FWONK

Welcome to Liberty Media Corporation's 2026 Second Quarter Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have questions, please press star one on your telephone. As a reminder, this conference will be recorded August 6th. I would now like to turn the call over to Hooper Stevens, Senior Vice President, Investor Relations. Please go ahead.

Thank you for joining us this morning. This call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Forms 10-K and 10-Q filed by Liberty Media with the SEC. Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including Adjusted OIBDA, constant currency for MotoGP.

The required definitions and reconciliations for Liberty Media Schedule One and MotoGP Schedule Two can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Speaking on today's call, we have Liberty's President and CEO, Derek Chang; Liberty's Chief Accounting and Principal Financial Officer, Brian J. Wendling; Formula 1's President and CEO, Stefano Domenicali; MotoGP CEO, Carmelo Ezpeleta, and other members of management will be available for Q&A. With that, I'll turn it over to Derek.

Great. Thank you, Hooper. Good morning, everyone. We are thrilled with the second quarter performance at both F1 and MotoGP. Amidst all the global uncertainty, Credit to our operating teams in this challenging environment, our businesses are motoring along at a speedy pace. Our priorities for 2026 remain unchanged, which are to build upon Formula 1's durable business model, establish the foundation for MotoGP's next phase of development, and allocate capital with discipline. Since May, we have made tangible progress against each priority while keeping the distinct identity of each sport at the center of our approach. Formula One continues to demonstrate the breadth and durability of its platform. New technical era is producing compelling competition on track. There is immense demand from fans, promoters, commercial partners, and media platforms. Meanwhile, our business continues to perform incredibly well, with notable momentum across Paddock Club, licensing, and sponsorship.

In the U.S., Formula 1's momentum on Apple continues to build with viewership up year-over-year, season-to-date, and total hours watched up 13%. We could not be more pleased with this result. The digital product is great, and sponsors across the F1 ecosystem are very happy with our distribution on Apple. This season, F1 has attracted a much younger and more female audience in the U.S. on Apple TV. Our experience with Apple continues to reinforce the strategy of pairing premium live coverage with product innovation and broader ecosystem breadth without compromising reach. Through Apple's ecosystem, F1 is being amplified, discovered, and embraced by a new generation of fans, and we couldn't be more excited to see what this partnership will bring to our sport in the coming years. We are also creating more direct and frequent relationships with fans.

Original content, licensing, and experiential activations are extending engagement beyond race weekends. For example, Passenger Princess, which in its first season generated close to 300 million views, returned for a second season last month. The Las Vegas Grand Prix 10-year extension through 2037 is a milestone that underscores F1's growing U.S. presence. At MotoGP, we are beginning to capitalize on the significant opportunities ahead, and we are very happy with our progress so far. The racing this season has been exceptional, with incredibly tight competition among the top five riders. More importantly for the long term, MotoGP completed agreements with all manufacturers and teams through 2031. Together with new technical regulations beginning next year, this establishes a stable framework for investment, promotion, and commercial growth. We continue strengthening the organization, including progressing on key hires and building commercial capabilities while pursuing growth in ways that are authentic to MotoGP.

There is positive momentum in the business with new media agreements signed in Spain and Portugal and the extensions of the Malaysian and Silverstone Grands Prix. Fan activations, like the 20,000-person immersive watch party in London in June, broaden access and visibility and underscore our priority of bringing the MotoGP experience closer to city centers. Our capital priorities at the Liberty level remain to support attractive organic growth, maintain a prudent balance sheet, and evaluate opportunities that complement our existing assets. Brian will cover the financial results in more detail, and Stefano and Carmelo will discuss the operating businesses. Our confidence remains high in the durability of Formula 1's growth and their increasingly direct and always-on fan relationships. Likewise, we continue to feel very excited by MotoGP's long-term potential as its organizational and commercial foundation takes shape. Now I'll turn it over to Brian.

Thank you, Derek, good morning, everyone. We'll start with the Formula 1 business. The race count this quarter is especially challenging due to not holding the Saudi and Bahrain GPs in April, and other differences in the calendar resulting in a 44% decline in the race count for the quarter and a 27% decline year-to-date. With that in mind, I'll focus on year-to-date comparisons, and as always, it remains best to focus on our business on a full-year basis. Absent the calendar variability, the business is performing incredibly well. Results reported year-to-date reflect a 22 race calendar, the number known at June 30. Subsequent to the end of the second quarter, we have rescheduled the Bahrain GP, which will be held in Malaysia in October, bringing our expected race count to 23 races for the year.

We expect to start accruing season-based revenue costs and associated true-ups with respect to a 23 race calendar starting in the third quarter of this year. No additional 26 calendar changes may be necessary. We expect to return to a full 24 race calendar next season. The second quarter of 2026 held five races compared to nine races in the second quarter of last year. Year-to-date through the second quarter, F1 also had three fewer races, with eight races held in the current year-to-date period, compared to 11 races held in the prior year. Year-to-date, revenue declined 15% and Adjusted OIBDA declined 30%, driven by the change in race count. The decline in primary revenue was driven by the calendar variance and its effect on recognition of season-based revenue.

With eight out of 22 assumed races staged year-to-date, with approximately 36% of season-based revenue recognized compared to the prior year period, when 11 out of 24 races had been staged and approximately 46% of season-based revenue had been recognized. During the second quarter, media rights revenue was also impacted by the one-time revenue associated with the release of the F1 movie last year. Offsetting the decline was underlying contractual fee increases at our three primary revenue streams and revenue generated from new and renewed sponsorship partners. Other revenue declined due to lower hospitality and freight revenue from three fewer events held year-to-date and lower F3 revenue due to the sale of cars at the beginning of the new F3 cycle last year.

Partially offsetting decline was strong demand for the Paddock Club at recurring events, continued growth in our licensing business, and growth in the Grand Prix Plaza activities in Las Vegas. Adjusted OIBDA decreased year-to-date because of the lower event count. The revenue decline discussed above outpaced the decline in expenses. Decreased operating expenses included lower team payments and expenses related to the delivery of hospitality offerings, travel, freight, and other costs due to the calendar variance. SG&A expenses increased driven by higher personnel and information technology costs, partially offset by lower marketing costs as we lapped the 75th season launch event last year. Team payments as a percent of pre-team share Adjusted OIBDA were 61.7% year-to-date and were also accrued based on a 22 race calendar assumption.

For the full year, we still expect to see roughly 200 basis points improvement in leverage on this metric, in line with the average that we've seen over the past four years. After 2026, for the remainder of the term of the new Concorde Agreement through 2030, we expect the payoff percentage to remain relatively stable. Team payments are best analyzed on a full year basis due to quarterly fluctuations in team payments as a percent of Adjusted OIBDA. Now turning to MotoGP. A reminder that we closed the acquisition on July 3rd of 2025, so our financial results prior to the date of the acquisition are presented on a pro forma basis, so the transaction occurred on January 1, 2024. The majority of MotoGP's revenue and costs are EUR denominated and as such are subject to translational impacts from foreign exchange fluctuations.

I will focus on constant currency results here. Similar to F1, I'll also focus on year-to-date comparisons. Year-over-year comparisons are impacted by the mix of races, not just the number. As a reminder, MotoGP flyaway races generally carry higher costs, including freight, travel, and IRTA fees. MotoGP race count itself was identical year-over-year for both the quarter and the year-to-date periods. Revenue increased at MotoGP year-to-date, driven by growth in race promotion from event mix and sponsorship revenue due to new sponsors and underlying contractual growth. A reduction in contractual media rights and a decline in title sponsorship revenue related to event mix partially offset that revenue growth. Adjusted OIBDA also grew year-to-date, driven by both revenue growth and a decline in expenses.

Cost of MotoGP motorsport revenue decreased due to the impact of lower freight expenses from the race mix, as well as lower hospitality costs related to MotoGP's new hospitality agreement with Quint, whereby MotoGP now recognizes revenue and costs related to hospitality on a net basis. Looking briefly at corporate and other results year-to-date, revenue was $12 million, which relates to the rental income generated by Grand Prix Plaza in Las Vegas. Corporate and other Adjusted OIBDA was a loss of $16 million. It includes Grand Prix Plaza rental income and our corporate expenses. At quarter end, Liberty Media had cash and liquid investments of approximately $1.5 billion, which included $1 billion of cash at F1 and $142 million of cash at MotoGP.

Our debt was approximately $5 billion at quarter end, which included $3.3 billion of debt at F1 and $1 billion of debt at MotoGP, with $497 million at the corporate level. F1's $500 million revolver and MotoGP's EUR 100 million revolver both remain undrawn. We did reprice MotoGP's debt in June, we priced a EUR 720 million term loan B, a $200 million term loan A, and a new $100 million multi-currency revolving credit facility. At attractive terms with future reductions in margin expected as the business de-levers. Additionally, we repaid a portion of MotoGP's debt funded with cash from MotoGP's balance sheet. At quarter end, Liberty Media's net leverage was 3.4 times. That is a slight uptick from the end of the first quarter, but it's largely driven by the F1 calendar variance. F1 and MotoGP are both in compliance with their debt covenants at quarter end.

