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Liberty Media Corp (FWONK)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 was seasonally light with only two races, driving total Formula One Group revenue down to $447M and Adjusted OIBDA to $73M, producing a total operating loss for the group of $(67)M; declines were primarily calendar-driven and not indicative of full-year trajectory .
  • Sponsorship and licensing momentum continued (new partners Barilla and PwC), 2026 Concorde commercial agreement signed with all ten teams, and U.S. media rights negotiations are “active and productive,” setting catalysts for H2 2025 and 2026 .
  • Las Vegas Grand Prix Plaza opened May 2 with year‑round activations; ticket volumes are trending ahead of last year with lower initial prices to drive higher sell-through, supporting improved LVGP economics over time .
  • No explicit quantitative guidance was issued; management expects other cost of F1 revenue to be consistent with prior years as a % of revenue and team payments % to decline into the next Concorde term, implying margin support in the medium term .
  • Wall Street consensus for FWONK (Liberty Formula One tracking stock) was unavailable via S&P Global for Q1 2025, limiting beat/miss analysis; investors should focus on full-year cadence and contractual revenue visibility ($14.2B of future revenue under contract at F1) .

What Went Well and What Went Wrong

What Went Well

  • Secured long-dated assets and sponsorship momentum: Mexico GP renewed through 2028; Miami GP through 2041; new sponsorships with Barilla and PwC; all ten teams signed the 2026 Concorde Commercial Agreement—stability for the ecosystem .
  • Engagement strength and pipeline: LiveTV viewership up across top markets; ESPN U.S. viewership +45% across first five races; F1 TV subscribers +20% in U.S.; LEGO activation drew major fan interest, illustrating multi-platform content strategy .
  • LVGP and year‑round monetization: Grand Prix Plaza opened May 2; tickets trending ahead of last year; lower initial prices intended to drive urgency and sell-through; modest 2025 impact with scalability over time .

Quote: “2025 is off to a strong start…contracted and diversified revenue streams position [F1] well…confident in our ability to deliver long‑term value.” — Derek Chang, President & CEO .

What Went Wrong

  • Calendar headwinds: Two races in Q1 vs three last year reduced recognition of season-based media rights and sponsorship, pressuring primary F1 revenue and Adjusted OIBDA; total Formula One Group revenue fell to $447M and group operating income turned negative .
  • Cost pressure: Other cost of F1 revenue increased (freight routes, commissions/partner servicing, Grand Prix Plaza activity) and SG&A rose (75th season launch marketing; personnel) despite one fewer event .
  • One‑time Concorde payments: $50M paid to teams in Q1 to secure the 2026 agreement (excluded from Adjusted OIBDA), depressing GAAP operating results for the quarter .

Financial Results

Consolidated and Group Metrics (Formula One Group; amounts in $USD millions)

MetricQ3 2024Q4 2024Q1 2025
Total Revenue$911 $1,167 $447
Operating Income (Loss)$110 $23 $(67)
Adjusted OIBDA$207 $200 $73
Diluted EPS - Continuing Ops ($)—$(0.531)*$0.014*

Asterisked values retrieved from S&P Global.

Segment Revenue Breakdown (Formula One Group; amounts in $USD millions)

SegmentQ3 2024Q4 2024Q1 2025
Formula 1 Revenue$861 $1,126 $403
Corporate & Other$70 $118 $53
Intergroup Elimination$(20) $(77) $(9)
Total$911 $1,167 $447

KPIs and Operating Drivers (F1; amounts in $USD millions unless noted)

KPIQ3 2024Q4 2024Q1 2025
Number of Races in Period7 6 2
Primary F1 Revenue$758 $797 $319
Other F1 Revenue$103 $329 $84
Team Payments (ex‑Concorde incentive)$371 $297 $114
Other Cost of F1 Revenue$190 $543 $128
SG&A (F1)$79 $84 $76
Concorde Incentive Payments——$50

Liquidity & Leverage (Attributed to Formula One Group)

Metric12/31/20243/31/2025
Cash & Cash Equivalents$2,631 $2,833
Total Attributed Debt (GAAP)$2,992 $2,982
F1 Leverage1.3x 1.2x

EBITDA and Margin (S&P Global)

MetricQ3 2024Q4 2024Q1 2025
EBITDA ($)—$190*$67*
EBITDA Margin (%)—16.28%*14.99%*

Asterisked values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Other Cost of F1 Revenue (% of Revenue)FY 2025“Consistent with prior years” “Consistent with prior years” Maintained
Team Payments (% of pre‑team Adjusted OIBDA)Post‑2025 (2026‑2030)61.5% in 2024 actual “Expected to come down” under new Concorde Lowered (future)
U.S. Media Rights Renewal2026+Not specified“Active and productive discussions” N/A (process update)
LVGP Year‑Round Activations2025Not specified“Modest 2025 impact as we scale” Initiated
Capex (F1 YTD, incl. GPP)2025 YTDN/A~$33M YTD; ~<$20M for Grand Prix Plaza New disclosure

