Q1 2025 Liberty Media Corp Earnings Call

May 7, 2025

Operator: Throughout the session. At that time, if you have a question, please press star 1 on your telephone. As a reminder, this conference will be recorded. 7 May 2024. I would now like to turn the call over to Shane Kleinstein, Senior Vice President, Investor Relations. Please go ahead.

At a time if you have a question. Please press star one on your telephone.

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

Shane: I would now like to turn the call over to Shane clients <unk> Senior Vice President Investor Relations. Please go ahead.

Speaker Change: Thank you and good morning, before we begin we'd like to remind everyone that this call includes certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095.

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 disclaimed 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: Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent forms 10-K, and 10-Q filed on 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.

Speaker Change: And 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 OIBDA, the required definitions and reconciliations for Liberty media schedule. One can be found at the beginning 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.

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

Derek Chang: All of US are Brian Wendling Formula one's President and CEO Stefano Domenicali and other members of Liberty management will be available for Q&A I'd like to turn the call over to Derek.

Derek Chang: Great. Thank you Sharon good morning, everyone. It has been a great start to the year at Liberty and importantly, the priorities. We've outlined for 2025 are progressing well, namely number one we are working towards the close of the donor acquisition to continuing our path toward structural simplification.

Derek Chang: Great. Thank you, Shane. Good morning, everyone. It has been a great start to the year at Liberty. Importantly, the priorities we have outlined for 2025 are progressing well. Namely, number 1, we are working towards the close of the Dorna acquisition. 2, continuing our path towards structural simplification. And 3, we continue to drive momentum at Formula One. Starting first with the Dorna acquisition, we are progressing with the Phase II 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: We continue to drive momentum at Formula One starting first with the Dorma 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 June 30 of 2025.

Speaker Change: Moto G. P kicked off 2025 with its first ever sees a march event in Bangkok.

Speaker Change: Event generated massive buzz, bringing together all 11 teams to showcase Moto GP as a thrilling sport and premium Entertainment brand Moto GP will host the 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 two 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 five 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 Koda hosted its largest crowd since 2018, and Harez 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. Our second priority is continuing to progress our structural simplification, including the planned split-off of Liberty Live.

Speaker Change: <unk> to 'twenty raises last year, which was impacted by race cancellations.

Speaker Change: Detailing to replacement leases scheduled mid season.

Speaker Change: The season is off to a great start with incredible on track action and growth independents across the first five races completed to date.

Speaker Change: The Argentina ground pretty set a new attendance records for the track with over 200000 spectators. Thailand's on attendance was up 15% and coda honest at its largest crowd since 2018.

Speaker Change: In our restaurants highest attendance since 2015 with 24% growth over 2023.

Speaker Change: Coupling it out several commercial agreements to start the season, including Pirelli as a new tire suppliers, starting in 2027 and the extensions of the Barcelona, French and Valencia GPS through 2031.

Speaker Change: Our second priority is continuing to progress our structural simplification, including the planned split off of Liberty live.

Speaker Change: Our third priority is continuing to drive momentum at Formula one.

Derek Chang: 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. 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.

Confluence of excellent racing and commercial momentum is benefiting engagement and financial results in 2025.

Speaker Change: 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: An excellent showcase with the Lego partnership last weekend in Miami, where all 10 teams road and fully drive a little Lego F. One cars to the driver's parade. The project took over a year to come to life and required 400000, Lego bricks per car. It was an amazing collaborations that captivated, our fan and the internet and our drivers loved.

Speaker Change: Great.

Speaker Change: Looking ahead pulling the sponsorship pipeline, Florida has allowed our team to focus on 2026 and beyond and emphasize secure and blue chip names aligned with the F. One brand.

Speaker Change: Peel and breadth of the F. One brand our uniquely resonating with sponsors across <unk>.

Derek Chang: 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 sales 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. 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.

Operator: At that time, if you have a question, please press star 1 on your telephone. As a reminder, this conference will be recorded.

Patients necessitating to replace that raises scheduled mid season.

Speaker Change: It'll be in consumer brands alike.

Speaker Change: Second we are focusing on improving lvg P standalone economics, and maximized maximizing the overall benefit to the F. One ecosystem.

Season is off to a great start with incredible on track action and growth in independents and across the first five races completed to date.

Shane Kleinstein: I would now like to turn the call over to Shane Kleinstein, Senior Vice President, Investor Relations. Please go ahead. Thank you and good morning.

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

The Argentina Grand Prix.

New attendance record for the track with over 200000 spectators.

Shane Kleinstein: Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 disclaimed 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.

Speaker Change: Lower initials ticket prices are driving momentum, which we expect will drive greater sell through with.

Williams on attendance was up 15% and coda honest had its largest crowd since 2018, and our restaurants highest attendance since 2015 with 24% growth over 2023.

Speaker Change: With the first two years, having demonstrated clear benefits for the wider Vegas ecosystem.

Speaker Change: We are engaged incurring and Kurt encouraging discussions with key local stakeholders to ensure their support and best position the event for future growth.

Coupling it out several commercial agreements to start the season, including Pirelli as a new tire suppliers, starting in 2027 and the extensions of the Barcelona, French and Valencia G. P through 2031.

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

Speaker Change: And we are in active and productive discussions for a new deal.

Our second priority is continuing to progress our structural simplification, including the planned split off of Liberty life.

Speaker Change: Epsilon is a strong product for broadcasters with solid growth in the U S, including the season, and then attractive demographic with one third of viewers under age 35 females, representing 42% of the fans.

Derek Chang: F1 is a strong product for broadcasters with solid growth in the US, including this season, and an attractive demographic with 1/3 of viewers under age 35, females representing 42% of the fans. We remain focused on finding the right partner to continue to innovate on broadcast offerings and sustain our momentum in the US. While it's early in the year, performance to date is strong. The contractual nature of Formula One'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 One had $14.2 billion of future revenue secured under contract. 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 One's business model has proven resilient in times of economic uncertainty.

Our third priority is continuing to drive momentum at Formula one.

Shane Kleinstein: On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including adjusted OIDA.

Confluence of excellent racing and commercial momentum is benefiting engagement and financial results in 2025.

Shane Kleinstein: The required definition and reconciliation for Liberty Media Schedule 1 can be found at the end of the earnings press release issued today, which is available on Liberty Media's website.

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

There are several areas currently in focus worth highlighting.

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

Speaker Change: Well, it's early in the year performance today is strong the contractual nature of that formula one's cash flow provides high visibility into our business performance for the next several years and will be especially important in this macro economic climate as of March 31st 31, Martin Formula One has a $14 $2 billion of future.

Shane Kleinstein: Speaking on the call today, we have Liberty's President and CEO, Derek Chang, Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling, Formula One's President and CEO, Stefano Domenicali, and other members of Liberty Management will be available for Q&A.

An excellent showcase with the Lego partnership last weekend in Miami, where all 10 teams road and fully drive a little Lego F. One cars to the driver's parade. The project took over a year to come to life and required 400000, Lego bricks per car. It was an amazing collaborations that captivated, our fan and the internet and our drivers loved.

Derek Chang: I'd like to turn the call over to Derek. Great. Thank you, Shane.

Derek Chang: 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 one, we are working towards the close of the Dorna acquisition. Two, continuing our path towards structural simplification. And three, we continue to drive momentum at Formula One.

Speaker Change: Revenue secured under contract.

Speaker Change: Advance ticket sales for our promoters and hospitality tickets for the remainder of the season remained strong.

It.

Looking ahead pulling the sponsorship pipeline and Florida has allowed our team to focus on 2026 and beyond and emphasized secure and blue chip names aligned with the F. One brand.

Speaker Change: We continue to actively monitor changes in consumer sentiment, though historically formula one's business model has proven resilient in times of economic uncertainty.

Appeal and breadth of the F. One brand our uniquely resonating with sponsors across B to B and consumer brands alike.

Derek Chang: Starting first with the Dorna acquisition. We are progressing with the Phase 2 regulatory process and working constructively with the European Commission. We hope to receive approval by the long-stop date of June 30, 2025. 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. 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 and dependence across the first five races completed to date.

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

Derek Chang: 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.

Second we are focusing on improving lvg P standalone economics, and maximized maximizing the overall benefit to the F. One ecosystem.

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: Thanks, Derek, and good morning, everyone. At 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 Quint. Total Formula One Group attributed principal amount of debt was $2.9 billion at quarter-end, which includes $2.4 billion of debt at F1, leaving $526 million at the corporate level. F1's $500 million revolvers undrawn, and their leverage at 3.1x was 1.2 times. As a reminder, all MotoGP transaction-related financing is in place and deal contingent. 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-year race calendar and timing of events.

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

Brian: The quarter on Formula One group had attributed cash and liquid investments of $2 8 billion, which includes $1 5 billion of cash it up one and 69 million of cash or Quint.

Lower initials ticket prices are driving momentum, which we expect will drive greater sell through.

Brian: Formula One group attributed principal amount of debt was $2 9 billion at quarter end, which includes $2 4 billion of debt at up one leaving $526 million at the corporate level.

With the first two years, having demonstrated clear benefits for the wider at Vegas ecosystem.

We are engaged incurring and Kurt encouraging discussions with key local stakeholders to ensure their support and best position the event for future growth.

Brian: F. One is $500 million revolver is undrawn and their leverage at 331 was one two times.

Brian: Minder, all Moto G. P transaction related financing is in place and deal contingent.

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

Brian: 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 year race calendar and timing of events note that every quarter in 2025 will have in comparable race, count and mix, which will impact year over year comparisons of quarterly results throughout the year.

And we are in active and productive discussions for a new deal.

Derek Chang: The Argentina Grand Prix set a new attendance record for the track, with over 200,000 spectators. Thailand's audience attendance was up 15%, and Kota hosted its largest crowd since 2018, and Arrest saw its highest attendance since 2015, with 24% growth over 2023.

Epsilon 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.

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 2/24s of projected season-based revenue was recognized compared to 3/24s last year. 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.

We remain focused on finding the right partner to continue to innovate on broadcast offerings and sustain our momentum in the U S.

Brian: Yeah.

Brian: Most of the variability in year over year results is due to the two rates was held in Q1 2025 compared to three races in Q1 2024.

Derek Chang: 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.

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

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 driver's parade. The project took over a year to come to life and required 400,000 LEGO bricks per car.

Brian: Media rights and sponsorship decline is only 224, so projected season based revenue was recognized compared to $3 24 last year.

Revenue secured under contract.

Speaker Change: Advance ticket sales for our promoters and hospitality tickets for the remainder of the season remained strong.

Brian: <unk> was also impacted by the calendar shift as the Saudi Arabia, and Bahrain races. Both have ray specific local title title sponsorships and recognition of that raise specific revenue shifted with the timing of those races.

Speaker Change: We continue to actively monitor changes in consumer sentiment, though historically formula one's business model has proven resilient in times of economic uncertainty.

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

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

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.

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

Brian: Media rights revenue was benefiting from contractual increases in rights fees and continued growth in F. One TV benefiting from the launch of the new premium subscriptions here.

Brian: The quarter on Formula One group had attributed cash and liquid investments of $2 8 billion, which includes $1 5 billion of cash it up one and 69 million of cash or Quint.

Derek Chang: It was an amazing collaboration that captivated our fans and the Internet, and our drivers loved it. 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.

Brian: Other revenue declined during the first quarter as a result of one less paddock club event and the mix of race itself.

Brian: Formula One group attributed principal amount of debt was $2 9 billion at quarter end, which includes $2 4 billion of debt at up one leaving $526 million at the corporate level.

Brian: Adjusted OIBDA declined alongside revenue during the quarter driven by the calendar barrick's other.

Other costs about one revenue increase due to higher freight costs with longer rubs flown and increased commissions and partner servicing costs servicing the overall primary up one revenue growth as well as higher cost for Grand Prix Plaza due to more activity compared to Q1 2024.

Brian: F. One $500 million revolver is undrawn and their leverage at 331 was one two times.

Derek Chang: 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 sales. The first two years have 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.

Brian: As a reminder, all Moto G. P transaction related financing is in place and deal contingent.

Brian: 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 year race calendar and timing of events no debt every quarter in 2025 will have incompatible race, count and mix, which will impact year over year comparisons of quarterly results throughout the year.

Brian: On a full year basis, we expect other costs at that point revenue to be consistent with prior years as a percentage of total revenue.

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 Concord Agreement at the end of 2025.

Brian: SG&A increased in the first quarter due to due to marketing costs associated with the seasonal launch event at the O two and should be viewed as a percentage of total revenue for the full year team.

Brian: 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: Most of the variability in year over year results is due to the two rates was held in Q1 2025 compared to three races in Q1 'twenty 'twenty four.

Brian: As a reminder, a reminder, the team payments as a percent of pre team. Adjusted OIBDA was 61 five 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 and.

Derek Chang: Finally, our current U.S. 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 U.S., including this season, and an attractive demographic with one-third 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 U.S. While it's early in the year, performance today is strong. The contractual nature of Formula One's cash flow provides high visibility into our business performance for the next several years and will be especially important in this macroeconomic climate.

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

Brian: Media rights and sponsorship declined as only two 'twenty borsa projected season based revenue was recognized compared to $3 24 last year.

Brian: In connection with all 10 teams signing that 'twenty 'twenty six Concord commercial agreement Formula one paid a total of $50 million of the teams in the first quarter.

Brian Wendling: In connection with all 10 teams signing the 2026 Concord commercial agreement, Formula One paid a total of $50 million to the teams in 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: 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 Barents, we're seeing strong a strong financial start to the year and are tracking well against our internal plan.

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

Brian: Grand Prix Plaza in Las Vegas officially opened its new year round Activations on may 2nd.

Brian: Revenue from these activations will be recognized that the up one opco level.

Brian: Media rights revenue was benefiting from contractual increases in rights fees and continued growth in F. One T V benefiting from the launch of the new premium subscriptions here.

Derek Chang: As of March 31, Formula One has $14.2 billion of future revenue secured under contract. 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. Historically, Formula One'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.

Brian: We expect results will have a modest impact in 2025, as we scale that business.

Brian: The vast majority of the Capex required to build out Grand Prix Plaza Activations was incurred in the first quarter totaled up on our Capex was approximately $33 million year to date, including slightly less than 20 million incurred related to G. P. P.

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

Brian: Adjusted OIBDA declined alongside revenue during the quarter driven by the calendar barracks.

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: Other costs about one revenue increase due to higher freight costs with longer rubs blown and increased commissions and partner servicing costs servicing the overall primary up one revenue growth as well as higher cost for Grand Prix Plaza due to more activity compared to Q1 2024.

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

Brian Wendling: Now I'll turn it over to Brian for more on Liberty's financial results. 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 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 331 was 1.2 times.

Brian: Corporate and other adjusted OIBDA loss was 12 million and includes Grand Prix Plaza rental income results and our corporate expenses.

Brian: On a full year basis, we expect other costs about one revenue to be consistent with prior years as a percentage of total revenue.

Brian: Reminder, that <unk> business is seasonal with the largest and most profitable events, taking place in Q2 and Q4 Q.

Brian: Q1 is modest demand activity, while still incurring ordinary course operating expenses.

Brian: Team payments decreased in the first quarter due to the lower pro rata recognition with one less race held partially offset by the expectation of higher full year team payments. As a reminder, a reminder of the team payments as a percent of pre team. Adjusted OIBDA was 61 five in 2024, and we expect that percentage to continue to come down as we complete.

