Q2 2025 Liberty Media Corp Earnings Call

August 7, 2025

Let me explain.

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

Welcome to the Liberty Media corporation's 2025, second quarter earnings call.

During the presentation, all participants will be in a listen-only mode afterwards. We will conduct a question and answer session at that time. If you have a question, please press star 1 on your telephone keypad. As a reminder, this conference will be recorded August 7th.

Shane Kleinstein: Thank you, and good morning. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Forms 10-K and 10-Q, filed by Liberty Media with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including Adjusted OIBDA.

I would now like to turn the call over to your host Shane kleinstein senior vice president investor relations. Please go ahead.

Thank you and good morning before we begin. We'd, like to remind everyone that this call includes certain forward-looking statements within the meeting 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, the most recent forms, 10K and 10, Q filed by Liberty Media, with the SEC.

These 4 looking statements speak only as of the date of this call and Liberty Media, expressly disclaims, any obligation or undertaking to defend me any updates or revisions to anyone. Looking statement contains here in to reflect any change in Liberty, media's expectations with regard to or any change in events conditions, or circumstances on which any such statement is based.

Shane Kleinstein: The required definition and reconciliation for Liberty Media Schedule one can be found at the end of the earnings press release issued today, which is available on our website. Speaking on the call today, we have Liberty President and CEO, Derek Chang, Liberty Chief Accounting and Principal Financial Officer, Brian Wendling, Formula One President and CEO, Stefano Domenicali, and MotoGP CEO, Carmelo Ezpeleta. Other members of management will be available to join for Q&A. And with that, I'll turn the call over to Derek.

On today's call, we will discuss certain non-gaap Financial measures for Liberty Media. Including addressed, the required definition and Reconciliation for Liberty Media. Schedule. 1 can be found at the end of the earnings press release issue today, which is available on our website.

Speaking on the call today, we have Liberty president and CEO Derek Chang Liberty Chief accounting and Principal Financial Officer. Brian Wendling Formula 1 president and CEO stepho Dominic Callie and Moto GP CEO Carlos Belleza

Derek Chang: Thank you, Shane. Good morning, everyone. It was an active Q2 at Liberty, which saw us progressing the initiatives we laid out to start the year. Regarding our planned split-off of Liberty Live, we filed the initial S-4 at the end of July and are now going through the customary review process. Chad Hollingsworth will be the CEO of Liberty Live Holdings once split-off occurs. Chad is a senior vice president at Liberty, has been our director of Live Nation since 2020 and is a natural person to oversee our investment. We expect to complete the split-off in Q4. Our next priority is supporting the growth and momentum at F1. The financial results were outstanding this quarter, alongside a flurry of new sponsors announced, promoter partners extended, and media rights agreements signed. Stefano will provide greater details shortly.

Other members of management will be available to join for Q&A and with that, I'll turn the call over to Derek.

Thank you, Shane. Good morning, everyone. It was an act of second quarter at Liberty, which saw us progressing the initiatives we laid out to start the year. Regarding our plans put off of Liberty Live, we filed the initial S4 at the end of July and are now going through the customary review process. Chad Hollingsworth will be the CEO of Liberty Live Holdings once. Split off occurs, Chad is a senior vice president. At Liberty has been our director of Live Nation since 22020 and is a natural person to oversee our investment. We expect to complete the split off in the fourth quarter.

Derek Chang: And finally, we completed our acquisition of MotoGP on 3 July 2025. We are now beginning fulsome work in helping management set their strategic direction to enhance the company's growth. Fortunately, the sport and ecosystem are both in a strong position, providing the foundation to build on for future success. While it's early, I'd like to outline what we see as near- and medium-term priorities for MotoGP. Starting with near-term objectives, first, we want to accelerate the build-out of certain commercial functions, which was already in progress prior to the close. This includes sponsorship and marketing teams in areas like sales, account management, research, public relations, and social media strategy. Second, we will lean into brand positioning to build off the new MotoGP brand campaign that launched last November.

Our next priority is supporting the growth and momentum at F1 the financial results were outstanding. This quarter alongside a flurry of new spawns sponsors announced promoter Partners extended and media rights agreements signed Stephano will provide greater detail shortly.

and finally, we completed our acquisition of Moto GP on July 3rd,

We are now beginning fulsome work in helping management set their strategic direction to enhance the company's growth.

Fortunately, the sport and ecosystem are both in a strong position. Providing Foundation to build on for future success.

While it's early, I'd like to outline what we see as near and medium-term priorities for Moto GP starting with near-term objectives, first, we want to accelerate the building out of certain commercial functions.

Which was already in progress, prior to the close. This includes sponsorship and marketing teams in areas like sales,

Account management, research, public relations and social media strategies.

Derek Chang: Efforts will include developing a more robust fan insights platform, tracking brand awareness and engagement to better inform commercial propositions for new and existing partners. The team has already started new content initiatives with specific focus on the US and UK markets. Third, we have begun collaborating with F1 to explore areas where we can accelerate business initiatives and share learnings. Some of these benefits will take time to materialize and be realized over the longer term. With respect to medium-term priorities, first, we intend to enhance the Grand Prix experience and turn each weekend into marquee events, very similar to the mandate in the early days of F1. This includes improving the hospitality offering and augmenting fan experiences on site, as well as ample opportunities to deepen our partnership with Quint. Second, we will expand the sport's global presence and broaden its appeal and reach.

Second, we will lean into the brand positioning to build off the new Moto GP brand campaign that launched last November.

Efforts will include developing a more robust fan. Insights platform tracking brand awareness and engagement to better inform commercial propositions for new and existing partners.

The team has already started a new content and initiatives with specific focus on the US and UK markets.

Third, we have begun collaborating with F1 to explore areas where we can accelerate business initiatives and share learnings some of these benefits will take time to materialize and be realized over the longer term.

With respect to medium-term priorities.

First, we intend to enhance the Grand Prix experience, and turn each weekend into Marquee events, very similar to the Mandate in the early days of F1.

This includes improving, the hospitality offering and August.

menteng fan experiences on site as well as ample opportunities to deepen our partnership with Quint

Derek Chang: The MotoGP team has a clear focus on capturing new fans and growing outside the motorcycle racing world, while maintaining its core traditional fans. They are already making progress in optimizing new race locations, including the recent announcement for a race in Buenos Aires in 2027, which strategically locates a track in an urban center, as well as a return to Brazil next year after a two-decade absence. We plan to target the US as a key growth market, given its limited presence today. Third, we need to scale sponsorship partners. As we know, this has massive potential, given the current heavy reliance on endemic names. Furthermore, there is clear low-hanging fruit, like unsold title sponsorships or vacant track-side advertising. However, we are also mindful that sponsorship sales cycles can be long, and the team will manage for the quality of partners with clear brand alignment.

second, we will expand the sports Global presence and broaden its appeal, and reach the Moto GP team as a clear focus on capturing new fans and growing outside the motorcycle racing World while maintaining its core traditional fans

They are already making progress in optimizing new race locations.

Including the recent announcement for race in Buenos Aires in 2027, which strategically locates a track in an urban center as well as a return to Brazil next year. After a 2 decade absence

The key graph Market given its limited presence today.

Third, we need to scale sponsorships Partners as we know this has massive potential given the current heavy Reliance on the endemic names.

Furthermore, there is clearly low-hanging fruit, like unsold title sponsorships, our bacon, and Trackside advertisements.

Derek Chang: In aggregate, while it is early days and will take time, we are very optimistic about the growth potential for MotoGP. One perspective on the potential opportunity is in reference to F1 on several engagement and financial metrics. For example, F1's audience in both race attendance and cumulative TV viewership is roughly double that of MotoGP, yet F1 monetizes its primary revenue streams at roughly five to ten times that, with sponsorship and hospitality at the higher end of that range. These monetization opportunities, again, will take time, but we believe there is significant potential to scale and grow the business. We'll look forward to updating you on our progress as these initiatives develop. Now, I'd like to welcome Carmelo to make some remarks on MotoGP. I've gotten to know Carmelo and his team over the past two months and have tremendous respect for the sport that he has built.

However, we are also mindful that sponsorship sales Cycles can be long and the team will manage for the quality of partners with clear brand alignment.

In aggregate while it is early days and will take time, we are very optimistic about the growth potential for Moto GP.

1 perspective on the potential opportunity is in reference to F1 on several engagement and financial metrics, for example,

F1's audience in both race attendance and cumulative. TV, viewership is roughly double that of Moto GP get F1 monetizes, its primary revenue streams at roughly 5 to 10 times that

With sponsorship and Hospitality at the high end of that range. These monetization opportunities again will take time, but we believe there are significant potential to scale from where the business

Derek Chang: His passion is second to none, and I will now turn it over to Carmelo so you can hear it from him directly.

We'll look forward to updating you on our progress as these initiatives developed. Now I'd like to welcome Carmelo to make some remarks on Moto GP, I've gotten to know Carmelo on his team over the past 2 months and have tremendous respect for the sport. That he had. Built his passion is second to none and I will now turn it over to Carlos so you can hear it from him directly.

Carmelo Ezpeleta: Good morning, and thank you, Derek. We are very excited that the transaction has closed, and we can now begin our partnership with Liberty Media. Liberty's track record with Formula One is well known, and the acquisition has already led to increased interest in our ecosystem. We look forward to benefit from Liberty's expertise as we continue to accelerate the sports growth and expand its reach to a wider audience, growing value for our fans, teams, commercial partners, and investors. The 2025 season has been very strong. We have held 12 races through the first half of the season and have seen thrilling competition and great engagement from our fans. We have had 5 riders and 4 teams win, and 11 riders across 8 teams on the podium, including our sprint races.

Carmelo Ezpeleta: The concession system in our sport is designed to drive more competition across the grid, giving lower-ranked manufacturers more testing opportunities to improve their technology quicker. This new system, which was put in place last year, is clearly having a positive effect, which we expect to continue. Through the first half of the season, attendance is up 6% on a like-for-like race basis. Notably, Le Mans set the highest attendance ever from the MotoGP championship since records began in 1995 for the third year in a row. Looking at recent races, the Italian Grand Prix saw attendance up 6% and set a new circuit attendance record, and the Dutch and German Grand Prix achieved record attendance at their circuits for the second consecutive year. From a viewership perspective, we have 38.2 million average TV viewers through the first 12 races of the season.

Good morning and thank you Eric. We are very excited that the transaction has closed. And we can now begin our partnership with Liberty Media. Liberty's track record with 401 is well known. And the opposition has already led to increased interest in our ecosystem. We look forward to benefit from Liberty's expertise, as we continue to accelerate the sports growth and span its reach to a wider audience, growing value, for our funds teams commercial partners and investors. The 2025 season has been very strong, we have held close races through the first part of the season and have since traveling competition and great engagement from our fans. We have had 5 Riders and 4 teams win an 11 Riders across 18th on the podium, including our experience races. The cation system in our sport is designed to drive more competition across the grid, giving lower Rank, and manufacturers more testing opportunities to improve.

Their technology quicker, this new system, which was put in place last year, is clearly having a positive effect, which we expect to continue through the first half of the season. Attendance is up 6% on a like-for-like race basis. Not only that, but we also set the highest attendance ever for the MotoGP Championship since record keeping began in 1995, marking the third year in a row. Looking at recent races,

Carmelo Ezpeleta: Engagement has been also very strong across digital channels, including our direct-to-consumer product, Video Pass. Social media followers reached almost 60 million, growing 6% year-over-year. Our new brand identity, launched at the end of last year, and our first-ever season launch event that we hosted in February, are resonating with fans as we continue to showcase MotoGP as a leading global media and entertainment brand. Our management team is looking forward to getting to know our investors and analysts' audience over the coming quarters, and to sharing our incredible sport with all of you. Now, I would like to turn the call back to Derek.

