Change: 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.

Speaker Change: We are seeing continued momentum in sponsorship and licensing to start the year.

Speaker Change: In an excellent showcase with the LEGO partnership last weekend in Miami, where all 10 teams rode in fully drivable LEGO F1 cars to 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.

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.

and our drivers loved it.

Speaker Change: Looking ahead, fully-sponsorship pipeline forward has allowed our team to focus on 2026 and beyond, and emphasize secure and blue-chip names aligned with the F1 brand. The appeal and breadth of the F1 brand are uniquely resonating with sponsors across B&B and consumer brands alike.

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

Speaker Change: Dickets went on sale on early April and volumes are trending ahead of this time last year.

Speaker Change: Lower initials ticket prices are driving momentum which we expect will drive greater

Speaker Change: With the first two years having demonstrated player benefits to the wider Vegas ecosystem we are engaged incurring incurred 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 today is strong. The contractual nature of that 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 31 March 2024, Formula 1 had $14.2 billion of future revenue secured under contract.

Speaker Change: Finally, our current U.S. media rights agreement concludes at the end of 2025.

Speaker Change: And we are an active and productive discussion for a new deal. S1 is a strong product for broadcasters with solid growth in the U.S including the season and an attractive demographic with one third of viewers under age 35, females representing 42% of the fans.

Speaker Change: We remain focused on finding the right partner to continue to innovate on broadcast offerings and sustain on momentum in the US.

Speaker Change: While 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 and will be especially important in this macro economic climate.

Speaker Change: As of March 31st, $31.4 million has 14.2 billion dollars 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.

Speaker Change: 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, but historically Formula One's business model has proven resilient in times of economic uncertainty.

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

Brian Wendling: Thanks, Derek, and good morning, everyone. At quarter end, Formula 1 Group had attributed 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 attributed 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 3/31 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.

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

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

Brian Wendling: Total Formula One group attributed principal amount of debt was 2.9 billion a quarter end which includes 2.4 billion of debt 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 title, 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 decline as only 224 projected season-based revenue was recognized compared to 324 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 OIBDA 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.

Brian Wendling: Other revenue decline during the first quarter as a result of one less paddock club event in the mix of races held.

Brian Wendling: Adjusted weapon had declined alongside revenue during the quarter driven by the counterbearers.

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 Q1 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 Q1 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 % 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 cost of that one 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 full year.

Brian Wendling: 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.

Brian Wendling: As a reminder, a reminder that Team Payments is a percent of 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 Commercial Agreement, Formula 1 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: A 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. This cost is excluded from adjusted wipe-in presented separately from team payments.

Brian Wendling: Although revenue and adjusted revenue were 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: Grand Prix Plaza in Las Vegas, officially opened its new year-round activations on a second. Prevenue from these activations will be recognized at the F1 op-code level that we expect results will have a modest impact in 2025 as we scale that business.

Brian Wendling: The vast majority of the CAPEX required to build up Grand Prix Plaza activations was incurred in the first quarter. Total F1 at 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 quit results in approximately 6 million rental income related to the Las Vegas Grand Prix Plaza.

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

Brian Wendling: Reminder that Quince 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.

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 $1.15 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 at Liberty Live Group was $9.3 billion and we have $1.5 billion in principle amount of debt against these holdings.

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

Stefano Domenicali: Thanks, Brian. Formula One is off to a great start in 2025. We are six 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 the 2024 guests returning in 2025. Demand for hospitality products also remain high.

to discuss Formula One.

Stefano Domenicali: Thanks Brian , Formula One is opt to a great start in 2025.

Brian Wendling: 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 racing is tighter than expected.

Stefano Domenicali: While earning the season, we expect the action to continue. The strong contract performance has fueled fat engagement.

Stefano Domenicali: Antendices is up over last year with sell-out crowds and nearly all races to date. We reach a new record 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 10th season in a row and Montreal again experienced strong demand with the majority of the 2024 guests returning to 25.