Brian: Quickly turning to Liberty Libra, Theres attributed cash of $314 million and 400 million of Undrawn marginal capacity relating to our live nation margin alone.

Brian Wendling: As a reminder, all MOTIV GP transaction-related financing is in place and deal contention.

Brian: As of May six the value of our live nation stock held at Liberty Life Group was $9 3 billion and we have 1.5 1.15 billion in principal amount of debt against these holdings Liberty enough. One are in compliance with our debt covenants at quarter end with that I'll turn the call over to Stefano to discuss formula one.

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: 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-year race calendar and timing of events. Note that every quarter in 2025 will have incomparable rates, 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 two races held in Q1 2025 compared to three 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.

Brian: The term of the current Concorde agreement at the end of 2025.

Brian: In connection with all 10 teams signing that 'twenty 'twenty six cardboard commercial agreement Formula one paid a total of $50 million of the teams in the first quarter.

Stefano: Thanks, Brian for more one is off to a great start in 2025, we had a six races into the season and continue to see exciting on track action the wins have been spread across teams and the reason these types of unexpected.

Brian: This cost is excluded from adjusted OIBDA and presented separately from team payments.

Stefano Domenicali: Thanks, Brian. Formula One is off to a great start in 2025. We are 6 races into the season and continue to see exciting on-track action. The wins have been spread across teams, and the racing is tighter than expected. While early in the season, we expect the action to continue. The strong on-track performance has fueled fan engagement. Attendance is up over last year with sellout crowds on 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 season in a row, and Montreal again experienced strong demand with the majority of their 2024 guests returning in 2025. Demand for hospitality products also remained high.

Brian: Although revenue and adjusted OIBDA were lower year over 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: Grand Prix Plaza in Las Vegas officially opened its new year round Activations on may 2nd.

Stefano: Early in the season, we expect the actions to continue.

Stefano: The strong contract performance is fueled site engagement.

Brian: From these activations will be recognized that the F. One opco level.

Stefano: And then this is up over last year with sellout crowds and nearly all races debate.

Brian: Though we expect results will have a modest impact in 2025, as we scale that business.

Brian Wendling: Media rights and sponsorship declined as only 2.24% of projected season-based revenue was recognized compared to 3.24% last year. 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. 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. Other revenue declined during the first quarter as a result of one last paddock club event and a mix of races held.

Brian: The vast majority of the Capex required to build out Grand Prix Plaza Activations was incurred in the first quarter totaled up went up capex was approximately $33 million year to date, including slightly less than 20 million incurred related to G. P. P.

Stefano: We reached a new record crowds food deals, Sweden real brief. We then outstanding 465000 weekend attendees demands for the balance of the year is strongest with Mexico sold out in a matter of hours for the third season in a row and Montreal the game experienced strong demand with the majority of their 2020.

Stefano: For guests with two new 25.

Stefano: Demand for hospitality products also remained high.

Brian: Corporate and other adjusted OIBDA loss was 12 million and includes Grand Prix Plaza rental income results and our corporate expenses.

Stefano: Season to date, we sold over 12000 tickets above the auto or by the club and we have seen strong advanced sales across the remainder of the season.

Stefano Domenicali: Season to date, we sold over 12,000 tickets at our Paddock Club, and we are seeing strong 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 5 races of the season. We had over 60 million cumulative linear TV viewers for the opening Grand Prix weekend in Australia. The U.S., in particular, has seen strong growth, with ESPN viewership up 45% across the first 5 races. The Australian Grand Prix was the most viewed edition of the race ever for the U.S. audience. Other markets with notable linear viewership growth include Brazil, France, and Australia.

Brian: Reminder, that <unk> business is seasonal with the largest and most profitable events, taking place in Q2 and Q4 Q.

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

Brian Wendling: The adjusted order has declined alongside revenue during the quarter driven by the calendar barrier. Other costs of F-1 revenue increased due to higher freight costs with longer routes flown and increased commissions and partner servicing costs servicing the overall primary F-1 revenue growth as well as higher costs for Grand Prix Plaza due to more activity compared to Q1 2024. On a full year basis, we expect other costs of F-1 revenue to be consistent with prior years as a percentage of total revenue. SG&A increased in the first quarter due to marketing costs associated with the season launch event at the O2 and should be viewed as a percentage of total revenue for the full year.

Brian: Q1 is a modest amount of activity, while still incurring ordinary course operating expenses.

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

Brian: Quickly turning to Liberty Library, there is attributed cash of $314 million and 400 million of Undrawn margin loan capacity relating to our live nation marginal.

Stefano: We have over 60 million cumulative leaner TPU viewers for the opening Grand Prix weekend in Australia. The U S. Imports equally has seen strong growth with ESPN viewership up 45% are closer first viruses.

Brian: As of May six the value of our live nation stock held at Liberty Life Group was $9 3 billion and we have 1.5 1.15 billion in principal amount of debt against these holdings Liberty in half one are in compliance with our debt covenants at quarter end with that I'll turn the call over to Stefano to discuss formula one.

Stefano: The Australian robbery was the most viewed the addition of the race ever for the U S soldiers the markets with notable linear viewership growth include Brazil, France, and Australia highlights viewership on Youtube channel has increased by 31% compared to last year emphasizing the significant.

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. As a reminder, a reminder that team payments as a percent of pre-team-adjusted OEBDA was 61.5 in 2024, and we expect that percentage to continue to come down as we complete the term of the current Concord Agreement at the end of 2025. In connection with all 10 teams signing the 2026 Concord commercial agreement, Formula 1 paid a total of $50 million to the teams in the first quarter. This cost is excluded from adjusted OIBD and presented separately from team payments.

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

Stefano: And growth in our digital channels as fans find new ways to engage with our own.

Stefano: Early in the season, we expect the actions to continue.

The stronger performers as fuel side of engagement.

Stefano: On and off the track.

Stefano: Social media followers have now reached 100 media growing 30% year over year.

Stefano: And then this is up over last year with sellout crowds and nearly all races debate, we reached a new record crowds for Sweden rubbery with an outstanding 465000 weekend attendees demands for the balance of the year is strongest with Mexico, So delta and the method of hours for that.

Stefano: The first quarter growth was particularly driven by eastern Europe tick Tock and Youtube.

Stefano: Looking more broadly Nielsen released new fan data in March showing the continuous shirt in F. One funnel with our total sub base as of year end or 826 million, adding nearly 90 million new fans in 2020 for these engagements because of not just <unk>.

Brian Wendling: Although revenue and adjusted OEBDA 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.

Stefano: He's in a role and Montreal the game experienced strong demand with the majority of their 2020 for guests with 225.

Brian Wendling: Grand Prix Plaza in Las Vegas officially opened its new year-round activations on May 2nd. 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 the first quarter. Total F1 CapEx was approximately $33 million year-to-date, including slightly less than $20 million incurred related to GPP.

Stefano: Demand for hospitality products also remained high.

Stefano: They represent the growing global appeal and generating the engagement with our sports and validate our initiatives to enhance F. One for our offense.

Stefano: To date, we sold over 12000 tickets above the tower part of the club and we have seen strong advanced sales across the remainder of the season.

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

Stefano: So engage with figures are part of a broader picture of commercial success, but I'm pleased to report that we continue to have strong momentum.

Stefano Domenicali: What I'm pleased to report, we continue to have strong momentum. On race promotion, we are working toward finalizing our 2026 calendar. We were excited to announce renewal of our Mexico race through 2028 and Miami through 2041, the longest contract currently secured and a statement 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 9 April, featuring new ticket pricing and offerings.

Stefano: Race promotion, we're working toward Plano lies in our 26 calendar.

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

Brian Wendling: Looking briefly at corporate and other results in the first quarter, revenue was $53 million, which includes quit results and approximately $6 million of rental income related to the Las Vegas Grand Prix Plaza. Corporate and other adjusted oil loss was $12 million and includes Grand Prix Plaza rental income, quit 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.

Stefano: We were excited to announce the renewal of our Mexico race through 2028, and Miami through 2041, the longest concept currently secured in the statement.

Stefano: We have over 60 million cumulative leaner T V viewers for the opening Grand Prix weekend in Australia. The U S. Imports equally has seen strong growth with ESPN viewership up 45% because it was the first to fibrosis.

Stefano: Our success in the U S market.

Stefano: The vast majority of our races are now secured under medium and long term contracts the man from potential new races host remains robust.

Stefano: The Australian robbery was the most viewed the addition of the race ever for the U S audience. The markets with notable leaner viewership growth include Brazil, France, and Australia highlights viewership on F. One Youtube channel has increased by 31% compared to last year emphasizing the significance.

Stefano: And we are evaluating various opportunities for the future.

Stefano: The rest will host their final recent dozens with six and Spa, we raised 30 bps for 2027, leaving an opening.

Brian Wendling: Quickly turning to the Liberty Live group, there is a attributed cast of 314 million and 400 million of undrawn marginal capacity relating to our Live Nation marginals. As of May 6th, 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.

Stefano: On the calendar in 2028.

Stefano: Because for Las Vegas went to let's say later in the night, featuring new ticket pricing and offerings.

Stefano: And growth in our digital channels as fans find new ways to engage with our food.

Stefano: And those types of $50 for a single day, Joe a mission and $400 for three day general admission and Flamingo zone, and we've communicated too fast that the price will not be going down from their initial sale happened to drive urgency and momentum in sales.

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 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 sale velocity in Vegas is meaningfully outpacing last year. Our media rights business continues to demonstrate the growing competition for my key sport rights. F1 TV subscriber growth continues to be robust, with total subscribers up 4% year over year, led by the U.S. market up 20%. The launch of our new F1 TV premium tier has outperformed expectations, especially in key markets like the U.S. We are in active and positive discussion for our U.S. media rights with multiple partners and look forward to sharing updates once final.

Stefano: On and off the track.

Stefano: Social media followers have now reached 100 media growing 30% year over year.

Stefano Domenicali: With that, I'll turn the call over to Stefano to discuss Formula One. 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 fuelled fan engagement. Attendances is up over last year with sellout crowds and nearly all races to date. We reached a new record crowd for the Australian Grand Prix with an outstanding 465,000 weekend attendees.

Stefano: First quarter growth was particularly driven by eastern Europe tick Tock and Youtube.

Stefano: Looking more broadly Nielsen released new fan data in March showing the continuous church in F. One frontal with our total fan base as Oh, the ear and over 826 million, adding nearly 90 million new fans in 2024.

Stefano: To date, we are very pleased that our sales velocity in Vegas is meaningful outpacing last year.

Stefano: Our media business continues to demonstrate the growing competition for my key sports rights. If one TV subscriber growth continues to be robust with total subscribers up 4% year over year led by the U S market up 20%.

Stefano: These engagements figures have not just numbers they represent the growing global appeal and generating the engagement with our support and validate our initiatives to enhance F. One for our offense.

Stefano: The launch of a new F. One TV premium tier has outperformed expectations, especially in key markets like the U S.

Stefano: The strong gains with figures are part of a broader picture of commercial success, but I am pleased to report we continued to have strong momentum on.

Stefano: Not given positive discussion for our U S media rights with multiple partners and look forward to sharing updates was fine.

Stefano Domenicali: Demand 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 in 2025. Demand for hospitality products also remained high. Season to date, we sold over 12,000 tickets at Padau Tower Padau Club and we have seen strong advance sales across the remainder of the season.

Stefano: On the race promotion, we're working toward planar lies in our 26 calendar.

Stefano: Of course, there's more counter towards that just the race additional theatres like formula two and Formula three this brief and if one academy.

Stefano Domenicali: Of course, there's more content to watch than just the race. Additional series like Formula 2 and Formula 3, the Sprint, and F1 Academy are providing 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 10 for another year and appeared in the Top 10 list across 39 countries. The F1 Academy docu-series with Ole Sanchez is going live on Netflix on 28 May. The Apple Movie announcement, its premiere date on 16 June, with the film soundtrack and film merchandising released just last weekend in Miami.

Stefano: We were excited to announce the renewal of our Mexico race through 2028, and Miami through 2041, the longest concept currently the secured and the statesman.

Stefano: Reviving broadcaster with more cost to them value.

Viewership for Springs racers consistently show strong year over year growth with the strength of the Chinese grumpy seen over 1 million viewers for the lie brokers on CCTV in China and viewership doublet in Italy as Lewis Hamilton celebrate his maiden windfall for Robert.

Stefano: Our success in the U S market.

Stefano: Vast majority of our races are now secured in the medium and long term contracts the man from potential new races host remains robust and.

Stefano Domenicali: 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: And we are evaluating various opportunities for the future the Netherlands will host their final recent dozens with six an spa with raising alternative use for 2027, leaving an opening on the calendar in 2028.

Stefano: Outside of the race weekend drive to survive season, seven reached Netflix Global top 10 for another year and appeared in the top 10 list across 39 countries. The F. One Academy theocracy. This with our fashion is going live on this is on May 28, the Apple movie announcement is premier Nathan.

Stefano: Because for Las Vegas went to let's say later in the night, featuring new ticket pricing and offerings.

Stefano: Those types of $550 for a single day General mission and $400 for three day General admission and Flamingo zone, and we've communicated too fast that the price will not be going down from their initial sale happened to drive urgency and momentum in sales.

June 16, with the fill some track and field merchandising released just last weekend in Miami.

Stefano: 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 body La pasta as an official partner and Pwc as our official consultant partner as part of the Pwc agreement they will.

Stefano Domenicali: 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. Our new licensed 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.

Stefano: To date, we are very pleased that our sales velocity in Vegas is meaningful outpacing last year.

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 first quarter growth was particularly driven by Instagram, TikTok and YouTube.

Stefano: Our media right business continues to demonstrate the growing competition for my key sports rights. If one TV subscriber growth continues to be robust with total subscribers up 4% year over year led by the U S market up 20%.

Stefano: Revised strategy consulting to our global business to help enhance our performance and drive operational efficiency and accelerates.

Stefano: Our team continues to focus on both 75 and 26 pipeline with progress be made on a number of high value renewals and new partnership.

Stefano: The launch of a new F. One TV premium tier has outperformed expectations, especially in key markets like the U S.

Stefano: Licensing continues to be a narrow focus on growth.

Stefano: New license partner legal has seen high demand for these excellent 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 to bug in the regular drivers palladium fully drivel Lego cars.

Stefano: We had an active and positive discussion for our U S media rights with multiple partners and look forward to sharing updates was climate.

Stefano Domenicali: 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: Of course, there's more counted towards digest the race additional theaters like formula two and Formula three disparate and if one academy I provide them broadcaster with more content than value.

Stefano: On the exploration of licensing front.

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

Stefano: Kate continues to expand to new location, the Boston and Washington D. C. The unusual whole held sold out watch party for the Australian grocery to kick off the season and you've got a cave is opening in Philadelphia on May 29, with Denver, Las Vegas, Chicago opening in the fourth quarter.

Stefano: Viewership for Springs racers consistently show strong year over year growth with the strength of the Chinese Groen. Please seen over 1 million viewers for the light brokers on CCTV in China and viewership doublet in Italy as Lewis Hamilton celebrate his maiden win for Ferrari.