The Italian Grand priest show attendance up to 6% and set a new secret attendance record, and the Dutch and German Grand priest achieved records attendance, at their circuits for the second consecutive years. From a viewership perspective, we have 38.2 million AAS TV viewers through the first 12 races of the Season. An engagement has been also very strong across digital channels, including our direct to consumer product video, pass social, media followers, Richard almost 60 million growing 6% year-over-year. Our new brand identity launched at the end of last year, and our first ever season launched event that we hosted in February and resonating with fans as we continue to Showcase Moto GP as a leading Global media and entertainment brand. Our management team is looking forward to getting to know our investors analysts audience over the coming quarters, and to sharing our incredible Sport with all of you. Now I will like to turn the

Call back to get it.

Derek Chang: ... Thanks, Carmelo. We are thrilled to have you and your team on board, and are looking forward to further showcasing the MotoGP asset in due course. Now I'll turn it over to Brian for more on Liberty's financial results.

Thanks Carmelo.

Brian Wendling: Thank you, Derek, and good morning, everyone. At quarter end, Formula One Group had attributed cash and liquid investments of $3.1 billion, which includes $1.8 billion of cash at Formula One and $70 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 the OpCo level, leaving $525 million at the corporate level. F1's $500 million revolver is undrawn. The MotoGP acquisition closed on 3 July 2025. Liberty acquired 84% of MotoGP, with management retaining a 16% ownership stake.

We are thrilled to have you and your team on board and are looking forward to further. Showcasing the Moto GP asset in. Due course, now I'll turn it over to Brian for more on Liberty Financial results.

Thank you, Derek, and good morning, everyone.

At quarter end Formula, 1 group had attributed cash and liquid Investments of 3.1 billion which includes 1.8 billion of cash at Formula 1 and 70 million of cash at Quinn. Total Formula 1, group attributed, principal amount of debt was 2.9 billion. A quarter end which includes 2.4 billion of debt at the opco level leaving, 525 million at the corporate level.

F1's 500 million revolver is undrawn.

Brian Wendling: Pro forma for the transaction, F1 OpCo had approximately $380 million of cash and $3.4 billion of debt, bringing pro forma leverage to 3.3 times compared to 0.7 times reported as of 30 June. Formula One Group Corporate had pro forma cash of approximately $480 million, and no change to the debt balance. Shortly following transaction close, we launched a refinancing at MotoGP that is expected to close later in August. We priced approximately $230 million of new term loan A, denominated in US dollars, a new EUR 800 million term loan B, and a new EUR 100 million multicurrency revolver, with future reductions in margin expected as the business delevers.

The Moto GP acquisition closed on July 3rd, Liberty, acquired, 84% of Moto GP with management retaining, a 16% ownership stake.

And 3.4 billion of debt bringing proforma leverage to 3.3 times compared to 7, uh, times reported, as of 630 Formula, 1 Group, corporate had Proform and cache of approximately 480 million and no change to the debt balance.

Brian Wendling: This new capital structure will result in significantly reduced annual interest expense, extended maturities, and a currency mix that better reflects the euro and US dollar exposure of the business. Using June 30 balances, exchange rates as of at that date and pro forma for the refinancing transactions, MotoGP had US dollar cash of $187 million in cash and liquid investments, and principal amount of debt in US dollars of $1.2 billion. MotoGP's net leverage as of June 30 and pro forma for the refinancing transactions is 5.2x. In the near term, we expect to delever both at Formula One and MotoGP. Our goal is to delever to the 3 to 4x range of the MotoGP business by the end of 2026.

Shortly following transaction closed. We launched a refinancing uh at Moto GP that is expected to close later. In August, we priced approximately 230 million of new Term Loan, a denominated in US Dollars, a new 800 million euro Term Loan b and a new 100 million euro multicurrency revolver with future reductions in margin expected as the business D, levers.

This new capital.

Structure will result in significantly reduced annual interest expense extended maturities and a currency mix that better reflects the Euro and US dollar exposure of the business.

Using June 30th exchange rates as of, uh, that date and proforma for the refinancing transactions Moto GP, had US dollar, uh, cash of 187 million in liquid Investments, that cash and liquid Investments and principal amount of debt in US Dollars of 1.2 billion.

Moto GP is not leveraged as of 6:30 and proforma for the refinancing transactions is 5.2 times.

In the near term. We expect to de-lever both at Formula 1 and Moto GP

Brian Wendling: Turning to the F1 business, I'll make some brief comments on the second quarter, but we'll focus primarily on year-to-date comparisons, which better reflect the state of the business, given variability in quarterly race numbers and mix. A reminder that every quarter in 2025 will have a different race count and mix, which will impact quarterly comparisons. Most of the variability in Q2 year-over-year results is due to 1 additional race held in the mix of events in the second quarter compared to the prior year period. Q2 2025 held 9 races compared to 8 races in 2024, with Bahrain and Saudi Arabia occurring in the current period compared to China in the prior year period. Year-to-date, though, through the second quarter, F1 had the same race count and mix year over year.

Our goal is to deliver to the 3 to 4 times. Uh, range at the Moto GP business by the end of 2026.

Turning to the app 1 business. I'll make some brief comments on the second quarter, but we'll focus primarily on year to date comparisons, which better reflect the state of the business given variability in quarterly, race numbers and mix a reminder that every quarter in 2025 will have a different race count and mix, which will impact quarterly comparisons.

Most of the variability in Q2 year-over-year results is due to 1 additional race held in the mix of events and the second quarter compared to the prior year period.

Q2 255 held 9 races compared to 8 races in 24 but by rain in Saudi Arabia in the current period compared to China and the prior year period.

Brian Wendling: The business is performing incredibly well, with revenue up 14% and Adjusted OIBDA up 21%. Revenue grew across all revenue streams, with sponsorship, race promotion, and media rights continuing to benefit from new partners and underlying growth in the existing contracts. Media rights also continued to see strong F1 TV growth and recognized one-time revenue associated with the Apple, F1 movie in Q2. Other revenue increased, primarily driven by higher freight, hospitality, and licensing revenue, including the success of the new LEGO partnership. Adjusted OIBDA increased on a year-to-date basis, with revenue growth outpacing increased expenses. Other costs of F1 revenue increased primarily due to higher freight costs from the mix of routes flown, as well as higher hospitality costs, primarily driven by increased Paddock Club attendance and higher commissions and partner servicing costs, including increased costs to service new sponsorship agreements.

Year to date though, through the second quarter F1 had the same race count and mixed year-over-year.

Is performing incredibly well with Revenue up 14% and adjusted way about 21%.

Revenue grew across all revenue streams, with sponsorship, race promotion, and meteorites continuing to benefit from new partners and underlying growth in the existing contracts. Meteorites also continued to seek strong F1 TV growth and recognized one-time revenue associated with the Apple F1 movie in the second quarter.

Other Revenue increased primarily driven by higher Freight hospitality and Licensing Revenue, including the success of the new Lego partnership.

Adjusted webinar increased on a year-to-date basis, with revenue growth outpacing increased expenses. Other costs of F1 revenue increased primarily due to higher freight costs from the mix of routes flown, as well as higher hospitality costs. This was primarily driven by increased Paddock Club attendance and higher commissions in partner servicing costs, including increased costs to service new sponsorship agreements.

Brian Wendling: SG&A expense increased year to date, primarily due to higher marketing and personnel expenses. Marketing expense was impacted by the O2 launch event that occurred during the first quarter, and team payments increased due to the pro rata recognition of expected higher team payments for the full year. Team payments as a percentage of pre-team share Adjusted OIBDA were 58.4% year to date, compared to 61.9% the prior year period. A quick reminder that team payments should be analyzed on a full year basis due to quarterly fluctuations in team payments as a percent of Adjusted OIBDA. A reminder that team payments as a percent of pre-team share Adjusted OIBDA were 61.5% for full year 2024, and we continue to expect to see leverage against the full year 2024 percentage for the full year of 2025.

sg&a expense, increased year to date, primarily due to higher marketing, and Personnel expenses marketing expense was impacted by the 02 launch event, that occurred during the first quarter,

Uh and team payments increased due to the pro-rata recognition of expected higher, team payments for the full year.

Team payments as a percentage of pre-teen share adjusted away but over 58.4% year to date compared to 61.9% the prior year period.

The quick reminder that team payments should be analyzed on a full year basis. Due to quarterly fluctuations in team payments, as a percentage, adjusted way better.

A reminder that team payments is a percentage share.

Brian Wendling: Turning briefly to MotoGP's results, a reminder that since the transaction closed on 3 July, MotoGP results will not be consolidated until Q3. All financial information for the business to date has been in Spanish GAAP, and we expect various US GAAP adjustments, including the removal of straight-line revenue and cost recognition for multiyear contracts. Under US GAAP, we expect growth rates for primary revenue streams with multiyear contracts to more closely approximate the annual escalators included in the contracts, obviously absent the impact of any significant renewals, which will differ from the relatively flat Spanish GAAP representation included in our financial disclosure to date. We expect to provide results for the full year 2024 in US GAAP at year-end, as part of our normal reporting.

Adjusted away but we're 61.5% for full year 24 and we continue to expect to see leverage against the 20 full year 24 percentage for the full year of 2025.

Brian Wendling: More information can be found in the information pack on MotoGP that was posted to our website at the time the acquisition closed, and a table summarizing 30 June year-to-date results in Spanish GAAP can be found in a trending schedule that will be posted to our website after the 10-Q is filed. MotoGP held 10 races in the six-month period ended 30 June 2025, compared to 8 races in the prior year period. Spanish GAAP revenue and EBITDA were EUR 220 million and EUR 75 million, respectively, for the six months ended 30 June 2025. Year-over-year comparisons are impacted by the mix of races, as flyaway races in general carry a higher cost per race. For the full year 2025, we expect a normalized race calendar, unlike 2024, which was impacted by several race cancellations.

Turning briefly to moto gp's results, a reminder that since the transaction closed on July 3rd, Moto GP, results will not be Consolidated until the third quarter. All financial information for the business today has been in Spanish Gap and we expect various us gaap adjustments, including the removal of straight line revenue and cost recognition for multi-year contracts under us. Gaap we expect growth rates for primary revenue streams with multi-year contracts to more closely approximate. The annual escalators included in the contracts. Uh, obviously absent, the impact of any significant renewals, uh, which will differ from the relatively flat, Spanish Gap, representation included, in our financial disclosure to date, we expect to provide results for the full year, 2024 and us gaap at year end. Uh, as part of our normal reporting.

And a table summarizing 6:30 year today results in Spanish Gap can be found in a trending schedule that will be posted to our website after the 10 CE is filed.

Moto GP Health, 10 races. Uh, in the 6-month period ended 63025 compared to 8 races in the prior year period.

Spanish, gaap, revenue, and ibida were 220 million euro and 75 million euro respectively, for the 6 months. Ended 63025.

Year-over-year comparisons, comparisons are impacted by the mix of races as Flyway races in General carry a higher cost per race.

Brian Wendling: Note that the second half of the year contains a higher mix of races with greater profitability. The majority of MotoGP's revenue and costs are euro-denominated. Going forward, we intend to provide both US dollar and euro-denominated growth rates to better portray underlying trends in the business. Lastly, looking briefly at the corporate and other results year to date, revenue was $198 million, which includes Quint results and approximately $12 million of rental income related to the Las Vegas Grand Prix Plaza. Corporate and other adjusted OIBDA loss was $4 million, includes Grand Prix Plaza rental income, Quint results, and corporate expenses. As a reminder, Quint's business is seasonal, with the largest and most profitable events taking place in Q2 and Q4.