Stefano Domenicali: Season to date, we sold over 12,000 tickets at our Paddock Club, and we are seeing strong advance 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: The man for hospitality products also remain high. Season 2 date, we sold over 12,000 tickets at Padao Tower, Pada Club, and we have seen strong advances across the remainder of the season.

Stefano Domenicali: We remain focused on opportunities to increase capacity and are working on alternative and innovative hospitality products where the man outstrips supply.

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

Stefano Domenicali: 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.

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

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

Stefano Domenicali: Highlight 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. Infasizing the significance and growth in our digital channels has fans find 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: Looking more broadly, Nilsen released new fan data in March showing the continuous search in F1 fandom. With our total fanbase as of year and 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 initiative 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 26 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. Demand from potential new races hosts remains robust, and we are evaluating various opportunities for the future. The Netherlands will host their final race in 2026, and Spa will race in alternative years from 2027, leaving an opening on the calendar in 2028. Tickets for Las Vegas went on sale April 9, featuring new ticket pricing and offerings.

Stefano Domenicali: The strong-gauge with figures are part of a broader picture of commercial success. When I'm pleased to report, we continue to have strong momentum. On race promotion, we are working toward finalizing our 26 calendar.

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 our races have now secured under medium and long-term contracts. The man's from potential new races host remains robust.

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

Stefano Domenicali: Tickets now start at $50 for a single-day general admission and $400 for three-day general admission in Flamingo Zone. We 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 subscribers 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 markets like the US.

Stefano Domenicali: 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 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 ship velocity in Vegas is meaningful at Beijing last year.

Stefano Domenicali: Our Media Right business continues to demonstrate the growing competition for marquee sport rights. F1TV Subscriber growth continues to be robust. We total subscriber up 4% year over year, led by the U.S. market up 20%.

Stefano Domenicali: The launch of our new F1 TV Premium, tier has outperform expectation, especially in

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 Two, Formula Three, the Sprint, and F1 Academy are providing broadcasters with more content and value. Viewership for sprint races consistently shows 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 celebrated his maiden win for Ferrari. Outside of the race weekend, Drive to Survive Season 7 reached Netflix global top ten for another year and appeared in the top ten list across 39 countries. The F1 Academy docuseries with Lando sanction is going live on Netflix on May 28.

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

Stefano Domenicali: Of course, there's more content to watch than just a race. Additional series like Formula 2 and Formula 3, the SPREET and F1 Academy, I provide in broadcaster with more content and value.

Stefano Domenicali: Viewership for Spring's 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 16 June, 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 partnerships. 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. We progress be made on a number of high value renewals and new partnership.

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 locations. The Boston and Washington, DC, venues held sold-out watch party for the Australian Grand Prix to kick off the season. A new arcade is opening in Philadelphia on May 29, with Denver, Las Vegas, and Chicago opening in Q4. The F1 Exhibition has sold more than 530,000 tickets in the last 12 months. Buenos Aires opened on March 22 and sold over 40,000 tickets in its first month.

Stefano Domenicali: Licensing continues to be a net of focus and growth. Our new licensed 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: We saw an exciting activation in Miami where all the drivers took part in the regular drivers parade in fully drivable Lego cars.

Stefano Domenicali: On the expiration license in front of one arcade continues to expand to new location.

Stefano Domenicali: The Boston and Washington D.C. menus the whole health sold out watch party for their thrilling groupie 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, when those adders are open on March 22nd and sold over 40,000 tickets in its first month. Amsterdam Open 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 activations are set to operate through Q1, Q2, and 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 park garden experience incorporating part of the Las Vegas Grand Prix circuit. An immersive F1 exhibit, the latest F1 racing simulator, a fast-casual iterative, a retail store and three private event spaces.

Stefano Domenicali: These activations are set to operate through the first three quarters of the year annually Generative 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 options, and 100% of promoters work with local community organizations on programs targeting the next generation. In addition, from 2026, the F1 cars will be powered by 100% sustainable fuel, a technology that is becoming increasingly important for the automotive sector as countries look for solutions to reduce greenhouse gas emission from road transportation.