With that, I'll turn it over to Stefano to discuss Formula One.

Thanks, Brian. The 2026 season so far has delivered some incredible racing and amazing moments for all of our fans. There have been great battles for podiums among Kimi, George, Lewis, Lando, and Charles that have fueled excitement on track. The championship battle remains highly competitive. I expect the teams to converge more and more as the season progresses. The news I knew would become reality is that attendance is up, audiences are up, digital numbers are growing, and the fans are enjoying what they are seeing. The fans are the heart of everything we do. They are loving the season. As you know, the safety and security of everyone in the sport remains our first and foremost priority.

We are closely monitoring developments in the Middle East region, originally hoping to bring back one race to the region. Unfortunately, we were unable to do so as originally planned. Instead, we recently announced the great news that we will recover the Bahrain Grand Prix, but it will be hosted by Malaysia, creating an exciting triple-header alongside Baku and Singapore. I want to thank His Majesty, the King of Bahrain, His Royal Highness Prince Salman of Bahrain, and His Majesty the King of Malaysia, as well as their respective governments, and of course, the president of the FIA and the promoters for all their collaboration and the flexibility making this race possible. It once again shows that we can adapt, find solutions, and deliver incredible results for the sport.

Looking ahead, we continue to expect that Qatar and Abu Dhabi Grand Prixes are to currently proceed as scheduled for a 23 races calendar this season. We expect to return to a full 24 races calendar next season. Engagement trends continue to underscore the strength of our sport. We welcome 3.3 million attendees to date, with all 10 races selling out through Belgium. Five races set new attendance records, including Silverstone, welcoming 564,000 fans, making it the most attended race in the sport's history. Our sprint format continues to drive higher Friday attendances and stronger daily attendances through our race weekend. The success of the sprint format continues to drive growing interest from promoters in hosting a sprint race. We expect to expand the number of sprints for next year and to provide further details soon. Our hospitality offerings continue to benefit from huge demand for premium experiences.

The Paddock Club remains sold out for the rest of the season. House 44, which is also sold out this season, has been a standout success. We plan to expand House 44 from nine locations this year to 13 locations next year. At the Belgian Grand Prix, we launched our new premium experience, the Out Lap, in partnership with LVMH. Early feedback from our partners and fans have been overwhelmingly positive. We expect to operate this experience across Europe next season. Retail sales remain robust and highlight the underlying consumer demand on F1 branded merchandise. At Silverstone, we introduced a new flagship retail concept that offers fans abroad a more diverse product assortment. We plan to expand this flagship format to Monza, Madrid, and Austin later this year.

Building on the success of the specialty F1 Disney store in Asia, we launched another Disney retail hub at the Montreal race this quarter. Additionally, we also opened two new F1 hub locations in Montreal and London, further extending our retail footprint and following the success of the original concept in Las Vegas that returns in November. We continue working. We plan the expansion next year in Austria. In Monaco this season, we added a third floor to the Paddock Club, in addition to diversifying our premium product mix with five different experience packages. At Silverstone, we opened our Turn 1 Annex in our Paddock Club, taking our premium capacity to an all-time high this season. At Austin, we are excited to open our new structure at Turn 1 later this year, and we also have additional planned expansion in Austin next year.

We also continue to see growth in our global TV audience, led by several key strategic markets, including Brazil, Italy, and China. In Brazil, the British Grand Prix reached a record of 18 million viewers across TV Globo and SporTV 3, generating the highest audience for the event in 80s and the largest audience for any F1 race globally since 2020. In Italy, TV audiences are up +27% through Silverstone versus last year, helping drive broader growth in fan engagement across our ecosystem. In China, the moment generated by the Chinese Grand Prix, where weekend audience more than doubled year-to-year, has continued throughout the season, supported by increased coverage and growing audiences. Our social and digital platforms continue to play an important role in bringing our younger, digital-first audience closer to our sport.

We grew our social media follower 19% year-over-year, with particularly strong engagement on TikTok. Our total YouTube views surpassed 1.3 billion, up +30% year-over-year, while our YouTube highlights views have reached almost 200 million views with over 15 million hours watched. While we continue to benchmark our sport engagement using traditional measure of viewership, we also recognize that our fan base continues to evolve. So too does the way our fans engage with us across a diverse range of platforms, channels, and experience. For example, the LEGO Travis Pastrana at Silverstone generated more than 70 million video views across multiple platforms, creating another culturally relevant moment that captured the attention far beyond the live race itself.

To reflect this evolution, we're continuing to enhance how we measure and value fan engagement, building a more comprehensive view of how fans connect with Formula One across the entire ecosystem. Our partnership with Apple underscores this ability to interact with fans across multiple touch points, enabling a more holistic view of engagement with our sport. Since launching on Apple TV, F1 has attracted a younger audience while also expanding its reach among female fans. Our sport continues to build momentum on Apple TV, delivering strong viewership and engagement with fans this season. The strengths of Apple ecosystem has already helped us reach and engage with new fans across the U.S. F1 isn't just being watched, it is being discovered, followed, and embraced by a new generation of fans across every Apple platform and device. Our growing fan engagement continues to translate into sustained interest from our commercial partners.

F1 TV product continues to perform well, with F1 TV revenue, not including the U.S. where the arrangement has changed, increasing 18% year to date. Our race promotion business has never been stronger. While our calendar is fully allocated through 2028, interest for new destination to host a race remain robust, with many potential host city seeking to develop long-term proposal that will drive tourism, investment, and broader economic activity around a potential race weekend. Our active pipeline, despite our calendar being full, underscore the strength of the sport commercial proposition in an era of expanding media reach, deepening partner engagement, and growing consumer demand globally. We are equally thrilled with the phenomenal progress we have made this year with the Las Vegas Grand Prix. We have added our very first F1 after-party concept, featuring the iconic Backstreet Boys at the Sphere following the race on Saturday night.

Our ticket sales are trending well ahead of the last year with respect to both volume and revenues. In fact, we are already at month-end September 2025 levels as of the end of July, and on a like-for-like basis, excluding ticket sales for the Backstreet Boys. We have also recently announced our 10 years extension with the LVCVA, keeping the LVGP on the calendar through 2037. This extension reinforce the strategic importance of this race to our local community partners, and we now have greater certainty to invest in long-term infrastructure and operational improvements, reducing future build-out cost. Grand Prix Plaza in Las Vegas also continues performing well with private events, attraction, and watch party performing really well, with attendance on track to surpass 2025 levels. Sponsorship activity remains strong during this quarter.

We extended our agreement with Pirelli as our official tire supplier through 2028 and welcome Flexjet as our official private aviation supplier in a multi-year partnership. Additionally, we also announced Fever as our new centralized ticketing platform for f1.com. Starting new season, bringing the strength of their marketing platform to our sport and ensuring we continue showing up in the most culturally relevant locations. By partnering with Fever, we will deliver a smoother fan journey with more sophisticated technology to improve discoverability and ticket purchasing. Momentum around our licensing business continue to build. We recently announced a new multi-year global publishing partnership with the DK, bringing our storytelling to a new level for fans of all ages to experience F1. We have also renewed our partnership with the Automobilist, which continues to print exclusive F1 posters and calendars for us.

We also recently partnered with Hasbro to launch a special F1 themed edition of Monopoly. In addition, we have signed multi new agreement through our Disney partnership, including Gentle Monster and Uniqlo, and have many additional product launches plans with and without Disney globally for the remainder of the year as we further the reach of our sport with iconic global brands. While we remain momentum across all parts of our business, we believe Formula One has an exciting growth journey ahead, and we are excited by the opportunity. We are confident that the foundation we are building today will drive enduring value for all our partners and stakeholders. Avanti tutta. Full speed ahead. Now I will turn the call to Carmelo to discuss MotoGP. Ciao.

Good morning. Thank you, Stefano. It has been an outstanding first year growing our sport with Liberty Media, and we look forward to building on this momentum with Liberty's continued support. Our season this year has been incredible. The competition has never been tighter across the grid, with only 24 points splitting the top five riders season to date, with notable strength from Aprilia. To date, 12 riders across seven teams and three manufacturers have made podium. Congrats to Ai Ogura winning his first GP as a Sen, our first Japanese winner since 2004, and the first graduate of the Asia Talent Cup to win a Grand Prix. Consistent with our history, we have successfully signed the manufacturers and teams agreement for the next five years.

This renewal provides the necessary foundation to grow our sport collectively. The most important outcome from this agreement is the strong alignment across all parties on a shared vision, which is to evolve our sport while maintaining its unique heritage. Under the new agreement, we are collaborating on ways to optimize cost while preserving the competitive integrity of the sport, allowing teams and riders to reinvest back into their commercial efforts as we work collectively to realize our reach. We will increase our investment into the sport with shared responsibility across manufacturers and teams to help drive the long-term commercial success of MotoGP, creating a strong platform to continue innovation and performance, and reinforcing MotoGP as a premium global sport. We continue to grow MotoGP engagement both on and off track. Across the first 11 races, attendance is +4%, with record attendance in Thailand and Germany.