For the full year 2025. We expect a normalized race calendar on like 2024 which was impacted by several race. Count. Cancellations.

note that the second half of the Year contains a higher mix of races with greater profitability,

The majority of MotoGP's revenue and costs are euro-denominated going forward. We intend to provide both U.S. dollar and euro-denominated growth rates to better portray underlying trends in the business.

Brian Wendling: Turning to the Liberty Live Group, there's attributed cash of $308 million and $400 million of undrawn margin loan capacity related to our Live Nation margin loan. As of August 6, the value of the Live Nation stock held at Liberty Live Group was $10.4 billion. We have $1.15 billion in principal amount of debt against these holdings. Liberty and F1 are in compliance with our debt covenants at quarter end. With that, I'll turn it over to Stefano to discuss Formula One in more detail.

Brian Wendling: Turning to the Liberty Live Group, there's attributed cash of $308 million and $400 million of undrawn margin loan capacity related to our Live Nation margin loan. As of August, the value of the Live Nation stock held at Liberty Live Group was $10.4 billion. We have $1.15 billion in principal amount of debt against these holdings. Liberty and F1 are in compliance with our debt covenants at quarter end. With that, I'll turn it over to Stefano to discuss Formula One in more detail.

Uh, lastly looking briefly at the corporate and other results here today, Revenue was 198 million which includes Quint results and approximately 12 million of rental income related to the Las Vegas Grand, Prix, Plaza, corporate and other adjusted oil oil, oil loss was 4 million. Includes Grand, Prix Plaza, rental income, Quint results and corporate expenses as a reminder quint's. Business is seasonal with the largest and most profitable events taking place in Q2 and Q4.

turning to the Liberty Live group, there's attributed cache of 308 million and 400 million of, undrawn margin loan, capacity related to our Live Nation marginal,

As of August 6th, the value of the Live Nation stock held at Liberty was $10.4 billion.

We have 1.15 billion in principal amount of debt against these Holdings.

Liberty and F1 are in compliance with our debt covenants and quarter end. And with that, I'll turn it over to Stephano to discuss Formula 1 in more detail.

Stefano Domenicali: Thanks, Brian. It continues to be an incredible season as we head into a well-deserved summer break for our F1 community. We've witnessed a thrilling competition and on-track action that shows everything Formula One represents. Several drivers across the grid have stood on the podium this season, demonstrating the depth of talent across the grid. What is equally impressive is our competitive midfield battles. Every single team down to 10th place has scored meaningful points this season. I'd like to take a moment to congratulate Nico Hülkenberg on achieving his first podium at Silverstone, a moment that perfectly captured the unpredictability and human stories that makes F1 so captivating. Our fans are showing up in larger numbers than ever, with impressive engagement across metrics. Attendance has been solid, with nearly all events operating at capacity.

Thanks Brian. It continues to be an incredible season as we head into a well-deserved summer break for our F1 Community. We've witnessed a thrilling competition. And on track action, that shows everything from 1 represent several drivers across the grid have stood on the podium. This season demonstrating the death of talent across the globe.

What is equally impressive is our competitive midfield battles. Every single team down to 10th place has a quarter of meaningful points this season.

I'd like to take a moment to congratulate Nico hulkenberg on achieving his first Podium at SilverStar. A moment that perfectly captured, the unpredictability and human stories that makes F1 so captivating.

Our fans are showing up in larger numbers than ever with impressive engagement, across metrics.

Stefano Domenicali: 12 of the past 40 races sold out, and 6 races set new attendance records, including Silverstone, while coming close to 500,000 fans over the four-day weekend. At the Paddock Club, we've sold 28,000 tickets this season to date through Hungary. Early forecasts, based on advanced partner requests, are already indicating strong demand for 2026. Looking at TV viewership for the 2025 season, nearly every race is showing healthy growth in year-over-year live viewership across F1 top 15 markets. Key large European markets have seen robust growth, including Germany, the UK, and France, as well as our non-European markets like the US, Australia, Canada, and Brazil. In the US, in particular, live viewership is up 7% season to date compared to last year, and ESPN has seen several races set viewership records for their events.

Attendance has been solid with nearly all events operating at capacity 12 of the past 40 races sold out and 6 races set a new attendances records including Silverstone while coming close to 500,000 fans over the 4-day weekend.

At the B Club, we've sold 28,000 tickets this season to date through Hungary. Early forecasts, based on advanced partner requests, are already indicating strong demand for 2026.

Stefano Domenicali: Our additional race content is benefiting total viewership, with live audiences for the sprint race in Miami up to 35% year-over-year, attracting the largest US audience for a sprint race since the format was introduced in 2021. Perhaps even more impressive is our traction on digital and social platforms. Viewership of F1 highlights on our YouTube channel grew 30% compared to last year, and over half of this audience is under 35. Our social media followers reached 106 million, growing over 20% year-over-year, primarily driven by TikTok, Instagram, and YouTube. F1 remained the fastest growing major sport property on social platforms.

Looking at to, at TV, viewership for the 25th is showing Healthy Growth in year-over-year, live viewership across F1 top 15 markets, Kayla's European markets, have seen robust growth, including Germany, the UK and France as well. Our non-european markets like the US Australia, Canada, and Brazil. And the US in particular. Live viewership is up 7% season to date compared to last year. And ESPN has seen several races set viewership records for their events.

Our additional race content is benefiting total viewership with live audiences for the Sprint race in. Miami up to 35% year-over-year attracting the largest US audience for a Sprint race since the format was introduced in 2021.

Perhaps even more impressive, is our traction on digital and social platform, viewership of F1 highlights on our YouTube channel grew 30% compared to last year and over half of these audiences under 35.

our social media followers reached the 106 million growing over 20% year-over-year primarily driven by Tik Tok Instagram and YouTube

Stefano Domenicali: Driven by both an exciting season on track and cultural buzz around the F1 movie, F1 drew its largest reach ever on social media in Q2, with over 20 billion total social impressions, growing over 100% compared to Q2 of the last year. In June, the F1 movie was released to the world. The movie was the largest global opening weekend ever for a Brad Pitt film and was shown on more than 44,000 screens across 80 markets. In its first 5 weeks, the F1 movie saw global box office sales over $500 million, becoming the highest grossing Apple film to date. The film will be released on Apple TV later this year and will continuously strengthen fan engagement with our sport. It's worth emphasizing the scale of our total global fan base.

F1 remained, the fastest growing major sport property or social platform.

Both an exciting season on track and cultural buzz around the air for movie F1 drew its largest reach ever on social media. In the second quarter, with over 20 billion total social impressions growing over 100% compared to the second quarter of last year.

In June, the F1 movie was released to the World, the movie was the largest global opening weekend ever for abruptly film and was shown on more than 44,000 screen across 80 markets in its first 5 weeks, the F1 movie is so Global box. Office sales, over 500 million, the comment. The highest grossing Apple thing to date. The film will be released on Apple TV later this year and will continue to strengthen fun engagement with our sport.

Stefano Domenicali: As Nielsen reported earlier this year, the F1 fan base reached a record number of 826 million in 2024. 43% of these fans are under 35, and 42% of our fans are female, the highest share in F1 history for both segments. Additionally, we recently publicized results from a global fan survey conducted by Motorsport Network. 27% of the survey respondents were under 24 years old, and half of these were female. 75% of the fans who became interested in the sport in the last year were female. Importantly, for our commercial business, 1 in 3 fans are more likely to consider a purchase if it is from an F1 partner. We will continue to cultivate this fan base in creative ways to interact with Formula One on race, on non-race weekend alike.

His full sympathizing the scale of our total Global fan base as needs and reported earlier this year. The F1 fan base reached the record number of 826 million in 2024. 43% of these fans are under 35 and 42% of. Our fans are female, the highest share in F1 history for both segments.

Stefano Domenicali: Growth in our fan engagement is translated to strong interest from commercial partners, generating continued financial strength. In our race promotion business, we renewed the Austrian Grand Prix through 2041, and the Canadian Grand Prix through 2035, reflecting the confidence our partners have in F1 value and growth trajectory. We also announced our 2026 calendar. We are excited to welcome Madrid to the F1 family as a new race beginning next year. 2026 marks the final lap for Zandvoort, and we are tremendously grateful for all our promoter has done to delight fans since they returned to the calendar in 2021. We look forward to welcoming one of the numerous interested nations and city to this slot in 2027 and beyond.

Additionally, we recently booked a side result from a global fence, survey conducted by Motorsport. Network 27% of the survey responded where on the 24th and half of these were female. 75% of the fan will became interested in the sport in the last year where female importantly for our Commercial Business, 1 in 3 F and more likely to consider a purchase. If it is from an F1 partner, we will continue to cultivate this fan base in creative ways to interact with former 1 race on non race, we can alike.

Growth in our fun engagement is translated to strong. Interest from commercial Partners, generating continued Financial. Thanks

In our race promotion business with a new, the Austrian Grand Prix through 2041 and the Canadian Grand Prix. 20 through 2035 reflecting the confidence, our pattern, having a for value and growth trajectory

Stefano Domenicali: The 26 calendar also advanced our continued improvement in the geographic flows of races, with the Canadian Grand Prix now following Miami, driving expected freight efficiency and consolidating our European races into one unbroken run over the summer months. For Las Vegas Grand Prix, we are very happy with the progress made so far this year. Our ticket sales are trending ahead of last year, driven by higher sell-through rates. We have agreed to contract extension with all our founding partners and are working to secure long-term procurement contracts to reduce future build-out costs. We and our partners see the incredible value of this race as we continue to build it for long-term success. Turning to media rights, we are finalizing contract in several regions, including Japan, Australia, Pan Asia, Mexico, and Latin America.

We also now our 26 Calendar, we are excited to welcome Madrid. To the F1 family as a new race beginning. Next year, 2026 marks the final lap for zombear and we have tremendously grateful for all. Our promoter has done to the light fun since they returned to the calendar in 2021, we look forward to welcoming 1 of the numerous interested Nations and City to this slot in 2027 and Beyond.

The 26 Calendar, also Advanced our continuing in the OS of races with the Canadian Grand Prix. Now, following Miami driving expected Freight, efficiency and consolidating our European races into 1 unbridled.

For Las Vegas. Grand Prix. We are very happy with the progress made so far. This year our ticker sales are trending ahead of last year treated by higher self through rates.

We have agreed to a contract extension with all our founding partners and are working to secure long-term procurement contracts to reduce future build-out costs.

We and our partners, see the incredible value of this race, as we continue to build it for long-term success.

Turning into meteorites. We are finalizing contract in several regions including Japan. Australia.

Stefano Domenicali: We continue to make progress on our US media rights agreement and are confident in our attractive position in the US market. Nielsen reported the American fan base grew over 10% to 52 million fans in 2024, and the US remain our largest market on social. We continue to focus on securing the ideal partner to support our broader commercial strategy for continued growth in the US market. In Brazil, we have secured a return to Globo TV for 2026, who previously held our rights for 40 years. This platform has the largest share of the total viewer in Brazil and commands over 50% of the free-to-air broadcasting market. Additionally, alongside our race promotion renewal in Canada, we also contracted a long-term extension to Bell Media's media rights deal.

Pan Asia Mexican and Latin America. We continue to make progress on our Us Media, right agreement and are confident in our attractive position. In the US market Nelson reported. The American found base grew over 10% to 52 million fans in 2024, and the us remain our largest markets on social.

Stefano Domenicali: F1 TV continues to outperform our expectations, with especially robust growth in the US, UAE, Canada, Brazil, and Sweden, and with the new premium tier offering seeing strong uptake. Our sponsorship was entering 2025 with the high visibility into our pipeline, and I'm very pleased with the significant new partnership activity we have announced. MSC Cruises extended as our global partner through 2030, and we welcome Pepsi as an official partner, bringing their powerful portfolio, including Doritos, Gatorade, and Sting Energy, into the F1 ecosystem. With this incredible success benefiting our 2025 result, our team is now focusing attention on our pipeline for 2026 and beyond. I'm confident in our progress on several high-value renewals and new partnerships that will drive continued growth. On our other revenue stream, looking first at the Paddock Club.