Speaker Change: On former 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 this published late this year.

Speaker Change: We've made significant investment in sustainable aviation fuel, 90% of our promoters improve fan access and travel options, and 100% of promoters work with local community organization on programs targeting the next generation.

Speaker Change: 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 solutions 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. Looking forward, while we are early in our 25 calendar, we already have an eye toward 26. We have agreed the basis on which Cadillac will enter the championship in 26. 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.

Speaker Change: A recent power-earning manufacturer meeting in Helen Bahrain demonstrated a clear commitment to the plan 2026 annual regulation and maximized the success of those new roles with all parties working together to ensure the best rates for the championship.

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

Speaker Change: Looking forward, while we are early in our 25 calendar, we already have an eye toward 26. We have agreed the basis on which Cadillac will enter the championship in 26.

Speaker Change: We have also greeted to a new Concord commercial agreement with the T-Soot 2026 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 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. And now, I will turn the call back over to Derek. Thank you. Ciao.

Speaker Change: 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.

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

Speaker Change: Abantituta 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?... 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.

[inaudible]

Thank you Stefan I would Brian .

Very quick note and exciting news.

Speaker Change: Please say the date for this year's Liberty Media Investor Day. Changing things up this year 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 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Derek Chang: 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: For participants using speaker equipment, it may be necessary to pick up your handset 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?

Stefan Lasek: 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?

[inaudible]

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 upside in that budget.

Speaker Change: in terms of what you paid the teams, what 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 we've talked about in recent quarters, you know, 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 Grand Prix 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 in 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. 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 2025. Would be curious if you could just comment on what those are and to what extent those could still move the needle. Then I guess as we look out into 2026, 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 2026 sponsorship funnel, and to the extent you think that could grow off of 2025, what the bands of outcome could potentially look like on that? Thank you.

Stefan Lasek: That's great. Thanks for that. 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 2025. Would be curious if you could just comment on what those are and to what extent those could still move the needle. Then I guess as we look out into 2026, 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 2026 sponsorship funnel, and to the extent you think that could grow off of 2025, 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 are renewing in in 25. Would be curious if you just comment on what those are and to 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 in the sponsorship side is something you've been focused on just curious if you give us an early read early look into the 26 sponsorship funnel on to the extent you think that could grow off of.

Speaker Change: 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.

Derek Chang: I'll just turn it over to Stefano quickly.

Stefano Domenicali: Can I get 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-

Derek Chang: Yeah, I was just gonna say, we're at-

Stefano Domenicali: Thanks, Stefano, for the question.

Brian Wendling: Okay, go ahead, Stefano.

Derek Chang: Okay, go ahead, Stefano.

Stephanie: Yeah, I was just going to say, we're out of time. Thanks, Kevin, for the question.

Okay.

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 at investing 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.

Go ahead, Stefano.

Stefano Domenicali: Thank you. I mean, I think that we have proven in the last couple of years that our strategy with geographical responsibility is 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: We have a strong pipeline and that what we have said already and is conferred to be here is the quality over quantity and a very very genuine active activation with our practice because this is crucial in this moment where we want to make sure that our platform is what we our sponsor wants.

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 just we might do all of us where we were just the four or five years ago and now what we have today there is still a long way to go and we are very optimistic on the fact that we will continue to grow back. [inaudible]

Stefano Domenicali: So the focus is definitely to see if we have some opportunities in 2025, but the big one is keep going on in the next couple of years. It just remind 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: as a revenue 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, it feels like for the most part the energy is up and it's great to see.

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.

Derek Chang: with stuff to know at the track of the last couple of races and speaking to both current sponsors

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

Derek Chang: energy and excitement around the possibilities to engage with the sport, to engage with F1.

Derek Chang: 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 and see what the teams themselves are doing.