Stefano Domenicali: The strong engagement figures are part of a broader picture of commercial success. What I'm pleased to report, we continue to have strong momentum. On race promotion, we are working toward finalizing our 26 calendars. We were excited to announce renewal of our Mexico race through 2028 and Miami through 2041, the longest contract currently secured and a testament to our success in the US market. The vast majority of our races are now secured under medium and long-term contracts. Demands from potential new races host remains robust. and we are evaluating various opportunities for the future.

Stefano: Outside of the race weekend drive to survive season, seven reached Netflix Global top 10 for another year and appeared in the top 10 list across 39 countries. The F. One Academy Theocracy. This will always fashion is going live on this is on May 28, the Apple movie announcement is premier update on <unk>.

Speaker Change: If one exhibition has sold more than 530000 thinkers in the last 12 months, where those that is open on March 22nd and sold over 40000 thesis in this first of all none of them opened in April.

Stefano: With the 45000 tickets are sold in a bus or this first date in.

Stefano: In March we held a launch event for new activation experiences I think roughly buzzing in Las Vegas, which opened to the public last week.

Stefano: June 16, with the fill some track and field merchandising released just last weekend in Miami.

Stefano: The venue now offer an opportunity to immerse fans in F. One year round and provides the Las Vegas community with a new fun and engaging daytime activity center.

Stefano Domenicali: The venue now offers an opportunity to immerse fans in F1 year-round and provides the Las Vegas community with a new fun and engaging daytime activity center. Grand Prix Plaza features an F1 in-spark cartoon experience incorporating part of the Las Vegas Grand Prix Circuit, an immersive F1 exhibit, the latest F1 racing simulator, a fast casual itinerary, 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. 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.

Stefano Domenicali: 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 the 9th, featuring new ticket pricing and offers. Tickets now start at $50 for a single-day general admission and $400 for a three-day general admission in Flamingo Zone. And we've communicated to fans that the price will not be going down from their initial on sale, helping to drive urgency and momentum in sales. To date, we are very pleased that our sales velocity in Vegas is meaningful outpacing last year.

Stefano: <unk> Plaza feature and therefore on his podcast and experience incorporating part of the Las Vegas were principally an immersive F. When they exhibit the latest of our racing simulator of fast Casuals eternity.

Stefano: Part of the Pwc agreement, they will provide strategic consulting to our global business to help enhance our performance and drive operational efficiency and accelerates.

Stefano: Same store and three private event spaces.

Stefano: Our team continues to focus on both 25 and 26 pipeline, we've progress be made on a number of high value renewals and new partnership.

Stefano: These activations are set to operate through the first three quarters of the year annually generating revenue from the site. When it is not required for the growth rate on formula while sustainability effort I'm proud to say that we recently issued a report on our progress from the 2024 season.

Stefano: Licensing continues to be a narrow focus and growth of our new licensed partner Lego has seen high demand for its F. One products sell it on average a one piece of Lego every second in the month of March we saw an exciting observation in Miami, where all the drivers took part in the regular drivers palladium fully drivel Lego cars.

Stefano Domenicali: 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 expectations, especially in key markets like the US. We are in active and positive discussion for our U.S. media right with multiple partners and look forward to sharing updates once final.

Stefano: The full impact.

Stefano: Impact report due to be published later this year we.

Stefano: We've made significant investments in sustained levels of your issue fewer 90% of our promoters improve fan axis and travel option and 100% of promoters work with local community organization on programs targeting the next generation.

Stefano Domenicali: We made significant investments 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 emissions from road transportation. 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 regs, 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 2025 calendar, we already have an eye toward 2026.

Stefano: <unk>.

Stefano: On the exploration licensing front.

Kate: Kate continues to expand to new location, the Boston and Washington D. C. The initial hole held sold out watch party for the Australian grocery to kick off the season and eradicate these opening in Philadelphia on May 29, with Denver, Las Vegas, Chicago opening in the fourth quarter.

Stefano: In addition from 2026 the F. One cars would be powered by 100% sustainable suite of.

Stefano: Energy that is becoming increasingly important for the auto sector.

Kate: If one exhibition has sold more than 530000 thinkers in the last 12 months, where those that is open on March 22nd and sold over 40000 thesis in this first of all I'm not them.

Stefano: Countries look for solutions to reduce greenhouse gas emission from road transportation.

Stefano Domenicali: Of course, there's more content to watch than just the race. Additional series like Formula 2 and Formula 3, the Sprint and F1 Academy are providing 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 celebrates his maiden win for Ferrari. Outside of the race weekend, Try to Survive Season 7 reached Netflix's global top 10 for another year and appeared in the top 10 list across 39 countries.

Stefano: Recent power unit manufacturer meeting held in Bahrain demonstrated a clear commitment to the planned 2026 edging regulation and maximizing the success of those new routes with all parties working together to ensure the best free simple the championship. We expect all the F. One teams to start shifting their focus to the 2056 engine.

Kate: In April we.

Kate: With the 45000 tickets are sold in a bus or his first day in.

Kate: In March we held a launch event for new activation experiences I think roughly buzzing in Las Vegas, which opened to the public last week.

Stefano: As the season progresses.

Kate: The venue now offer an opportunity to immerse fans in F. One year round and provides the Las Vegas community with our new fun and engaging daytime activity center.

Stefano: Looking forward, while we are early in our 25 calendar, we already have an eye towards 26, we have agreed the bases on which Caldolor with entered the championship in 'twenty. Six we have also agreed to a new Concord commercial agreement with <unk> through 2026 through 2030, and now we're making good progress on the governor.

Stefano Domenicali: We have agreed the basis on which Cadillac will enter the championship in 2026. We have also agreed to a new Concord commercial agreement with the teams for 2026 through 2030 and are making good progress on the governance term. Both the commercial and proposed governance terms are financially attractive for the entire F1 ecosystem and represent the collaboration and partnership we have built with the FIA, F1 teams, with the shared goal of growing F1 for our mutual benefit. In closing, we are very pleased with our start 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.

Kate: Grand Prix Plaza feature and therefore, and as part of cotton experience incorporating part of the Las Vegas going to precipitate an immersive F. One they exhibit the latest of our racing simulator.

Stefano Domenicali: The F1 Academy docuseries Without Sanction is going live on Netflix on May 28th. The Apple movie announcement, its premiere date on June 16th, with the film soundtrack and film merchandising released just last weekend in Miami.

Stefano: <unk> term, both the commercial and proposed governance terms of financially attractive for the entire F. One ecosystem and represent the collaboration and partnership we have built with the FAA F. One teams with a shared goal of growing F. One foot I won't neutral benefit in closing we are very pleased with our start.

Kate: Casual eternity, a retail store and three private event spaces.

Kate: These activations are set to operate through the first three quarters of the year annually generating revenue from the site. When it is not required for the growth rate on formula while sustainability effort I'm proud to say that we recently issued a report on our progress from the 2024 season.

Stefano Domenicali: 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 BarillaPasta as an official partner and BWC as our official consulting 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. Our team continues to focus on both the 2025 and 2026 pipelines, with progress being made on a number of high-value renewals and new pathways. Licensing continues to be a narrow focus on growth. 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.

Stefano: For 2025 season, our strong contract performance growing fan base, a robust financial results position us well to deliver an excellent 2035 and beyond.

Kate: With a full impact report due to be published later this year, we made significant investment in sustained levels of the Asian fewer 90% of our promoters improve sudden axis and travel option and hundred percent promoters work with local community organization on programs targeting the next generation.

Derek Chang: I wanted to put full speed ahead, and now I will turn the call back over to Derek Thanks, Joe.

Stefano: Yeah.

Thank you Stefan out Brian.

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.

Kate: In addition throughout 2026 the F. One cars will be powered by 100% sustainable fuel technology that is becoming increasingly important for the automaker sector as countries look for solutions to reduce greenhouse gas emissions from road transportation.

Stefano: Very quiet now and an exciting news.

Speaker Change: We didn't say that.

Speaker Change: And if you're at Liberty Media Investor Day, changing things up this year Investor day will be held alongside the Las Vegas Grand Prix on Thursday November 20th in Las Vegas.

Stefano Domenicali: We saw an exciting activation in Miami, where all the drivers took part in the Regular Drivers Parade in fully drivable LEGO cars.

Speaker Change: I'll have more details to share in due course and look forward to seeing many of you that we appreciate your continued interest in Liberty media and now I'd like to open the call for questions operator.

Kate: <unk> power unit manufacturer meeting held in Bahrain demonstrated a clear commitment to the plan 2026, and you regulation and maximizing the success of those new routes with all parties working together to ensure the best racing for the championship. We expect all the F. One teams to start shifting their focus to the 2056 engine.

Stefano Domenicali: on the Exponential Licensing Front, and for an arcade continues to expand to new locations. The Boston and Washington D.C. venues held a 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 the fourth quarter. The F1 Exhibition has sold more than 530,000 tickets in the last 12 months. Buenos Aires opened on March 22nd and sold over 40,000 tickets in its first month. Amsterdam opened in April with 45,000 tickets sold in advance on its first day.

Speaker Change: Thank you.

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 Lacek of Goldman Sachs. Please proceed with your question.

Speaker Change: We will now be conducting a question and answer session.

Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad.

Kate: As the season progresses.

Speaker Change: A confirmation tone will indicate your line is in the question queue.

Kate: Looking forward, while we are early in our 25 calendar, we already have an eye towards 26, we have agreed the bases on which Caldolor with entered the championship in 'twenty. Six we have also agreed to a new Concord commercial agreement with <unk> through 2026 through 2030, and now we're making good progress on.

Speaker Change: You May press Star two if you would like to remove your question from the queue.

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

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

Kate: The Governor's term, both the commercial and proposed governors terms of financially attractive for the entire F. One ecosystem and represent the collaboration and partnership we have built with the F. I E. F. One teams with a shared goal of growing F. One for our mutual benefit in closing we are very pleased with that.

Speaker Change: Hey, guys. Thanks for taking the questions maybe to start just.

Stephen Laszczyk: Hey, guys. Thanks for taking the questions. Maybe to start, just on team payments and the budget for the year, Brian, I'm 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.

Stefano Domenicali: In March, we held a launch event for new activation experiences at the Grand Prix Palazzo in Las Vegas, which opened to the public last week. The venue now offers 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 features 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 E3D, a retail store and three private event spaces. These activations are set to operate through the first three quarters of the year annually, generating revenue from the site when it is not required for the Grand Prix.

Speaker Change: <unk> payments in the budget for the year, Brian I'm curious if you could talk a little bit more about how the team payment budget is structured for the year.

Speaker Change: If there were opportunities for upside in that budget.

Speaker Change: 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 enriched the potential of what you think this business could produce this year.

Kate: Our start to 2025 season, our strong contract performance growing fan base, a robust financial results position us well to deliver an excellent 2025 and beyond.

Speaker Change: Yes. Thank you. Thank you for the question.

Brian Wendling: Yeah. Thank you for the question. 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. We do think that there's opportunities for upside, but we want to 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 the recent quarters, the company's moving away from large go-gets 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.

Speaker Change: Beginning of the year and as we've talked about in the past Theres always prudent financial forecasting at the beginning of the year.

Kate: Antidote up full speed ahead, and now I will turn the call back over to Derek Thanks, Joe.

Speaker Change: We do think that there's opportunities for upside, but you know we want to be a.

Kate: Okay.

Speaker Change: Thank you Stefano and Brian.

Speaker Change: Conservative in thinking about the variables that we have out there which are the Las Vegas Grand Prix and 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.

Kate: Very quiet now and an exciting in clean.

Speaker Change: Please save the date.

Speaker Change: And if you're at Liberty Media Investor Day, changing things up this year Investor day will be held alongside the Las Vegas Grand Prix on Thursday November 20th in Las Vegas, We will have more details to share in due course and look forward to seeing many of you that we appreciate your continued interest in Liberty media and now I'd like to open the call for <unk>.

Stefano Domenicali: On Formula 1's sustainability effort, I am 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 investments 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, a country looking for solutions to reduce greenhouse gas emissions from road transportation.

Speaker Change: The company is moving away from large go gets in sponsorship in the current year and focusing on future years are there still opportunities, 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.

Speaker Change: Josh.

Speaker Change: Operator.

Speaker Change: Thank you.

Speaker Change: We'll now be conducting a question and answer session.

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 and 25 would be curious if you just comment on what those are and to what extent this could still move the needle and then I guess as we look out into 'twenty six it sounds like your attention focus there as well a long herself.

Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad.

Stephen Laszczyk: That's great. Thanks for that. And then maybe just a follow-up on the sponsorship business. It sounds like there's still some focus on bringing in sponsors or renewing in 2025. We'd be curious if you could just comment on what those are and to what extent those could still move the needle. And then I guess as we look out into 2026, it sounds like your attention is focused 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 bandwidth outcome could potentially look like on that. Thank you.

Speaker Change: A confirmation tone will indicate your line is in the question queue.

Speaker Change: You May press Star two if you would like to remove your question from the queue.

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

Speaker Change: It goes on the sponsorship side, there's something you've been focused on just curious if you could give us an early read early walk into the twenty-six sponsorship fun on to the extent you think that could grow off of 25.

Stefano Domenicali: A recent Power Unit Manufacturing 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.

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

Speaker Change: Hey, guys. Thanks for taking the questions maybe to start just on team payments in 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.

Speaker Change: The bands that outcome could potentially look like on that thank you.

Speaker Change: Well I'll, just I'll turn it over to Stephane.

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

Speaker Change: We'll do that too.

Stefano Domenicali: I'm going to get into that too.

Speaker Change: And if there were opportunities for upside in that budget.

Speaker Change: Yeah.

Stefano Domenicali: Looking forward, while we are early in our 25th calendar, we already have an eye toward 26th. We have agreed the basis on which Cadillac will enter the championship in 26th. We have also agreed to a new concord commercial agreement with the teams for 2026 through 2030 and are making good progress on the governance term. Both the commercial and proposed governance terms are financially attractive for the entire F1 ecosystem and represent the collaboration and partnership we have built with the FIA, FOM teams with the shared goal of growing F1 for our mutual benefit.

Brian Wendling: Yeah. I was just going to say we're at.

Speaker Change: Thanks, Kevin for the question.

Stefano Domenicali: Thanks, Stefano, for the question.

Speaker Change: Okay go.

Speaker Change: Go ahead Kevin.

Brian Wendling: Okay. Go ahead, Stefano.

Speaker Change: Thank you.

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

Speaker Change: I think that we have proven in the last couple of years. That's our strategy would you have after the sponsorship is quite solid.

Speaker Change: Yes. Thank you. Thank you for the question.

Speaker Change: The main focus is for sure to maximize our revenues, but we need to make sure that the partners that we have a stronger I mean, especially with us without would experience a world.

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

Speaker Change: Do think that there's opportunities for upside, but you know we want to be conservative in thinking about the variables that we have out there which are the Las Vegas Grand Prix and towards the end of the year and then sponsorship everything else is contracted.

Speaker Change: You know we have a strong pipeline and are in the what we have said already and is considered to be here is the quality over quantity and the and the very very generally active the activation with our partners because as you know this is crucial in this moment of where we want to make sure that our platform is what's really our sponsor wants.

Stefano Domenicali: 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.