We continue to focus on, securing the ideal partner to support our broader commercial strategy, for continued growth in the US market. In Brazil, we have secured a return to Global TV for 2026, who previously held our rights for 40 years. This platform as the largest share of the total viewer in Brazil and commands over. 50% of the free-to-air broadcasting Market. Additionally alongside our race promotion renewal in Canada. We also contracted the long-term extension to Bell media's media rights deal.

F1 TV continues to outperform our expectations with special robust growth in the US, UAE Canada, Brazilian Sweden. And with the new premium, tier offering since strong uptake

Our sponsorship.

partnership activity, we have announced

MC cruises extended as our Global partner to through 20130. And we welcome Pepsi as an official partner bringing their powerful portfolio included Doritos gather it and sting energy into the F1 ecosystem.

With this incredible success benefit in our 2025 result, our team is now focusing attention on our pipeline for 2026 and Beyond. I'm confident in our progress on several high value renewals and new partnership that will drive continued growth.

Stefano Domenicali: We continue innovating our premium hospitality product, including leveraging key learnings from Las Vegas, to diversify and enhance this experience. We were excited to announce House Forty-Four, a partnership with Lewis Hamilton, Soho House, and F1, that will launch at six circuits this year, beginning in Silverstone. We believe there are additional innovative products to come. Licensing remains a continual area of focus and growth. F1's new partnership with Disney is the latest example of our effort towards F1's always-on strategy, bringing F1 into the lives and homes of our fans beyond 24 races a year. We will deliver a 360-degree licensing program with Mickey and Friends across consumer product categories, retail, track site activation, and experience, and are thrilled to launch this partnership in 2026. Our LEGO partnership also continues to show strong growth and generate buzz on social.

On our other Revenue stream looking first at the path club. We continue innovating our premium Hospitality product, including leveraging key learnings from Las Vegas to diversify and enhance this experience.

We were excited to announce house 44, a partnership with Lewis Hamilton so house. And F1 that we launched at 6 circuit this year. Beginning in the silver, we believe there are additional Innovative products to come

License remain. A continued areas of focus and growth f1's. New partnership with Disney is the latest example of our affordable was f1s always on strategy, bringing F1 into the lives and homes of our fans Beyond 24 races a year.

We will deliver a 360-degree licensing program with Mickey and friends across consumer product categories. Retail track, site activation, and experience, and we are thrilled to launch this partnership with 2026.

Stefano Domenicali: LEGO marketing activation hit over 21 billion in reach this year. Across our consumer product business, our partners sold 12 million units of product in Q1 2026. We will see a number of new licensed products launching across soft and hard lines. In experiential licensing, F1 Arcade globally welcomed over 200,000 guests through its door in Q2 alone. The third US venue in Philadelphia opened at the end of May, and Denver, Las Vegas, and Chicago will open in Q4. We are also pleased to report that the F1 Exhibition now surpassed 1 million tickets sold. Turning to Grand Prix Plaza, the new activation launched to the public in May, capitalized on the F1 brand to promote the site as a premier destination in Las Vegas. The venue has welcomed visitors from 72 different countries since opening.

On Lego partnership. Also continue to show strong growth and generate the pass on social League of marketing activation, hit over 20 1 billion in reach this year, across our consumer product business. Our partners sold to 12 million units of product in q1 2026. We will see a number of new licensed product, launching across soft, and Hot Lights.

In exponential licensing. A fork globally welcomed over 200,000 guests through its store in the second quarter alone. The third Year's venue in Philadelphia Philadelphia opened it. At the end of May and Denver, Las Vegas, and Chicago will open in the fourth quarter.

We are also pleased to report that the F1 exhibition. Now surpassed 1 million tickets sold

Turn into Grand Prix Plaza. The new activation launched to the public in May capitalize, on the F1 brand to promote the site as a premier destination in Las Vegas.

Stefano Domenicali: ... We believe our karting operation is now the second highest grossing track in the country, exceeding 1,000 riders a day on the weekends, with strong and growing revenue per person. It is, however, still early days, and the overall revenue contribution is modest. Finally, we hope many of you saw our F1 75 motion activation, marking 75 years of F1 through a vintage-inspired premium pop-up at luxury retail Selfridges in London. Originally planned as a two-week activation, it was extended due to exceptional demand. Finally, on sustainability, in July, we published our 2025 update, highlighting our continued commitment to sustainable growth and progress to date. We achieved a 26% reduction in emission in 2024 versus our 2018 baseline, ahead of internal expectation.

The venue has welcomed visitor from 72 different countries since the opening, we believe our cutting operation is. Now the second highest grossing track in the country exceeding 1,000 Riders a day on the weekends, we strong and growing Revenue per person. It is however still early days and the overall Revenue contribution is modest.

And finally, we hope many of you saw our f175 motion activation marking. 75 years of F1 through a vintage inspired premium pop-up at luxury retail shop in London. Original plan as a 2 week activation, it was extended 2 to exceptional demand.

Stefano Domenicali: This achievement is particularly noteworthy against the backdrop of more races and bigger events, demonstrating that we can grow sustainably while expanding our global footprint. As we look ahead, Formula One's momentum across every dimension of our business positions us well for the continued growth. The foundation we are building today will drive long-term value creation for all our partners and stakeholders. Avanti tutta! Full speed ahead. And now, I will turn the call back over to Derek. Ciao. Thank you.

Finally, on sustainability, in July, we published our 2025 update highlighting our continued commitment to sustainable growth and progress to date. We achieved our 26% reduction in emissions in 2024, based on our 2018 baseline, ahead of internal expectations. This achievement is particularly notable in North America against the backdrop of more races and bigger events, demonstrating that we can grow sustainably while expanding our global footprint.

As we look ahead for 1's momentum across every dimension of our business position as well, for the continued growth, the foundation. We are building today will drive long-term value, creation for all our partners and stakeholders Full Speed Ahead. And now, I will turn the call back over to Derek ciao. Thank you.

Derek Chang: Thank you, Stefano, and thank you, Brian. Before going to Q&A, I want to remind you to save the date for this year's Liberty Media Investor Day. We will be hosting our Investor Day alongside the inaugural F1 Business Summit on Thursday, 20 November, in Las Vegas, in advance of this year's Grand Prix. We will have limited in-person attendance, but the Investor Day will be webcast. Stay tuned for more details. We appreciate your continued interest in Liberty Media, and now we would like to take questions. Operator?

Thank you, Stephanie. And thank you, Brian before going to Q&A. I want to remind you to say the date for this year's Liberty Media investor day. We will be hosting our investor day. Alongside the inaugural F1 business Summit on Thursday, November 20th in Las Vegas in advance of this year's Grand Prix.

We will have limited in-person attendance but the investor day will be webcast, stay tuned for more details.

We appreciate your continued interest in Liberty Media. And now we would like to take questions.

Operator: Thank you. At this time, we'll be conducting a question-and-answer session. If you'd 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'd like to remove your question from the queue. One moment, please, while we poll for questions. Our first question comes from David Kamovowski with JP Morgan. Please proceed with your question.

Operator.

To remove your question from the queue.

1 moment, please while we pull up for questions.

David Karnovsky: Hey, thank you. For Derek or Stefano, you know, obviously, there's been a lot in the press on the US media rights. Maybe you can update us on where things stand with the process. How are you thinking about priorities in terms of reach versus payment, and what role F1 might, F1 TV might play? Thank you.

Our first question comes from David kmav, with JP Morgan please proceed with your question.

Hey, thank you, uh, for Derek or Stephano. You know, obviously there's been a lot in the Press on the US meteorites. Uh, maybe you can update us on where things stand with the process. How are you thinking about priorities in terms of reach versus payment? And what role F1 might uh F1 TV might play. Thank you.

Stefano Domenicali: Derek, if I may, I can start, if it's okay for you?

Derek Chang: Yeah. Absolutely.

Stefano Domenicali: Well, thanks, David, for the question. I think that, as you said, I will start from the last of your remarks. F1 TV is and has to be, and it will be part of the package of what we are negotiating now into the future. This is absolutely relevant, because as you have seen, David, the numbers are growing. There is an incredible opportunity for us to stay connected with our, let's say, fan base that is maturing and is growing in term of attention, in term of knowledge. And of course, you know, the discussion we are having are in a good place because we believe that we are, as I said, very good opportunity to keep the momentum that it is very strong in US.

If I may I can start if it's okay for you. Yeah, absolutely. Thanks David for the question. I think that

Stefano Domenicali: And just, I think yesterday, there will be the indication that, this year we were over 1 million follower on the races in US. That is really great. So we are progressing our negotiations. Of course, there are, weeks in front of us. We have not a great rush to finalize everything, because we want to make sure that, as you said, we find the right solutions. One thing that I definitely can add is, we are looking for, I would say, midterm, not long-term, midterm, agreement, because we believe that we are still in a position that, our growth will, will have the chance even further to be negotiated better in the future. But everything is looking good, and, and, and the balance is definitely important, as you said, between reach and, and awareness.

I think that as you said, I will stop for the last of your remarks F1 TV is and has to be, and it will be part of the of the package on what we have. Negotiated now into the future, this is absolutely relevant because as you have seen David, the numbers are growing. There is an incredible opportunity for us to stay connected with our, let's say fan base. That is a mature and is and is growing in some of attention in 10th. And of course you know the the the the the the the the discussion, or we are having are in a good place because uh we believe that we are, as I said, very, very good opportunity to to keep the momentum that it is very strong in us and just I think yesterday

Stefano Domenicali: But, we believe that everything is progressing according to our plan.

It will be the indication that uh this year, we were over 1 million follower on the races in us, that is really great. So we are progressing our negotiations. Of course, there are weeks in front of us. We have not a great rush to finalize everything because we want to make sure that, as you said, we find the right Solutions. Uh, 1 thing that they definitely can add, is we are looking for. I would say, midterm, not long term midterm, uh, agreement because we believe that we are seeing the position that our growth will, will have the chance even further to be negotiated better in the future, but everything is looking good. And, and, and the balance is definitely important as you said between rich, and and awareness. But, uh, we believe that everything is progressing according to our plan,

Derek Chang: Thanks, Stefano. And I would just add that, you know, as we continue to look at the US market, we are very pleased with the progress we've made over the last few years with the addition of the races that we have here and sort of the engagement that we're seeing and look forward... And the fact that the business has been built in the US and what that doing to help promote and foster the sort of robust discussions that we're having, and look forward to having this next deal take us into the future.

Thanks, Stephanie. I would just add...

You know, as we continue to look at the US market, we are very pleased with progress we've made.

David Karnovsky: Okay. Then maybe just one on the Las Vegas Grand Prix. It'd be great to hear a bit more about the on-sale process for the year, how the strategy is starting at a lower price point is paying out, and does that plus what you could do on expense management, I don't know, inform any view on the ultimate kind of contribution of the race to the financials for the year? Thank you.

Um, over the last few years with with the addition of the races that we have here and sort of the engagement that we're seeing and look forward. And that and and the fact that the business has been built in the US and what that doing to help promote the and Foster, the, the sort of robust discussions that we're having and look forward to having this next deal, take us into the future.

Okay, and then maybe just 1 on the Vegas. Uh, Grand Prix via great to hear a bit more about the on sale process for the year. How the strategy is starting at a lower price point is paying out and um does that plus what you could do on expense management? I don't know inform any of you on on the ultimate kind of contribution of the race to the financials for the year. Thank you.

