Executive Summary

Q4 2024 attributed Formula One Group revenue declined year over year to $1.167B (vs $1.230B in Q4 2023), with operating income down to $23M (vs $122M) and Adjusted OIBDA to $200M (vs $243M); sequentially, revenue rose vs Q3 ($0.911B) but profitability weakened, largely due to Las Vegas and season-based revenue recognition mix .
Management highlighted a record 2024 for F1 on race count, revenue and Adjusted OIBDA, with 6% full-year F1 revenue growth to $3.411B and 9% Adjusted OIBDA growth to $791M; fan KPIs hit highs (6.5M attendance, 1.6B cumulative TV viewers, 97M social followers) .
2024 Las Vegas Grand Prix economics missed internal expectations on revenue and OIBDA; F1 reorganized LVGP into the London team, is revising ticketing/pricing, bringing ticket sales in-house, and targeting cost improvements to deliver better 2025 top- and bottom-line outcomes; the majority of the perceived Q4 miss analysts model off team payments was Vegas-related .
Sponsorship and licensing catalysts are robust: extensions with Crypto.com through 2030, Allwyn partnership, LVMH and Lenovo as global partners, and Hot Wheels/LEGO licensing rolling out in 2025; U.S. media rights negotiations are active with multiple parties and ESPN relationship remains constructive .
S&P Global consensus EPS/revenue estimates for Q4 were unavailable at time of analysis due to data access limits; we cannot quantify beats/misses vs Street for Q4 2024 in this report [GetEstimates error].

What Went Well and What Went Wrong

What Went Well

“Formula 1 capped off a record 2024 in race count, revenue and Adjusted OIBDA” with full-year total F1 revenue up 6% to $3.411B and Adjusted OIBDA up 9% to $791M; operating income rose 26% to $492M .
Strong commercial pipeline: renewed Belgian (rotation), Dutch (2026), Chinese (2030), Italian and Monaco (2031), extended Crypto.com (2030), added Allwyn, and held a high-profile O2 season launch to mark F1’s 75th anniversary .
Fan engagement momentum: 6.5M event attendance (+9% YoY), 1.6B cumulative TV viewers, 97M social followers (+38%), and F1 TV subscribers +15%, with a new premium tier launching in 2025 .

What Went Wrong

Q4 softness: primary F1 revenue fell 5% YoY and total F1 revenue fell 8% YoY; operating income down 18% YoY and Adjusted OIBDA down 15% YoY, driven by lower race promotion/media rights recognition and Las Vegas ticketing weakness .
Las Vegas Grand Prix stand-alone economics missed internal targets on revenue and OIBDA in 2024; hospitality softness at LVGP weighed on “Other F1 revenue” despite strong Paddock Club trends elsewhere .
SG&A pressures: Q4 selling, general and administrative expense at F1 increased (marketing, personnel, IT, property, legal/pro fees), partially offset by FX favorability .

Financial Results

Formula One Group – Key Financials

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenue ($USD Billions)	$1.230B	$0.911B	$1.167B
Operating Income ($USD Millions)	$122M	$110M	$23M
Adjusted OIBDA ($USD Millions)	$243M	$207M	$200M

Notes: Adjusted OIBDA is non-GAAP; see reconciliations in the press releases .

F1 Revenue Breakdown (Quarterly)

Metric	Q4 2023	Q4 2024
Primary F1 Revenue ($USD Millions)	$838	$797
Other F1 Revenue ($USD Millions)	$392	$329
Total F1 Revenue ($USD Millions)	$1,230	$1,126
Number of Races in Period	6	6

Drivers and mix: Q4 media rights decline reflected a lower proportionate recognition of season-based income (6/24 vs 6/22), partially offset by F1 TV growth; race promotion revenue decreased due to lower LVGP ticketing; sponsorship increased on new partners .

KPIs

KPI	FY 2023	FY 2024
Event Attendance (millions)	6.0 (implied prior)	6.5 (+9% YoY)
Cumulative TV Viewers (billions)	—	1.6
Social Media Followers (millions)	—	97 (+38% YoY)
F1 TV Subscribers YoY Growth (%)	—	+15%
Total Races in Season	22	24

Additional Q4 corporate & other revenue included $13M LVGP Plaza rental income and Quint’s seasonal contributions; corporate adjusted OIBDA loss was $2M in Q4 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Number of Races	2025 Season	24 in 2024	24 planned in 2025	Maintained
Cash Tax Rate (F1)	FY 2025	Not provided	Low double-digit % of Adjusted OIBDA; modest increase thereafter	New disclosure
Operating Company CapEx (ex-Vegas)	FY 2025	Historically 1–2% of total F1 revenue	Expected broadly consistent in 2025	Maintained
Media Rights Revenue Drivers	FY 2025	Not provided	Contractual uplifts; continued F1 TV growth incl. premium tier	Qualitative update
Sponsorship	FY 2025	Pipeline building (Q3)	Derisked by early signings (LVMH, Lenovo); Crypto.com extension to 2030; Allwyn added	Raised qualitative confidence
Las Vegas Grand Prix Economics	FY 2025	Not provided	Targeting top/bottom-line improvement via ticketing/pricing revamp, in-house sales, cost management, London integration	New operational plan

