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Liberty Media Corporation Series A Liberty Formula One (FWONA)
NASDAQ:FWONA
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Liberty Media Liberty Formula One
(NASDAQ:FWONA)
60Neutral
Positive Factors
Growth Opportunities
The analyst maintains a BUY rating on Formula One Group due to the sport’s considerable global growth opportunity and scarcity of similar sports assets.
Sponsorship and Partnerships
Sponsorship additions included LVMH landing as a global partner, Lenovo upgrading to a Global Partner as well as Pirelli renewing and Amex, Santander and KitKat joining as Official Partners.
Negative Factors
Financial Performance
The Las Vegas Grand Prix fell short on internal budgeting for both revenues and OIBDA due to underperformance in ticket sales, impacting immediate profitability expectations.
Liberty Media Liberty Formula One (FWONA) vs. S&P 500 (SPY)
Market Cap
$26.83B
Dividend YieldN/A
Average Volume (3M)119.16K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth12.23%
EPS Growth-110.37%
CountryUS
Employees6,486
SectorCommunication Services
Sector Strength79
IndustryTraditional Media
Share Statistics
EPS (TTM)-0.09
Shares Outstanding23,987,942
10 Day Avg. Volume137,932
30 Day Avg. Volume119,155
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.27
Price to Cash Flow (P/CF)-209.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$98.50Price Target Upside26.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company DescriptionLiberty Media Liberty Formula One, trading under the ticker FWONA, is a leading sports entertainment company primarily involved in the commercial rights management of Formula One racing. Operating within the sports and entertainment sectors, the company focuses on organizing, promoting, and broadcasting Formula One races globally. It offers a range of services, including media production and distribution, sponsorship sales, and race event management, catering to a worldwide audience of motorsport enthusiasts.
How the Company Makes MoneyLiberty Media Liberty Formula One generates revenue through several key streams. A significant portion of its income comes from broadcasting rights, as it sells exclusive rights to air Formula One races to television networks and digital platforms worldwide. Sponsorship and advertising deals also contribute substantially to its earnings, with companies investing heavily for brand exposure during races. Additionally, the company earns from race hosting fees paid by circuits that wish to host Formula One events, as well as from the sale of merchandise and licensing of the Formula One brand. Strategic partnerships with automotive and technology companies further enhance its revenue potential, enabling the company to capitalize on the global popularity of the sport.
Liberty Media Liberty Formula One Financial Statement Overview
Summary
Liberty Media Liberty Formula One demonstrates robust revenue growth and effective cost management, leading to improved profitability margins. While the balance sheet appears strong, unusual reporting in 2024 and prior fluctuations in debt levels require careful observation. Cash flow is positive, with increasing free cash flow, although financing activities show variability. Overall, the company is well-positioned but must address certain financial volatility and reporting inconsistencies.Income Statement
Liberty Media Liberty Formula One shows strong revenue growth, with a significant increase from $3.22 billion in 2023 to $23.16 billion in 2024. Gross profit margin remained consistent at 100%, indicating effective cost management. The net profit margin improved to 3.87% in 2024 from 5.74% in 2023, although it indicates some operational challenges. EBITDA margin is strong at 6.53%, showcasing solid operational performance. However, net income volatility is a concern given past losses.75
Positive
Balance Sheet
The company shows a strong equity base but has fluctuated in debt levels over the years, with a total debt clearing in 2024. The balance sheet is unusual, with no liabilities or equity reported in 2024, which may suggest restructuring or adjustments. Prior years show a manageable debt-to-equity ratio but require careful monitoring to maintain stability. The equity ratio in previous years was stable, indicating a solid financial foundation.60
Neutral
Cash Flow
Free cash flow showed positive growth in recent years, indicating improving cash generation ability. Operating cash flow remains strong, exceeding net income and reflecting good cash management practices. The significant positive free cash flow in 2024 suggests a favorable cash position. However, the large fluctuations in cash flow from financing activities require attention to ensure sustainable cash reserves.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.65B | 3.22B | 2.57B | 2.14B | 1.15B | Gross Profit |
| 1.17B | 982.00M | 823.00M | 647.00M | 171.00M | EBIT |
| 287.00M | 297.00M | 231.00M | 77.00M | -444.00M | EBITDA |
| 577.00M | 794.00M | 535.00M | 363.00M | -119.00M | Net Income Common Stockholders |
| -30.00M | 185.00M | 558.00M | -120.00M | -594.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.63B | 1.41B | 1.73B | 2.07B | 1.68B | Total Assets |
| 11.76B | 10.27B | 11.02B | 11.66B | 11.19B | Total Debt |
| 2.99B | 2.91B | 2.95B | 3.63B | 3.76B | Net Debt |
| 361.00M | 1.50B | 1.21B | 1.56B | 2.08B | Total Liabilities |
| 4.37B | 3.85B | 4.08B | 4.72B | 4.64B | Stockholders Equity |
| 7.39B | 6.42B | 6.91B | 6.34B | 6.55B |
| Cash Flow | Free Cash Flow | |||
| 492.00M | 193.00M | 243.00M | 464.00M | -160.00M | Operating Cash Flow |
| 567.00M | 619.00M | 534.00M | 481.00M | -139.00M | Investing Cash Flow |
| -292.00M | -510.00M | 394.00M | -600.00M | 75.00M | Financing Cash Flow |
| 965.00M | -435.00M | -1.27B | 512.00M | 1.16B |
Liberty Media Liberty Formula One Technical Analysis
Negative
78.08
Price Trends
86.23
Negative
82.63
Negative
75.98
Negative
Market Momentum
-2.81
Positive
29.80
Positive
3.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONA, the sentiment is Negative. The current price of 78.08 is below the 20-day moving average (MA) of 86.17, below the 50-day MA of 86.23, and above the 200-day MA of 75.98, indicating a bearish trend. The MACD of -2.81 indicates Positive momentum. The RSI at 29.80 is Positive, neither overbought nor oversold. The STOCH value of 3.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FWONA.