Stefano Domenicali: Well, I can definitely say that Vegas is progressing very, very good according to our plan. If I go specific to your question, is definitely what we have done differently from the previous year. That has been the first year of that experience. We definitely start with the price that is pretty clear, will not drop down. And this has been very, very clear, and the package that we have sold is following this direction. And we definitely believe that, of course, from this year onwards, the contribution of Vegas Grand Prix in terms of economic input will be definitely much more important than what has been so far in the first two years.

Well, I can definitely say that the vagus is, is progressing, very, very good according to our plan. Uh, if I go specifically to your question is definitely what we have done differently for the last, from the previous year that has been the first year of of that experience. We definitely start with the price. That is pretty clear with no drop down and, and, and, and this has been very, very clear and the package that we are sold is, is, is following this direction. And, and we definitely believe that, of course, from this year onwards, the contribution of the biggest from print of the input will be definitely much more important than what has been so far in the first 2 years.

Stephen Laszczyk: ... Yeah, and I would just add, and, you know, a huge shout-out to Stefano and the whole F1 team, the LVGP team, because the amount of progress they've made this year has been, you know, pretty impressive as we've had, you know, at the beginning of the year, talked about what needed to get done there, both on the expense side as well as the revenue side. And as Stefano talked about in his comments earlier, I think we've got the agreements in place with our partners in Las Vegas. I was just out there a couple weeks ago, and I think the enthusiasm for where the race stands, and where we're going with this thing is pretty palpable and I think puts us in really good shape going forward.

Yeah, and I would just add and uh, you know, a huge shout out to Stephano and the whole F1 team, the lvgp team because the amount of progress they've made this year has been, you know, pretty uh, impressive. As we've had, you know, at the beginning of the year, talked about what needed to get done there, both on the expense side as well as the revenue side and the stuff. And I talked about it in his comments earlier, I think we've got the agreement to the place.

Our partners in Las Vegas, I was just out there a couple weeks ago, and I think the enthusiasm for where the race stands, uh, and where we're going with. This thing is pretty possible and I think puts us in really good shape going forward.

Derek Chang: Thank you.

Thank you.

Operator: Our next question is from Brian Kraft with Deutsche Bank. Please proceed with your question.

Bryan Kraft: Hi, good morning. Brian, I was wondering if you could help us to quantify the contribution from the F1 movie to primary revenue so that we don't all end up overestimating the revenue that's gonna be recurring. And then, secondly, how will the MotoGP management team 16% ownership be accounted for, both in terms of the income statement and the share count? Thank you.

Our next question is from Brian crafts with Deutsche Bank. Please proceed with your question.

Hi, good morning. Um Brian. I was wondering if you could help us to quantify the contribution from the F1 move to primary revenue so that

Estimating the uh Revenue that's going to be recurring. And then uh secondly, how will the Moto GP management team 16% ownership be accounted for both in terms of the income statement and the and the share count. Thank you.

Brian Wendling: Yeah. So on the F1 movie, think of it as a mid-teen, mid-teens number for the quarter. That's one time in nature on revenue. And then I'll answer your MotoGP question, but then I would kick it over to Stefano after that to really talk a bit more about the benefit of the F1 movie to the overall ecosystem. But quickly on MotoGP, the 16% will be accounted for as a, as a non-controlling interest, so you'll see a big amount on our balance sheet above equity, and then we'll pick up 84% of the earnings of the, of the business through the P&L. The other 16% will be allocated to non-controlling interest. Stefano, do you want to comment on F1, the movie?

Uh yeah, so on the F1 movie um it think of it as a mid team mid- teens number for the quarter that's 1, time in nature.

On Revenue. Um, and then I'll answer your moto GP question, but then I would kick it over to Stephanie after that to really talk a bit more about the benefit of the F1, uh, movie to the overall ecosystem but quickly on Moto GP.

Uh, the 16% will be accounted for as a as a non-controlling interest. So, you'll see a big amount on our balance sheet above equity and then we'll pick up 84% of the earnings of the, uh, of the business through the p&l. The other 16% will be allocated to non-controlling interest.

Stefano Domenicali: Yeah.

Stephano. Do you want to comment on? F1 the the movie? Yeah.

Brian Wendling: Yeah.

Stefano Domenicali: Yeah, absolutely. I mean, thanks, Brian. And Brian, I would say, the effect of the movie is not only, of course, about the dollars and economical input, but the sport will have an incredible opportunity to grow its awareness and to generate the, I would say, the circular economy around that, because it's a new product that has been incredibly strong. And actually, you know, why we were, in a way, quite positive about the input in US, was fascinated to see the impact on the more mature markets. So these things will generate definitely interest, will definitely bring money to the ecosystem, to the teams, to the F1, stakeholders. So that's really the work we can see, what we can see happening.

Yeah, absolutely. I mean, uh, thanks Brian and Brian. I would say the, the effect of the movie is not only of course, about the dollars and and economical input, but the sport will have an incredible opportunity to grow his awareness. And to generate the, I would say the circular economy around that because he's a new product that has been incredibly strong. Uh, and actually

Stefano Domenicali: If you think that after just a couple of weeks, the movie itself brought more than $500 million at the box office, it's something that gives you the amount of interest that is generating. We don't have to forget that this movie will be out on Apple TV later on at the end of the year. So that momentum will have a longer effect. That will definitely create interest that can be monetized later on into all the system that is around Formula One.

Why we were in a way quite positive about the input in the US, was, was fascinated to see the impact on the more mature markets. So, these things will generate definitely interest will definitely bring uh, money to the ecosystem, to the teams to the F1, uh, stakeholders. So, that's really the work. We can see, uh, what we can see happening. If you think that after just couple of weeks, the movie itself, uh, brought more than 500 million dollars at the back, office is something that keeps you. The amount of interest that is generating. We don't have to forget that this movie will be out on Apple path or later on at the end of the year. So that, that momentum will have a longer effect that will be definitely create interest that can be monetized later on into the all the system that is around for 1.

Bryan Kraft: Thank you. Thanks for that color, and I thought the movie was great, by the way.

Thank you. Thanks for that caller. And, uh, I thought the movie was great, by the way.

Stefano Domenicali: Go again. Thank you. Thank you, Brian.

Go again.

Thank you. Thank you. Bye.

Operator: Our next question comes from Stephen Lesick with Goldman Sachs. Please proceed with your question.

Stephen Laszczyk: Hey, great for taking the questions. One on MotoGP and one on F1, from me. Maybe first on Moto, I think it's clear that you see a lot of opportunity to improve the reach and monetization of the sport. I think it's also pretty clear that you expect a period of investment and repositioning to play out over the next couple of years. So just be curious if there's maybe any early frameworks or thinking around how investors should expect the pace of investment to be matched against the pace of execution against the revenue opportunity, and really what that means for the trajectory of profitability, for the business over the next few years. Any thoughts or frameworks there, I think would be helpful. And then, a quick one just on hospitality at F1.

Our next question comes from Steve and lasek with Goldman Sachs. Please proceed with your question.

Stephen Laszczyk: You called out in the press release, and I think in the prepared remarks, the strength you're seeing there. Is there any way to maybe elaborate more on the drivers and magnitude of that growth? And if we were to look at comparable GPs year over year in the quarter, what types of growth we're seeing from Paddock and Hospitality? Thank you. Okay, this is Derek. Let me just take this to start. I think, as it relates to sort of MotoGP, and you're absolutely right, we do see a lot of opportunity here. I think that, and I'll let the team sort of opine here, but, you know, no one actually knows who these drivers are and few people know about the sport.

Derek Chang: Okay, this is Derek. Let me just take this to start. I think, as it relates to sort of MotoGP, and you're absolutely right, we do see a lot of opportunity here. I think that, and I'll let the team sort of opine here, but, you know, no one actually knows who these drivers are and few people know about the sport.

Hey great for taking the questions. Uh 1 on Moto GP and 1 on F1 uh From Me, Maybe first on Moto. I think it's clear that you see a lot of opportunity to improve the reach and monetization of the sport. I think it's also pretty clear that you expect a period of investment and and repositioning the the play out over the next couple of years. So just be curious. If there's maybe any early Frameworks or or thinking around, how investors should expect the pace of investment to be matched against the pace of execution against the revenue opportunity and really what that means, for the trajectory of profitability uh, for the business over the next few years. Any thoughts or Frameworks there? I think would be helpful and then, uh, a quick 1 just on the hospitality at at F1. He called out in the press release and I think in the prepared remarks, the the strength you're seeing there, is there any way to maybe elaborate more on the the drivers and magnitude of that growth? And if we were to look at comparable GPS year-over-year in the quarter, uh what types of growth we're seeing from from Paddock and Hospitality. Uh, thank you.

Stephen Laszczyk: And I think that's, that's a, you know, fundamentally, we have a great sport, and it's a great place for us to start. So we do see opportunity, I think, from an investment standpoint into MotoGP. We, like F1, will plan to invest. I don't think it's gonna be something that's, that's, you know, outsized per se, but we do want to accelerate growth there and see, and see the opportunities to do so. I'll let Carlos Ezpeleta from MotoGP speak a little bit more in detail on that, and we'll come back to our hospitality question.

Derek Chang: And I think that's, that's a, you know, fundamentally, we have a great sport, and it's a great place for us to start. So we do see opportunity, I think, from an investment standpoint into MotoGP. We, like F1, will plan to invest. I don't think it's gonna be something that's, that's, you know, outsized per se, but we do want to accelerate growth there and see, and see the opportunities to do so. I'll let Carlos Ezpeleta from MotoGP speak a little bit more in detail on that, and we'll come back to our hospitality question.

Okay, this is Derek. Let me just take this to start, I think. Um as it relates to sort of Moto GP and you're absolutely right. We do see a lot of opportunity here. I think that and I'll let the team sort of Go Pine here but you know no 1 actually knows who these drivers are and 2, people know about the sport and I think that's that's a, you know, a fundamental that we have a great Sport and it's a great place for us to start. So we do see. Um,

Opportunity, I think from an investment standpoint in a Moto GP, um, we like F1 will plan to invest, um, I don't think it's going to be something that's that's, um, you know, outsized per se. But we do want to accelerate growth there and see and see the opportunities to do. So, I'll let Carla's

Uh, lead.

A Moto GP uh, speak a little bit more in detail on that, and we can come back to the hospitality question.

Stefano Domenicali: Thank you, Derek. Yes, Thank you, Derek. Yeah, we see, we see growth basically dividing in, into two areas. The first one being how to monetize, our current fan base or our current, business better. And the second one, and especially one where Liberty can be very helpful, is, is-

Thank you, Derek. Yes. Um,

Brian Wendling: ... evolves around an increased fan base around the world. And whether that is through content, through storytelling or through our, you know, strategically growing different markets, all of that evolves around growing our fan base. I do have to say that we have invested, that investment already started before the operational Liberty Media, and that's hiring key roles around commercial and marketing and investing in sort of a fan insights and research roles. And all of that has already started to lead to potential increases in the business. But we do see that the biggest driver of growth will be increasing our fan base globally.

Carlos Ezpeleta: ... evolves around an increased fan base around the world. And whether that is through content, through storytelling or through our, you know, strategically growing different markets, all of that evolves around growing our fan base. I do have to say that we have invested, that investment already started before the operational Liberty Media, and that's hiring key roles around commercial and marketing and investing in sort of a fan insights and research roles. And all of that has already started to lead to potential increases in the business. But we do see that the biggest driver of growth will be increasing our fan base globally.