Derek Chang: And look, it goes obviously beyond F1, but to the entire sport, and 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 Zak 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.

Derek Chang: and made themselves are also expanding their sponsor bases, which is great. I spent some time with Zach Brown last week. Probably is one of the more prolific marketers.

Speaker Change: in the panic and then he was telling me about his plans to sell the underside of his shoe. So we'll see that happens.

Stephen Laszczyk: That's great. Thank you, all.

Stefan Lasek: That's great. Thank you, all.

That's great. Thank you all.

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

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

You

Speaker Change: The next question is from Ben Swinburn 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, 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 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, do you think that business now is so large and sort of differentiated that you want to keep it as a standalone product? And then I don't know if...

Thanks. Good morning.

Speaker Change: I don't know if it's Stefano or Derek either of you want to take this or which one is on take it but on on the media rights process in the US and one of the things that I think has happened for the business is F1-CD.

Speaker Change: 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 right scale are you open to bundling that in a broader agreement you know with tension 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: 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 teen payment leverage to take place in the 26 to 30 time frame any color given.

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

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

Stefano Domenicali: Yeah, I mean, 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 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 is very, very positive, and the feedback, mainly in US, is very, very strong.

Speaker Change: Yeah, I mean, thanks for the thanks Ben for the question. I mean, let me get right

Speaker Change: First of all, it's always interesting to see the speculation going around in regard to moments where they were optimistic and negative comments and so on.

that we are engaged 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 proposal. As you were correctly saying, you know, F1TV product is growing and it's very, very positive and the feedback mainly in US is very, very strong.

Stefano Domenicali: And 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 in the market as high as possible and making sure that we can monetize out of it. But 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 and positive vibes because I think the US audience figure in Miami that were very, very strong shows the potential that we have.

Speaker Change: and therefore we need to make sure that these are cities right and very valuable.

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 on with them. And I think that the next month will be crucial to see where we're going to be. But we come back from Miami, as I said, the beginning band 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 as it also for them to develop on other spoke faces together. [inaudible]

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

and there you will plan on that.

Derek Chang: Yeah, I'd like to. This is Derek. You know, following up on what Stefano just said, it, it, you know, we are having good conversations with potential partners on the, on the US media rights deal. I think what's been sort of interesting here is, the, the sport itself continues to grow, as Stefano mentioned, and, 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, the overall health of the business continues to, to resonate. And what that means, I think, not 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 that one TV's growth is up 20% here in the U.S. I think the overall health of the business continues to resonate. And what that means I think, but I think it's [inaudible]

Speaker Change: Renewable negotiation, but I think what that means for the long term is pretty significant. I still think we're in the early stages of growth for F1 in the US.

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.

and having...

Speaker Change: having the take up of F1 TV, what it is in the US at this early stage.

and speech volumes 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, as well 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.

Speaker Change: Things play out. We will see what partners want in their deals and we will see what you know make the most sense for F1 in terms of balancing. 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. 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 for my standpoint is we actually see sort of a different way this can go, play out but underneath it all, underlying it all is extremely strong demand.

Derek Chang: So I think that the answer here from my standpoint is we actually see sort of a ton of 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: for F1 and the engagement from the plans here in the U.S. which is great to see.

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. 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, Conqueror Commercial Agreement. Yeah, we do expect leverage in 26 to 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.

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

Thanks so much.

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.

Kurt Gunn-Murau: 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 a regulatory approval there. Now that maybe there's a bit more clarity on getting that field 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 a 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 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 this happen across multiples of other sports, and I think there is that opportunity here.

This is Derek, I'll take this one.

Kurt Gunn-Murau: 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

Kurt Gunn-Murau: 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.

Kurt Gunn-Murau: And look, I think with any of these premium sports assets.

Kurt Gunn-Murau: 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 as soon as the deal closes, we will be actively engaged with management at MotoGP, to start executing on that plan.

Kurt Gunn-Murau: 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.

