Formula One's 2025 Q1 Earnings Call: Contradictions in Media Rights, Sponsorship Growth, and Economic Resilience

Media rights strategy and value proposition, sponsorship growth and market conditions, economic impact of sponsorship revenue during downturns, media rights strategy and U.S. market are the key contradictions discussed in Formula One's latest 2025Q1 earnings call.



Formula One Performance and Engagement:
- Formula One's attendance and viewership have shown significant increases, with the Australian Grand Prix reaching a new record crowd of 465,000 and a 45% year-over-year increase in U.S. ESPN viewership.
- This growth is attributed to the exciting on-track action, strong on-track performance, and effective engagement strategies like the LEGO partnership and driver parade.

Team Payments and Sponsorship:
- Team payments were down in the first quarter due to fewer races, but adjusted OIBDA remains strong with 61.5% of pre-team adjusted OIBDA in 2024.
- The company is focused on securing blue-chip sponsors aligned with the F1 brand, indicating potential for future growth in sponsorship revenue.

Media Rights and Broadcast Strategy:
- F1 TV subscriber growth is robust, with 4% year-over-year globally and 20% in the U.S.
- The company is exploring strategic broadcast partnerships, integrating F1 TV as part of broader media rights deals to leverage its growing popularity and engagement.

Dorna Acquisition and MotoGP Progress:
- The Dorna acquisition is progressing, with regulatory approval expected by June 30, 2025.
- MotoGP has seen increased attendance and engagement, with the Argentina Grand Prix setting a new record, indicating potential for increased interest and expansion.