Liberty can be very helpful. Um is is evolves around uh an increased uh fan base around the world. Um, and whether that is through content, uh, through storytelling or or through our, you know, strategically growing different markets. Um, all all the, all of that evolves around growing our fan base. I I do have to say that we have invested, um, that that investment already started before. Uh, the operational Liberty Media, and this hiring key roles around, uh, commercial and, and marketing, and, uh, investing in in sort of a fan insights, uh, and and research roles, and all of that has all has already started to lead to to to potential increases in the business.

Brian Wendling: As Derek was saying, we do have, you know, a lot of opportunity in, in showcasing what the sport is and who the riders are, and we see that that will be the biggest driver of growth.

Carlos Ezpeleta: As Derek was saying, we do have, you know, a lot of opportunity in, in showcasing what the sport is and who the riders are, and we see that that will be the biggest driver of growth.

But we do see that the the biggest driver um of of growth will be increasing our fan base globally. As Derek was saying uh we do have uh, you know, a lot of opportunity in in showcasing what the sport is and who the writers are, and we see that that will be the biggest driver of growth.

Derek Chang: Great. Thanks, Carlos. I think as we come back to the question on hospitality, Stefano, if you want to give your thoughts on that, that would be helpful.

Great. Thanks Carlos. I think as we come back to the question on Hospitality Stephano if you want to

Stefano Domenicali: Yeah. Absolutely. Thanks, Aaron. Thanks, Stephen. I mean, I think first of all, I just can confirm everything that Carlos said, that demand is very strong. What we are doing is making sure that we have different products that can contribute to what are the needs of our partners and fans. Of course, the fact that we are now having incredible partners that are able to activate their investment, if you want, through hospitality packages, is giving us the chance to highlight the need of keeping the focus on quality, and also try to capture any other opportunity around the world where we can extend out of a hospitality to follow the demand that we're having. That is very important, and this is what we are doing, where we are negotiating or we are discussing with the promoters.

Uh, give your thoughts on that. That would be helpful. Yeah.

Stefano Domenicali: When there is, when there is, and we can see that there is enough demand to grow the quantity, keeping the quality of the standard we want, definitely this is what we are doing. And I think it's really what is important to say that we are working since a couple of years and not stopping for sure on making sure that our hospitality program are entertainment, pure entertainment, that have a unicity, that we can offer to our fans that are coming to the track. This is really something that is being recognized unique from other disciplines, from other world of entertainment, and that's where we are focusing. So quantity for sure, but quality and uniqueness of the offer that we can provide to our fans.

Absolutely, thanks there. Thanks, Stephen. I mean, I think, first of all, I just can confirm my rate to the cousin that the man is very strong. What we are doing. Is making sure that we have different products that can contribute to what are the needs of our partners and and fans, of course, the fact that we are now having incredible partners that are able to activate, uh, the their investment. If someone through through Hospitality packages is giving us the chance to highlight, the need of keeping the focus on quality and also try to capture any other opportunity around the world where we can extend uh, out of hospitality to to to to, to follow the demand that we have. It. That is very important and this is what we are doing. Well, we have negotiating or we are discussing with the promoter when there is, when there is a, we can see that there is enough demand to grow the quantity. Keeping the quality of the standard. We want that pretty, this is what we are doing. And I think it's

Really, what is important to say that? We are working since a couple of years and not stopping, for sure, or making sure that our Hospitality program are entertainment, pure entertainment that have a unique City, uh, that we can offer to our 5 that are coming to the track. This is really something that is being recognized a unique from other disciplines from other world of entertainment. And that's why we are focusing. So quantity, for sure. But quality and uniqueness of

We offer that we can provide to our fans.

Derek Chang: Yeah, I mean, a great example of that is this past weekend's race in Budapest, where they just unveiled a whole new, you know, Paddock Club facility, which is larger and certainly much more upgraded than previously, which speaks to both quantity and quality that Stefano just referenced.

Yeah, I mean, a great example of that is passed this past weekend's race in, in Budapest, where they just unveiled a whole new, you know, paddle Club facility, which is, is larger. And certainly, uh, much more upgraded than than previously, which speaks to both quantity and quality that stuff that are just referenced.

Derek Chang: Thank you very much.

Stephen Laszczyk: Thank you very much.

Thank you very much.

Operator: Our next question comes from Ben Swinburne with Morgan Stanley. Please proceed with your question.

Our next question comes from Ben swinburne with Morgan Stanley, please proceed with your question.

Ben Swinburne: Thank you. One on MotoGP, and then I wanna ask, Stefano about sponsorship. I think the last disclosure we had from the deal deck, Brian or Derek, was back in, I think, 2023. I think it was about EUR 480 million. I'm just curious if you could talk about how the business has performed just from a top-line perspective, you know, as you get through 2024 and expectations for 2025. I think you have more races this year than you were running, than Moto was running in those couple of years, just to help us think about growth rates. And then, Stefano, you in your prepared remarks, you talked about the sponsorship team focusing on 2026. You sounded excited about the opportunities.

Thank you. Um, 1 on Moto GP and then I want to ask uh, Stephanie about sponsorship. Um, I think the last disclosure we had from the deal deck, Brian, or, or or Derek was back in, I think 2023, um, I think it was about 480 million euros. I'm just curious. If you could talk about how the business is performed, just from a top line perspective, you know, as you get through 24 and expectations for 25, I think you have more races this year than you were running. Uh, the Moto was running in those couple of years, just to help us think about growth rates.

Um,

Ben Swinburne: I'm just wondering if you could spend a little more time on how you're feeling about the pipeline into next year, because this year is a great year for growth in that revenue line. I'm just wondering if you feel like you can keep the growth going in 2026 at a healthy clip, given what your team is seeing right now. Thanks.

And then, uh, uh, Stephano, you and your prepared remarks, you talked about the sponsorship team focusing on 2026. You sounded excited about the opportunities. I'm just wondering if you could spend a little more time on how you're feeling about the pipeline into next year because this year is a great year for growth in that revenue line. I'm just wondering if you feel like you can keep the growth going in 2026 at a healthy clip, given what your team is seeing right now. Thanks.

Derek Chang: I will start with and have Brian take the first question, then we'll pass it back to Stefano.

Brian Wendling: Yeah, Ben, I would point you to the info deck that was put on our website on the day the deal closed. But you can see in there, and reminder, these are, these are not our numbers. They're in Spanish GAAP. They're not US GAAP. They're in euros. There's a whole bunch of disclaimers I put on them, and those are all on the deck as well. So read those carefully. But with that said, 2023, yet in 2022, you had EUR 475 million. In 2023, you had 486... I'm sorry, yeah, 2023, you had EUR 486 million. 2024, you had EUR 462 million.

I will start with and have Brian. Take the first question, I'm gonna pass it back to stuff now.

Brian Wendling: Same race count across each of those, but there were cancellations that impacted 2024, where your expectations were higher, but you had cancellations, two of which got replaced with lower fee races. You'll be able to see the OIBDA numbers in there as well. There were some bad debt amounts that were kind of one-time in nature in 2024. You'll see an information pack or a trending schedule filed on our site later today, where you can see the year-to-date numbers. What I would say on that is, when we think about where we sit for the six months ended 30 June 2025 versus 30 June 2024, keep in mind, there's always a different mix of races.

Brian Wendling: There were 10 races in 2025, 2 additional flyaways, I believe, versus 8 races in the prior year. Those flyaways tend to have a higher cost. Certain flyaways in general tend to have a higher cost, and then the economics obviously depend by each race. But we would expect to see a higher mix of profitability for the races that remain in the back half of the year.

Euro, uh, 2024, you had 462 million euro, uh, same race count across each of those but there were cancellations that impacted 2024, where your expectations were were higher. But you had cancellations that 2 of which got replaced with lower fee races, uh, you'll, you'll be able to see the way but the numbers in there as well. There were some, uh, some bad debt amounts in that were kind of 1 time in nature. In 2024, you'll see an information pack, uh, or a trending schedule filed on our site later today, where you can see the year to date numbers. And what I would say on that is, when we think about where we sit for the 6 months ended 630.25 versus 630.24, keep in mind, there's always a different mix of races. There were 10 races in, uh, 25 2 additional flyaways, I believe versus 8 races in the prior year. Those flyaways tend to have a higher cost certain flag the flyways in general tend to

Have a flat higher cost and then the economics obviously depend by each race. But we would expect to see a higher mix of profitability uh for the races that remain in the back half of the year.

Derek Chang: ... And then we'll put back Stefano for the question on sponsors.

Stefano Domenicali: Yeah. Thanks, Eric. Ben, I think that you are absolutely right. I think that what is relevant to say that the momentum that we are living, we are pretty convinced that we'll keep being strong. We were talking just before about the movie. The movie will capture another dimension of brand that will be attracted by what we can offer to them.

Step it up for the, the question on sponsors. Yeah.

Stefano Domenicali: Of course, being in this moment where, as I said, that the pipeline seems to be very, very interesting, we need to make sure we keep the balance, and we will keep doing what we've just started in order to keep the quality also here, and to keep progressing with the fact that we can have partners that we have, we can give them, I would say, less visibility with the higher number of money, with the higher money, because we are differentiating the different categories. We're gonna have to get this year, we brought Barilla, Owyn, LEGO, and Pepsi, and DMH, and this has created an ecosystem that is generating more interest in other categories that we are now to evaluate in the right way.

Thanks s been I think that you absolutely right. I think that what is relevant to say that the the the the momentum that we are living? We are pretty convinced that we'll keep being strong. We were talking just before about the movie the movie will capture another dimension of brand that will will be attracted by by what we can offer to them. Of course, and being in this moment where as I said that the pipeline system to be very, very interesting, we need to make sure we keep the balance and we will keep doing what we've just started in order to keep the quality also here and to keep. And progressing with the fact that we can have partners that, uh, we have, we can give them, I would say less visibility with the higher number of money with, with the higher money because we are, we appreciated the different categories. We're going to have to get this year. We brought varila or legal, and taxi, and and, and dmh. And this has created an an ecosystem that is generated.

Stefano Domenicali: What I can see even more important is that we have, for example, one category is betting, as you know, that is an opportunity that we need to take in the right way. We have a lot of discussion. We need to make the right call because, as you know, in several markets, this is a big opportunity now that there are legislation limitations we need to consider. Another area that I said at the beginning would be very interesting to develop is the consumer area that has never been important in the business of F1. So that's another area of a possible development that we are focusing on in order to bring home good and important deals in the future. That is not only 2026, but in the next years after.

And more interesting in other categories that we are now to evaluate in the right way. Uh, what I can see, even more important is that we have, for example, 1 category is betting. As you know, that is an opportunity that we need to take in the right way. We have a lot of discussion, we, we need to make the right call because as, you know, in search of the market, this is a big opportunity now. But

Derek Chang: Thank you.

That legislation limitation with it to consider and then another area that I said at the beginning will be very interesting to develop is, uh, the consumer area that has never been important in the business of 1. So that's another area of possible development that we are focusing on in order to bring home, uh, good and important deals in the future. That is not only 26, but, uh, in the next year after.

thank you.

Operator: Our next question comes from Kuken Morel with Evercore ISI. Please proceed with your question.

Kutgun Maral: Great. Thanks for taking the question. I wanted to ask about the outlook for F1 race promotion, and maybe just excluding Vegas. I, I know this year is relatively light, but it seems like you have a number of deals or extensions in 2026 that could really help accelerate growth over there, particularly thinking about Melbourne. So I wanted to see if you could expand on the opportunity you see over there. Thank you.

Our next question, comes from kukum moral with evercore. Isi, please proceed with your question.

Great. Um, thanks for taking the question. I wanted to ask about the outlook for F1 race promotion, um, and maybe just excluding Vegas. I know this year is relatively light, but it seems like you have a number of deals or extensions in 2026 that could really help accelerate growth over there, particularly thinking about Melbourne. So I wanted to see if you could expand on the opportunity you see over there. Thank you.

