• Revenue Growth: Up 15% year-to-date.

• Adjusted EBITDA Growth: Increased by 21% year-to-date.

• Cash and Liquid Investments: $3.7 billion at quarter end.

• Debt: $2.9 billion principal amount at quarter end.

• Adjusted EBITDA Margin: Improved from 24.4% to 25.8% through Q3 2024.

• Attendance: 5.8 million fans attended Grand Prix races through Brazil.

• F1 TV Subscriber Growth: Up 10% year-over-year.

• Interest Rate Swaps: $2.4 billion of debt at a fixed rate.

• Leverage: Expected to be between 3.4x to 4x post MotoGP acquisition.

• Team Payments: 62.2% of pre-tax income year-to-date through Q3.

• Warning! GuruFocus has detected 3 Warning Signs with UP.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Liberty Formula One Group (NASDAQ:FWONA) reported a 15% increase in revenue and a 21% rise in adjusted EBITDA year-to-date, showcasing strong financial performance.

• The company has seen double-digit growth across all revenue streams, supported by two additional races and new partnerships.

• Liberty Formula One Group (NASDAQ:FWONA) successfully refinanced its term loan, reducing the margin on its Term Loan B from 2.25% to 2%, with potential further reductions.

• The company has signed several new commercial agreements, including a groundbreaking 10-year deal with LVMH, enhancing its sponsorship portfolio.

• Attendance at MotoGP events is up 9% year-to-date, with six races setting all-time attendance records, indicating strong fan engagement.

Negative Points

• Sponsorship revenue declined in the third quarter due to lower pro rata revenue recognition and the mix of races.

• The Valencia MotoGP race was canceled due to flooding, impacting the season's schedule and potentially affecting revenue.

• The Las Vegas Grand Prix ticket revenue is expected to be down from initial budget projections, although costs have been reduced.

• There is uncertainty surrounding the media rights renewal with ESPN, with negotiations still ongoing.

• The company faces challenges in maintaining profitability in the Las Vegas market, which is characterized by high volatility in ticket sales.

Q & A Highlights

Q: Can you provide any updates on the Concorde Agreement negotiations and the expected timing? A: Gregory Maffei, President and CEO, stated that there is no urgent rush as there is still plenty of time in Q4. Conversations are progressing well, and the ecosystem is solid. The focus is on getting it right, and they are progressing at a good pace with the expectation that everyone will sign with satisfaction.