We also continue to see growth in our TV audiences, with viewership up 3% through Mugello, with notable strength in our U.S., Spanish, and Austrian markets. We also recently hosted a watch party for the Dutch Grand Prix at the Outernet in London, drawing over 20,000 visitors and look forward to running the same activation for Silverstone. As we broaden our reach, we see attractive opportunities to engage fans in creative, immersive experience in key markets around the world. We remain focused on extending MotoGP global footprint and are encouraged by the momentum across our digital and social footprints. We ended the quarter with 63 million social media followers, a +3% increase year-over-year, with particularly a strong performance on TikTok, where engagement increases over 80%.

Our Chinese social media platforms also delivered a strong growth, with followers increasing +26% as we continue to deepen our presence in the key growth market. Video views, excluding video pass, increases over 30%. We have a productive quarter with several new and renewal partnerships across our business. In the media rates, we continue to strengthen our global footprint. We have recently renewed with Sky Deutschland, covering Austria, Germany, and Switzerland, with DAZN in Spain and Portugal, and with RTBF in Belgium in a multi-year agreement. We also continue building momentum in race promotion, extending agreements with several promoters partners, including Malaysia to 2031 and Silverstone through 2028. Looking ahead to next year, we are excited to race again in Argentina at Buenos Aires.

For the debut of Adelaide GP, we look forward to unveiling the first visual renderings of the new Adelaide circuit over the next few weeks. In our sponsorship business, we signed CAA as our global sponsorship agency, further strengthening our commercial platform and capitalizing on our brand refresh and growth. In hospitality, we are encouraged by the early momentum with our expanded partnership with Quint, where we are working together to enhance the premium hospitality experience on our events. We are excited by the path ahead and remain encouraged by our early momentum. We look forward to continue to update the investor community in our progress. Now, I will turn the call back over to Derek.

Great. Thank you, everyone. We appreciate your continued interest in Liberty Media. That will open the call up for Q&A. Operator.

Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that you please limit to one question and one follow-up question. Our first question is from Kutgun Maral with Evercore ISI. Please proceed.

Great. Thanks for taking the questions. Two, if I could. First, I wanted to dig into the underlying trends across media rights. I think the Apple deal in the U.S. continues to get a lot of attention, but you've inked a number of other broadcast agreements since then, and we don't get as much visibility into the economics of those. I know every deal is different and the linear and digital media landscapes keep shifting, but could you give us a sense of how those conversations are generally evolving? In broad strokes, is there a helpful way to think about the trajectory of media rights revenue as these deals get renewed or extended? Second of all, I wanted to ask about the Las Vegas Grand Prix. It's very encouraging to hear ticket sales are trending well.

I know you don't break out the financials separately and discreetly for the race, can you share any color on how profitability is trending year-over-year? Because if current ticket sales and revenue trends hold and you continue to evolve the vendor contracts, it seems like profitability should be positioned to improve as well. I'd appreciate your thoughts on how we should be thinking about the financial impacts of the 10-year extension going forward as well. Thank you.

Sure. This is Derek. I'll just start, I think, on the media rights. As you know, media rights across the globe are sort of, they sort of ebb and flow depending on sort of who the players are, what the rights are that are coming up and, you know, other factors as it relates to dynamics of the different sort of subscription businesses or broadcast businesses in those markets. We are constantly sort of in discussion with folks Not only while we're in negotiation, but frankly, outside of that, because they're our partners, and we're always trying to build and generate as good a product as we can with them.

Through those discussions, you're constantly hearing about what's going on in these markets, whether or not digital players are coming in globally, in other markets, what their expansion aspirations are. I think more broadly than I would just say that we feel good that we have great products. We have products, we have content that people want. We obviously, to some degree, are subject to some of those things that are outside of our control, and the things that we can control are continuing to make the sports that we own as compelling as possible, and as interesting for our partners as possible. That's what we do to put ourselves in the best position as we go to market every time.

Now, we are, as I mentioned earlier, constantly having discussions with these guys, what you've seen from time to time is us also taking advantage of opportunities where we've renewed deals early because it makes sense. We will continue to look for ways to do that, because what we are interested in is the long-term stability of our product and making sure we're with the right partners. Just like with the race promoters, if we can find the right partners who will invest for the long term, we think that builds our brand, that builds value in our sports. As we come back to the specifics of the question, I think that we are very encouraged by where the Apple deal has gone. I think we're encouraged certainly with F1, with the recent renewals with Sky.

On the MotoGP side, also very encouraged by what we've just done recently, particularly with DAZN, which Spain and Portugal are important markets for us. Stefano and Carlos, I don't know if you guys want to add anything to that.

Yeah. Thanks, Derek. A couple of points on top of what Derek has just said. First of all, the beauty of what we are doing is that we control the content, and we produce it. This is an incredible asset and opportunity to redefine what is now in media world, the redefinition of the reach. We don't have to forget that the reach is taking not only with the evolution of what we are having in some of our great deals with the great media partners. We have other ways to produce content through other different ways to connect people. We don't have to forget the fact that now there is so many platforms to reach people that are creating value for the media broadcaster to connect with us, either through, let's say, traditional product or other product, like could be digital or other platform.

That's why the beauty of what we are having today in the global world is that the partners that are working together with us want to renew earlier than what is the expiration date, because they see the value of what they're doing. On our side, making sure we take the right evaluation market by market, we're going to see if we can see new trends coming in can be monetized or helping us to get into a different dimension reach, and otherwise, it will be different. I think we are at a great spot today.

We are an incredible sport that, because of what we are producing, gives the leverage to make sure that looking ahead, we are very positive saying that we can be a sport that can be produced in all the different platforms all around the world, making sure that we can monetize as much as we can every single contract, what we are doing on every single market. That's the point on media, in my opinion, to add on what already Derek said absolutely very clearly. Derek, of course, if we can answer to the second question, I will follow you. Otherwise, I could go ahead with that point as you prefer.

Sure.

I think that what we don't have to forget is, I start once again from one factor. Vegas is becoming one of the most important event that has already shown since the beginning, the potential of it. I don't want to forget that if we compare the economic impact that F1 did versus Super Bowl, with due respect, we were bigger. That means the potential to keep growing, control even more the cost, having now the opportunity of having agreed the 10-year extension with LVCVA means that can really build on even stronger the possibility for this Grand Prix to be even more profitable. That is already the case because this is something that we knew.

That was a product that was being an F1 product that can have a great boost to other promoters, is becoming a relevant thing that is indicating to the world of a sport business the way to produce event around the world. This is very good. We are very happy. Emily Frazer, the CEO of the Las Vegas Grand Prix, did a tremendous job with the team there, focusing and making sure that all together as one team can produce even stronger product for the future. This year event will be phenomenal. I don't want to anticipate there will be so new content that we're going to do on the racing because we don't forget. At the center of our product, Vegas, Miami, Madrid, or wherever we are in the world, is what we're doing at the track.

Being able to extend the experience, that is the key factor of being so successful so far all around the world.

Great. Thanks, Stefano.

Operator, next question.

Our next question is from Stephen Laszczyk with Goldman Sachs. Please proceed.

Hey, great. Thanks for taking the questions. Brian, you called out that absent of the calendar variability at F1 this year, the business is performing exceedingly well. I was just curious if you could maybe speak a little bit more to the underlying performance you've seen year-to-date and if there's any particular parts in the business that are performing better than expectations heading into the year.

Yeah, thank you for the question, and I can certainly start and I'll let Stefano add on. Obviously the calendar variability makes it very challenging because you have lower proportionate revenue recognition. If you look through that, we're seeing really good growth on sponsorship similar, as we did last year. We're seeing really strong performances in licensing. The demand for the Paddock Club is very strong. Obviously, you have fewer races, so you don't necessarily see that come through the numbers. Those are three areas that I would very specifically call out. Stefano, anything you want to add to the underlying performance of the.

Brian, you reached the most important point. For sure, licensing is starting to be on the trajectory that we were pushing these couple of years. There is a tremendous effort to characterize this revenue stream even stronger in the future. I want to say stay tuned because something will happen because it's important that we keep growing that revenue stream, as we always said. I go back to the point that Brian was saying before is related to Paddock Club. Paddock Club is related to experience, and this is something that will create even more the possibility of growing our revenues in the future because experiential opportunity is where we are focusing our future.

We did an experiment, for example, in Spa, offering a very exclusive customer a possibility to have one of the best chefs in the world, a tour, having a unique way of having a food experience at the end of the Saturday night. This is another way to create things that money cannot buy. That's our approach to create even stronger, that kind of possibility that will have an input in our revenues. That's definitely very important. If I may, I don't want to give for granted the fact that we were able to react in a very difficult situation because, of course, our way to embrace our way to work is to always try to find solutions, even if there are problems.