Brian Wendling: Perfect. Thank you.

Kutgun Maral: Perfect. Thank you.

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

David, thank you.

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 Cepino: Hi. Good morning and thanks. A question on sponsorship and one back to the media right now on sponsorship. I have a question for you.

50% fewer races.

so far over here and

So of course sponsorship revenue.

has that headwind, and yet...

Peter Cepino: It looks largely offset by growth from new sponsors, and so we're wondering what's going on.

Peter Cepino: 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 Rise.

Peter Cepino: We're going to be opinion that the media rights are sort of uniquely

misunderstood because-

that 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: Then, of course, the media rights don't have any advertising. 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?

Speaker Change: Step it up. You want to start, I'll unmute you, right?

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 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. 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.

Yep.

Speaker Change: Thanks Derek. I mean, I can start definitely with the media. 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 in our on all our social platform. We so definitely the interest of the young generation to access to our contents through YouTube or or other form of engagement.

Stefano Domenicali: But it's definitely important to make sure that the clearance 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. And 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.

Speaker Change: of the fact that our faculty can get more engaged with us.

will have the the chance to connect.

Speaker Change: You know, with the right trials, it's really the key for our strategy and our decision.

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

Speaker Change: They need to have the possibility to engage through different options that we need to offer to them.

Speaker Change: That's the biggest strategic thing that we want to put in place.

Speaker Change: And of course, AIDS is relevant to the partner 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're doing is confirmed by the quality and the numbers that we put in place every year.

Speaker Change: It's relevant because we see the dynamics that are different. 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 the value to the knowledge of our sport.

Speaker Change: This is what I can say on the media side. Don't dispose of your side.

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

Speaker Change: 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, 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, hour and a half to two hours of the race. It's what's happening over the entire weekend.

Derek Chang: Thanks, Stephanie. I was there. Peter, that's a, you know, that's a, you're coming about I've 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 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 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: 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 and the qualifying but other constant around the sport but also delivering it across multiple platforms.

Derek Chang: so that there are multiple ways of any age or any demographic of any interest.

Derek Chang: can engage with the sport because as soon as as I mentioned earlier on on MotoGT 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 to 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. Let's go.

Brian Wendling: Yeah, and just to add on to the sponsorship side, Peter, we're not going to 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 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 year-to-date. 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 impact it. 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.

Yeah, it was still Q2.

Operator: The next question is from Steven 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 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 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 something else? And then congratulations on the new Concorde Agreement.

Steven 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 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 something else? And then congratulations 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 concorded ring.

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.

Steven Cahill: 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. Stefano, you want to talk about the Concorde?

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 you 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.

Speaker Change: 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.

Stephanie, do you want to talk about the Concord?

Stefano Domenicali: Yeah. I mean, thanks, Steven. I think that, as you know, for us, it's 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 in performance, there is the chance for everyone to recover that.

Stephanie: Yeah, I mean, thanks to even I think that as you know for us is essential to make sure that the growth of this port is done in an organic way. And a way that we can take on mainly free.

Stephanie: 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 point related to the sporting side, I think that we have seen already the massive importance of the, having the, the budget cap or the cost cap, that has given the possibilities 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.

Stephanie: I think that we have seen already the massive importance of the budget cap or the cost cap that has given the possibilities to the team to understand the level of performance from the technical perspective that they can reach through the money that they have.

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

Stephanie: And we see definitely that the healthy system allow through also conquered and other spaces that have become important for the teams, where the solid team that wants to stay and be even stronger and be competitive for the future.

Stephanie: The point is the awareness that the sport is living is bringing interest money to all the ecosystem that will regenerate.

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

Stephanie: 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 Congress has just brought the right approach and the right settings.

Stephanie: 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.

Steven Cahill: 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. 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.

Brian Wendling: Stefano?

[inaudible]

Stefano Domenicali: 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 countries around the world, but then in certain areas, we can start to see some competition with regard to the streaming side of it. That is 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, or 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.