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

Speaker Change: And the evolution between the structural Boston partnership between the global official regional and technical is getting stronger and stronger. So the focus is definitely to see if we have seen some opportunities to 'twenty five but the big one is that keep going all need. The next couple of years and it just relates to all.

Derek Chang: And now I will turn the call back over to Derek. Thank you.

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 reminds all of us where we were just 4 or 5 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 that as a revenue stream and also as a potential awareness increase through them, through our partners of our products.

Derek Chang: Ciao. Thank you, Stefano and Brian.

Derek Chang: 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, November 20th in Las Vegas. We will have more details to share in due course, and look forward to seeing many of you there.

Speaker Change: The bus where we were.

Speaker Change: Just a four or five years ago and now what we have today that is still a long way to go and we're very optimistic on this topic will continue to grow that revenue.

Speaker Change: Would be curious if you just comment on what those are and to what extent this could still move the needle and then I guess as we look out into 'twenty six it sounds like your attention focus there as well as longer sales cycles on the sponsorship side, there's something you've been focused on just curious if you could give us an early read early walk into the twenty-six sponsorship fun on to the extent you think that could grow off of.

Speaker Change: Our revenue stream and also as a potential awarding this increase that through good.

Speaker Change: Global partners of our problems.

Speaker Change: Thanks, Stefano this attack I'd, just like to add.

Operator: We appreciate your continued interest in Liberty Media, and now I'd like to open the call for questions. Operator? 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. You may press star 2 if you would like to remove your question. For participants using speaker equipment, it may be necessary to pick up your handset before pressing.

Derek Chang: Thanks, Stefano. This is Derek. I'd just like to add, I've been able to have the opportunity to spend some time with Stefano at the track over the last couple of races. 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 engage with F1. Normally well, not normally, but in some of my other experiences having been around 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.

Speaker Change: And I have had the opportunity to spend some time.

Speaker Change: With stuff and I like the track over the last couple of races and in speaking to our current sponsors.

Speaker Change: 25, what are the bands that outcome could potentially look like on that thank you.

Speaker Change: As well the potential sponsors I don't think I've been in a situation, where we've seen that sort of energy and excitement around.

Speaker Change: So I'll just I'll turn it over to Stephane.

Speaker Change: That too.

Speaker Change: Yeah.

Speaker Change: Thanks, Kevin for the question.

Speaker Change: The possibilities to engage with the sport.

Speaker Change: Okay.

Speaker Change: Go ahead Stephanie.

Speaker Change: Engage with half one.

Speaker Change: Normally on that normally but and some of my other experience and having been in and around major sports leagues and such are you kind of are always in a bit more of a balance where you've got guys coming in and guide gone out here at.

Speaker Change: Thank you.

Speaker Change: I think that we have proven in the last couple of years. That's our strategy would go back to this country is quite solid.

Stefan Lasek: Our first question today is from Stefan Lasek of Goldman Sachs. Please proceed. Hey, guys, thanks for taking the questions.

The main focus is for sure to maximize our revenues, but we need to make sure that the partners that we have a stronger and even better.

Speaker Change: It feels like at the most part the energies.

Brian Wendling: 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. Yeah, thank you. Thank you for the question. 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: With us or without would experience a world Oh, we have a strong pipeline and and that's what we have said already and he's concerned to be here is the quality over quantity and the and the very very generally active the activation with our purpose because as you know this is crucial in this moment of where we want to make sure that that.

Speaker Change: And it's and it's great to see.

Speaker Change: And that can cause obviously beyond athlon, but to the entire sport and see what the teams themselves aren't going.

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.

Speaker Change: And they themselves are also expanding their sponsored basis, which is great. I spent some time with background last week I've always wanted to more public SEC marketers.

And the panic in and he was telling me about his plans can sell.

Speaker Change: Our platform is what's really our sponsor wants and the evolution between the structural pattern partnership between global official regional and technical is getting stronger and stronger. So the focus is definitely to see if you have seen some opportunities to 'twenty five but the big one is that keep going all need the most.

Speaker Change: I understand it in Shanghai that will see that happen.

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

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

Speaker Change: Okay.

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

Brian Wendling: You know, we do think that there's opportunities for upside, but, you know, we want to 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? Yes, there's probably some opportunities there, but the biggest unknown will ultimately be ticket sales, which you've heard are trending well currently.

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

Ben Swinburne: Thanks, Good morning.

Speaker Change: Couple of years and it just relates to all of US when we were just a four or five years ago and now what we have today that is still a long way to go and we're very optimistic on this topic, we continue to grow that revenue.

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

Speaker Change: Stefan Neurogenic, either you want to pick which one we want to take it but on on the media rights process in the U S and one of the things that I think has happened where the business is F. One T. D has been growing really nicely for a number of years and it sounds like and particularly in the U S and I'm just wondering how you think about that.

Speaker Change: Our revenue stream and also as a potential awarding this increase that through them global partners of our problems.

Speaker Change: As an asset or a chip to play so to speak in your U S. Media rights deal are you open to bundling that in a broader agreement with potentially a screaming partner do you think that business now is so large.

Speaker Change: Okay.

Derek: This is Derek I'd, just like to add.

Derek: Enable has an opportunity to spend some time.

Derek: With that for now at the track over the last couple of races, and in speaking to our sort of current sponsors.

Speaker Change: So differentiated that you want to keep it as a standalone product.

Stefan Lasek: That's great. Thanks for that.

Stefan Lasek: And then maybe just a follow-up on the sponsorship business. It sounds like there's still some focus on bringing in sponsors or renewing in 2025. We'd be curious if you could just comment on what those are and to what extent those could still move the needle. And then I guess as we look out into 2026, it sounds like your attention is focused 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.

Derek: As well the potential sponsors I don't think I've been in a situation, where I'm, saying that sort of energy and excitement around.

Speaker Change: And then I don't know if I I couldn't tell if the Concord agreement is finalized enough, but I figured I'd ask Brian.

Ben Swinburne: Then I don't know if I couldn't tell if the Concord 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? That would be helpful. Thanks so much.

Derek: The possibilities to engage with the sport to engage with Athlon.

Speaker Change: Are you able to tell us whether or not you expect any team payment leverage to take place in the 26 to 30 timeframe any color Kevin.

Derek: Normally on that normally but and.

Derek: And some of my other experience and having been in and around our major sports leagues and such are you kind of are always in a bit more of a balance where you've got guys coming in and guy and gone out here.

Speaker Change: Some of the previous comments over the last few earnings calls on the topic that would be helpful to watch.

Speaker Change: That's been around you go ahead and start.

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

Derek: It feels like at the most part.

Speaker Change: Yeah, well I mean, thanks, yeah. Thanks, Ben for the question I mean, let me get right first of all it is always interesting to see the speculation going around with regard to moments, where the word optimistic negative comments and saw the bustle that I would say we come back for this weekend in Miami.

Stefano Domenicali: Yeah. Well, I mean, thanks, Ben, for the question. I mean, on media rights, first of all, it's always interesting to see the speculation that are going around with regard to moments where there were optimistic, negative comments, and so on. But apart from that, I would say we came back from this weekend in Miami really with a 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 a proper proposal. As you were correctly saying, F1 TV product is growing, and it's very, very positive, and the feedback, mainly in the US, is very, very strong. And therefore, we need to make sure that this asset is right and very valuable.

Derek: The energy is up.

Derek: And it's and it's great to see him and unlocking costs, obviously beyond F. One but to the entire sport and see what the teams themselves aren't going.

Stefan Lasek: Thank you.

Stefano Domenicali: I'll just, I'll turn it over to Stephanie now.

Stefano Domenicali: Yeah, I was just going to say, we're out of time. Go ahead, Stefano. Thank you. I mean, I think that we have proven in the last couple of years that our strategy with regard to the sponsorship is quite solid. The main focus is for sure to maximize our revenues, but we need to make sure that the partners that we have are stronger and invested with us, with our experience of work. 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 activation with our partnership.

Derek: And they themselves are also expanding their sponsored basis, which is great. I spent some time with background last week I've always wanted a more public SEC marketers.

Speaker Change: And really with the fact that we are engaged with them multiple partners.

Derek: And the paddock and and he was telling me about his plans can sell.

Speaker Change: And that he has a lot of potential interest for many of them are which we need to hammer down because we have the time to do it with a proper with appropriate with the public proposal as it were as you were correctly say Epsilon PD product.

Derek: Under cited in Shanghai that will see that happen.

Derek: That's great. Thank you all.

Derek: Right.

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

Speaker Change: It's growing and it's very very positive.

Ben Swinburne: Thanks, Good morning.

Speaker Change: Feedback mainly in U S is very very strong and therefore, we need to make sure that these assets. He's the right and that very valuable Florida. We are open to any kind of possible discussion, depending what will be the end and what we believe is the right way to make sure that we keep the penetration of the market size as possible.

Speaker Change: Stefan Neurogenic, either you want to pick which one you want to take it but on on the media rights process in the U S and one of the things that I think has happened where the business is F. One T. D has been growing really nicely for a number of years and it sounds like in particularly in the U S and I'm just wondering how you think about that.

Stefano Domenicali: Therefore, we are open to any kind of possible discussion depending on what will be the end and what we believe is the right way to make sure that we keep the penetration of the market as high as possible and making sure that we can monetize out of it. But the dynamics are very positive, so we keep working with them, and I think that the next month will be crucial to see really where we're going to be. But we come back from Miami, as I said at the beginning, Ben, with very good and positive vibes because I think the US audience figure in Miami that we're very, very strong shows the potential that we have. And I'm sure that the media partners understand that as a possible asset also for them to develop another sport business together. Derek, you want to end talking on that?

Stefano Domenicali: 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. 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. And it just reminds all of us where we were just four or five years ago and now where we are today.

Speaker Change: So 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 months will be crucial to see really where are we going to be about we come back from my aim as I said at the beginning then with a very good positive vibes, because I think the U S. So there is a secret in Miami.

Speaker Change: As an asset or a chip to play so to speak in your U S. Media rights deal are you open to bundling that in a broader agreement with potentially a screaming partner or do you think that business now is so large.

Speaker Change: So differentiated that you want to keep it as a standalone product.

And then I don't know if I I couldn't tell if the Concord agreement is finalized enough, but I figured I'd ask Brian.

Speaker Change: So we're very very strong shows the potential that we have and I'm sure that the media partners understand that's what a possible asset also for them to develop another spoke business together.

Derek Chang: 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 Thanks, Stefano.

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 timeframe any color Kevin.

Speaker Change: Do you want to get him back.

Speaker Change: Some of the previous comments over the last few earnings calls on the topic that would be helpful. Thanks, So much.

Derek Chang: I'd like to add this is derrick.

Derek Chang: This is Derek. I'd just like to add, you know, I've been able, 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 engage with F1. Normally, well, not normally, but in some of my other experiences, having been around, you know, major sports leagues and such, you kind of are always in a bit more of a balanced state where you've got guys coming in and guys going out here.

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

Speaker Change: Going up on what Stefano just fat.

Speaker Change: Kevin, allowing you to have to start.

Speaker Change: We are happy that our conversations with potential partners in the U S media rights deal I think pet scan.

Kevin: Yeah, well I mean, thanks, Dan Thanks, Ben for the question I mean, let me get right first of all it is always interesting to see the speculation going around with regard to moments, where the word opportunistic negative comments and saw the bustle that I would say we come back this weekend in Miami.

Sort of interesting here and there.

Speaker Change: Let's turn to tap continues to grow as Stefano mentioned and particularly in the U S. As Stefano mentioned in his comments earlier viewership across the weekend is a sort of 45%.

Kevin: And really with the fact that we are engaged with the multiple partners.

Speaker Change: Year over year, I cant give <unk> Tv's growth in top 20% here in the U S.

Kevin: And that is a lot of potential interest for many of them are which we need to hammer down because we have the time to do it with a proper with appropriate with the public proposal as it were as you were correctly say.

Speaker Change: But the overall health of the.

Speaker Change: It's mass continues to resonate and what that means that tank, putting aside even next year, but at this point.

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 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 Zach Brown last week, who probably is one of the more prolific marketers. and he was telling me about his plans to sell the underside of his shoe. So we'll see that happen.

Kevin: Royalty product.

Kevin: It's growing and it's very very positive.

Speaker Change: And a lot of negotiations, but I think what that means for the long term and it's pretty significant.

Kevin: Feedback mainly in U S is very very strong and therefore, we need to make sure that this is as cities.

Speaker Change: I still think we're in the early stages of growth for Aflac in the U S.

Kevin: Right.

Speaker Change: Having having the take up of basketball on T. He what it has in the U S. At this early stage I think speaks volumes about a passion for the sport and I think puts us in a great position well into the future.

Kevin: <unk>. Therefore, we are open to any kind of possible discussion, depending what will be the end and what we believe is the right way to make sure that we keep the penetration of the market size 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.

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

Speaker Change: When you turn them back in and think about how you balance that on T V.

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

Speaker Change: Router media rights deal look we will see how things play out and we'll see what partners want in their deals and we will see what makes the most sense for one in terms of balancing things like reach but also having products like this for ourselves. So that we can actually understand our customers.

Kevin: But the next months would be crucial to see really where are we going to be.

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

Kevin: We come back from my aim as I said at the beginning then with a very good positive vibes, because I think the U S soldiers are figured in Miami that went very very strong shows the potential that we have and I'm sure that the media partners understand that for the possible asset also for them to develop another spoke business together.

Ben Swinburne: Stefano or Derek, I don't know if either of you want to take this or which one you want to take it, but on the media rights process in the U.S., 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, and particularly in the U.S., and I'm just wondering how you think about that as an asset or chip to play, so to speak, in your U.S. media rights deal. Are you open to bundling that in a broader agreement, you know, with potentially a streaming partner?

Speaker Change: The cabinet that goes beyond sort of what we're delivering to them on the content side.

Kevin: And that you will try to get them back.

Speaker Change: So we can deliver the most engaged fans.

Kevin: Uh huh.

Kevin: I'd like to add.

Speaker Change: Across the board.

Kevin: This is Derek.

Speaker Change: Are engaging with that one so I think that the.

Kevin: Following up on what Stefano just sad.

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: The answer I hear from my standpoint is we actually see sort of a ton of different ways. This can go play out but underneath it all underlying it all is.

Kevin: We are happy that our conversations with potential partners in the U S media rights deal I think what's been sort of interesting here is.

Ben Swinburne: Do you think that business now is so large? and sort of differentiated that you want to keep it as a stand-alone product.

Speaker Change: Strong demand.

Brian Wendling: And then, I don't know if – I couldn't tell if the Concord Agreement is finalized enough, but I figured I'd ask Brian, are you able to tell us whether or not you expect any team payment leverage to take place in the 26 to 30 timeframe, any color, given some of the previous comments or the last few earnings calls on the top. Devin, why don't you go ahead and start? Yeah, I mean, thanks Ben for the question. I mean, Omid is right. 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.

Speaker Change: For F. One engagement and here in the U S, which is which is <unk>.

Kevin: It's part of tap continues to grow as Stefano mentioned and particularly in the U S and Stefano and his comments earlier viewership across the weekend is a sort of 45%.

Speaker Change: Great to see.

Ben Swinburne: And then Ben on your second question.

Brian Wendling: Ben, on your second question, on the 2026 commercial agreement, Concord Agreement, yeah, we do expect leverage in 2026 versus where we finish 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: On the 26 commercial agreement Concord commercial agreement, Yes, we do expect leverage at 20 622 versus where we finished the full year of 2025.