The fact that with the Bahrain Grand Prix, we wanted to bring home a race there and find a place to be in Malaysia, not in Bahrain, shows our mentality. We are racers inside. We want to make sure that our fans and our partners will rely on us to find solutions. That's what will happen future with regard to revenue streams that I see a great potential even in the next five years ahead of us.

Great. Thanks for that. Maybe just on the expense side, for Stefano and Brian, SG&A at F1 looks like it continues to pace up a good bit year-over-year. Just would be curious if you could talk more about the investments you're making in the business, and then how we should be thinking about the pacing of SG&A as we look into the back half of the year and then maybe even into 2027. Thank you.

The biggest two factors are, you have a marketing benefit because we had the 75th anniversary last year. We also have an FX impact where FX has negatively impacted SG&A through the first half of this year. Normally, we don't see something that large, but as our cost base in the U.K. changes, if you have changes in the British pound, obviously that could be an impact. Outside of those two items, there is investment in personnel. Personnel costs are higher than they were in the prior year. SG&A is slightly higher at LVGP. The bulk of that is due to the fact that, as you recall, we took over the sales function from Quint last year, but that wasn't fully baked at the beginning of 2025. It was being built up through 2025, and you have a full year of it now.

That shouldn't be an impact going forward. We do have higher IT costs as we invest in the business. Those are the primary items.

Great. Thank you very much.

Next question.

Our next question is from Matt Condon with Citizens JMP. Please proceed.

Thank you so much for taking the questions. Stefano, you mentioned the commercial opportunity. I know you've talked about in the past this being a big future opportunity. Can you just talk about the key levers to make this a bigger part of the business over time?

Sorry, Matt, can you repeat the question? Because the line was a little bit disturbed on my side. Sorry.

Sorry. No, I was just asking about the commercial licensing opportunity. You talked about this being a big future opportunity. Just wanted to know the key levers to getting this to be a bigger part of the business over time.

Okay. Sorry. Now I understand. I think that the beauty of what we are doing is that every time we meet, there is always what's next. What's next is finding opportunities that our market is presenting to ourselves. We have, for sure, done already an incredible step with regard to what in all the categories we can offer to our customer. The investment on digitalization that Brian was mentioning before will allow us to grow this opportunity even further. Different market, different visibility, different opportunity, therefore this will allow us to maximize the revenue connected to that. In terms of other commercial opportunity, I think definitely one thing that we are very focused in trying to, not trying, working on very hard to renew let's say, the actual big partners to be extended now without waiting the expiration of the contract.

One area that we want to protect because it's an area where everyone wants to be totally involved, is the area of AI. We will never give to anyone or a single partner that area, because it's too big. Therefore, our ability to divide that area of business is creating us a lot of other opportunities. The other thing is that is related to the key licensing partners that is growing year by year. We see that through different propositions that we are doing, we are creating capsules, we are creating content that enable us to have a bigger reach with our fans.

Now we are really, I would say, in a good position to monetize as much as we can the possibility of growing our customers through our partners also, that will give us a great visibility of a great trajectory of future revenue that will continue in the next future.

Great. That's very helpful. Then I just wanted to ask about the new agreement with the manufacturers and teams for MotoGP. Can you maybe just give us an overview, and what are the key points that we should really know as you think about this going forward? Thank you so much.

Sure. This is Derek. I think that the key points are that we've got another five-year deal with the teams and the manufacturers, I think we've got everyone sort of moving in the right direction, in terms of sort of outlining what the technical aspects of the sport will be. I think the other key components are and some of this is in the deal, some of it not, but just sort of how we're going to build this sport together. This process has been a little bit long. As you might imagine, in any sort of discussion like this, I think there's some gives and takes.

I think that we're coming out of it in a way where everyone, on both sides, in terms of the teams and sort of us, are trying to figure out, and work together to build the sport, both as a product, but also from a commercial standpoint that will benefit all of us. Carlos, I don't know if you want to go into that a little bit more.

Thank you, Derek, and thank you for the question. I think it's a very positive outcome for us and evidently after the deal with Liberty Media closed and the acquisition closed, that was really the time that we could really start the conversation with the manufacturers and teams, as there has been a real alignment in terms of how we want to build this together, as Derek was saying. Really what is the vision and the strategy behind building MotoGP and how the manufacturers and the teams have to be a part of that. I think that high tides raise all boats and putting together the investment that is going in towards the teams for them to also be able to invest into their own resources to grow their brands.

The sport is at an amazing place from the racing point of view and 2027, the new regulations will only improve that. This is really it's been a great conversation with the teams and the manufacturers to really get everybody aligned on the commercial side and the strategy behind building the sport.

Thank you. Thanks very much, Matt. Operator, next question, please.

Our next question is from David Joyce with Seaport Research Partners. Please proceed.

Thank you. More on MotoGP, please. Can you help us understand how much of the cost base in the quarter was allocated to incremental growth initiatives as that sport aims to apply the Formula One playbook? Separately, on the sponsorship side there for MotoGP, how much of that is expiring in the next year, that could result in either upgrading the sponsors or expanding relationships or just getting step-ups based on the continued fan engagement growth there? Thank you.

Yeah, why don't we start with Brian on the cost side?

Yeah, David. I would say the investment phase is not that pronounced in the quarter. Specifically, I'll look at the year-to-date results, year-to-date, we've got higher marketing expenses as we try to grow the brand. There are some incremental investments in personnel. Those are really not that material. You can see in our reported results that SG&A is relatively flat for the quarter. On cost of revenue, there certainly are investments there, but those are offset by changes in the schedule where you have higher payments to the teams due to the change in the schedule and increased flyaways. Actually, I'm sorry, a lower flyaway, lower freight cost because of the change in Qatar. So far you're not seeing material increases in the cost base through the investment other than some personnel and marketing costs.

On the sponsorship question, I think the way to think about it is less about sort of what's expiring. As you might imagine, we have a regular flow of deals that sort of come up that are probably three to five years in nature, periodically you have these coming up. I think it's actually more about what sponsorships are going to be available with a focus on the business and bringing this to a much wider audience than I think something that we've been hitting on from day one, and we've historically had a fairly endemic sponsorship base. I think as we look much further afield, it starts to open up much bigger opportunities for us, well beyond sort of what a normal renewal rate paradigm will give us.

I think that's how I'd frame it, how I'd think about it if I were you.

Great. Thank you very much.

Our next question is from Brent Navan with Bank of America. Please proceed.

Thank you. We've seen Formula 1, I guess, increasingly add sprint races to the calendar. How many more can realistically be added here? I guess, can you explain how this filters through the business? Is this just extra race promotion revenues? Is there media rights response?

Sprint races is an opportunity that, first of all, started because we wanted to produce something that could create action on the track, creating leverage for the promoter and ourselves to create action on the tracks starting for the weekend. We're going to have more sprint races next year, yes. We'll inform when we will announce the calendar, how many. The principle is very simple. This is also an opportunity to increment the revenue stream, for sure. This is an opportunity for us to have new deals, as we have already seen, and moving in this direction will be our future. We want to do in the right way because, of course, this will allow us also to make sure that the scarcity is a value.

If commercially we would go everywhere, of course, that's not any more a value that we can really leverage from the commercial point of view. Definitely, we're going to move further up in terms of what would the number in the future. That's 1,000% what will happen already next year.

Great. That's helpful. Maybe just a follow-up to the media rights discussion earlier. A few months ago, when you announced the Sky extension, Germany was noticeably absent from that agreement. There's been a few recent press reports suggesting you may look to be adding a race back to the calendar in Germany. I guess, should we interpret that discussions there? Thank you so much.

I'll start on this one.

Okay.

Yeah. Look, I think I'll let Stefano talk about a race in Germany, but I think that broadly speaking, this is sort of what I was alluding to earlier. Germany is a market in flux. With the RTL Sky merger, I think also you've got some of the digital players, the streaming platforms that are coming into Germany. It's a market that, probably a few years ago was not as robust, and it's looking now more robust. Those are just market-driven phenomenons. You layer onto that what we continue to do from a product standpoint, which I'll let Stefano talk about more and any sort of sense of races in Germany and such. That's solely dependent on having races, having the content. Part of it is what the macro dynamics are happening in that particular marketplace.

Well, if I may add on what Derek said. Definitely, RTL was an important step in our need to have a more reach in that market. I'm pretty sure that in the future, when will be the right negotiation, the market of Germany will be different, for example, from what we have now in Italy or in U.K.. There will be digital platform or other streamer that will apply for the tender. With regard to the potential, I would say that we don't have to forget that we have Audi that's stepping into the business. We have Mercedes-Benz. We have big partners that have their home base in Germany. I think now Germany wants us to think in the medium term if they can come back into the calendar or, even more important, being, as it was 20 years ago, one of the most important markets for Formula 1.

