Formula One Group (FWONA) Q3 2024 earnings summary

Executive summary

• Completed the LSXM-SIRI merger and split-off, making Sirius XM Holdings independent and presenting it as a discontinued operation; Atlanta Braves Holdings also transitioned to a standalone public company, both confirmed as tax-free by the IRS.

• Formula One Group remains the primary operating segment, reporting strong financial and operational performance, with revenue up 15% year-to-date and significant cash reserves.

• Secured all funding for the MotoGP (Dorna Sports) acquisition, with closing expected by year-end 2024.

• Formula 1 signed major new global sponsorships and licensing deals, including LVMH, American Express, Lenovo, LEGO, and Mattel Hot Wheels, effective 2025.

• Live Nation investment valued at $7.6 billion as of September 30, 2024, with strong global demand for events.

Financial highlights

• Formula One Group Q3 2024 revenue was $911 million, up from $887 million in Q3 2023; nine-month revenue was $2.49 billion, up from $1.99 billion year-over-year.

• Operating income for Formula One Group was $110 million in Q3 2024 and $264 million for the nine months, both up from prior year periods.

• Adjusted OIBDA for Formula One Group increased to $207 million from $197 million year-over-year; margin improved from 24.4% to 25.8% year-to-date through Q3 2024.

• Cash and cash equivalents for Formula One Group increased to $2.7 billion at quarter end, with total attributed cash, liquid investments, and monetizable public holdings at $2.7 billion.

• Formula One Group long-term debt was $2.93 billion as of September 30, 2024; F1 leverage at 9/30 was 1.1x.

Outlook and guidance

• MotoGP acquisition expected to close by year-end 2024, with all funding secured and anticipated to diversify and strengthen the business.

• Expect F1 leverage to be between 3.5 and 4x after MotoGP deal closes at year-end.

• Strong pipeline for commercial activity and sponsorships in 2025 and 2026, with several new global partners announced.

• Formula 1 expects continued revenue growth driven by contractual increases in race promotion, media rights, and sponsorship fees, with a 24-event calendar for 2024.

• Management believes available liquidity is sufficient to cover projected future uses of cash, including capital expenditures, acquisitions, and debt service.