Stefano Domenicali: Yes, Kuken, I can... Sorry, Derek? Yeah.

Yes.

Derek Chang: Go ahead. Go ahead.

Stefano Domenicali: Okay. Thank you. Thank you, Derek. I would say, well, definitely the positive trend that we see is definitely there, because in all the possible opportunities that we have, we have more demands and/or we have the chance to, let's say, work together better with our partners in order to make sure that that it was mentioned before, Hungary has proved to not only Europe, but all the market, that if a country believes in our sport, there is room for investment, room for the right investment for fans, and also the right fit that needs to be recognized by the fact that the F1 is the business coup for a country and for a culture.

Sorry, sorry. Sorry, yeah, go ahead. Go ahead.

Okay. Thank you. Thank you, Derek. I, I would say, well, definitely the the positive trend that we see is is, is definitely there because in all the, the, the possible opportunities that we have, uh, we have more demands and, or we have the chance to, let's say, work together, better with our partners in order to make sure that as Debbie was mentioning before

Stefano Domenicali: Therefore, there are opportunities in front of us, but the other good thing is that for the deals that we have extended, with a quite significant term, is benefiting the fact that there is a robust growth in the year to come in order to keep the financial, opening to the race as minimal as possible. But definitely for the windows that we have in front of us, there are huge opportunities because, as you know, we don't want to move forward in term of number of races, even if the request is higher than what we can offer.

Because, as you know, we don't want to move forward in some of the number of races. Even if the request is higher than what we can offer.

Derek Chang: The conversations that Stefano and his team have with prospective promoters out there, they are, you know, it's a pretty healthy group of folks that are always coming in to have discussions. We clearly have certain limitations as it relates to calendar, but I think as we continue to scope it out in the future, there will be options, as we move forward.

The conversations that stuff I know in his team have with perspective promoters out there. They they they are are, you know, it's a pretty healthy group of folks that are always coming in to have discussions. Uh we clearly have certain limitations as it relates to calendar, but I think as we continue to scope it out in the future, there will be options um as we move forward.

Kutgun Maral: Very helpful. Thank you both.

Bryan Kraft: Very helpful. Thank you both.

Very helpful. Thank you both.

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

Our next question comes from Peter, a subo with Wolf Research. Please proceed with your question.

Peter Supino: Hi, good morning. I'm thinking about the profit recovery potential in Las Vegas. If memory serves, you have about $600 million of capital invested in Las Vegas, PP&E. And understanding and appreciating that the LVGP has benefited the entire sport, is that original capital investment something on which Liberty realistically aspires to earn a standalone return on capital that's better than your WAC?

Hi, good morning, I'm thinking about the profit recovery, potential in Las Vegas. If memory serves you have about 600 million of capital invested in Las Vegas, pp&e and and understanding. And appreciating that the lvgp has benefited, the entire sport is that original capital investment something on which Liberty, realistically expires to earn, you know, a standalone return on Capital. That's better than your your whack.

Derek Chang: Yeah, I mean, our, our goal is certainly to earn a return on, on that investment. And as you rightly point out, and we, and we've pointed out a few times before, less and less are we looking at the standalone economics of Las Vegas, because as, as Vegas continues to, grow and mature and we continue to work with the partners in that market, you, you see benefits to the overall ecosystem, some intangible and a lot of them very tangible. So, but overall, yes, we certainly, aspire to earn a return on that, that investment.

Yeah. I mean I our our goal is certainly to earn a return on the on that investment. And as you rightly point out um, and we and we pointed out a few times before.

Less and less. Are we looking at the Standalone economics of Las Vegas? Because as, as Vegas continues to, uh, grow and mature, and we continue to work with the partners in that market. Uh, you you see benefits to the overall ecosystem, some intangible and a lot of them very tangible. So, but overall, yes, we certainly, uh, aspire to earn a return on that, that investment

Peter Supino: Thanks.

Thanks.

Operator: Our next question comes from Joe Stauff with Susquehanna. Please proceed with your question.

Joe Stauff: Thank you. Good morning. I wanted to ask if there's anything you could share with us on MotoGP and just, you know, say, the expiration schedule for the existing race promoter contracts that you have? And then the second question is, you know, on the new race promoter contracts within F1, you announced in Canada and Austria. Is there any sense you can give us on kind of like the average growth that you'll realize over the period or, you know, any delta you can share with us, please?

Our next question comes from Joe stoff with Susana, please, proceed with your question.

Uh, thank you, good morning. Uh, I wanted to ask um if there's anything you could share with us.

On Moto GP and just, you know, see the expiration schedule for the existing race promoted contracts that you have.

And then the second question is, you know, on the new race promoter contracts within F1. You announced in Canada and Austria.

Is there any sense? Um you can give us on kind of like the the average growth that you'll realize over the period or you know, any Delta you can get share with us, please.

Derek Chang: Yeah, this is Derek. On the first question, with respect to race promotion at MotoGP, and I'll let Carlos talk about it in a little bit more detail. But there is a sort of a regular cadence of renewals probably coming off our new races. We announced, I think, earlier today both the Buenos Aires race or earlier this year, excuse me, but alluded to it earlier, earlier in the call, the race in Argentina and then, and then the one in Brazil coming back. But with that, I'll turn it over to Carlos right now to give a little bit more detail.

um, yeah, this is Derek on the first question with respect to uh, race promotion at Moto GP and I'll, I'll just talk about it a little bit more detail, but um, there is a, a sort of a regular Cadence of

Um, renewals probably coming up on new races. We announced I think earlier today, uh, both the Buenos our race, our earlier this year, excuse me, but alluded to it earlier earlier in the call, the race in Argentina, and then and then, uh, the 1 in Brazil coming back. So, um,

with that, I'll turn it over to Carlos right now to give a little bit more detail.

Carlos Ezpeleta: Thank you, Derek. Yeah, on promoters, I would-- we're happy to say that it's one of the biggest areas of growth for the sport right now. We have a lot of demand of new countries wanting to come in to the calendar, and we do have space on the calendar. Even though that we're - we have a 22 race maximum agreement with the teams, there are, you know, we have four races in Spain, we have two races in Italy and other, let's say, other events which could be substituted to bring new markets in.

Thank you, Derek.

Carlos Ezpeleta: This year, we have announced Buenos Aires to join them, to join the MotoGP calendar from 2027, and Brazil to return after 20 years. Both of those have considerable increments on the events they are substituting. We've also announced renewals with events in Spain and France with very significant increases on the fees. So we do see a huge pipeline of demand of new countries wanting to join in. Of course, with the expectation around the partnership with Liberty, we do have to think about those strategically and keep space on the calendar for new markets or extending our presence in other markets.

Yeah. Um, on on, on, on promoters, I, I, I would we're happy to say that it's 1 of, um, the, the biggest areas of growth for, for, for the, for the sport right now. Uh, we have a lot of demand of new countries wanting to come in, uh, to to the calendar. And we do have space, um, on the calendar, even though that we're we have a 22 race maximum. Um, agreement with the teams there are, uh, you know, we have 4 races in Spain. Uh, we have 2 races in Italy and and other, let's say other events, which which could be substituted to bring uh, new markets in um, this year.

We have announced a bonus item to join them.

Carlos Ezpeleta: So we do see that the cadence of those contracts are increasing. The countries and promoters are looking to expand their agreements. They're typically five years, but some are now longer for up to 10 years.

Effects are increasing; the countries, um, and promoters are looking to expand, um, their agreements. They're typically five years, but some are now longer, um, for up to ten years.

Derek Chang: Great. Thanks, Carlos. I think on the F1 question with respect to the two recent renewals, you know, we're not getting into the details of what those renewals are. But that being said, both of these are important markets for the F1 calendar and also bring other components to it, including the media rights renewal in Canada. But I'll let Stefano articulate that in a bit more detail.

Right. Thanks, Carlos. I think on the, um, F1 question, with respect to the two recent renewals, um, you know, we're not getting into the details of what, uh, those renewals are. But that being said, um, both of these are important markets for the F1 calendar and also bring other, um, components to it, including the media rights renewal in Canada. But I'll let, uh, Stefano articulate that in a bit more detail.

Stefano Domenicali: Thanks, Derek. I just want to reassure you, assure Joe, that the delta are definitely positive. And positive not only in terms of financial contribution, but also positive for the ecosystem. Of course, every Grand Prix or every promoter has different considerations to be recognized. For example, the Austria one has to recognize that there is an incredible effect that we have from the investment of Red Bull in the F1 ecosystem, and this is pretty clear. On the other hand, Canada has been always an important market for Formula One, but there was the need also to invest by them in order to create the right environment for the growth.

Stefano Domenicali: And that's why, you know, the fact that we put in place new facilities, new Paddock Club increases in terms of opportunity for us and new grandstand for the fans, will all help the profitability, of course, from the promoters and also for us as a commercial rights holder. So I would say everything is taken very great care in consideration, knowing that everyone is a specific reality that has to be considered differently. But overall, everyone is so supportive of our approach because they see the benefit also on their own. We create a business opportunity, well, wherever we go. We create interest, we create the fact that everyone is using F1 to make sure that they can ex- you know, explain to the world what is behind the race.

Thanks Derek. Uh I just want to reassure you as as I'm sure Joe that the Delta have definitely positive and positive. Not only in terms of financial contribution but also positive for the the ecosystem. Of course, every Grand Prix of a promotes as a, as a different, uh, considerations to, to to, to be recognized. For example, the ultra 1 has to recognize that there is an incredible effect that we have from the investment of Red Bull in the F1 ecosystem and that is pretty clear. On the other hand Canada has a has been always an important market for 41, but was the need also to invest, uh, buy them in order to create the right environment for the growth. And that's why, you know, the fact that we put in place, new facilities, new public Cloud increases in term of opportunity.

Stefano Domenicali: That is not only, you know, the attention to an event, is an attendance of attention to an ecosystem in order to produce technological inspiration and create what every country would like to bring home by hosting a Grand Prix. So overall, the delta are definitely positive everywhere we go.

And you can understand for the for the fans will all help the profitability, of course, from the promoters and also for for us as as as, as a, as a commercial. I hold. So I would say everything is taking very care in consideration, knowing that everyone is a specific, uh, reality that has to be considered differently. But overall, everyone is so supported on our approach because they see the benefit also on their own. We create a business opportunity where wherever we go, we create interest, we create the fact that everyone is using F1 to make sure that they can, you know, explain to the world. What is behind the race? That is not only only, you know, the attention to an event is an is an attendance of of of attention to an ecosystem in order to to use technological inspiration and and create what every country would like to bring home by hosting a Grand Prix. So over overall, the delta

are definitely positive. Everywhere we go.

Joe Stauff: Thank you very much.

Thank you very much.

Operator: Our next question comes from Ryan Gravett with UBS. Please proceed with your question.

Derek Chang: Great, thank you. With the MotoGP deal closed and the split coming, I was just wondering if you could provide an update on capital allocation plans and priorities from here. I know you talked about getting to 3 to 4 times at MotoGP, but how should we think about the right target leverage at the F1 opco level and just your general thoughts on share repurchases?

Ryan Cardiff: Great, thank you. With the MotoGP deal closed and the split coming, I was just wondering if you could provide an update on capital allocation plans and priorities from here. I know you talked about getting to 3 to 4 times at MotoGP, but how should we think about the right target leverage at the F1 opco level and just your general thoughts on share repurchases?

Our next question comes from Ryan Gravette with UBS. Please, proceed with your question.

Great. Thank you. Um with the Moto GP deal closed and the the split coming I was just wondering if you could provide an update on Capital allocation plans and priorities from here. Um, I know you you talked about getting to 3 to 4 times at Moto GP, but how should we think about the, the right target? Leverage at the F1, opco level and and just your general thoughts on on share repurchases.

