Analyst Note
| Neil Macker, CFA |Formula One posted strong third-quarter results as revenue and EBITDA handily beat FactSet consensus estimates. Formula One ran seven races in the quarter versus 10 a year ago as the pandemic forced a condensed schedule in 2020. The 2022 schedule will run for a record 23 races with Miami joining and China sitting out for another year. While the addition of another Gran Prix in U.S. should be positive for the firm, a three-year absence in China is less than ideal given the importance of the market to long-term growth. We are maintaining our narrow moat rating and expect to raise our $37 fair value estimate to account for longer Formula One schedules in 2022 and beyond.