QVC Group (QVCGA) Investor Day 2024 summary

Strategic direction and structural changes

• Announced major structural simplification: Liberty Media to become a pure-play, asset-backed company focused on motorsports, primarily Formula 1 and MotoGP, with Liberty Live spun off as a separate public company in 2025.

• Liberty Broadband to merge with Charter, with GCI spun off to shareholders, aiming to eliminate NAV discounts and increase liquidity.

• Leadership transition: Greg Maffei to step down as CEO at year-end after 19 years, with board realignment to support motorsports and future asset diversification.

• Liberty Live will include a 30% stake in Live Nation, Quint, and other private assets, with a focus on live entertainment and hospitality growth.

• GCI, post-spin, may serve as a platform for further asset roll-ups or be sold if a strategic buyer emerges.

Business performance and financial guidance

• Formula 1 delivered record revenue and EBITDA in 2023, with continued growth in 2024; contracted revenue at $13.1B, up 1.8x since 2017.

• Formula 1's EBITDA margin YTD at 25.8%, up 140 bps YoY, with strong free cash flow conversion (64% consolidated, 77% ex-Vegas startup costs).

• MotoGP experienced 36% revenue growth from 2021-2023, with expanding margins and a similar free cash flow profile to F1.

• Live Nation expects double-digit AOI growth, with 2025 projected as a record year; 150M customers attended shows in 2024, targeting 200M in coming years.

• Qurate Retail (soon QVC Group) achieved $500M+ in cumulative EBITDA from Project Athens, with a stable customer base and a shift to top-line growth and social commerce.

Growth initiatives and new business developments

• Formula 1 continues to expand its fan base, with record attendance (expected to exceed 6M in 2024), strong U.S. engagement, and a younger, more diverse demographic.

• Major sponsorship deals signed, including LVMH as the largest global partner, and expanded partnerships with Amex and Wynn.

• MotoGP acquisition to close by year-end, with plans to leverage Liberty’s brand-building and storytelling to accelerate growth, especially in the U.S.

• Quint, now part of Liberty Live, is scaling premium hospitality and experiential offerings across sports and entertainment, with significant growth at the Kentucky Derby and F1.

• QVC Group is rebranding as a live social shopping company, investing in social and streaming platforms, aiming for $1.5B run-rate revenue from these channels within three years.