I think that are the base for this discussion. I think that we know very well the dynamic in Germany are not really the fastest one, but definitely, the new situation in Germany start to move in a direction where I see Germany potentially in the future being a very interesting market that will have a positive effect, both on the media side, but also maybe on the promoter side. It will not, in that case, a short-term call, but definitely will happen. This is very, very important to remember.

Thank you so much.

Our next question is from Ian Moore with Bernstein Research. Please proceed.

Hi, guys. Thanks. Take a question. Everything you shared on premium hospitality, Paddock Club, really encouraging today. What are you learning, I guess, about supply versus demand dynamics there? You've added a lot of capacity there over the past couple seasons. What are the signals that are giving you confidence that demand for these experiences continues to outpace supply?

Stefano, you can take this one.

Yeah. Thanks, Derek. Thanks, Ian. I can tell you that today we are talking about the fact that already next year, 2028, we have already allocated for the teams all the Paddock Club hospitality that we have. It's a sign that today we need to see how we can extend, not only in terms of quality, but in terms of pricing, the other offers that the promoters are doing as a joint activity. The signals are all positive, all great. We see our market in a full-strength mode. Also because we don't have to forget that now also the team have solid partners, very important brands that want to invest in Formula 1 through what we are offering on the commercial side. Today are all good. We have new products that are very innovative.

The good thing is that I think personally, not personally as Stefano, but as a team in F1, as a good thing because everyone is watching at us on what we are preparing for the future of sports entertainment. Our team is focused on creating even more initiatives to try to be always at the top edge, because today is not only pricing, it's really how we can involve our team and our people, sorry, to leverage what we are today. The signals are super positive, we will not give up in making sure that this positivity will be extended for a longer period as much as we can.

Appreciate that. Thank you.

Thank you, Stefano. Thank you, Ian, and everybody else for participating today. We look forward to speaking to you more offline and seeing you in the coming weeks. Take care.

Welcome to Liberty Media Corporation's 2026 Q1 earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session.At that time, if you have a question, please press star one on your telephone. As a reminder, this conference will be recorded today, May 7th. I would now like to turn the call over to Hooper Stevens, SVP, Investor Relations. Please go ahead.

Thank you very much for joining us this morning, for Liberty Media's first quarter 2026 earnings call. As we get started, I'd like to remind you that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent forms 10-K and 10-Q filed by Liberty Media with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto, or any change in events, conditions, or circumstances on which any statement is based.

On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including Adjusted OIBDA, constant currency for MotoGP. The required definitions and reconciliations for Liberty Media are on Schedule 1, and MotoGP Schedule 2 can be found at the end of the earnings press release issued today, which is available on our IR website. Speaking on today's call, we have Liberty's President and CEO, Derek Chang; Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling; Formula One's President and CEO, Stefano Domenicali; and MotoGP's CEO, Carmelo Ezpeleta. Other members of the management will also be available for Q&A. With that, I'll turn it over to Derek.

Thank you, Hooper. Good morning, everyone. When we spoke with you in February, we framed 2026 around three priorities: sustaining Formula One's momentum, positioning MotoGP for long-term growth, and remaining disciplined and opportunistic with our capital. Our framework remains intact. We are seeing good progress across the portfolio. We delivered strong financial results this quarter at both F1 and MotoGP. Starting with Formula One, the sport continues to demonstrate the strength and resilience of its global platform. We made the difficult but appropriate decision, together with the FIA and local promoters, not to proceed with the Bahrain and Saudi Arabian Grands Prix in April, given the situation in the Middle East. The well-being of everyone in F1 comes first. We always manage the calendar with that principle in mind.

While that creates a near-term financial impact, it does not change our confidence in the long-term trajectory of the sport. We will be thoughtful in our approach, we will continuously evaluate the calendar this year. As Stefano mentioned to Bloomberg News last week, it might be possible to reschedule one race toward the end of the season. Formula One remains supported by strong fan demand, deep commercial partner interest, attractive media rights dynamics, and a stable long-term foundation with the new Concorde Agreement. The early season has also reinforced the value of the investments being made around the fan experience and distribution. In the U.S., Apple's first season as our exclusive media rights partner is underway, the initial results have been promising.

Our partnership with Apple and its Tech Forward platform is already delivering early innovative enhancements to our F1 product, with multi-view, data feeds, and onboard features creating a more engaging viewing experience for our fans. Viewership increased through the first three races of the year. Fan engagement is up. We're attracting a younger and more female audience, and we're seeing expanded reach across the vast Apple ecosystem. Alongside Apple, we rolled out a series of dedicated marketing activations that significantly amplified the Miami race across both the city and the country, including nationwide Apple Store retail pit stops, Apple Maps integration, and the launch of new original F1 programming over race weekend. We're extremely pleased that the high energy from our U.S. fan base and the broader race week has become a meaningful cultural and commercial moment for the sport in the U.S.

At MotoGP, the first full season under Liberty Media ownership is giving us even greater conviction in the opportunity. The sport is delivering compelling racing with the calendar evolving to expand its global footprint, including the return to Brazil this year. We are also beginning to broaden the ecosystem around MotoGP through initiatives like the Harley-Davidson Bagger World Cup, which brings a distinctive new format and lifestyle brand into the MotoGP weekend experience. The broadcast of the U.S. Grand Prix on Fox reached an average audience of 500,000. This is an increase over last year on cable and an increase from the last time it was on broadcast in 2023. We have also seen our social media followers in the U.S. increase 16% since January 2025, which is an encouraging indicator of growing engagement in the U.S. market.

The strength of MotoGP is its compelling identity, fierce racing, extraordinary athletes, passionate fans, and a unique culture. Liberty's role is to help provide the commercial focus, operational support, and long-term investment discipline that can allow that identity to reach a broader global audience. That means building capabilities carefully, strengthening the event experience, improving fan engagement, expanding commercial partnerships, and sharing learnings across the portfolio where they are relevant. Following the Liberty Live split off, our portfolio is centered around two world-class boards with strong brands, valuable global rights, and multiple long-term growth levers. We will remain thoughtful in our capital allocation approach as we support our operating companies as they invest in growth, we will evaluate additional opportunities to deploy our capital. Brian will cover the financial results in more detail. Stefano and Carmelo will provide deeper dive on Formula One and MotoGP.

We remain confident in the strategy we laid out earlier this year. Formula One has a proven global platform for significant momentum. MotoGP has meaningful long-term upside, and Liberty is well-positioned as we build the next chapter of growth. Now I'll turn it over to Brian.

Thanks, Stefano Domenicali, good morning, everyone. As a reminder, each quarter in 2026 for the Formula One business will reflect an incomparable race count and mix, with the exception of the fourth quarter. Additionally, due to our decision to not hold the Saudi Arabian and Bahrain Grand Prix in April, results in the first quarter reflect a 22 race calendar this year. The second quarter will be the most impacted, with only 5 races expected to be held this year versus 9 races held during the second quarter of 2025. The change in the race calendar did affect the pro rata recognition of revenue and team payments in the first quarter.

We expect the largest impact from not holding the 2 races in April to be from the loss of race promotion revenue, certainly, followed by hospitality and some minimal impacts to race-specific sponsorship revenue. We do expect relatively limited impact to sponsorship revenue as we anticipate the ability to offset some of that exposure with other races later in the season. On the expense side, we will now recognize most of the expenses related to the disrupted races and the net impact to F One will flow through the team prize fund calculation. Similar to revenue recognition, projected team payments in each quarter will be recognized pro rata over 22 races instead of 24.

Now, looking at the results for the first quarter, most of the strong growth in Q1 year-over-year results is due to 1 more race being held in the first quarter compared to the prior year period. The change in the pro rata season-based revenue recognition and underlying growth in the business. The first quarter of 2026 held 3 races compared to 2 in the first quarter of last year, with Japan included in the current year period, but not in the prior year. For the first quarter, revenue grew 53%. Adjusted OIBDA grew 102%, driven by the extra races held in growth across all revenue streams from underlying contractual fee increases.

Media rights and sponsorship revenue growth was driven by the calendar variance related to recognition of season-based revenue, with 3 out of 22 races recognized in the quarter, or approximately 14% of season-based revenue, compared to 2 out of 24 races, or approximately 8% of season-based revenue recognized during the prior year period. Sponsorship revenue also increased due to revenue growth from new sponsors, including Standard Chartered. Other revenue grew due to higher hospitality, freight, and travel revenue from 1 additional event held. Hospitality revenue growth was also driven by strong underlying Paddock Club performance and other premium product growth, licensing revenue, and revenue generated after the reopening of Grand Prix Plaza in Vegas at the end of January. Adjusted OIBDA increased during the first quarter, driven by strong revenue growth discussed above, outpacing expense growth.