Kevin: Year over year, I can't get point in Tvs growth in top 20% here in the U S. I think Dr. Brough health.

Kevin: It's mass continues to resonate and what that means I think putting aside even next year, but at this point.

Ben Swinburne: And then going forward, we expect a more simplified structure that benefits all of the parties in the ecosystem.

Kevin: And a lot of negotiations, but I think what that means for the long term and it's pretty significant I still think we're in the early stages of growth for <unk> in the U S.

Ben Swinburne: Thanks, so much.

Ben Swinburne: Thanks so much.

Speaker Change: The next question is from Kurt Kuehn Moreau of Evercore ISI. Please proceed with your question.

Stefano Domenicali: But apart from that, I would say we came 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, which we need to hammer down because we have the time to do it with the proper proposal. As you were correctly saying, F1 TV product is growing and it's very, very positive and the feedback mainly in US is very, very strong. And therefore, we need to make sure that this asset is right and very valuable. Therefore, we are open to any kind of discussion depending on what will be the end and what we believe is the right way to make sure that we keep the penetration of the market as high as possible and making sure that we can monetize out of it.

Operator: The next question is from Kurt Gunnmoreau of Evercore ISI. Please proceed with your question.

Kevin: Having having the take up of basketball on T. He what it has in the U S. At this early stage I think speaks volumes about.

Speaker Change: Good morning, and thanks for taking my question I just wanted to ask about noted G. P.

Vijay Jayant: Good morning. 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, 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.

Vijay Jayant ]: Good morning. 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, 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.

Encouraging that we're getting closer to a regulatory approval there now that maybe there's a bit more clarity on getting that deal done you could talk a little bit about if anything's changed since the deal was initially announced in terms of the broader opportunity you see with Moto. Thanks.

Kevin: Our passion for the sport and I think puts us in a great position well into the future. When you swing back in and think about how you balance Epsilon T. D N a broader media rights deal, but we will see how things play out and we'll see what partners want in their deals I mean, we'll see what makes them.

Eric: This is Eric I'll take this one.

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 just as bullish, if not more, having spent more time with them at the time that we are allowed to spend with them. And look, I think with any of these premium sports assets, the trick is how you take these and make them sort of mainstream entertainment assets. And you've seen us do that with Formula 1. You've seen this happen across multiples of other sports. And I think there is that opportunity here.

Kevin: Fans for Epsilon in terms of balancing.

Eric: Obviously, we deal with that that until it's done and we continue to work with Pan European Commission to get to the finish line here and are hopeful that we won't do so I think from our perspective, we continue to see.

Kevin: Things like reach but also having products like this oh ourselves so that we can actually understand our customers as we can because it goes beyond sort of what we're delivering to them on the content side.

Eric: Upside in and Moto G. P and are probably you know Justin bullish if not more I'm, having spent more time with them at the time that we are allowed to spend with them and.

Kevin: So we can deliver the most engaged fans.

Kevin: Across the board in terms of engaging with that one so I think that the.

Derek Chang: But the dynamics are very positive. So, we keep working with them and I think that the next month will be crucial to see really where we're going to be. But we come back from Miami as I said at the beginning, Ben, with a very good and positive 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 a possible asset also for them to develop another small business together. Ben, you were talking on that.

Eric: And look I think with any of these premium sports assets and track is in is how you take the and eight patents sort of may.

Kevin: And start here from my standpoint is we actually see sort of a ton of different ways. This can go play out but underneath it all underlying it all is it's too.

Kevin: Strong demand.

Eric: Mainstream entertainment assets and you've seen us do that with Formula one you've seen it you've seen this happen across multiple other sports and I think there is that opportunity here and as soon as the deal closes we will be actively engaged with management at Moto G. P.

Speaker Change: For F. One.

Kevin: And the engagement.

Kevin: Here in the U S, which is which is great to see.

Kevin: And then on your your second question.

Derek Chang: As soon as the deal closes, we will be actively engaged with management at MotoGP to start executing on that plan.

Kevin: On the 26 commercial agreement Concord commercial agreement Yeah, we do expect leverage at 20 622 versus where we finished the full year of 2025.

Eric: Start executing on that plan.

Derek Chang: Yeah, I'd like to, this is Derek, you know, following 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 been sort of interesting here is that the sport itself continues to grow. As Stefano mentioned, and particularly in the U.S., 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 U.S. I think the overall health of the business continues to resonate.

Thank you.

Vijay Jayant: Perfect. Thank you.

Vijay Jayant ]: Perfect. Thank you.

Eric: Okay.

Kevin: Going forward, we expect a more simplified structure.

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

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

Kevin: That benefits all of the parties in the ecosystem.

Peter Zaffino: Hi, good morning, and thanks, a question on sponsorship and one back to the media rights on sponsorship.

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 then, of course, the media rights don't have any advertising.

Speaker Change: Thanks, so much.

Speaker Change: The next question is from Kurt Kuehn Moreau of Evercore ISI. Please proceed with your question.

Peter Zaffino: 50% fewer races, so far year over year, and so of course sponsorship revenue.

Speaker Change: Good morning, and thanks for taking my question I, just wanted to ask about Moto G. P. <unk>.

Peter Zaffino: How does that headwind and yet it looks largely offset by growth from new sponsors and so we're wondering maybe this is too simplistic but.

Speaker Change: Encouraging that we're getting closer to a regulatory approval there now that maybe there's a bit more clarity on getting that deal done you could talk a little bit about if anything has changed since the deal was initially announced in terms of the broader opportunity you see with Moto. Thanks.

Peter Zaffino: 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.

Derek Chang: And what that means, I think, I think it's not even this year, but... and a broader media rights deal, we will see how things play out, we will see what partners want in their deals, and we will see what makes the most sense for F1 in terms of balancing things like reach, but also having products like this for ourselves, so that we can actually understand our customers as well as we can, because it goes beyond what we're delivering to them on the content side, but also we can deliver the most engaged fans across the board in terms of engaging with F1.

Peter Zaffino: On the media rights were of the opinion that the media rates are sort of uniquely.

Eric: This is Eric I'll take this one hum.

Eric: Obviously, we the deals that that until it's done and we continue to work with Pan European Commission to get to the finish line here and are hopeful that we won't do so I think from our perspective, we continue to see upside in the and Moto G. P and are probably you know Justin bullish if not more having spent more.

Peter Zaffino: Misunderstood because the.

Peter Zaffino: Reis times, meaning that the casual fan struggles to engage them.

Peter Zaffino: With the live broadcast until maybe the non linear format of streaming could really expand access for casual fans and then of course the media rights don't have any advertising and so I'm wondering if you could comment on both of those opportunities for the media rights. Thank you.

Peter Supino: And so I wonder if you could comment on both of those opportunities for the media rights? Thank you.

Eric: With that Mark at the time that we are allowed to spend with them and.

Eric: And look I think with any of these premium sports assets and track is and how you take the and named Pat I'm sort of May.

Stefano: Stefano you want to start.

Brian Wendling: Stefano, do you want to start on the media rights?

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

Peter Zaffino: On the media rights.

Stefano: Yeah.

Stefano Domenicali: Yeah. 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 platforms. 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 rights, not only in the US, but all around the world. But it's definitely important to make sure that the clearness of the fact that our fans that are getting more engaged with us will have the chance to connect with the right product is really the key for our strategy and our decision.

Derek Chang: Thanks, Thanks, Derik I mean, I can start to definitely with the media about that I think that's it is definitely very important to recognize one thing and that is clearly an hour an hour and our situation where we saw the growth.

Derek Chang: All of our social platform, we saw definitely they eat or stop the young generation tool to access to our content, so Youtube or other form of engagement, but this is relevant and that we need to make sure that this is becoming part of the global south that you'll meet the right not only us but all around the world.

Eric: Start executing on that plan.

Derek Chang: So I think that the answer here from my standpoint is we actually see sort of a different way 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 U.S., which is great to see.

Eric: Thank you.

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

Derek Chang: Definitely important to make sure that the clearance of the fact that our faster to get more engaged with us will have the chance to connect.

Peter Zaffino: Hi, good morning, and thanks, a question on sponsorship and one back to the media rates on sponsorship.

Speaker Change: 50% fewer races, so far year over year and so.

Derek Chang: With the right product is really the key for our strategy and our and our decision and and I think that that what we need to make sure. That's it because now we have different typology of times they need to have the possibility to engage to disagree on the option, but we need to offer to them. That's the biggest strategic thing that we want to put to play.

Brian Wendling: I've been on your second question. On the 26th Concord Commercial Agreement, yeah, we do expect leverage in 26 versus where we finish the full year of 2025. And then going forward, we expect a more simplified structure that benefits all the parties in the ecosystem.

Peter Zaffino: Of course sponsorship revenue.

Stefano Domenicali: I think that what we need to make sure that because now we have different typologies 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. Of course, this is relevant to the partner where we need to choose and work together into the future. 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. We know that is a different situation that we need to monitor all around the world.

Peter Zaffino: 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.

Peter Zaffino: 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.

And of course D. C is relevant to the possible when he took that we need to choose a work together into the future is relevant because we see the dynamics at a decent level of course, you can see where we are in Europe in Europe, we have a long term deal with our world class did that will enable us to understand what would be the evolution on that market.

Peter Zaffino: On the media rights were of the opinion that the media rights are sort of uniquely.

Kurt Gunn-Murau: The next question is from Kurt Gunn-Murau of Evercore ISI. Please proceed with your question. Good morning. Thanks for taking the question.

Peter Zaffino: Misunderstood because the.

Peter Zaffino: The race times mean that the casual fan struggles to engage them.

Derek Chang: And we know that these are this one situation that we need to monitor all around the world, but in a nutshell I think that our strategy will sit with the right partners that will be part of us in developing technologies of other sports.

Derek Chang: 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.

Peter Zaffino: With the live broadcast until maybe the non linear format of streaming could really expand access for casual fans and then 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 rates. Thank you.

Stefano Domenicali: But in a nutshell, I think that our strategy will fit with the right partner that will be part of us in developing the knowledge of our sport. This is what I can say on the media side. On the sponsorship side, if I may, Peter, I think that the relevancy of what we are doing is confirmed by the quality and the numbers that we put in place every year. That means that, as correctly Derek was saying before, the partners that are working together with us in Formula 1 are really different from B2B opportunity to consumer, and we are offering an incredible opportunity of engagement that I would say, without being disrespectful, that our platform is becoming really very, very relevant. And this is the reason why we feel very, very positive and strong with our future, even the next couple of years.

Derek Chang: 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. 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 just as bullish, if not more, having spent more time with them at the time that we are allowed to spend with them.

Derek Chang: What I can say on the media side on disposal chute side, if I may Peter I think that the relevancy of what we're doing this is called for by the quality and the numbers that we put in place every year that means that the us correctly that it was seen before you know the partners are working together with asking for one that's really different.

Peter Zaffino: But for now let's.

Peter Zaffino: Start on the media rights.

Peter Zaffino: Yeah.

Speaker Change: Thanks, Derrick I mean, I can start to definitely with the media about that I think that's it is definitely very important to recognize one thing and that is clearly an hour an hour in our situation, where we saw the growth.

Derek Chang: From B to B a apo.

Derek Chang: Opportunity to consumer and we are offering an incredible.

Speaker Change: Our social platform, we saw definitely they stopped the young generation tool to access to our content, so Youtube or other form of engagement, but this is relevant and that we need to make sure that this is becoming part of the global strategy will meet the right not only us but all around the world is definitely important to me.

Derek Chang: Opportunity of engagement that I would say without being disrespectful. The tower block still needs to be 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: Look, I think with any of these premium sports assets, the trick is how you take these and make them mainstream entertainment assets. You've seen us do that with Formula One. You've seen this happen across multiples of other sports. I think there is that opportunity here.

Speaker Change: Sure that the clearance of the fact that our faster to get more engaged with us will have the chance to connect with.

Derek Chang: I think step out of this is Darren.

Derek Chang: Thanks, Stefano. This is Derek. Peter, that's your comment about F1 being unique. I agree with that. I think that we are uniquely positioned. 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 1.5 to 2 hours of the race. It's what's happening over the entire weekend. It's also sort of the way different demographics will engage with the property. 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.

Derek Chang: That said your comment about F. One being unique I agree with that I think that we are uniquely positioned 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 that.

Speaker Change: With the right product is really the key for our strategy and our and our decision and and I think that that what we need to make sure. That's it because now we have different I'd pose your offense they need to have the possibility to engage to discern the option, but we need to offer to them. That's the biggest strategic thing that we want to put it.

Derek Chang: As soon as the deal closes, we will be actively engaged with management at MotoGP to start executing on that plan. Perfect. Thank you.

Derek Chang: You know hour and a half two hours at a rate that'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.

Speaker Change: And of course D. C is relevant to the possible when he took that we need to choose and work together into the future. It is relevant because we see the dynamics at a decent level of course, you can see where we are in Europe in Europe, we have a long term deal with our broth pasta that will enable us to understand what would be the evolution on that market.

Peter Cepino: The next question comes from Peter Cepino of Wolf Research. Please proceed with your question. Hi, good morning and thanks. A question on sponsorship and one back to the media right 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?

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

Derek Chang: Some of that there are multiple ways that man of any age of any demographic of any interest and engagement in store because as soon as as I mentioned earlier on I'm not a G. P. As soon as you were sort of a broad based entertainment product.

Speaker Change: And we know that these are this one situation that we need to monitor all around the world, but in a nutshell I think that's our strategy will sit with the right partners that will be part of us in developing the knowledge of our sports. He says what I can say on the media side on disposal chute side, if I may Peter I think that.

Derek Chang: Because as soon as, as I mentioned earlier on MotoGP, as soon as you're sort of a broad-based entertainment product, 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 that.

Derek Chang: You have to recognize that and you have to be able to touch all those people in all of those fans all right Bryan finish up on us and just just to add onto the sponsorship side, Peter we're not going to give you a specific number in terms of.

Brian Wendling: Yeah. And just to add onto the sponsorship side, Peter, we're not going to give you a specific number in terms 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 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, this is still Q2.

Stefano Domenicali: 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. And then, 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.

Speaker Change: I live in and see what we're doing this is called for by the quality and the numbers that we put in place every year that means that the us correctly that it was seen before you know the partners are working together with asking for one that's really different from B to B, a opportunity to consumer and we are offering an incredible.

Speaker Change: Of that but what I would encourage us patience because when you get to Q2 on a year to date basis, you'll have 11 races year to day there'll be the exact same races, you should get a really good feel for the trend in sponsorship, but there's there's lots of different revenue recognition aspects to your full year sponsorship that that impact it.

Speaker Change: Opportunity of engagement that I would say without being disrespectful. The tower block still needs to be 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: The calendar change Theres, new sponsored officers.

Derek Chang: Contract Uplifts, there's lost.

Speaker Change: <unk> contracts from last year that rolled off so there's lots of different things in there that.

Stefano Domenicali: Stephano, you want to start on the media rights? Yeah. Thanks, Derek. I mean, I can start definitely with the media right. I think that is definitely very important to recognize one thing, and that it is clear in our situation where we saw the growth, you know, on all our social platforms. 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 U.S., but all around the world.

Derek Chang: Make it more complex than how you described it.