Bye-bye.

Brian Wendling: 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 corners around the world, but then in in in in in certain area, we can start to see some competition with regard to the stream inside of it.

Brian Wendling: and also in Brazil, for example, that we'll have an evolution and we'll have a positive impact in our relationship in South Africa 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.

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 Q1? And then secondarily, Stefano, maybe a follow-up, you know, on an earlier question about team competition. It certainly seems parity or 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, any KPIs you have with respect to the two races in the Q1? And then secondarily, Stefano, maybe a follow-up, you know, on an earlier question about team competition. It certainly seems parity or 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 a follow-up on a earlier question about team competition. It certainly seems parody where the competition has increased.

Speaker Change: 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: Joe, or Brian, this-

Stefano, do you want anything to add on KPI?

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

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

Brian Wendling: I mean, I wouldn't want to go ahead with that, Brian , maybe eight.

Brian Wendling: Sorry, go ahead, Stefano.

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.

Let's start. Go ahead, step it up.

Brian Wendling: 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.

Yeah, I think I would say is, you know.

Speaker Change: and 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

Brian Wendling: 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.

Speaker Change: and you can see the impact that you have there on revenue and it won't wipe it off.

Derek Chang: ... In terms of-

Brian Wendling: ... In terms of-

Stefano Domenicali: If I go to the second question, Joe. Sorry?

Thank you.

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

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

Stefano Domenicali: No, I think that's it. 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. So 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, and that's it would 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.

That be about it.

Speaker Change: Now I think that 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 the more we go ahead.

Speaker Change: into the next quarter because there will be, you will see the organic growth that we are having everywhere.

Speaker Change: and that's it would be very, very clear. So on that just just it.

Speaker Change: I want to shed 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 don't 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 of 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 parts 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 out of milliseconds so that is really impressive.

Stefano Domenicali: Therefore, 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 I did 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.

Speaker Change: that the potential there will be more gaps in performers 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 you need 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. So I think that the the three pillars are very relevant even more when there is a step change of regulation as it will be done next year that is really nice.

Stefano Domenicali: But, as we remember to all of us, we're done to allow to 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.

November to all of us.

Speaker Change: We're down to allow to new power unit manufacturing routine 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.

Derek Chang: Thanks very much.

Joe 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 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?

Speaker Change: 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.

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 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 direct. Yes, thanks for the question. You know, we believe that the Miami Grand Prix is a very important pillar of our strategy in US. 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 investing.

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: and partnership to develop 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.

Derek Chang: Yeah, and just from my standpoint, you know, I went to 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, in Miami, for what they've done, and, and we look forward to their continued investment in, in the, in the race.

Speaker Change: Yeah, and just from my standpoint, you know, I went to 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.

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 Citibank. Please receive 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 by investors. The one question we get is people aren't quite sure how to think about

Jason Bissonnette: The defensiveness of the sponsorship revenue if there wasn't economic slowed down.

Stefano Domenicali: Jason, I think that the answer for that is no one has a magic ball, 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 sponsor 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: James, I think that the answer for that is no one is imaginable, but what we have

Jason Bissonnette: 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 their is our strength.

Jason Bissonnette: And the fact that we are long-term agreed with sponsors is of course a financial a covering theme of the risks.

Jason Bissonnette: that we have but that is more relation we have that has been with on the trust and understanding each other what has the need.

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 contract 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 relation we have with and the quality of the parts that are working together with us allow us to be very very positive.

Jason Bissonnette: And the good thing is to stay connected and to try to see that is happening how we can just 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. I, you know, I think, but 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, almost better than anyone else out there. And so, you know, the supply for them is not huge.

Speaker Change: Yeah, and this, you know, continuation with stuff I know just said. I mean the quality.

Speaker Change: of our partners and sort of the longer term nature of the deals I think certainly the near term.

Speaker Change: Hopefully it's always us from from some of the any any potential macro headwinds here. I yeah.

