Formula One Group (FWONA) Q2 2024 earnings summary

Executive summary

• Liberty SiriusXM transaction progressing, with SEC and FCC approvals; closing expected September 9th and shareholder meeting set for August 23rd.

• Liberty Media reported Q2 2024 results with strong performance from SiriusXM, Formula 1, and Live Nation investments, with Formula 1 Group reporting a 29% year-to-date revenue increase and 35% OIBDA growth, driven by more events and higher media/sponsorship revenue.

• Net earnings attributable to stockholders were $457 million for the quarter, up from $253 million in the prior year period; operating income was $528 million, a slight increase year-over-year.

• MotoGP acquisition on track, with regulatory clearances in key jurisdictions and expected close by year-end.

• Live Nation delivered another record quarter, with concert attendance up 5% and AOI up 21% year-over-year; investment fair value at $6.5 billion as of June 30, 2024.

Financial highlights

• Q2 2024 revenue was $3.17 billion, down 2% year-over-year, with a decrease in SiriusXM revenue offset by growth in Formula 1 and the addition of QuintEvents.

• Adjusted OIBDA for the quarter was $843 million; consolidated operating income was $528 million.

• SiriusXM Q2 2024 revenue was $2.18 billion, down 3% year-over-year; net income $316 million; adjusted EBITDA $702 million; free cash flow $343 million.

• Formula 1 Q2 2024 revenue rose 20% to $871 million; operating income up 17% to $84 million; leverage ratio improved to 1.3x.

• Total Liberty Media cash and cash equivalents at $2.09 billion as of June 30, 2024; total consolidated debt at $15.03 billion.

Outlook and guidance

• SiriusXM expects to return to free cash flow growth after a peak CapEx year in 2024 and reiterated full-year 2024 financial guidance.

• Planned combination of Liberty SiriusXM Group and SiriusXM expected to close September 9, 2024, subject to conditions.

• Formula One Group on track to complete MotoGP acquisition by year-end 2024.

• Management believes available liquidity is sufficient to cover projected future uses of cash.