Speaker Change: It was from Q2.

Speaker Change: I think stepping out there.

Derek Chang: Okay.

Speaker Change: You know that said your comment about F. One being unique I agree with that I think that we are uniquely positioned 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.

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

Operator: 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 cost 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.

Ben Swinburne: 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 Concord Agreement. 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 eventually moving up into more competition with the top-tier teams. Thank you.

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 Concord Agreement. 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 eventually moving up into more competition with the top-tier teams. Thank you.

Speaker Change: You know a hour and a half two hours and the rate that's what's happening over the entire weekend. It's also sort of the way different demographics will engage with the property and that's what we are focused on is continuing to deliver.

Stefano Domenicali: But it's definitely important to make sure that the clearness 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 types of fans, they need to have the possibility to engage to 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 part where we need to choose and work together into the future.

Speaker Change: Not just sort of the content of the race or even our practices and our qualifying but other costs down around the sport, but also delivering it across multiple platforms.

Steven Cahall: So I was wondering if you could just help us understand why and that is that due to labor or is that the Las Vegas Grand plaza or or something else.

Steven Cahall: And then congratulations on the on the New Concorde agreement 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 Ts. Thank you.

Speaker Change: Some of that there are multiple ways that man of any age of any demographic of any interest and engagement in store because as soon as as I mentioned earlier on I'm not a G. P. As soon as you were sort of a broad based entertainment product you have to recognize that and you have to be able to touch all of those people and I don't know fans alright.

Yes, I'll start with other class.

Brian Wendling: Yeah. I'll start with other costs. 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 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, those are kind of the big things that you would expect. And as we've talked about in the past, 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, do you want to talk about the Concord?

Steven Cahall: So on a full year basis, you know theres going to be there's going to be items that increase we always are.

Speaker Change: Bryan finish up on us.

Bryan: Just to add onto the sponsorship side, Peter we're not going to give you a specific number in terms of.

Stefano Domenicali: 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 developing the knowledge of our sport. This is what I can say on the media side.

Steven Cahall: I see that you have increased partner servicing and commission costs that support the overall revenue growth of the business that are in there you have some increased G. P. P costs as we start the year round Activations, obviously, those will be offset by the revenue that's being generated there.

Bryan: Of that but what I would encourage as patients because when you get to Q2 on a year to date basis, you'll have 11 races year to date there'll be the exact same races, you should get a really good feel for the trend in sponsorship, but there's there's lots of different revenue recognition aspects to your full year sponsorship that that impact it.

Steven Cahall:

Steven Cahall: 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 theres growth initiatives that are in there as well to drive future revenue growth in the upcoming years.

Bryan: There's the calendar change Theres, new sponsored research Kantar.

Bryan: Contract Uplifts, there's lost contracts from last year that rolled off so there's lots of different things in there that.

Stefano Domenicali: 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. That means that as correctly as it was said before, the partners that are working together with us in Formula 1 are really different from B2B opportunity to consumer. And we are offering an incredible opportunity of engagement that I would say without being disrespectful, that our platform is becoming really very, very relevant. And this is the reason why we feel very, very positive and strong with our future, even the next couple of years.

Speaker Change: Make it more complex than how you described it.

Steven Cahall: That's what I want to talk about the Cochrane.

Bryan: Yeah.

Bryan: It was still in Q2.

Bryan: Yeah.

Steven Cahall: Yeah, I mean, thanks, Steven I think that.

Stefano Domenicali: Yeah. I mean, thanks, Stephen. 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 tackle 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 are gaps in performance, there is the chance for everyone to recover that. Tackling probably a little to the sporting side, I think that we have seen already the massive importance of having the budget cap or the cost cap that has given the possibility to the team to understand the level of performance from the technical perspective that they can reach through the money that they have.

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

As you know for US is essential to make sure that the growth of the sport is done in an organic way and we though we can take hold mainly three.

Steven Cahill: Thank you Brian. Thank you for the guidance on other cost 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.

Steven Cahall: My 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 to either of these gaps. The performance. There is the chance for it we want to recover that second part related to the sporting side I think that we have seen already the massive importance of the either the budget cap.

Steven Cahill: So I was wondering if you could just help us understand why and that is that due to labor or is that the Las Vegas Grand plaza or or something else.

Stefano Domenicali: Thanks, Stephan.

Derek Chang: This is Derek. Peter, 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 hour and a half to two hours of the race. It's what's happening over the entire weekend. It's also sort of the way different demographics will engage with the property. And that's what we are focused on, is continuing to deliver not just sort of the content of the race or even the practices and the qualifying, but other content around the sport.

Steven Cahall: The cost caps Bethesda as it is.

Steven Cahill: And then congratulations on the on the New Concorde agreement 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 Ts. Thank you.

Steven Cahall: Given the possibilities the team to understand the level of performance from the technical perspective is it can't be sort of the money that they have on the other side. Both on the tool you know, it's the financial and we see definitely that a healthy system allow so also Concord and all this policy if that that will become an important for this.

Stefano Domenicali: On the other side, point number two, it's the financial. We see definitely that healthy systems allow through also Concord 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 this organic growth through what we are doing. And therefore, I think that what we have done with a fair and balanced approach to Concord has just brought the right approach and the right settings for a very, very healthy ecosystem that will be there for the future. In the next couple of years will be characterized by these kinds of elements.

Steven Cahill: Yeah, I'll I'll start with other class.

Steven Cahall: With a solid team that wants to stay and be even stronger and be competitive for the future, but part is the awareness that this 14th leaving he's bringing.

Steven Cahill: So on a on a full year basis, you know theres going to be there's going to be items that increase we always are.

Steven Cahill: I see that you have increased partner servicing and commission costs that support the overall revenue growth of the business that are in there you have some increased G. P. P costs as we start the year round Activations, obviously, those will be offset by the revenue that's being generated there.

Steven Cahall: Interest money to all vehicles Houston that will regenerate the possibility also these organic growth through what we're doing and therefore I think that what we have done it with a several imbalanced as opposed to Congress is just growth the right approach and the right settings for a very very healthy.

Derek Chang: 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, as I mentioned earlier on MotoGP, as soon as you're sort of a broad-based entertainment product, you have to recognize that and you have to be able to touch all of those people and all of those fans.

Steven Cahill: 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 theres growth initiatives that are in there as well to drive future revenue growth in the upcoming years.

Steven Cahall: Ecosystem that will be there for the future and then next couple of years will be characterized by these kind of elements.

Brian Wendling: I'll let Brian finish up on that. Yeah, and just to add on to the sponsorship side, Peter, we're not going to give you a specific number in terms 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, there's different revenue recognition aspects to year, 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.

Steven Cahall: Thank you.

Brian Wendling: Thank you.

Steven Cahill: Thank you.

Speaker Change: The next question is from Ryan Grub at UBS. Please proceed with your question.

Steven Cahill: That's what I want to talk about the conquer.

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

Steven Cahill: Yeah, I mean, thanks, Steven I think that.

Speaker Change: Great. Thanks.

Derek Chang: 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're likewise seeing any interest from digital players? Thanks.

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're likewise seeing any interest from digital players? Thanks.

Speaker Change: Curious if you can give us an update on our renewal discussions are progressing for some of your non U S. Media rights I believe there are some deals coming up in Latin America.

Speaker Change: As you know for US is essential to make sure that the growth of the sport is done in an organic way and we though we can take hold mainly three.

Speaker Change: Asian markets.

Speaker Change: My 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 to eat that he's gaps. The performance. There is the chance for it we want to recover that second part related to the sporting side I think that we have seen already the massive importance of the either the budget cap.

Speaker Change: And any color on the competitive tension youre seeing for those rights and if you are likewise seeing any interest from digital players.

Speaker Change: Yeah.

Brian Wendling: So there's lots of different things in there that make it more complex than how you described it. Give us some Q2.

Speaker Change: Okay.

Speaker Change: Yeah.

Brian Wendling: Stefano?

Speaker Change: Yep Yep. Thank you Brian Yeah. So of course that is a more dynamic and I would say it year by year situation. We have so many cultures around the world, but that's in that in that in a.

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 that in certain areas, we can start to see some competition with regard to the streaming side of it. They are still smaller than what you can imagine, but it's definitely a healthy situation. We have countries like Japan, for example, that is quite big for us, or other areas in the Southeast Asia, and also in Brazil, for example, that will have an evolution and will have a positive impact in our relationship starting from next year.

Speaker Change: The cost caps that as a as a given the possibilities the team to understand the level of performance from the technical perspective that they can't be used through the money that they have on the other side both on the tool you know.

Stephen Cahill: The next question is from Stephen Cahill of Wells Fargo. Please proceed with your question. Thank you, Brian, thank you for the guidance on other costs of revenue. Just thinking about that guidance, 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's in that. Is that due to labor?

Speaker Change: Certainly we can start to see some competition with regards to the streaming side of it that are still smaller than what you can imagine, but there's definitely a healthy situation. We have countries like Japan. For example that is quite big for us or that they are in the far East Asia and also in Brazil. For example that we lap an evolution if you will.

Speaker Change: Financially and we see definitely that a healthy system allow so also Concord and all this policy if that that will become an important for the team with a solid team that wants to stay and be even stronger and be competitive for the future, but part is the awareness that this sport is leaving is bringing.

Speaker Change: All have a positive impact in our in our relationship in the south until next year.

Brian Wendling: Is that the Las Vegas Grand Plaza or something else?

Speaker Change: The interest money too old vehicles, Houston that will regenerate. The possibility also these organic growth through what we're doing and therefore I think that what we have done it with a several imbalanced as opposed to Congress I just brought the right approach and the right settings, Florida very very.

Speaker Change: Got it thank you.

Brian Wendling: And then congratulations on the on the new Concord agreement. 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.

Derek Chang: Got it. Thank you.

Ryan Gravett: Got it. Thank you.

Speaker Change: The next question is Joe Stauff of Susquehanna International Group. Please proceed with your question.

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

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

Vijay Jayant: Thank you. Good morning. I was wondering, first question, on whether or not you could share with us any organic or same-race commentary, any KPIs you have with respect to the two races in Q1. And then secondarily, Stefano, maybe a follow-up on an earlier question about team competition. It certainly seems parity where the competition has increased, especially last season and maybe season to date. And I was just wondering, of those three buckets you mentioned, 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, any KPIs you have with respect to the two races in Q1. And then secondarily, Stefano, maybe a follow-up on an earlier question about team competition. It certainly seems parity where the competition has increased, especially last season and maybe season to date. And I was just wondering, of those three buckets you mentioned, what were the most important reasons or improvements that you have made thus far?

Speaker Change: Healthy ecosystem that will be there for the future and then next couple of years will be characterized by these kind of elements.

Speaker Change: Yeah.

Any kpis you have with respect to the two races in the first quarter and then secondarily.

Brian Wendling: Yeah, I'll start with other costs. So on a full-year basis, there's going to be items that increase. We always see that we have increased partner servicing and commission costs 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. Those are kind of the big things that you would expect. And as we've talked about in the past, 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.

Speaker Change: Thank you.

Speaker Change: Stefano maybe a follow up on an earlier question about team competition, because it certainly seems parity where the competition has increased.

Speaker Change: The next question is from Ryan Grub at UBS. Please proceed with your question.

Speaker Change: Great. Thanks I'm.

Speaker Change: Especially last season, and maybe excuse me to date and I was just wondering of those three buckets you mentioned you know what.

Ryan Grub: Curious if you can give us an update on our renewal discussions are progressing for some of your non U S. Media rights I believe there are some deals coming up in Latin America.

Speaker Change: What were the most important reasons or improvements that you have made thus far.

Speaker Change: Asian markets.

Speaker Change: And any color on the competitive tension youre seeing for those rights and if you are likewise seeing any interest from digital players.

Speaker Change: Okay.

Speaker Change: Stefano do you want anything to add.

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

Speaker Change: Yeah.

Speaker Change: Ryan this.

Stefano Domenicali: Joe, or Brian, this.

Speaker Change: Okay.

Speaker Change: I mean, all I wouldn't want to.

Speaker Change: Yeah.

Brian Wendling: I mean, I would like to.

Speaker Change: Go ahead, Bryan maybe I.

Speaker Change: Yep Yep. Thank you Brian Yeah. So of course that is a more dynamic and I would say it year by year situation. We have so many cultures around the world.

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

Brian Wendling: Bethany, you want to talk about the Concord? Yeah, I mean, thanks, Stephen. 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, in a way that we can take on mainly three organic growth through what we're doing.

Stefano: Sorry go ahead Stefano.

Brian Wendling: Sorry. Go ahead, Stefano.

Stefano: No no I was saying, Brian if you want to give you your comment on the organic N. K P. I is the first question that I was jumping on the on the second question Joe.

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

Speaker Change: In that in a in any certain area. We can start to see some competition with regards to the streaming side of it that are still smaller than what you can imagine, but there's definitely a healthy situation. We have countries like Japan. For example that is quite big for us or that they are in the far East Asia and also in Brazil for example that will.

Stefano: Yeah.

Stefano: So I would say is.

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

Stefano: You know.

Stefano: Do the math on what we've reported here.

Stefano: Can't give you anything more specific than kind of what we're already showing but.

Stefano: There's a mix of braces.

Speaker Change: And evolution.

Speaker Change: Obviously, and so you've got a you've got Australia and China. This year you've got.

Speaker Change: Have a positive impact in our in our relationships in the south until next year.

Speaker Change: The two middle Eastern Rice's last year with China, not being in the mix.

Speaker Change: Got it thank you.

Speaker Change: You can see the impact that you have there on on revenue and OIBDA.

Speaker Change: The next question is Joe Stauff of Susquehanna International Group. Please proceed with your question.

Speaker Change: Okay.

Joe Stauff: Thank you good morning.

Speaker Change: Okay.

Joe Stauff: Was wondering first question on whether or not you could share with us any organic or same race commentary.

Speaker Change: If I look at her second question.

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

Speaker Change: Well I was just gonna stay stepping up if there's anything you want to add on attendance or or panic club at the at the one race, where we had it you can add that but.

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.

Joe Stauff: <unk>.

Joe Stauff: Any kpis you have with respect to the two races in the first quarter and then secondarily.

Speaker Change: That'd be about it.

Speaker Change: No I think that's it I think Brian you are absolutely spot on I mean, the dimension of comparing apples with pears. It is pretty clear that is not the same kind of balance. So I think that the as you already mentioned that there will be a clearer situation. The more we go ahead into the next quarter because that will be.

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. I think that, as you already mentioned, there will be a clear situation the more we go ahead into the next quarter because there will be, you will see, the organic growth that we are having everywhere. And that will be very, very clear. So on that, just I want to share good news that is happening all around the world also in that respect. There is not only the content that we have in terms of a commercial agreement, but there are also all the other activities that are related to Grand Prix that are different to place to place.

Joe Stauff: Stefano maybe a follow up on an earlier question about team competition.

Joe Stauff: It certainly seems parity where the competition has increased.

Joe Stauff: Especially last season, and maybe excuse me to date and I was just wondering of the three buckets you mentioned you know what.

Brian Wendling: And therefore, I think that what we have done with a fair and balanced approach to Concord has just brought the right approach and the right settings for a very, very healthy ecosystem that will be there for the future in the next couple of years will be characterized by this kind of allocation.

