Analyst Note
| Neil Macker, CFA |Formula One kicked off 2022 with a strong first quarter as revenue and EBITDA beat FactSet consensus estimates. The firm recently announced the addition of a new Grand Prix, or GP, in Las Vegas for the 2023 schedule, bringing the number of races in the U.S. to three with Austin and Miami. Unlike most of the other races, F1 will act as the primary promoter for the street race and will build out the hospitality and paddock areas on its own property. While this represents a move away from the traditional asset-light model for F1, promoting a race could offer both higher revenue upside and more flexibility. We don’t expect F1 will begin to promote all of its races anytime in the near future, but the strategy could be used again for newer GPs or future additions to the schedule. We expect to modestly raise our $46 fair value estimate after updating our model to account for the upside from Las Vegas.