Company Overview

Formula One Group, a subsidiary of Liberty Media Corporation, trades on NASDAQ under the symbols FWONA and FWONK. It comprises wholly-owned subsidiaries including Formula 1®, MotoGP™, Quint, and other minority investments. The company holds exclusive 100-year commercial rights to the FIA Formula One World Championship, positioning it as the commercial rights holder for the world's premier motor racing competition. Founded in 1950 and headquartered in Englewood, Colorado, Formula One Group has evolved into a global motorsports and entertainment powerhouse.

Business Operations

Formula One Group operates the FIA Formula One World Championship, an annual nine-month competition featuring races where teams contend for the Constructors' Championship and drivers for the Drivers' Championship. The 2025 FIA Formula One World Championship™ marks F1's 75th anniversary and is scheduled from March to December, encompassing 24 races across 21 countries and five continents.

Core Revenue Streams

As of the year ended December 31, 2024, F1's primary revenue is derived from three main sources: race promotion revenue (29.3% of total F1 revenue), media rights fees (32.8%), and sponsorship fees (18.6%).

Business Segments

The company's operational scope extends beyond Formula 1 racing:

- Formula 1 Operations: This segment involves negotiating contracts for hosting F1 Grands Prix, organizing television broadcasting agreements, and collecting licensing fees for the use of Formula One intellectual property.

- Additional Services: The company offers ticket and hospitality packages for sports and entertainment events, licensing, television production, and other related activities. It also provides freight, logistical, and travel services, and operates the Formula 2, Formula 3, and F1 Academy series.

- MotoGP Expansion: Liberty Media acquired a majority stake in Dorna Sports in 2025, gaining control of the commercial rights for MotoGP and the Superbike World Championship. These assets have been integrated into the Formula One Group. Dorna Sports holds exclusive commercial rights for the FIM MotoGP™ World Championship, its feeder series, and other prominent motorcycle racing championships.

Financial Performance

2024 Financial Results

For the full year 2024, Formula One Group reported revenue of $3.65 billion, a 13% increase compared to 2023. However, the company posted a net loss of $30.0 million, equating to a $0.13 loss per share, a contrast to the $185.0 million profit ($0.79 per share) recorded in 2023.

The Formula 1 segment accounted for $3.41 billion, representing 93% of total revenue for the trailing 12 months. Cost of sales, amounting to $2.49 billion, represented 68% of total revenue, significantly impacting profitability.

Operating Performance

Operating income before depreciation and amortization (OIBDA) saw a rise of 9.1%, reaching $791 million in 2024. The company hosted 24 races in 2024, up from 22 in 2023, with Formula 1 directly promoting the Las Vegas Grand Prix in both years.

Market Capitalization

As of recent trading data, Formula One Group's market capitalization is approximately $24.594 billion.

Strategic Developments

Recent Achievements

- Race Contract Renewals: The company successfully renewed several key race promotion agreements, including the Belgian Grand Prix (on a multi-year rotation), the Dutch Grand Prix through 2026, the Chinese Grand Prix through 2030, and the Italian and Monaco Grands Prix through 2031.

- Partnership Extensions: An extension of the partnership with Crypto.com through 2030 was announced, alongside a new agreement with global lottery operator Allwyn as an Official Partner.

- 75th Anniversary: To commemorate F1's 75th anniversary year, the company hosted a season launch event at London's The O2, with over 40 global broadcasters airing the show.

Corporate Structure

Formula 1 operates under a tracking stock structure. This means that shares like FWONK and FWONA reflect the financial performance of the Formula One Group but do not confer direct ownership in the company. The Series A and Series C Liberty Formula One common stocks are traded on the Nasdaq Global Select Market under the stock symbols FWONA and FWONK, respectively.

Growth Trajectory

Under Liberty Media's ownership, F1's revenue has more than doubled, growing from approximately $1.8 billion in the mid-2010s to $3.65 billion in 2024. Projections indicate that revenue is forecast to grow at an average annual rate of 7.5% over the next three years, which compares to a 9.7% growth forecast for the broader US Entertainment industry.

The company is continuing to expand its global presence through strategic partnerships, the introduction of new race locations, and enhanced digital engagement, solidifying its position as a leader in the global motorsports and entertainment industry.