Increased operating expenses included higher team payments and expenses associated with hospitality, freight, and travel costs from the additional race held, as well as an increase in new premium product offerings and higher freight, travel, and commission and other partner servicing costs. The increase in SG&A expense was primarily due to unfavorable currency exchange rates and higher personnel and technology costs, offset by lower marketing expenses. Team payments as a percent of pre-team share Adjusted OIBDA were 51.7% for the first quarter of 2026. For the full year, we continue to expect to see an average of roughly 200 basis point improvement in leverage, in line with the average we've seen over the past four years. After 2026, for the remainder of the term of the new Concorde Agreement, we expect the payout percentage to remain relatively stable.

A reminder that team payments are best analyzed on a full year basis due to the quarterly fluctuations in team payments as a % of Adjusted OIBDA. Looking at MotoGP, just a quick reminder that we closed the acquisition on July 3 of last year. Our financial results prior to the date of acquisition are presented on a pro forma basis as though the transaction occurred on January 1, 2024. A trending schedule will be posted to our website after the 10-Q is filed, including results in U.S. GAAP for historical periods. The majority of MotoGP's revenue and costs are euro-denominated, and as such, are subject to translational impacts from foreign exchange fluctuations. In the following discussion of results, I'll focus on constant currency results.

Year-over-year comparisons are impacted by the mix of races, and MotoGP flyaway races generally carry higher costs, including freight, travel, and IRTA fees. MotoGP held three races in the first quarter, both this year and the prior year. Revenue increased at MotoGP during the first quarter due to the race mix, and increased sponsorship revenue, slightly offset by a small reduction in media rights revenue. Adjusted OIBDA also grew during the first quarter as revenue growth outpaced expense growth. Cost of MotoGP motorsport revenue increased due to the impact of higher freight expenses from race mix and increased fuel costs. Looking briefly at corporate and other results for the year, revenue was $6 million, which relates to rental income generated by the Grand Prix Plaza in Las Vegas.

Corporate and other adjusted OIBDA was a loss of $7 million and includes Grand Prix Plaza rental income and corporate expenses. At quarter end, Liberty Media had cash and liquid investments of $1.3 billion, which includes $862 million of cash at F1 and $186 million of cash at MotoGP. Total principal amount of debt was approximately $5 billion at quarter end, which includes $3.3 billion of debt at F1 and $1.2 billion of debt at MotoGP, with just under $500 million at the corporate level. F1's $500 million revolver and MotoGP's EUR 100 million revolver both remain undrawn. At quarter end, Liberty Media's net leverage was 3 times.

As a result of not holding two races in the Middle East in April at F1, we expect there could be a modest increase in trailing 12-month leverage during the second quarter of this year. F1 and MotoGP are in compliance with their debt covenants at quarter end. With that, I will turn it over to Stefano to discuss Formula One.

Thanks, Brian. The 2026 season is off to a captivating start as we kick off this next chapter in F1's history with new regulations, new teams, and new winners on the podium. Congratulations to Kimi Antonelli, who became the youngest driver in F1 history to lead the world championship and taking 3 consecutive races win after winning the Chinese, Japanese, and Miami Grand Prix. As you know, we made the decision to not go ahead with the Bahrain Grand Prix and the Saudi Arabian Grand Prix as planned in April to ensure the safety and security of everyone in the sport during a very fluid and uncertain time. Saudi Arabia and Bahrain have been fantastic long-term partners, and we look forward to being back with our fans there as soon as we can.

We were extremely excited to be back racing in Miami last weekend, and 2026 has represented the start of an incredible new era for our sport. The first four races of the season have all sold out. Social media engagement is up year-over-year and early TV data shows growing audience worldwide. Fan research also indicates a very positive response to the on-track spectacle, with particular appreciation for the level of action, racing battles, and overtakes. In Miami, we saw sell-out crowds along with exciting new activation with Apple, our new U.S. media right partner. Engagement remains robust this season. We welcome 1.3 million attendees to date, with all four races selling out and the Australian Grand Prix setting a new attendance record.

The Paddock Club is already sold out for nearly all of our remaining races this season, with over 65,000 tickets sold to date. This figure is already in line with our 2025 total Paddock Club attendance. To accommodate demand, we are increasing Paddock Club capacity this season at Silverstone, Austin, and Monza, and our promoters are working to increase capacity at the other circuits. Our successful collaboration with Soho House and Lewis Hamilton, House 44, is also expanding and will feature at 9 races location this year, up from 5 after it launched last year. House 44 is already sold out at 8 races so far.

In addition, our collaboration with Gordon Ramsay continues to grow with a new Paddock-based premium offering operating in Shanghai, and we are looking into opportunities to roll out the experience at other locations, potentially starting with the United States Grand Prix in Austin. Live audiences across our top 14 markets are up year-over-year relative to 2025 across the first three races, driven by strength in key markets, including Brazil, Italy, and China. This season, we return to Globo TV free-to-air in Brazil. In China, we kicked off our new media rights deal with the CCTV and are seeing more extensive coverage. The live broadcast of Chinese Grand Prix attracted 1.9 million viewers in China, a +60% increase year-over-year in one of our key growth markets.

Our YouTube content generated almost 600 million views through the Japanese Grand Prix, up 46% relative to last year. We grew our following nearly 20% year-over-year with over 120 million social media followers as of the end of April. We continue our momentum across renewal and new partnership. We are delighted to welcome Apple TV as our new U.S. media rights partner this season. Through its extensive ecosystem, Apple TV has allowed Formula One to reach a large U.S. audience. The first three races delivered higher average viewership across track session relative to the last season. We are pleased with that strong momentum carried into Miami. Our fans are collectively also tuning in for longer, with total viewing hours increasing relative to the linear last year.

The average viewer of F1 content on Apple is both younger and more female. The sport is featured extensively within the Apple ecosystem and externally through innovative partnership with Netflix and Tubi, just to name a couple. Our broadcast of the Miami Grand Prix at the IMAX theater was extremely well-received and continues to highlight the new ways we and Apple are bringing the sport to fans. We continue to see major brand alignment between our two iconic global brands as we set out to take a more forward-looking approach to how fans discover and consume Formula One. Globally, our F1 TV product continues to perform well, with F1 TV revenue increasing 28% year-over-year. We were delighted to announce yesterday our 5-years renewal with Sky in the U.K. through 2034 and Italy through 2032 inclusive.

That will take us into the next decade with our incredible and long-term partner. The depth and quality of the programming and content Sky delivers has been impressive and helped to engage and grow our fan base in both the U.K. and Italy. In the U.K., total viewing on the Sky has increased by 90%, with female viewership more than doubling, and under 35's viewership growing 120% since becoming the exclusive home of F1 in 2019. In Italy, we have seen a 25% increase in viewership this season, in part driven by the strong performance of Ferrari and Kimi Antonelli. Sky has been a trusted partner of F1 with world-class coverage, we are delighted to extend our partnership into the future.

Internally, we remain active in our negotiation and renewals, recently renewing with beIN in Pan Asia and with Foxtel in Australia. We're also thrilled to announce we will be returning to race at Turkey Istanbul Park next year for the first time since 2021 under a new 5-year agreement. The return to the Turkish Grand Prix will be exciting for the F1 fan, drivers and teams. Formula 1 continues to grow strongly in Turkey, where the sport now reaches more than 19 million fans, and almost half of the fan base is under 35. We are also seeing strong momentum on digital and social platform, with the Instagram followers growing by 30% year-on-year. We also officially began the 2026 public sales cycle for our fourth edition of the Las Vegas Grand Prix today.

Following last year's sellout and ahead of our public on sale, demand indicators were very strong with deposits for this year's race at record levels. We have maintained our sponsorship momentum with an active quarter of renewal and new partnership. We entered into new multi-year agreement with FanDuel, a Betway to reinforce our desire to enter the betting space regionally. We have also signed Marsh as our official race partner and official insurance brokering partner. We have also extended our Salesforce and Allwyn partnership, all effective this season. Our momentum continued to accelerate across our other revenue streams, including licensing and hospitality. We have announced our multi-year extension with Fanatec, our sim racing hardware company, and relaunched our esports championship, hosted 2 live events to date and 1 in our new on-site facility, Biggin Hill.

We are fully leaning into our first full year of partnership with Disney, including the successful launch of Disney and F1 Fuel the Magic campaign in the Asia-Pacific region. At the Chinese and Japanese Grand Prix, we launched specialty F1 Disney stores in the fan zone, driving overall retail sales during the quarter up 125%, with China retail sales growing nearly 80% year-over-year. We reopened our Grand Prix Plaza site in Las Vegas at the end of January, and early performance has been encouraging. Average weekly attendance this year is nearly peak levels of from 2025, with private events occurring weekly. Demands for F1 Drive has also been particularly strong, with the multiple sold-out weekends.