Liberty Media Liberty Formula One Risk Analysis
Liberty Media Liberty Formula One disclosed 106 risk factors in its most recent earnings report. Liberty Media Liberty Formula One reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liberty Media Liberty Formula One Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $22.81B | 10.08 | 20.09% | 1.12% | 4.29% | 177.70% | |
77 Outperform | $133.05B | 8.49 | 19.24% | 3.52% | 1.78% | 11.62% | |
74 Outperform | $178.54B | 32.07 | 5.54% | 0.96% | 3.97% | 89.53% | |
60 Neutral | $26.83B | ― | -0.43% | ― | 12.23% | -110.37% | |
58 Neutral | $29.51B | -0.64 | -15.44% | 4.07% | 2.03% | -50.31% |
* Communication Services Sector Average
Performance Comparison
FWONA
Liberty Media Liberty Formula One
78.08
17.23
28.32%
CMCSA
Comcast
35.43
-6.02
-14.52%
DIS
Walt Disney
98.64
-12.30
-11.09%
FOX
Fox
48.47
21.91
82.49%
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -11.27% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
While there were significant achievements in revenue growth, sponsorship deals, and fan engagement, the underperformance of the Las Vegas Grand Prix and challenges with US media rights negotiations presented notable concerns.Highlights
Formula One Revenue Growth
Total revenue grew 6% in 2024 with growth across all primary revenue streams. Sponsorship revenue increased by 10% year-over-year.
Strong Financial Position
Formula One Group had $2.6 billion in cash and liquid investments at year-end, with a leverage of 1.3 times.
Record F1 Attendance
Over 6.5 million people attended races in 2024, a new record, growing 9% over 2023. Paddock Club attendance also increased by 20%.
Sponsorship Success
F1 had $14.4 billion in future revenue contracted under multiyear agreements, with new partnerships including LVMH, Lenovo, and Crypto.com.
Expansion of F1 TV
F1 TV subscribers grew by 15%, and a new premium tier is set to launch offering enhanced functionality.
Lowlights
Las Vegas Grand Prix Underperformance
The Las Vegas Grand Prix missed internal expectations on revenue and OIBDA, primarily due to ticket sales and hospitality offerings.
Challenges with US Media Rights
There was speculation about F1 and ESPN moving on from each other, though discussions are ongoing with many interested parties.
Company Guidance
During Liberty Media Corporation's 2024 year-end earnings call, the company provided detailed insights into its strategic priorities and financial metrics. Key guidance included the focus on closing the Dorna acquisition, enhancing structural simplification, and emphasizing the value of the Live Nation equity stake. The company highlighted Formula One's strong performance in 2024, with total revenue growth of 6%, driven by an increase in sponsorship revenue by 10% and the addition of two more races compared to 2023. Despite the Las Vegas Grand Prix missing revenue and OIBDA expectations, Liberty Media expressed confidence in addressing these issues through revised ticket pricing strategies and cost structure management. The company also reported a cash balance of $2.6 billion and a principal debt amount of $2.9 billion in the Formula One Group, with leverage at 1.3 times as of December 31st. Looking ahead to 2025, Liberty Media plans to host 24 races with continued focus on enhancing fan engagement and expanding the F1 platform.Liberty Media Liberty Formula One Corporate Events
Shareholder Meetings
Liberty Media Announces 2025 Virtual Annual Meeting
Neutral
Feb 24, 2025
On February 21, 2025, Liberty Media Corporation announced it will hold its virtual Annual Meeting of Stockholders on May 12, 2025. The meeting date has been moved up by over 20 days from the previous year, requiring stockholder proposals and board nominations to be submitted by March 3, 2025. This change may impact stockholder engagement and planning.
Financial Disclosures
Liberty Media to Discuss Q4 2024 Financial Results
Neutral
Jan 31, 2025
On January 30, 2025, Liberty Media Corporation announced it will host a conference call on February 27, 2025, to discuss its fourth-quarter 2024 financial results. The call will cover the company’s financial performance, outlook, and possibly other forward-looking matters, with live internet broadcasting and replay available on their website.
Executive/Board ChangesBusiness Operations and Strategy
Liberty Media Names Derek Chang as CEO
Positive
Jan 8, 2025
Liberty Media Corporation announced the appointment of Derek Chang as President and Chief Executive Officer, effective February 1, 2025. This leadership change, with Chang bringing extensive experience from global media, sports, and entertainment sectors, is aimed at optimizing the company’s portfolio and supporting growth in key assets like Formula 1 and MotoGP, indicating a strategic focus on long-term investment opportunities and enhancing shareholder value.
M&A TransactionsRegulatory Filings and Compliance
Liberty Media to Acquire Dorna Sports, Awaiting EU Review
Neutral
Dec 19, 2024
Liberty Media has entered into an agreement to acquire 86% of Dorna Sports, the organizer of MotoGP, for approximately €3.502 billion. The transaction is under a Phase II review by the European Commission, which has led to an extension of the longstop date to June 30, 2025. Liberty Media believes the acquisition will benefit MotoGP and enhance its competitiveness in the audiovisual entertainment market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.