Speaker Change: You will see the organic growth that we are having everywhere and and and that's it would be very very clear. So on that's just just want.

Joe Stauff: What were the most important reasons or improvements that you have made thus far.

Joe Stauff: Okay.

Speaker Change: I want to share good news that these happening all around the world those sins out your sector. There is not only the content that we have in terms of a commercial agreement, but that also all the other activities that relate to two completely different took place took place. So the right to competitors would be done like exactly but I'm going to ask at the end of the year that find the results, but everything is progressing.

Joe Stauff: Okay.

Joe Stauff: Stefano do you want anything to add.

Joe Stauff: This.

Joe Stauff: I mean, all I wouldn't want to.

Joe Stauff: Go ahead, Bryan maybe I.

Ryan Gravitt: The next question is from Ryan Gravitt of UBS. Please proceed with your question. Great. Thanks.

Stefano: Sorry go ahead Stefano.

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 are 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. 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.

Stefano: No no I was saying, Brian if he wants to give you your comment on the organic N. K P. I is the first question that I was jumping on the on the second question Joe.

Stefano Domenicali: Curious if you can give us an update on how renewal discussions are progressing for some of your non-U.S. 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're likewise seeing any interest from digital players. Thanks. Step it up.

Speaker Change: Absolutely the right way going back to the second question with Joe about the teen competition, we don't have to forget that on top of the three parts that they said that he is also the things that after many years naturally the cycle of having that the evolution that is becoming closer to the tangents he's bringing the teams to be very close if you'll see.

Stefano: Yeah.

Stefano: So I would say is.

Stefano: 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.

Speaker Change: Sure mainly in qualifying the gaps out of milliseconds. So that's it's really impressive.

Stefano: There's a mix of braces, obviously and so you've got a you've got Australia and China. This year you've got the.

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

Speaker Change: That is part of what we see today and that it's also even more relevant to say that the when we take the decision to change regulation. It is normal and the reason for that of course that potentially there will be more gaps in performance at the beginning but the regulations, but we are putting in place will try to minimize all the time.

Stefano: The two middle Eastern Rice's last year with China, not being in the mix.

Stefano: You can see the impact that you have there on on revenue and OIBDA.

Stefano Domenicali: And there are reasons for that, of course, that potentially there will be more gaps in performance at the beginning. But the regulation that we are putting in place will try to minimize the time on which the teams and the new power unit to manufacture that were allowed to come in and also new teams that will come 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. But as we remember, to all of us, we're down to allow 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.

Stefano: Yeah.

Stefano: And it certainly is a second question.

Speaker Change: Which the teams and the new power units the manufacturer. That's what allows it to me and also do you think that it would come in they will have the time to react to that so I think that that is the the three pillars that is relevant even more when there is a step change of regulation as it will be done next year.

Stefano: Well I was just gonna stay stepping up if there's anything you want to add on attendance or or panic club at the at the one race, where we had it you can add that but.

Stefano: That'd be about it.

Stefano: No I think that's it I think Brian you are absolutely spot on I mean, the dimension of comparing apples with pears. It is pretty clear that is not the same kind of balance. So I think that the as you already mentioned that there will be a clearer situation. The more we go ahead into the next quarter because that will be.

Stefano Domenicali: Got it. Thank you.

Speaker Change: Remember all of us were.

Speaker Change: We're down to allowed to a new power units and other such things.

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

Speaker Change: Seem to come in and also to have that focus on the sustainable seal and hybrid engine that was relevant for us to keep in the sort of keeping that technology relevancy for the future our sports.

Joe Stoff: 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... any KPIs you have with respect to the two races in the first quarter. And then secondarily, Stefano, maybe a follow-up, you know, on an earlier question about team competition. It certainly seems parity 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?

Stefano: You will see the organic growth that we are having everywhere and and and that's it would be very very clear. So on that's just just oh.

Speaker Change: Thanks very much.

Vijay Jayant: Thanks very much.

Joe Stauff: Thanks very much.

Stefano: I want to share good news that these happening all around the world Olson that's a sector that is not only the content that we have in terms of a commercial agreement, but that also all the other activities that relate to two completely different took place took place. So the right comparison would be done like exactly but I'm going to ask at the end of the year. The final results, but everything is progressing.

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

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

Spencer Amir: Hi, Thanks for the question.

Brian Wendling: 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? Stefano?

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

Spencer Amir: 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 their grandparents. So early.

Stefano: Absolutely the right way going back to the second question with Joe about the teen competition, we don't have to forget that on top of the three parts that they said that he is also the things that after many years naturally the cycle of having that the evolution that is becoming closer to the tangent he's bringing the teams to be very close if you see this.

I can answer to that.

Stefano Domenicali: I can answer to that directly. Yes. Thanks, Spencer, for the question. We believe that the Miami Grand Prix is a very important pillar of our strategy in the 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 gather in order to have the right partnership to develop 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.

Spencer Amir: Yes. Thanks for the question you know, we believe that the Miami a Grand Prix is a very important pillar of our strategy in U S. I mean, the job done.

Brian Wendling: Stefano, do you want anything to add on KPI? If you want to go ahead with that, Ryan, maybe I... Sorry, go ahead and step it up. No, no, I was saying, Brian, if you want to give your comment on the organic and KPI as the first question, and then we'll jump in on the second question of Joe. 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, 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.

Stefano: Sure mainly in qualifying the gaps out of milliseconds. So that's it's really impressive.

Spencer Amir: It 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 that's kind of a certainty the more they will invest to grow together not only the business evolution, but also in <unk>.

Stefano: That is part of what we see today and that it's also even more relevant to say that the when we take the decision to change regulation. It is normal and that are reasonable as of course that potentially there will be more gaps in performance at the beginning but the regulations, but we are putting in place will try to minimize or the time or.

Spencer Amir: Order to tether in order to have the right.

Spencer Amir: Our partnership with to develop but you know the America 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.

Stefano: Which the teams and the new power unit. The manufacturers. That's what allowed to tell me and also do you think that it would come in they will have the time to react to that so I think that that is.

Speaker Change: Yeah, and just from my standpoint, and I went to the first Miami right and then just this last one I think the improvement and what has happened now in the ground, it's been pretty impressive so.

Stefano: The three pillars that is relevant even more when there is a step change of regulation as it will be done next year. That's a as we remember to all of us were.

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

Stefano Domenicali: And you can see the impact that you have there on on revenue and way better. In terms of, yeah, in terms of... I was just going to say, Stefano, if there's anything you want to add on attendance or panic club at the one race where we had it, you can add that. That'd be about it. No, I think, Brian, you were absolutely spot on. I mean, the dimension of comparing Apple with Pears, 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 into the next quarter, because you will see the organic growth that we are having everywhere.

Speaker Change: Kudos to our partners in Miami for what they've done and we look forward to their continued investment in.

Stefano: We're down to allowed to new power units under such a new team to come in and also to have that focus on the sustainable fuels and hybrid engine that was relevant for us to keep in the sort of keeping that technology relevant for the future in our sport.

Speaker Change: In the in the race.

Speaker Change: Our next question is from Jason Bazinet with Citibank. Please proceed with your question.

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

Stefano: Thanks very much.

Jason Bazinet: I just had a very simple question you're.

Ben Swinburne: 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 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.

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

Jason Bazinet: You rightly pointed out that your business is defensive and is viewed as defensive.

Jason Bazinet: Investors.

Spencer Amir: Hi, Thanks for the question.

Jason Bazinet: The one question, we get is people aren't quite sure how to think about.

Jason Bazinet: The defensiveness of the sponsorship revenue if there was an economic slowdown.

Jason Bazinet: Jason I think that the answer for that is no one magic ball up the what we have in front of us, but what we can see that the credibility of our platform and the fact that we are very close to them with the with that with the fact that we are discussing.

Stefano Domenicali: Jason, I think that the answer for that is no one is the 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 needs that we need to supply to them, is our strength. And the fact that we are long-term agreed with sponsors is, of course, a financial coverage in terms of the risks that we have. But it's more the relation that we have that has been built on the trust and understanding each other what are the needs. That's why, as I said, we are always very prudent.

Spencer Amir: I can't answer to that.

Stefano Domenicali: And that would be very, very clear. So on that, just... we don't have to forget that on top of the three points that I said, there is also the thing 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. Therefore, that is part of what we see today. It's also even more relevant to say that when we take the decision to change regulation, it is normal.

Spencer Amir: Yes, Thanks, Brandon for the question you know, we believe that the Miami a Grand Prix is a very important pillar of our.

Spencer Amir: Strategy in U S. I mean, the job done.

Jason Bazinet: On a daily basis without the need that we need to supply to that is our strengths and besides that we have a long term agreement with sponsor there's of course, a financial covenant and some of the risks that we have but that is more relation that we had that that's been done the trust and understanding each other words at the needs. That's why you know as I said that we are always very pro.

Spencer Amir: It's 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 that's kind of a certainty the more they will invest to grow together not only the business evolution, but also in order to tether in order to have the right.

Jason Bazinet: But the relationship we have with the quality of the parts that are working together with us allow us to be very very positive. We have long term counter that of course that will reduce the financial risk and the good thing is to stay connected and to try to see if that is happening and happening all we couldn't just together to make sure that our platform will offer to them.

Spencer Amir: Our partnership with to develop but you know the American society together with them they've been proved to be a very very solid and strong partner and that's the reason why we have anticipated now because there was no reason to wait.

Stefano Domenicali: But the relation that we have and the quality of the parts that are working together with us allow us to be very, very positive. We have long-term content that, of course, will reduce that financial risk. And the good thing is to stay connected and to try to see what is happening, how we can adjust together to make sure that our platform will offer to them what they need.

Speaker Change: Yeah, and just from my standpoint, and I went to the first Miami race and then just this last one I think the improvement and what has happened now in the ground, it's been pretty impressive so kudos.

Jason Bazinet: What they need.

Speaker Change: Yeah, and the fact, you know a continuation of what Stefan I, 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.

Brian Wendling: Yeah. And just a continuation with 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 some of the any potential macro headwinds here. 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, almost better than anyone else out there. And so the supply for them is not huge. And so we provide that. And we provide that in a way, as Stefano said, where we are actively working with our partners to maximize sort of the relationship for them and for their targets and the initiatives that they have.

Speaker Change: As to our partners in Miami for what they've done and we look forward to their continued investment in.

Stefano Domenicali: And there are reasons for that, of course, that potentially there will be more gaps in performance at the beginning. But the regulation that we are putting in place will try to minimize the time on which the teams and the new power units and manufacturers that were allowed to come in, and also new teams that were 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. But as we remember, to all of us, we're done to allow to new power unit manufacturing routine 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 space.

Speaker Change: Antitrust problem from some of the any potential macro headwinds here.

Speaker Change: In the in the race.

Speaker Change: Yeah.

Speaker Change: Our next question is from Jason Bazinet with Citibank. Please proceed with your question.

Speaker Change: That's the way to think about it is that.

Speaker Change: The partners. We have are really looking for broad global exposure and we provide that and we've tried that frankly all of them better than anyone else out there and so.

Jason Bazinet: I just had a very simple question you're.

Jason Bazinet: You rightly pointed out that your business is defensive and is viewed as defensive.

Jason Bazinet: Investors.

Speaker Change: You know that.

Jason Bazinet: The one question, we get is people aren't quite sure how to think about there.

Speaker Change: Our supply.

Speaker Change: For that Miss is.

Jason Bazinet: The defensiveness of the sponsorship revenue if there was an economic slowdown.

Speaker Change: It is not huge and so we provide that we provide that our way of stepping outside of where we are actively working with our partners to maximize.

Jason Bazinet: Justin I think that the answer for that is that no one magic bullet.

Speaker Change: Sort of the relationship for them and and for their targets and initiatives that they have and I think that you know again this is.

Jason Bazinet: What we have in front of us, but what we can see that the credibility of our platform and the fact that we are very close to them with the with that with the fact that we are discussing on a daily basis without the need that we need to supply to that is our strengths and besides that we have a long term agreement with sponsor is of course a financial okay.

Brian Wendling: I think that, 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, it's not like they came in yesterday. They've now been around for a couple of months. There's speculation of them. The way these guys continue to speak about their business and the way they want to grow their business and how we can help them achieve those targets has been very reassuring.

Spencer Amir: Thanks very much.

Speaker Change: This is somewhat qualitative, but just in the conversations with our partners and understanding what their needs are that their enthusiasm.

Stefano Domenicali: The next question is from Spencer Amir of Deutsche Bank. Please proceed with your question. 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. Governor? I can answer to that, Director. Yes. Thanks, Francis, for the question. You know, we believe that the Miami Grand Prix is a very important pillar of our strategy in the U.S. I mean, the job done is really very, very impressive.

Speaker Change: And any potential headwinds in the economy I have it's not like they came in yesterday, they've now been around for a couple of months or speculation on the way.

Speaker Change: These guys continue to speak about their business in a way they want to grow their business and how we can help them achieve those targets is it's been you know very reassuring.

Jason Bazinet: And some of the risks that we have but that is more relation that we had that that's been built on the trust and understanding each other words at the needs. That's why you know as I said that we are always very prudent but their relationship we have with the quality of the parts that are working together with us allow us to be very very positive we have long term counter.

Speaker Change: Is it fair to say, it's not a contraction.

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

If I may add.

Stefano Domenicali: I'm just going to ask in terms of.

Speaker Change: Yeah.

Speaker Change: I was just going to ask Mike Johnson.

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

Jason Bazinet: Of course that that will reduce that financial risk and the good thing is to stay connected and to try to see if that is happening and happening all weekend just to get them to make sure that our platform will offer to them what they need.

Brian Wendling: No, no. I'm just going to add that we haven't seen.

Speaker Change: Right.

Ben Swinburne: Yeah.

Jason Bazinet: Yeah.

Yeah.

Speaker Change: Okay.

Yeah go ahead, Jason can you hear me.

Derek Chang: 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 the American side 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. 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.

Brian Wendling: Yeah. Go ahead, Jason.

Ben Swinburne: Can you hear me?

Jason Bazinet: Can you hear me?

Speaker Change: Alright, Jason why don't you just ask that question and then stepping up from there.

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

Jason Bazinet: Yeah, and this fact.

Speaker Change: Continuation, what Stefan I, 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 antitrust problem from some of the any potential macro headwinds here I E.

Speaker Change: To answer both.

Speaker Change: Okay. I was just going to say that for investors is it fair to say, it's not as contractual this media rights, but maybe more defensive than if you had an advertising business is that the right framing okay.

Ben Swinburne: Okay. I was just going to say, 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 Bazinet: Okay. I was just going to say, 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?

Speaker Change: No.

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

Peter Zaffino: Peter it's not like it's not like media.

Jason Bazinet: I think.

Jason Bazinet: But the way to think about it is that the.

Peter Zaffino: Media deals in defense of our advertising deals in a sense of I know 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 our of how long each one as we've already mentioned some of them but.

Jason Bazinet: Partners, we have are really looking for broad global exposure.

Jason Bazinet: And we provide that and we've tried that frankly all of them better than anyone else out there. So.

Jason Bazinet: You know that the supply.

Speaker Change: For that Miss is.

Peter Zaffino: I do think that.

Derek Chang: So, you know, kudos to our partners in Miami for what they've done, and we look forward to their continued investment. in the race.