Speaker Change: You know, I think that 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 on the better than anyone else out there and so

you know the supply for them is is

Derek Chang: 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 the initiatives that they have. 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. 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, the way they wanna grow their business, and how we can help them achieve those targets has been, you know, very reassuring.

Speaker Change: 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.

Speaker Change: sort of the relationship for them and for their targets and the initiatives that they have. I think that, you know, again, this is somewhat qualitative, but just in the conversations with our partners and understanding what their needs are. They are enthusiasm.

Speaker Change: And these potential headwinds in the economy have, it's not like they came in yesterday, they've now been around for a couple months or speculation over the way these guys continue to speak about.

Speaker Change: Their business and the way they want to grow their business and how we can help them achieve those targets has been very reassuring.

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

Stefano Domenicali: And if I may add-

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

Jason Bazinet: Yeah. I was just gonna ask, like, in terms of-

Stefano Domenicali: No, sorry. Just to add that we haven't seen... Yeah.

Yeah.

Speaker Change: just to add that we haven't seen. Yeah.

Go ahead.

Derek Chang: Go ahead, Jason.

Stefano Domenicali: Can you hear me?

Jason Bazinet: 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 in, 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 that 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?

Derek Chang: No. I think these are-

Jason Bazinet: No.

Derek Chang: It's not like, it's not like media, media deals in the sense of, 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 gonna get into the details of, of how long each one is. We've, we've probably mentioned some of them. But I do think that, kinda like any, 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 wanna come in longer term with us.

Now.

Jason Bissonnette: I think these are, it's not like media deals in a sense of, or 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 um...

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 in what they partnered up with and that takes multiple years.

Jason Bissonnette: 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, and I think that helps us in times like this. But Stefano, do you wanna 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: No, I, I totally agree, Derek. And, to be, to be very transparent, we haven't seen any slowdown in our conversation, despite the market situation 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 powerful 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.

to be to be very transparent.

Stefano Domenicali: We haven't seen any slowdown in our conversation despite the market fluctuation we have today with the other 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. [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.

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

Very helpful. Thank you.

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

Speaker Change: Thank you, as everyone does, the LEGO drivers parade was marketing genius incidentally.

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

Speaker Change: is encouraging as well as social and I think you're probably

Speaker Change: breaking out maybe more than anyone else on 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.

Matthew Harrigan: Do you have any thoughts on how you might be able to better engage, you know, people 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: Do you have any thoughts on 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 going to get up and watch a race for two hours? Thank you.

Matthew Harrigan: Thank you.

Derek Chang: Stefano, you wanna start?

Stefano Domenicali: Well, Matthew, can I say... Yeah. No, thanks, Derek. I think, thanks for the comment. We take with pride because we'd never stop. We try to be different from the other, the other platform to create some sort of difference 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?

Speaker Change: Yeah, well, thanks, Eric. I think, thanks for the comment we take with pride because we've never stopped. We tried to be different from the other, the other platform to create some sort of details of what we are doing. 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. [inaudible]

Speaker Change: It is clear that the more we are able to do these kind of things, the 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 complete. You know, we need to make sure that our engagement with our fans is not only 2 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 are available, in order to get into the consumer habits of our fans.

Speaker Change: It would be wrong to believe that you can monetize anything straight away and that's why on that we have a

Speaker Change: 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.

Speaker Change: try to tell of the content and and this is really what we try to do.

Speaker Change: 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.

Speaker Change: 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 era where so far we've made it a bit weak.

Speaker Change: 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.

Matthew Harrigan: 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 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 to engage with the sport. Certain platforms historically have been more moneti- more monetizable directly than others. 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 for having me. Thanks, Derek.

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

Speaker Change: You know, what's everyone saying is absolutely right. You're building an ecosystem. You've got to 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 and 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: us on social media that's not instantly monetizable. That fan may go and you know purchase an F1 shirt. 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.

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, that not every single point of contact 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 questions, 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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