Formula One Group (FWONA) Investor Day 2024 summary

Strategic and structural evolution

• Announced further simplification with the spin-off of Liberty Live, resulting in two asset-backed public companies: Liberty Media (focused on motorsports, including Formula 1 and MotoGP) and Liberty Live (holding Live Nation, Quint, and other assets).

• Liberty Broadband to merge with Charter, with GCI to be spun off to shareholders, unlocking value and streamlining the corporate structure.

• Emphasis on reducing NAV discounts, increasing liquidity, and setting up both entities for future rationalization and growth.

• Board realignment to focus on supporting Formula One and exploring new diversified investments.

• Leadership transition as Greg Maffei steps down as CEO, with ongoing board and advisory roles to ensure continuity.

Business performance and growth drivers

• Formula 1 achieved record revenue of $3.2bn in 2023, up 25% from 2022, with continued double-digit growth into 2024 and record-breaking engagement, including a 1.2bn cumulative TV audience YTD 2024.

• MotoGP acquisition on track for year-end close, with strong financials, expanding calendar, and high profitability; Liberty aims to replicate F1's brand-building and marketing success.

• Live Nation posts robust growth, with 2025 set for record stadium and arena activity, and ongoing international expansion in venues and ticketing.

• Quint enhances premium fan experiences across sports and entertainment, with significant organic and international growth potential.

• Qurate Retail (soon to be QVC Group) pivots to live social shopping, leveraging content, hosts, and new digital platforms to drive top-line and customer file growth.

Financial outlook and capital allocation

• Formula 1 maintains stable EBITDA margins (25.8% YTD), strong free cash flow conversion (64%), and low leverage, with plans to delever quickly post-MotoGP acquisition.

• MotoGP expected to operate at higher margins than F1, with minimal CapEx and a fixed team payment structure, supporting similar free cash flow profiles.

• Liberty Live to run an aggressive balance sheet, seeking further growth opportunities in live entertainment and hospitality.

• Charter focuses on seamless connectivity, customer service, and innovative video packaging, driving customer growth and preparing for a surge in free cash flow post-2025.

• GCI remains a unique asset in Alaska, with strong enterprise growth, government funding upside, and potential as a platform for future ventures or strategic sale.