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
U.S. Media Rights	Q-2: N/A; Q-1: limited disclosure in 8-K	Active negotiations with multiple parties; constructive ESPN relationship; potential timeline by mid-year	Increasing focus; robust demand
Las Vegas Grand Prix Economics	Q-1: LVGP Plaza rental income ($7M in Q3)	2024 missed targets; restructuring (London integration), in-house ticketing, cost actions; race time moved 2 hours earlier	Improving operationally
Sponsorship Pipeline	Q-1: LVMH, Lenovo; LEGO/Hot Wheels licensing	Crypto.com extension (2030); Allwyn added; 2025 pipeline strong; premium partners expanding	Strengthening
F1 TV / Direct-to-Consumer	Q-1: “continued growth in F1 TV”	F1 TV subscribers +15%; premium tier launching (4K, Multiview, multi-device)	Expanding product
Sustainability & DEI	Q-1: N/A	Sustainable aviation fuel initiative (~19% 2024 relative emissions reduction); net zero by 2030; D&I charter with teams/FIA	Progressing
MotoGP Acquisition	Q-1: funding secured; targeted closing (year-end)	Phase 2 EC review; long-stop date extended to June 30, 2025; “working constructively”	Extended review, advancing
Concorde Agreement	Q-1: N/A	Fundamentals similar to current; aim to avoid degradation; constructive team dynamics	Constructive negotiations

Management Commentary

Derek Chang (CEO): “2024 stand-alone event economics for Vegas missed internal expectations on revenue and OIBDA… we are making further revisions to ticket product and pricing strategy… bringing the ticketing sales function back in-house… actively managing our cost structure” .
Brian Wendling (CFO): “Total revenue grew 6% in 2024… sponsorship revenue up 10% YoY… team payments as a percent of pre-team adjusted OIBDA was 61.5% in 2024, down from 62.6% in 2023… Adjusted OIBDA margin improved nearly 70 basis points YoY” .
Stefano Domenicali (F1 CEO): “Our sponsorship roster is the strongest in the sport’s history… As of year-end, F1 had $14.4 billion in future revenue contracted… F1 TV subscribers up 15%; launching a higher-priced premium tier… 6.5 million attendance (+9% YoY); 97 million social followers (+38%)” .
Media Rights tone: “We are very happy about the quality of [ESPN’s] service… discussions are going ahead… there is a lot of interest… the hot months will be the next one before summer” .

Q&A Highlights

U.S. media rights outlook: Management denied negative press narratives around ESPN; emphasized robust multi-party interest, broader IP activation beyond race broadcasts, and potential resolution by mid-year .
Las Vegas economics: Majority of Q4 miss modeled off team payments was Vegas-related; actions underway to improve 2025 results (ticketing/pricing, cost, earlier start time, London integration) .
Sponsorship momentum: 2025 pipeline largely set with high-quality brands; opportunities for regional deals, upsells, and tier movement; Monaco tile partner activity noted .
Concorde Agreement: Fundamentals expected “quite similar” to current structure; CFO does not expect degradation in next agreement; team relationships “never been stronger” .
GM Cadillac entry: Admittance as 11th team seen as a boost to the ecosystem; no impact on current Concorde discussions; expected to grow the overall pie .

Estimates Context

Wall Street consensus EPS and revenue (S&P Global Capital IQ) for Q4 2024 were unavailable at time of analysis due to API request limits; as a result, we cannot quantify beats/misses vs consensus in this report [GetEstimates error].
Qualitatively, Q4 revenue declined YoY (-8% total F1; -5% primary F1) due to LVGP ticketing and season-based recognition mix, while sponsorship increased on new partners; sequential profitability weakened vs Q3 despite higher seasonal revenue .

Key Takeaways for Investors

Q4 2024 was seasonally higher revenue vs Q3 but softer profitability; YoY declines driven by LVGP and season-based recognition mix; focus near term is operational fixes and cost discipline at Vegas .
2025 setup is favorable: 24 races, majority of revenue under contract, sponsorship derisked with premium partners, F1 TV premium launch; expect steady media rights uplifts and DTC growth .
U.S. media rights is a key catalyst; expect developments before summer with multiple parties engaged; ESPN relationship constructive; watch for implications on reach vs monetization .
Concorde Agreement looks stable into 2026 regime change; management aims to avoid margin degradation; team relations supportive of continued growth .
MotoGP transaction regulatory timeline extended to June 30, 2025; funding in place and strategic rationale intact; closing would add scale and optionality .
Licensing/consumer products expanding touchpoints: Hot Wheels and LEGO product lines rolling out globally in 2025, reinforcing brand engagement and ancillary monetization .
Trading implications: Near-term sentiment hinges on U.S. media rights negotiation headlines and visible progress on Vegas economics; medium-term thesis supported by contracted revenues, premium sponsorships, and DTC expansion.

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