Stefano Domenicali: Yeah, thanks for the question. We, as you rightly alluded to, we are delevering as we speak. As we kind of come out to a point where we feel comfortable with the leverage, I think we continue to look at opportunities, you know, in the marketplace, which has always been sort of Liberty's mantra. That being said,

Yeah, thanks for the question. We, um, as you rightly, uh, um, alluded to, we are de-levering, uh, as we speak. And, um, as we kind of come out, uh, to a point where we feel comfortable with the leverage, I think we continue to look at opportunities, you know, in the marketplace, which has always been sort of Liberty's mantra.

Derek Chang: ... you know, from an M&A perspective, we always will have a high bar there and, you know, keep it disciplined to what we're looking at, and potentially investing in. I think that this will play out as we move forward here, and it's certainly a discussion that we will continue to have.

From an M&A perspective, we always will.

Help keep a disciplined to, to what we're looking at.

Um and and potentially investing in it. Um, I think that this will play out as we move forward here and um, it's a, it's certainly a discussion that we will continue to have

Ryan Cardiff: Got it. Thanks, guys.

Thanks guys.

Operator: Our next question comes from Stephen Cahill with Wells Fargo. Please proceed with your question.

Our next question comes from Stephen Cahill with Wells Fargo. Please proceed with your question.

Steven Cahall: Thank you. First one, just on F1 TV. I'm wondering if you've done any assessment of those subscribers. It seems like maybe some are super fans, some are cordless, definitely some could be both. But as you contemplate maybe moving to a streaming partner for some of your rights, you know, do you worry that there's any cannibalization risk of the folks that are, that are cordless and just may be able to find that content with a subscription that they already have? And then a second one, just on competitive balance. I was wondering if you could talk, if there's anything new in the Concorde agreement around this. We have another F1 season where six of the ten teams aren't really racing for championships or podiums.

Steven Cahall: I was wondering if there's anything in the new Concorde that might balance that more, a little better over time. I know you have some financial controls in there, but it hasn't yet kind of moved out of this steering effect that you've got in the field. Thank you.

Derek Chang: Yeah, I'll start, and Stefano, and turn it over to you, since I know you love talking about competitive balance. But on the first question with respect to-

Six of the ten teams aren't really racing for championships or podiums. I was wondering if there's anything in the new Concourse that might balance that a little better over time. I know you have some financial controls in there, but it hasn't yet kind of moved out of this steering effect that you've got in the field. Thank you.

Steven Cahall: Yeah.

Derek Chang: sort of streaming platforms and F1 TV, you know, the reality is, in the world that we live in, and it's, it's not sort of one or the other or, or sort of the concept of... You, you've got to just make things available to, to consumers and to fans wherever they sort of wanna engage with you. And so that's, I think, what the overarching goal always is, is to try to provide your content in as many places as possible that consumers and fans can easily access. But with that, I'll turn it over to, to Stefano.

Yeah, I'll start at stepping on and turn it over to you since I know you love talking about competitive balance, but I'm the first question with respect to sort of streaming 5 hours at F1 TV you know the reality is in the world that we live in and it's it's not sort of 1 or the other or or sort of the concept of you. You've got to just make things available to to Consumers at the fans wherever they sort of want to uh, engage with you. And so that's I think what the overarching goal always is, is to try to provide your content, um, in as many places as possible, that consumers and fans can easily access. But with that, I'll turn it over to to stefanel.

Stefano Domenicali: Thanks, Eric. I mean, just to go to the competitive balance, Stephen, I think that we need to consider F1 not in one season, but if you remember, two years ago, McLaren, who is today leading the championship, was last in the last row of the first Grand Prix, in the Bahrain Grand Prix. So I think that what has been done with regard to the budget cap and the possibility for the teams that are able to win, to have reduced time or wind tunnel, and some other effect on their development, is having an effect. The gaps in terms of the difference between team to team has never been so small.

Thank Derek. I mean, just just to to to to to go to the competitive balance team and I think that we need to be uh, considered F1 not to anyone season. But if you remember 2 years ago, McLaren who is today, leading, the championship was last in the last show or the first room 3 in the Ving room 3. So, I think that what has been done with regard to the budget cap and the the possibility for the teams to that are able to win to

Stefano Domenicali: Therefore, I mean, on that respect, I do believe that, you know, we are not worried at all about these aspects. I would say the model we have put in the Concorde is absolutely fair because there are so many variables that we'll try to consider everything in order not to have, you know, something that can be perceived fake. Therefore, I do believe that the more that you are creating in term of attention to the fact that if you are more successful, you can gain more money from one side, but on the other side, on the sporting side, we are trying to create the right context from the sporting and technical and technological regulation in order to try to keep the pack as competitive as possible.

Stefano Domenicali: This is the duty of the work together that we have to do together with the FIA and on us on both sides of the camp.

I have reduced time or wind tunnel and some other effect on on the their development is having affect the gaps in term of the the difference between team to team has never been so so so so so so small. And therefore I mean on that respect, I do believe that, you know, we are not worried at all about about this disaster and and I would say the model we have put in in in the Concord is absolutely Fair because there are so many variables that will try to consider everything in order not to have. You know, something that is is can be perceived the fake. Therefore, I do believe that the more that you are creating in term of attention, to the fact that if you are, uh, more successful, you can gain more money from 1 side. But on the other side, on the sporty side, we are trying to create that iconic from the sport in Epic and technological regulation in order to to try to keep the pack as comfortable as possible.

And this is the duty of the world together that we have to do together with the F and on us on both sides of the camp.

Steven Cahall: Thank you.

Thank you.

Operator: Our last question is from David Joyce with Seaport Research Partners. Please proceed with your question.

Ryan Cardiff: Thank you. Wanted to ask about MotoGP. You already talked about the race promotion cadence, but could you help us understand the typical duration of the media rights contracts, you know, and what might be expiring in the next 12 to 18 months? And similarly, with on the sponsorship side, I know that's a ripe area for growth there. What are some typical contracts there, and how would those be renewing? Thanks.

David Joyce: Thank you. Wanted to ask about MotoGP. You already talked about the race promotion cadence, but could you help us understand the typical duration of the media rights contracts, you know, and what might be expiring in the next 12 to 18 months? And similarly, with on the sponsorship side, I know that's a ripe area for growth there. What are some typical contracts there, and how would those be renewing? Thanks.

Our last question is from David Joyce with Seaport research Partners. Please proceed with your question.

Thank you, uh, wanted to ask about Moto GP, you already talked about the race promotion Cadence. But could you help us understand the typical duration of the media rights contracts, you know, and what might be expiring in the next 12 to 18 months. Uh, and similarly, with, on the sponsorship side, I know that's, uh, a ripe area for, uh, for growth there. Um, what are some typical contracts there? And, um, you and and, and how would those be renewing? Thanks.

Derek Chang: Thanks for the question. As we are thinking about sort of both of those categories, clearly, you know, important sellers of our, of our revenue and our growth, and as I think, Carlos, we spoke about earlier in terms of sponsorship and sort of that area, we, we do see a huge amount of opportunity there. We do think it's a long build, just because we've got to sort of tell the story, get the potential sponsors and people bought into to what we are and what we can do for them. And just like we saw with F1, that will be something that happens, you know, over time. On the media rights, we do have a variety of deals coming up, as you might imagine, over the, over the course here in the next several years.

Thanks for the question. Um,

As we are thinking about sort of both of those categories, clearly uh, you know, important sellers of our of our Revenue.

And our growth. And as I think, uh, cause we spoke about earlier in terms of sponsorship and sort of that area. We, we do see a huge amount of opportunity there. We do think it's a long build, um, just because we've got a sort of

Tell the story, um, get the uh potential sponsors people bought into to, to what we are, what we can do for them. And just like we saw with F1, that will be something that happens, you know, over time.

Derek Chang: I will let Dan speak about that in a little bit more detail, but, again, I think the goal there is probably to broaden the reach and continue to sort of build the brand of MotoGP and in the consciousness of sort of the general market. So that's sort of what we're pushing. But Dan, why don't you take that? Dan Rossomondo, Chief Commercial Officer at MotoGP.

On the media rights. Uh we do have uh a variety of deals coming up. Um as you might imagine over the over the course here in the next several years.

I will let, uh, Dan speak about that a little bit more detail. But um, again I think the goal there is probably to uh broaden the reach and continue to to

Sort of build the brand of of Moto GP and in the conscious of of sort of the, the General market. So that's that's sort of where we're pushing. But Dan, why don't you take that Dan with the Mundo, Chief commercial officer at a GP,

Dan Rossomondo: ...Thanks. Thanks, Derek and David. Thanks for the question. I think I'll start with the media part first. I think the great part about our sport is that we are truly global in nature, so we have to be relevant and have the right media deals in a variety of countries. And everywhere we go, we want to have the best and most thorough distributions. Our, our deals do have different cycles, as Derek said. And I think the other really key part that Derek said is that we need to sort of change with how today's consumer is changing, where they're watching things, how they're consuming content. So we're always looking for what might be the next really key distribution methods, and we hopefully keep flexibility within our agreements to sort of touch on that and to change that as we can.

Great part about our sport is that we are truly Global in nature. So we have to be relevant and have the right media deals in a variety of countries and everywhere we go. We want to have the best and most thorough distributions are our deals. Do you have different cycles of Derek said? And I think the other really key part that Derek said is that we need to sort of change with how today's consumers, changing where they're watching, things how they're consuming content. So we're always looking for

Dan Rossomondo: On the sponsorship side, you know, it's been said a few times, we think that's a huge area of growth. One of the real reasons why we spent so much time and invested so much money over the last year on the brand identity and on building up both the business analytics and the marketing team, was so that we can go out and tell better stories and attract new brands into the ecosystem. We have a variety of partners that are endemic inside of the industry. We have some really great ones that are non-endemic, but we clearly have to build out that, you know, pillar of our business. And we're going to do that by becoming more attractive to brands that they want to tell stories with us.

what might be the next really key distribution methods and we hopefully keep flexibility within our agreements to sort of touch on that and to change that as we can on the sponsorship side. Um, we you know, it's been said a few times, we think that's a huge area of growth 1 of the real reasons why we spent so much time and invested so much money over the last year, on the brand identity and on building up both the business analytics and the marketing team. So that we can go out and tell better stories and attract new new brands, into the ecosystem, we have a variety of partners that are um, uh, endemic inside of the industry. We we have some really great ones that are non endemic but we clearly have to build out that um,

Dan Rossomondo: We want to get them to know our riders better, and we want to enter into long-term deals with sponsors that are like-minded and are really, really good marketers so that they can help us build our business and attract even more fans. So that's where we are.

Derek Chang: Great. Thanks, Dan.

Build out that, you know, pillar of our business. And we're going to do that by becoming more attractive to brands that they want to tell stories with us and we want to get them and know our writers better. And we want to enter in the long term deals with sponsors that are like-minded and are really, really good marketers so that they can help us build our business and attract even more fans. Um so that's where we are.

Derek Chang: Yeah. Thank you, Dan. And I think that's our last question. So I want to thank, and welcome, Carmelo and Carlos and Dan. Thank you, guys, for your participation. Thanks, Stefano, and thank you to everyone who joined the call today. We appreciate it, and look forward to speaking again soon.

Thanks.

Yeah, thank you Dan. And I I think that's our last question. I want to thank uh and welcome Carmelo and Carlos and Dan. Uh thank you guys for your participation thanks Stephano and thank you to everyone who joined the call today. We appreciate it.

And look forward to speaking again soon.

Derek Chang: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Operator: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

This concludes today's conference. You may disconnect your lines at this time and we thank you for your participation.

Q2 2025 Liberty Media Corp Earnings Call

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