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Liberty Formula One Group A - Stock Quote FWONA

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Morningstar's Liberty Formula One Group A Stock Analysis

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F1 Posts Strong Q1; Promoting Las Vegas GP Could Provide Revenue Upside

Neil Macker, CFA Senior Equity Analyst

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.

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Liberty Formula One Group A's Company Profile

Business Description

Formula One Group controls the exclusive commercial and promotional rights to the FIA Formula One World Championship series, and the monetization of those rights is the primary business of the group. The firm is responsible for development and promotion of the Formula One race series in concert with its three partners: the FIA (the regulatory body), the teams that participate in the series, and the series' commercial partners, which include the race promoters, broadcasters, sponsors, and advertisers. Formula One Group is a subsidiary of Liberty Media Corporation, which purchased the firm in January 2017. Formula One stock is a tracking stock for the assets under Formula One Group with Liberty Media.

Contact
12300 Liberty Boulevard
Englewood, CO, 80112
T +1 720 875-5400
Sector Communication Services
Industry Broadcasting
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2021
Stock Type Classic Growth
Employees 3,690