- **Strategic Restructuring**: Liberty Media splits off Liberty Live into FWONK, positioning for enhanced trading dynamics.
- **F1 Growth Drivers**: 9% revenue growth, Apple U.S. partnership, and record Paddock Club sales (36,000 guests). Apple integration to amplify F1's digital reach.
- **MotoGP Integration**: 17 races year-to-date with 17% revenue growth, despite OIBDA decline due to investment in commercial functions.
- **Vegas Execution**: Ticket sales on track, cost control measures implemented, and Paddock Club expansion planned for 2026.
- **Sponsorship Momentum**: 2026 pipeline strong with renewals and new logos, including Disney, Pottery Barn, and Hello Kitty licensing deals.
- **Competitive Balance**: F1's 2026 engine regs maintain competitive dynamics, with new manufacturers (Audi, Honda) set to join.


**【CEO Summary Section】**
- **Strategic Split-Off Update**: Liberty Media plans to complete the split-off of Liberty Live on December 15, with the new asset-backed equity trading under the ticker FWONK. Shareholder vote scheduled for December 5.
- **Formula One Momentum**: Renewed multiyear deal with Heineken, landmark Apple partnership for U.S. distribution, and 9% year-to-date revenue growth despite one fewer race. Paddock Club sales up 8% to 36,000 guests.
- **MotoGP Integration Progress**: 17 races year-to-date with revenue growth across sponsorship, media rights, and hospitality. Adjusted OIBDA down due to higher costs but strategic investments in commercial functions.
- **Apple Partnership Impact**: U.S. media rights transition to Apple expected to enhance fan engagement through integrated ecosystem (Apple News, Music, Fitness). F1 TV subscription revenue to be absorbed into Apple platform.

**【CFO Financial Commentary】**
- **Financial Health**: Formula One Group holds $1.3 billion in cash, with $5.1 billion in debt. F1 net leverage at 3.0x, below covenant threshold, enabling margin reduction. MotoGP net leverage at 5.6x.
- **Revenue Growth**: F1 media rights +15%, sponsorship +9%, and race promotion flat (offset by one fewer race). MotoGP revenue up 17% YoY, driven by additional races and contractual uplifts.
- **Cost Management**: F1 team payments flat YoY, team share of adjusted OIBDA at 61.5%. MotoGP SG&A up due to headcount expansion for commercial functions.

**【Q&A Highlights】**
- **Vegas Race Execution**: Ticket sales on track, cost control measures implemented. Paddock Club sold out, with plans to expand capacity in 2026. Hospitality revenue growth driven by premium pricing and new activations.
- **Sponsorship Pipeline**: 2026 pipeline strong with renewals and new logos (e.g., LVMH, Volcan Tequila). Licensing partnerships with Disney, Pottery Barn, and Hello Kitty driving long-term merchandising growth.
- **MotoGP Renewals**: 8 of 16 2027 race renewals completed, with interest from new markets (Brazil, Argentina). Focus on improving race experience and digital engagement (Video Pass subscribers +6%).
- **Competitive Balance**: F1's 2026 engine regulations expected to maintain competitive dynamics, with mechanisms to address performance gaps. Audi, Honda, Ford, and Cadillac set to join in 2026.


Formula One Group (FWONK) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LSXMK(Delisted)

LSXMK fundamentals

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