Liberty Formula One C 2025 Q1 Earnings Misses Targets as Net Income Drops 98%
Thursday, May 8, 2025 12:31 am ET
54min read Liberty Formula One C(FWONK) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Liberty Formula One faced significant financial challenges in the first quarter, with earnings falling short of expectations. The company's net income plummeted by 98%, and its earnings per share (EPS) saw a dramatic decline of 95.3% compared to the previous year. Despite these setbacks, Liberty Media remains optimistic, as reflected in its guidance, forecasting revenue and EPS targets for the upcoming quarters. The company's outlook suggests confidence in its strategic initiatives and partnerships, which are expected to bolster future financial performance.
Revenue
In the first quarter of 2025, Liberty Formula One C experienced a noticeable decline in total revenue, falling by 27.3% to reach $400 million, down from $550 million in 2024 Q1. The Formula 1 segment contributed $400 million to the overall revenue, while other revenue streams added $47 million, culminating in a total of $447 million. This downturn was influenced by various factors, including fewer races held compared to the previous year's quarter.
Earnings/Net Income
Liberty Formula One C's earnings faced a substantial setback, with EPS plummeting 95.3% to $0.01 in 2025 Q1 from $0.31 in 2024 Q1. The company's net income sharply declined to $5 million, marking a 98.0% decrease from the $245 million reported in the same period last year. This significant drop indicates a challenging quarter for the company.
Price Action
The stock price of Liberty Formula One C has edged up 2.81% during the latest trading day, has climbed 5.49% during the most recent full trading week, and has surged 16.20% month-to-date.
Post Earnings Price Action Review
The strategy of investing in Liberty Formula One C (FWONK) shares following a quarter with declining revenue has historically resulted in modest returns. Over the past five years, this strategy yielded a return of 13.25%, which lags significantly behind a benchmark return of 84.08%. This translates to an excess return of -70.84% and a compound annual growth rate (CAGR) of 2.53%. Although the strategy demonstrated a Sharpe ratio of 0.29, indicating some risk-adjusted return, it also faced a maximum drawdown of -12.56%, highlighting periods of significant loss. The volatility of 8.82% underscores the fluctuating nature of returns. Overall, while there is a historical precedent for gains, the performance relative to the benchmark suggests challenges in consistently outperforming the market using this approach.
CEO Commentary
“2025 is off to a strong start. Formula 1 is benefiting from exciting racing on the track and financial momentum underpinned by new commercial partnerships that took effect this year,” said Derek Chang, Liberty Media President & CEO. He emphasized that “the contracted and diversified revenue streams position it well against the current macro and consumer backdrop.” Chang highlighted the positive business fundamentals and expressed confidence in delivering long-term value, noting strong indicators for Live Nation and the continued growth in the global experience economy.
Guidance
Liberty Media expects revenue of $1.16 billion for the upcoming quarter and $3.71 billion for the current fiscal year, with an EPS estimate of $0.55. The company anticipates sustained demand for its offerings and believes that the solid contractual framework will support financial performance amid ongoing market dynamics.
Additional News
In recent weeks, Liberty Formula One C has secured renewed agreements for the Mexico Grand Prix through 2028 and the Miami Grand Prix extending all the way to 2041. The company also announced new sponsorship deals, bringing Barilla Pasta and PWC on board as Official Partners. Furthermore, the opening of the Grand Prix Plaza in Las Vegas on May 2nd marked a significant milestone, offering immersive F1 attractions year-round to the public. These developments underscore Liberty Formula One's proactive approach to expanding its brand presence and enhancing its revenue streams through strategic partnerships and attractions.
Revenue
In the first quarter of 2025, Liberty Formula One C experienced a noticeable decline in total revenue, falling by 27.3% to reach $400 million, down from $550 million in 2024 Q1. The Formula 1 segment contributed $400 million to the overall revenue, while other revenue streams added $47 million, culminating in a total of $447 million. This downturn was influenced by various factors, including fewer races held compared to the previous year's quarter.
Earnings/Net Income
Liberty Formula One C's earnings faced a substantial setback, with EPS plummeting 95.3% to $0.01 in 2025 Q1 from $0.31 in 2024 Q1. The company's net income sharply declined to $5 million, marking a 98.0% decrease from the $245 million reported in the same period last year. This significant drop indicates a challenging quarter for the company.
Price Action
The stock price of Liberty Formula One C has edged up 2.81% during the latest trading day, has climbed 5.49% during the most recent full trading week, and has surged 16.20% month-to-date.
Post Earnings Price Action Review
The strategy of investing in Liberty Formula One C (FWONK) shares following a quarter with declining revenue has historically resulted in modest returns. Over the past five years, this strategy yielded a return of 13.25%, which lags significantly behind a benchmark return of 84.08%. This translates to an excess return of -70.84% and a compound annual growth rate (CAGR) of 2.53%. Although the strategy demonstrated a Sharpe ratio of 0.29, indicating some risk-adjusted return, it also faced a maximum drawdown of -12.56%, highlighting periods of significant loss. The volatility of 8.82% underscores the fluctuating nature of returns. Overall, while there is a historical precedent for gains, the performance relative to the benchmark suggests challenges in consistently outperforming the market using this approach.
CEO Commentary
“2025 is off to a strong start. Formula 1 is benefiting from exciting racing on the track and financial momentum underpinned by new commercial partnerships that took effect this year,” said Derek Chang, Liberty Media President & CEO. He emphasized that “the contracted and diversified revenue streams position it well against the current macro and consumer backdrop.” Chang highlighted the positive business fundamentals and expressed confidence in delivering long-term value, noting strong indicators for Live Nation and the continued growth in the global experience economy.
Guidance
Liberty Media expects revenue of $1.16 billion for the upcoming quarter and $3.71 billion for the current fiscal year, with an EPS estimate of $0.55. The company anticipates sustained demand for its offerings and believes that the solid contractual framework will support financial performance amid ongoing market dynamics.
Additional News
In recent weeks, Liberty Formula One C has secured renewed agreements for the Mexico Grand Prix through 2028 and the Miami Grand Prix extending all the way to 2041. The company also announced new sponsorship deals, bringing Barilla Pasta and PWC on board as Official Partners. Furthermore, the opening of the Grand Prix Plaza in Las Vegas on May 2nd marked a significant milestone, offering immersive F1 attractions year-round to the public. These developments underscore Liberty Formula One's proactive approach to expanding its brand presence and enhancing its revenue streams through strategic partnerships and attractions.
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