We remain focused this season on cultivating and fueling the fandom with our always-on strategy through beginning the creativity, thrill, and excellence of our ever-evolving sport and entertainment platform to the fans. While we have grown so much in such a short amount of time, we believe we are just at the beginning of what is possible for Formula One. The momentum we see across all our business continues. At a remarkable pace and the foundation we are building today, we create enduring value for our partners, shareholders, and our fans for the years to come. [Foreign language] Avanti tutta, full speed ahead as always. Now, I will throw the call to Carmelo to discuss MotoGP.

Good morning, thank you, Stefano. We had a strong start to the beginning of our season, with compelling storylines on track and continued momentum across the business. With Liberty Media's continued support, we are confident in achieving the long-term strategic vision of our sport and are encouraged by the early progress we have seen today. As you have seen, we have made a decision to postpone our Qatar Grand Prix to November, given to the ongoing situation in the Middle East. We look forward to returning to the region soon. On track, the racing remains as competitive as ever. While Marco Bezzecchi continued to lead the Riders' Championship, we have already seen seven riders across five different teams on the podium this season, highlighting the unpredictable and excitement that define our sport.

We welcome more than 720,000 fans across our first 4 races, including a record of 228,000 fans in Buriram. We also returned to Brazil this season after 20 years hiatus in the country with that city-to-circuit integration and delivered an exciting race weekend. Brazil is one of our most engaged markets, with over 80% of fans consuming MotoGP content weekly. Across the Sprint and Grand Prix in Brazil, our broadcast audience surpasses over 1.6 million viewers on Band. We look forward to returning next year alongside of our returns to Buenos Aires and Australia, both at the new circuits in or near city centers, bringing the thrill of MotoGP racing closer to our fans.

We continue to track brand awareness and engagement through our fan insights platform, which will support our commercial evolution and localized content initiative in growth markets, including the U.K. and U.S.A. We ended the quarter with nearly 62 million social media followers across our own platform. Video views across our digital platforms, excluding video pass, increased almost 40% on the same periods on 2025. We also continue to make progress with our commercial partners. We have extended our partnership with ServusTV in Austria to broadcast our rides through 2030. Starting with the United States Grand Prix this season, we are expanding our partnership with Quint through an exclusive multi-years agreement. With Quint's invaluable experience, we are focused on scaling our hospitality offering, enhancing the premium hospitality experience with the VIP village and driving further significant improvements towards high-end customers and partners.

We are encouraged by the strong start to the year and the quality of demand we are seeing across our portfolio. With double-digit growth in ticketing volume and sustaining momentum across all regions as we roll our new innovation across our hospitality product suite. We look forward to continue to update the investor community on our progress. I will turn the call back over to Derek.

Thank you, everyone. We appreciate your continued interest in Liberty Media. With that, we'll open the call up for Q&A. Operator?

Thank you. We'll now be conducting a question-and-answer session. Our first questions come from the line of Sean Diffley with Morgan Stanley. Please proceed with your questions.

Great. Thanks very much, team. Two, if I may. First on sponsorships and second on capital allocation. Congrats on the success that you've seen on the sponsorship side. I think over the last few years, it's been adding new sponsors really driving a lot of this, and you continue to do that with Standard Chartered and Marsh. It also seems like you're gaining traction on the renewal side with upgrades like Salesforce and Allwyn. I was hoping you could talk about the balance of kind of new and existing partners going bigger and any categories or verticals that you think you're still under-penetrated in. Second question, Derek, you had mentioned evaluating avenues for capital deployment to deliver long-term value to shareholders. I was hoping you could elaborate a bit on that.

What's your framework for determining what those could be and how we should think about your approach to investing in the core businesses you have, potential M&A or capital return? Thanks.

Sure. Thanks, Sean. Let me take the second one first, and I'll hand it over to Stefano for a bit on the sponsorship. I think on that capital allocation, you know, we've been pretty clear in recent history here that, you know, primary focus has been to delever, which we clearly are in the process of doing, as well as looking at, you know, strategic investments and, you know, ultimately also the thought of capital return to shareholders. I don't think we're in a position right now to say, "Hey, we're pursuing one over the other." All options are on the table, and it's something that we are, you know, looking at on a regular and, frankly, a daily basis. That's the job of the folks here.

You know, we are very focused on the performance of our operating companies and leaning into those and continuing the strong performance that we've seen there, which frankly, puts us in this position to be able to have the question that you asked. Finally, I think just in the very near term, we clearly are very bullish on our businesses and where we see them going. We can't control every macro factor out there. We don't have a crystal ball. You know, to some extent, we're being a little bit conservative right now as we make sure that we understand the implications of some of the other events that are happening out there.

On the sponsorship side, I will let Stefano talk a bit about sort of his mix of the renewals and new sponsors and where he sees some back on.

Thanks, Derek, and thanks, Sean, for the question. If I go back a couple of years ago, we always said that our duty is to make sure that what we are offering is solid and genuine. Only solidity and ingenuity has allow us to be stronger in this momentum. If I just think back, no one would have thought that, for example, in the category of brokering, there would be someone who really wanted to invest in our platform to develop their business. It is true that now, as we said last time, we see potential to keep growing because we have done a lot of new step in term of creativity activation that has allow us to offer something new in the market to different partners.

It is true that on the other side, what we have done is basically moved also from normally what has been considered a B2B partner also to B2C. We have seen that in the last couple of extension renewal or a new entry. It is clear that the category of high tech is the category where we can find some other opportunity in the future, even if the big partner we have now are basically are very, very interested to lock down in the future in order to prevent the others to come in. It's a great situation we have. I go back to the fact that for us now, it's really a matter of keep growing, keeping offering something new to the partners, keeping giving the momentum of what we can offer in a very genuine way.

That is really, it has been so far a successful strategy that we continue in the future because as you said, Sean, now we are also in the process of having active renewal much more in advance before the expiry date. That means that everyone believe in us, and this is something that we feel we take back home as a great responsibility.

Thanks very much.

Thank you. Our next questions come from the line of David Karnovsky with JPMorgan. Please proceed with your questions.

Hi. Thank you. Maybe just starting on the Sky agreement announced yesterday. You did have some time on this one in both the Italy and the U.K. Interested in why now is a good moment to execute on a deal with what I think is your largest media partner rather than the alternative, which would be waiting and kind of testing the open market in a few years. Does this agreement have any current economic impact, or is this just about locking up future terms?

Sure. Hey, David, thank you for the question. I think I'll start and then let Stefano take it, but there are no current implications as a result of the deal. I think one of the things to think about is whether it's sponsors, media partners, you know, local promoters. What we're really asking a lot of these guys to do as they partner with us is to invest in the product. In order to do that, you know, you want them sort of confident with the relationship and where things are gonna be on a longer term basis. Sometimes we are entering into these discussions early to facilitate that, exactly that.

You see that at a lot of the, you know, local promoter deals that Stefano has done in recent history, which are really to then facilitate increased investment and sort of the infrastructure, hospitality, things like that. It's a similar sort of concept here as these guys continue to work with us to build sort of the next gen of what the viewing experience is like, it suits both of us to sort of lock up in a manner like this. I'll let Stefano elaborate on that.

Thanks, Derek. I would add on top of what you said that answered the question of David is, first of all, let me thank Dana Strong and all the team at Sky for the tremendous job they've done since the first day that they are with us. Now this is an extension of an incredible deal that will cover a very important area where our fans are very solid. That is U.K., Ireland and Italy. It of course, will have an impact that will be on long term because as Derek was saying, you know, the financial implication up to the end of the 2008 expiry has not been touched. We're just looking ahead with a more and stronger financial and technical contribution.

It is true on the other side, they are very, very, very focused on delivered, you know, new extra content, not only using the so-called broadcasting operation. They have a big voice in influencing a great demand that is growing in these markets, and that's something that we want to recognize to them. On the other hand, we do believe that the privilege of being a worldwide sport, we can really understand where we do believe that the shifting between traditional broadcasting versus streaming is moving. We do believe that in the market that we have signed the deal as an extended agreement with Sky, the situation we're having will be the best, even medium long term.

That's why we are very, very convinced that this re-relationship will continue to create an incredible demand of interest and the right product that will serve in this market to grow. Of course, in other markets, the situation could be seen different because that's really where we are. Understanding what could be eventually other opportunity that we can take, for example, in new market that could be potentially very interesting in the future to bundle with other sport. Why not? We need to be creative. That's what has been always our approach to try to find the best solution with our partners that has contributed so much for the growth of our sport.

Okay. I have one for Brian. Brian, your team payments figure this year always gets a lot of scrutiny. I want to see if you could maybe shed any light on your budgeting approach, how you approach variable items like Vegas or potential sponsor deals. Would there be any contingencies in that number for the Middle East races you have on the calendar later this year, just given the ongoing conflict there?

Thanks for the question, David. The budgeting approach is similar to past years, and the biggest variable that we've had over the last few years since we've launched the Vegas race is the Vegas race. There is certainly some conservatism in there around Vegas just to give ourselves room as it relates to the team payments. The 200 basis point decrease that we kinda gave you guys at the end of the year, that still holds true. Right now we're focused on a 22 race calendar, and as Derek said, we're still hopeful that we can move one of those races to the back part of the year. If so, that would be upside. That's what's in the forecast at this point is the 22 races.