Note: Liberty Media did not issue explicit numerical revenue/EPS margin guidance for Q1/FY 2025; qualitative framing provided above .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Sponsorship momentumNew/expanded deals (LVMH, Lenovo, AmEx, Santander); licensing LEGO/Hot Wheels “Strongest roster” and robust pipeline New deals (Barilla, PwC); focus on blue-chip partners Strengthening
Media rights (U.S. and global)Debt refinance, set up MotoGP; no U.S. details 2025 anniversary exposure; optimistic on 2025 U.S. rights talks active; F1 TV premium outperformed; ESPN viewership +45% Positive momentum
MotoGP acquisitionFunding secured; close target year-end 2024 Regulatory long-stop extended to 6/30/2025 Phase II process ongoing; bullish on opportunity Proceeding toward approval
LVGP economics/PlazaThird-party events at Plaza aided revenue Plaza rent $13M in Q4 Plaza opened May 2; tickets ahead of last year; lower entry pricing Scaling
Team payments/ConcordeTeam payments down with race count; revised terms coming 61.5% of pre-team Adjusted OIBDA in 2024 $50M one‑time Concorde incentive; % expected to decline in 2026‑30 Structurally improving
Fan engagementAttendance up, sell-outs; licensing activations Attendance 6.5M (+9% YoY), 1.6B TV viewers Social followers 100M (+30% YoY); strong linear and digital growth Broad-based growth
Sustainability/regulatory——Sustainable fuels in 2026; SAF investments; promoter community programs Advancing initiatives

Management Commentary

  • Derek Chang: “The contractual nature of Formula One’s cash flow provides high visibility…especially important in this macroeconomic climate” .
  • Stefano Domenicali: “Close racing…helping drive viewership growth…we agreed to the commercial terms with all F1 teams for the 2026 Concorde Agreement” .
  • Brian Wendling: “Other costs of F1 revenue to be consistent as a percentage of total revenue for the full year…team payments percent expected to continue to come down” .
  • Stefano Domenicali on U.S. media rights: “We are open to any kind of possible discussion…to keep penetration…monetize” with F1 TV an important asset .

Q&A Highlights

  • Sponsorship funnel: Focus on quality over quantity; strong pipeline for 2025 and 2026; renewals and new partnerships expected to grow revenue streams .
  • U.S. media rights and F1 TV: Exploring bundles vs stand‑alone; strong year‑over‑year viewership and 20% U.S. F1 TV growth support monetization flexibility .
  • Cost structure: Other cost of revenue to remain consistent as % of total; incremental partner servicing and GPP costs offset by revenue; growth initiatives embedded .
  • Non‑U.S. media rights: Competitive tension rising in LATAM and Asia; digital interest nascent but growing; Japan and Brazil cited for positive evolution .
  • Competitive balance: Regulations, cost cap, and natural cycles are improving parity; expect manageable gaps as 2026 rules arrive .
  • Miami GP extension rationale: Early extension supports continued promoter investment and aligns with U.S. strategy .
  • Sponsorship defensiveness: Mid‑ to long‑term contracts and global reach provide resilience vs macro; no slowdown observed despite market fluctuations .

Estimates Context

  • Wall Street consensus for FWONK was unavailable via S&P Global for Q1 2025; the tracking stock structure limits quarterly EPS and revenue consensus visibility. As a result, a beat/miss assessment versus consensus cannot be made for Q1 [GetEstimates].
  • Actuals reported: Revenue $447M and Adjusted OIBDA $73M for Formula One Group, both down year‑over‑year due to one fewer race; we expect estimates to focus on full-year cadence rather than quarterly variability .
  • Where analysts may adjust: lower Q1 revenue/Adjusted OIBDA implies quarterly mix and freight/servicing costs need calendar normalization; management’s commentary suggests full-year margin integrity (other cost % consistent, team payments % expected to decline into next term) .

Key Takeaways for Investors

  • Quarter-to-quarter variability is driven primarily by race count/mix; focus on full‑year trajectory and contracted revenue base ($14.2B future revenue secured) to frame valuation and risk .
  • Sponsorship/licensing and U.S. media rights are the near‑term catalysts; positive viewership and F1 TV growth strengthen bargaining power and long‑term monetization .
  • Cost discipline: despite higher freight/servicing costs and GPP ramp, management expects other cost of revenue to be stable as a % of revenue; team payments % should decline under the new Concorde, supporting medium‑term margins .
  • LVGP economics improving: year‑round Plaza activations and refined ticket strategy aim to boost sell‑through and ecosystem value; modest P&L impact in 2025 with scalability .
  • MotoGP transaction remains a strategic upside lever; Phase II review progressing with long‑stop of June 30, 2025—potential multi‑asset flywheel on close .
  • Trading lens: Q1 softness is calendar-driven; watch upcoming race cadence and sponsorship renewals for momentum; any U.S. media rights announcement could be a stock catalyst .
  • Medium‑term thesis: structural stability (Concorde, long-dated race contracts), multi‑platform content monetization (linear, F1 TV, social, licensing), and ongoing globalization of the fan base underpin durable growth .

Asterisked values retrieved from S&P Global.