Speaker Change: It's not huge and so we provide that we provide that our way of stepping outside of where we are actively working with our partners to maximize.

On a like any any media deals.

Peter Zaffino: On the sponsorship side and just like we talked about Miami, our partners bought to invest and what they partnered up with and that takes about four years to make the investment activate on that investment I mean, the benefits of that that's why from a partner standpoint, they wanna comment longer term my boss.

Speaker Change: Starting on the relationship for them and and for their targets.

Jason Bissonnette: Our next question is from Jason Bissonnette of Citibank. Please proceed with your question. It's a very simple question. You rightly pointed out that your business is defensive and is viewed as defensive. by investors.

Speaker Change: It shows that they have and I think that you know again this is somewhat.

Speaker Change: Somewhat qualitative, but just in the conversations with our partners and understanding what their needs are that their enthusiasm.

Peter Zaffino: And I think again as a result, we have these sort of you know that.

Speaker Change: And these potential headwinds in the economy or have it sounds like they came in yesterday, they've now been around for a couple of months or speculation.

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

Peter Zaffino: The long term contracts with both of these folks.

Peter Zaffino: And I think that helps us in times like this but Stefan how do you want to finish up.

Speaker Change: The way these guys continue to speak about their business in a way they want to grow their business and how we can help them achieve those targets is it's been very.

Brian Wendling: And I think that helps us in times like this. But Stefano, do you want to finish up?

Stefan: No I totally agree to Erik and B.

Stefano Domenicali: No, I totally agree, Derek. To be very transparent, we haven't seen any slowdown in our conversation despite the market fluctuation that we have today with other potential. That is related to what we just said about the credibility of our platform to the fact that, in any case, we believe that being a worldwide sport, we can be helpful for each of them to differentiate the strategy they need to do it. So I would say that's the situation that we live in today. So it's all good.

Speaker Change: Very reassuring.

Stefan: To be very transparent, we haven't seen any slowdown in our compensation.

Speaker Change: Is it fair to say, it's not as construction.

Speaker Change: Ed.

Stefan: Despite the market situation that we have today with the at the potentials that is related to what we just said about the credibility of our platform to the fact that there.

Speaker Change: Yeah.

Speaker Change: I was just going to add something.

Speaker Change: Just to add that we haven't seen yet.

Speaker Change: Right.

Speaker Change: Yeah.

Stefan: In any case, you know, we believe that to be not a worldwide sport worldwide sport, which can be bought from Florida each of them to be sort of shape. The strategy they need to do it. So I would say that's the situation, but we live in today. So it's all good.

Speaker Change: Yeah.

Speaker Change: Okay got it Jason can you hear me.

Speaker Change: Alright, Jason why don't you just ask that question and then stepping up and answer both.

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

Stefan: Very helpful. Thank you.

Ben Swinburne: Very helpful. Thank you.

Jason Bazinet: Very helpful. Thank you.

Stefano Domenicali: That's why, you know, as I said that we are always very prudent, but the relation that we have and the quality of the parts that are working together with us allow us to be very, very positive. We have long-term content that of course that will reduce that financial risk. 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. Yeah, and just 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 avoids us from any potential macro headwinds here.

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

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

Speaker Change: No.

Matthew Harrigan: Thank you as everyone knows.

Speaker Change: I think Peter it's not like it's not like media at a media deals in sense of our advertising deals in a sense of buying those sort of quarterly or even annually. These are long term deals just like our media rights deals I think you know, we're not going to get into the details of how long. Each one is we probably mentioned some of them.

Vijay Jayant: Thank you. As everyone knows, the LEGO Drivers Parade was marketing genius, incidentally. I have a question. You're really putting up 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 on 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 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 people or better monetize, 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. As everyone knows, the LEGO Drivers Parade was marketing genius, incidentally. I have a question. You're really putting up 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 on 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 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 people or better monetize, 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: Go drivers parade was marketing genius, Incidentally, Hey, I have a question you are really putting up great engagement metrics apart across.

Matthew Harrigan: Across the board I mean linear.

Speaker Change: It is encouraging as well as social and I think you're probably breaking out maybe more than anyone else and social but nonetheless, I mean that doesn't really monetize and sometimes it doesn't even really translate to people watching mill. The linear channel I think its just younger people, where they consume content and shorter form including sports.

Speaker Change: But I do think that.

Speaker Change: I don't like any any media deals.

Speaker Change: Hum on the sponsorship side and just like we talked about Miami, our partners bought to invest and what they partnered up with and that takes about four years to make the investment activate on that investment and reap the benefits of that that's why from a partner standpoint, they wanna comment longer term my boss.

Speaker Change: And F. One do you have any thoughts on how you might be able to better engage you know people are better monetize rather.

Derek Chang: 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, a little better than anyone else out there, and so, you know, the supply for them is, you know, is not huge and so we provide that, we provide that in ways where we are actively working with our partners to maximize sort of the relationship for them and for their targets and initiatives that they have and I think that you know again this is somewhat qualitative but just in the conversations with our partners and understanding what their needs are.

Speaker Change: People, who have shorter attention spans versus someone who's going to.

Speaker Change: And I think again as a result, we have these sort of you know that.

Speaker Change: Get up and watch the race for two hours. Thank you.

Speaker Change: The long term contracts with both of these folks are and I think that helps us in times like this but Stefan how do you want to finish up.

Speaker Change: However, you want to start well.

Brian Wendling: Stefano, you want to start?

Matthew Harrigan: Well Matthew Yeah.

Stefano Domenicali: Well, Matthew, can I say yeah. No, thanks, Derek. I think thanks for the comment. We take with pride because we never stop. We try to be different for the other platform to create some sort of integrity while we are doing it. 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 going to be able to monetize all what we are doing. It would be wrong to believe that you can monetize everything straight away. And that's why, on that, we have a strategy that needs to be diverse but also very, very, very, very complete.

Speaker Change: Yeah.

Speaker Change: I think oh, thanks for the comment that we take are with pride because we'd never stop we try to be decent for the other.

Speaker Change: No.

Speaker Change: Totally agree to Eric in a to.

Speaker Change: To be very transparent, we haven't seen any slowdown in our compensation.

Speaker Change: The other platform to create some sort of because of what we would do it and by the way.

Speaker Change: Despite the market situation that we have today with the added 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 to be not a worldwide sport worldwide sport, which can be parts of Florida each of them to differentiate their strategy they need to.

<unk> said that the beginning of the call. The great News is that we have our drivers and our partners about that either.

Jason Bissonnette: Their enthusiasm and these potential headwinds in the economy have been, not like they came in yesterday they've now been around for a couple months or speculation of them and the way these guys continue to speak about their business and the way they want to grow their business and how we can help them achieve those targets is has been you know very reassuring. Is it fair to say it's not as contractual as we do right now? I was just going to ask, just to add that we haven't seen, yeah. Go ahead, Jason, can you hear me?

Speaker Change: 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 going to be able to monetize all what we are doing.

Speaker Change: Do it.

Speaker Change: It would be wrong to believe that you can monetize editing straight away and that's why on that strategy.

Speaker Change: So I would say that's the situation, but we live in today. So it's all good.

Speaker Change: Very helpful. Thank you.

Speaker Change: The strategy that needs to be.

Speaker Change: <unk> diverse but also very very very very are complete we have you know we need to lease showed that talk about engaging with our fans not only two hours or the ratio of the Sunday, but we need to have a 365 days a year of engagement.

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

Stefano Domenicali: We need to make sure that our engagement with our fans is not only 2 hours of the race or the Sunday, but we need to have 365 days a year of engagement, try to tailor the content. And this is really what we try to do in order to get access to the data we have available in order to get into the consumer habits of our fans. 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 for the other proposition.

Matthew Harrigan: Thank you as everyone knows the Lego a driver's parade was marketing genius Incidentally, Hey, I have a question you are really putting up great engagement metrics.

Speaker Change: To tailor the content and this is really what we tried to do in order to get access to the data we had available in order to get into the consumer habits of all our science. This is something new for us. So that's why I see potentially another important revenue stream that will allow us to be strongly in internet.

Speaker Change: Across the board I mean linear.

Jason Bissonnette: Go ahead, Jason.

Jason Bissonnette: Why don't you just ask your next question and then Stefano can answer both. 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? No. I think it's not like advertising deals in the sense of buying those sort of quarterly or even annually. These are long-term deals just like our media rights deals. I think we're not going to get into the details of how long each one is.

Speaker Change: So far we've got a maybe it'll be weak, but the potential to grow is definitely there and the only thing that can come is if we are able to be created as much as we can in order to be difficult for the other proposition.

Speaker Change: And F. One do you have any thoughts on how.

Speaker Change: Now you might be able to better engage you know people are better monetize where other.

Derek Chang: Thanks, Doug Thanks Derek.

Vijay Jayant: Thanks, Stefano. Thanks, Derek.

Matthew Harrigan: Thanks, Stefano. Thanks, Derek.

Matthew Harrigan: Matthew Thank you for the question.

Speaker Change: People, who have shorter attention spans versus someone who's going to.

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

Speaker Change: Yeah, following up on on stuff and I called that out here, but.

Speaker Change: Get up and watch the race for two hours. Thank you.

Speaker Change: You know what Kevin was saying is absolutely right you're building an ecosystem you've got to find out here, where you are trying to bring in as many people who can do engagement to support certain platforms historically have been more moderate.

Derek Chang: We've probably mentioned some of them, but I do think that kind of like any media deals On the sponsorship side, and just like we talked about Miami, our partners want to invest in what they partnered up with, and that takes multiple years to make the investment, activate on that investment, and reap the benefits of that. That's why, from a partner standpoint, they want to come in longer term with us. And I think, again, as a result, we have these sort of mid- to long-term contracts with most of these folks, and I think that helps us in times like this.

Speaker Change: However, you want to start well.

Matthew Harrigan: Well Matthew Yeah. Thanks, Eric I think Oh, thanks for the comment that we take are with pride because we'd never stop we try to be decent for the other.

Speaker Change: Packable directly than others and but at the end of the day, we're not necessarily looking to maximize revenue on each particular platform in each particular contact contact that we have with our fan.

Speaker Change: The other platform to create some sort of because of what we would do it and by the way.

Speaker Change: Instead, he said that the beginning of the call. The great News is that we have our drivers and our partners that are.

Speaker Change: We are building me the.

Speaker Change: Embracing our strategy because they understand the value of it. It is clear that the movie is able to do this kind of things the more we're going to be able to monetize all what we are doing a it would be wrong to believe that you can monetize editing straight away and that's why on that strategy.

Speaker Change: You know the whole universe and the whole ecosystem here. So the fan sort of interact with us on social media, that's not instantly monetize them all that bad Mako and you know purchase and ask on sharp <unk> band May ultimately.

Stefano Domenicali: But Stefano, do you want to finish up? I totally agree, Derek, and to be very transparent, we haven't seen any slowdown in our conversation despite the market situation we have today with the added 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, which can be important 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.

Speaker Change: Ah kind of race fan fan may end up at in Las Vegas, One day I want to go to Grand Pointe Grand Prix Panther.

Speaker Change: The strategy that needs to be.

Speaker Change: <unk> diverse but also very very very very are complete we have you know we need to lease you would've thought about engaging with our fans in not only two hours or the ratio of the Sunday, but we need to have a 365 days a year of engagements and try to take the concept and this is really what we tried to do in order to get.

Brian Wendling: 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 great questions that we received. We appreciate your support and look forward to continuing the dialogue. Thank you very much.

And they tell their parents to start watching races.

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

Speaker Change: What are any of these points of contact that not every single point of contact that in itself has to be monetize so with that I will close the call for this quarter I want to thank all of you on the call who participated and ER and all the questions great questions that we received we appreciate your support and look forward to continuing the dialogue.

Speaker Change: The access to the definitely we had available in order to get into the consumer habits of our science. This is something new for us. So that's why I see potentially another important revenue stream that will allow us to be strongly in internet aware of so far we've got a maybe it'll be weak, but the potential for <unk>.

Stefano Domenicali: Very helpful. Thank you.

Matthew Harrigan: Our last question today comes from Matthew Harrigan of Benchmark. Please proceed with your question. Thank you. As everyone knows, the LEGO Drivers Parade was marketing genius, incidentally. I have a question. You're really putting up 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.

Speaker Change: Thank you very much.

Speaker Change: ROE 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 difficult for the other proposition.

Derek: Thanks Derek.

Matthew Harrigan: Matthew Thank you for the question.

Speaker Change: Yeah, following up on on stuff and I called that out here, but.

Speaker Change: You know what Kevin was saying is absolutely right you're building an ecosystem you've got to find them here, where you are trying to bring in as many people who can do engagement to support certain platforms are historically have been more moderate.

Speaker Change: On a possible directly than others and but at the end of the day, we're not necessarily looking to maximize revenue on each particular platform on each particular contact contact that we have with our fan we aren't building me. The you know the.

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 going to get up and watch a race for two hours?

Speaker Change: A whole universe and the whole ecosystem here, so the fan sort of interact with us on social media, that's not instantly monetize them all that bad Mako and you know purchase and ask one sharp that pad may ultimately.

Stefano Domenicali: Thank you.

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

Speaker Change: I can't erase that fan may end up at in Las Vegas, One day I want to go to Grand Prix Grand Prix Panther that pad may tell their parents to start watching races. So I think that there are so many ways that we ultimately monetize sort of any of these points of contact that not every single.

Speaker Change: Point of contact that in itself has to be monetize so with that I will close the call for this quarter I want to thank all of you on the call who participated and and all the questions great questions that we received.

Stefano Domenicali: It would be wrong to believe that you can monetize everything straight away. And that's why on that, we have a strategy that needs to be diverse, but also very, very, very, very complete. We need to make sure that our engagement with our fans is not only two hours of the race or 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: We appreciate your support and look forward to continuing the dialogue. Thank you very much.

Speaker Change: Mhm.

Speaker Change: [music].

Derek Chang: This is something new for us. So that's why I see potentially another important revenue stream that will allow us to be strong in an area where so far we 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 for the other proposition. Thanks, Derek. Yeah, Matthew, thank you for the question and I just thought, you know, follow up on on Stefano and then we'll close it out here, but.

Speaker Change: Mhm.

Speaker Change: Hum.

Speaker Change: [music].

Derek Chang: You know, what Seveno is saying is absolutely right. You're building an ecosystem. You've got a funnel here where you are trying to bring in as many people as you can to engage with the sport. Certain platforms historically have been more monetizable directly than others. But at the end of the day, we're not necessarily looking to maximize revenue on each particular platform or each particular contact that we have with a fan. We are building the whole universe and the whole ecosystem here. So the fan sort of interacts with us on social media that's not instantly monetizable.

Speaker Change:

Speaker Change: Hum.

Speaker Change: Mhm.

Speaker Change: Hmm.

Derek Chang: That fan may go and purchase an F1 shirt. That fan may ultimately attend a race. That fan may end up in Las Vegas one day 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 that in itself has to be monetized.

Speaker Change: Hum.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: [music].

Speaker Change: Yeah.

[music].

Speaker Change: Hum.

Speaker Change: Hello.

Speaker Change: Oh.

Speaker Change: Mhm.

Derek Chang: 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 and all the questions, great questions that we received. We appreciate your support and look forward to continuing the dialogue.

Derek Chang: Thank you very much.

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