Formula One Group (FWONA) Q4 2024 earnings summary

Executive summary

• Leadership transition completed with a new CEO focused on long-term shareholder value, structural simplification, and growth in core assets, especially Formula One and the pending Dorna (MotoGP) acquisition.

• Formula 1 achieved record 2024 results in race count, revenue, and Adjusted OIBDA, with 6.5 million fan attendance (up 9% year-over-year) and 1.6 billion cumulative TV viewers.

• Renewed and extended key race promotion and sponsorship agreements, including multi-year deals for major Grands Prix and new partnerships.

• Near-term priorities include closing the Dorna acquisition, enhancing the value of the Live Nation stake, and driving momentum at Formula One.

• Las Vegas Grand Prix underperformed on revenue and OIBDA in 2024, but operational changes and integration into the London team are expected to improve 2025 results.

Financial highlights

• Formula One Group revenue rose 13% to $3.65 billion for 2024, with operating income of $287 million and Adjusted OIBDA of $774 million (up 13% year-over-year).

• Formula 1 revenue grew 6% to $3.41 billion, with operating income up 26% to $492 million and Adjusted OIBDA up 9% to $791 million for the year.

• Formula One Group ended 2024 with $2.6 billion in cash and liquid investments and $2.9 billion in debt; F1's leverage at year-end was 1.3x.

• CapEx for Formula One Group was $75 million in 2024, with $73 million at F1, including investments in IT, F1 TV, and Las Vegas Grand Prix infrastructure.

• Net loss attributable to Liberty stockholders was $2.06 billion for 2024, compared to net income of $761 million in 2023, primarily due to discontinued operations.

Outlook and guidance

• F1 will host 24 races in 2025, with a different race count and composition per quarter to support sustainability and logistics efficiency.

• Majority of 2025 revenue is under contract, with sponsorship revenue de-risked by early pipeline execution.

• Strategic priorities for 2025 include leveraging F1's growth, completing the MotoGP acquisition, and enhancing shareholder value.

• F1's 75th anniversary in 2025 is expected to provide incremental brand momentum and commercial opportunities.

• F1 estimates a low double-digit cash tax rate as a percent of Adjusted OIBDA for 2025.