Thanks.

Thank you. Our next question has come from the line of Stephen Laszczyk with Goldman Sachs. Please proceed with your questions.

Hey, great. Thanks for taking the questions. Derek, there's been some discussion in the press around Miami potentially adding some more Paddock Club capacity, as well as maybe a MotoGP race at some point in the future. I was hoping you could maybe talk a little bit more about the opportunity in Miami to expand and as well, maybe more broadly about how you're thinking about the opportunity to expand Paddock Club capacity across the calendar, as well as how many opportunities you think might be out there to add a MotoGP race alongside Formula One at some of these tracks?

Let me take the second part of that first, and then I'll go back to the Paddock Club and then turn it over to Stefano so he can talk about that. On, you know, MotoGP, I think the context for MotoGP really is we've said it, we're gonna continue to say it, the U.S. is an important market for MotoGP, we are looking at all avenues to grow our business here. It's gonna take time, just like it did with Formula One, we do see that there's an appetite and that there's gonna be a market here. How we go about that clearly will be, we do have interest in adding races in the U.S. Miami would seem to be a logical spot because there's already a track there.

There's a lot of things that have to get worked out, whether it's Miami or any other track in terms of, you know, whether or not it works for MotoGP and sort of the safety concerns and.

Stuff like that, where you've got different requirements than Formula One, as well as what markets frankly make sense from a commercial standpoint. Those are conversations that we will have with Miami, with other folks also trying to scope out what the right locations would be for U.S. expansion. As it relates to Miami itself, they did announce over the weekend that they are expanding paddock capacity. I think that Stefano has spoken about this on many occasions in terms of the way we're structuring a lot of our promoter deals going forward is really a lot of it's the expansion of high-end hospitality. We saw that in Budapest. I think we announced Austin recently. They've got a whole new building going up down there around the first turn.

I'll turn it to Stefano for a little bit more detail on his thoughts.

Thanks, Derek. Let me take the opportunity to after the end of that incredible Grand Prix in Miami, to thank, you know, John Galtica and Katie, for that incredible organization. It's been really a phenomenal event with a lot of people, a lot of action on the track. It's true as we just mentioned that they're gonna invest even more to make sure that the quality and the capacity of that event will be even bigger in the future. That goes back to what we said, I think the other time, there are certain places or certain events that we believe are fundamental for the growth of our sport.

Given the possibility for them to have long-term deal, we'll push them also to invest in the right way. On top what Derek has just mentioned, we want to remember that also Monza will do that or Hungary will do that. Almost everyone will have a plans to increase capacity with the right quality of the offer. That is something related to the request. The demand is very, very high. The profile of the customers that are coming now also with the new partners require a different possibility of expanding that. In Monte Carlo, in Monaco, for example, you know, we have extra capacity. We have also with the partner of MSC and Abolt, where our guests can exploit a different kind of experience.

All is connected to the fact that the ecosystem is solid, strength together, working with the vision to keep growing the business. Otherwise, no businessman will invest in something they don't believe will be beneficial also for their interest, which is normal. Therefore, as I said, this is another signal I do believe, Steven Cahal, of the quality and the performance of our sporting platform today.

Great. Maybe just one for Brian. On SG&A continues to trend higher on the F one side. I was just curious if you'd help unpack what we're seeing there in the first quarter, and then maybe help us think about how that line should trend as we think out here over the balance of the year. Thank you.

This quarter, the three biggest drivers are, you do have an FX impact in the SG&A number that's negatively impacting the growth. We'll see how that fluctuates as the year goes along. There are also some higher personnel costs and some SG&A costs around LVGP, which are also kind of more personnel related, and I think those are a bit more front-end loaded. That's offset by reduced marketing costs because remember last year we had the 75th anniversary event. Those are really the big drivers. There are some increased IT spend in there as the company's working on, you know, different types of projects.

Thank you.

Thank you. Our next question has come from the line of David Joyce with Seaport Research Partners. Please proceed with your questions.

Thank you. In thinking about the Formula One calendar this year, if there is the possibility of adding Saudi Arabia back into December and shifting Abu Dhabi out a week, how does that reallocation based accounting work for the various revenue lines? Would you restate the first quarter, or would you reallocate going forward with a true up? You know, how should we think about that? Secondly, kind of housekeeping, why was D&A up a lot sequentially? Thanks.

Yeah, on the first part of the question, any impact from adding an additional race would come through in that quarter in which you make that change in the calendar. On the second part of your question, David, D&A, it's up $1 million. You know, the company's been investing in their operations facility out in Biggin Hill, so, you know, you see increased depreciation associated with that building, that project was largely completed early last year. That's probably what's driving the bulk of that difference. You also have GPP CapEx that was in our results early in 2025, so you'd see increased depreciation associated with that.

All right. Thank you.

Yep.

Thank you. Our next question has come from the line of Matthew Condon with Citizens Bank. Please proceed with your questions.

Thank you so much for taking my questions. My first one is after the first couple of races with Apple in the U.S., any key learnings coming off of that, whether it be from the broadcast itself, but also the distribution to the broader Apple ecosystem. My second question is on the calendar opportunity in MotoGP and I know you've talked previously about optimizing race locations. How are those conversations coming as you try to move some of those into city centers and such? Thank you.

Sure. Thanks, Matt. On the Apple question, I will let Stefano take most of that. I think that what we've seen, though, is in, you know, the viewing across all segments of sort of the race weekend, has been very strong. I think that Apple has done a great job of bringing people to the ecosystem. I think that, you know, on the risk mitigation side, I think people probably anytime you change broadcast partners, you always run the risk of having a lot of fan outlash that they can't find it or things like that, or it's not as good. You know, we haven't had any of that.

In fact, it's been to the positive in terms of how consumers have been interacting with product, with the viewing, and sort of the commentary out there has been it's been a, you know, it's been a good experience for them. I'll let Stefano continue on that, and then we'll come back to the calendar question on MotoGP.

Thanks. Thanks, Derek. Matt, I would say, to add on what Derek has just said, we do not have to forget two things. Our fan base is younger and there are a lot of females, around 40% in U.S., and that's why we do believe that, you know, Apple will guarantee to them a much more fruitful way to live that experience. We don't have to forget that the other positive effect of what is a journey that has just happened, because we just did only four races and of course, you know, it will be a long deal. Every weekend, there is something that we learn and we'll improve. There is the possibility, as it has happened, for Apple to use different platform.

You know, IMAX to be, you know, stores and other activation that's being done will generate more interest and more following. I would say, it's a more dynamic way to lead that sport, and that is in line on what we're going to see. I mean, there is a tremendous effort on Apple also to deliver some new technical content. These are, as I said, long-term journey that so far has been very, very successful because we're just at the beginning of a new journey where I would say, on top of the four races, the first three were not really, let's say, time friendly for the U.S. market. As a global audience, for what we can see, it has been a very, very positive start of the season.

That's why we do believe that this is just the beginning of something that will create even more attention for the future, and on which I can confirm, because Eddy Cue was present in Miami, Apple is full on board. Full on board, confirmed by Eddy Cue, but also the future CEO of Apple, that he's a racing fan. That is not bad. For the second question, I would say go back to Derek Chang, if it's okay.

No, thank you. Thank you, Stefano. On the MotoGP calendar, I'll start and I'll turn it over to Carlos for some additional commentary. I do think that our stated objective is to get some of these races closer to, you know, cities where we can leverage off of the infrastructure, whether it's the airport and long distance travel or for both ourselves as well as for the fans who are coming in internationally and the hotels and the restaurants and sort of ease of access, I think is important. You're seeing this with sort of the races we announced for next year, both in Buenos Aires and Adelaide. We're already starting to make progress on that. That being said, you also don't want to just wholesale change out all the races.

We have a long heritage here of races and many, many, you know, compelling locations, where, you know, it makes a lot of sense to keep them there. They've been fixtures on the race calendar, and they bring a lot to the sport and a lot to the identity of the sport. I have been, you know, this year already to Austin, I've been to Jerez, headed to Mugello and Assen later this year. We really wanna get a good sense of what it feels like in the different locations, because what we wanna do is create a fan experience that is engaging, exciting, entertaining, accessible, wherever we do it. There's a lot to be learned on even on locations where we may not move, but how to improve those.

It's a mix of all of that as we think about our calendar moving forward. Carmelo Ezpeleta, you may have some couple words to add to that.

I think Carlos might be switched off, so we can.

Okay.

Come back to that later. Operator, we'll take the next question.

Thank you. Our next question comes from the line of Steven Cahall with Wells Fargo. Please proceed with your questions.

Thank you. First, I just wanted to ask about fuel prices. I think the structure, you know, allows for a pass-through from F1 to the teams on fuel prices. You know, I imagine in motorsport, when fuel prices go up, that cost flows through somewhere to someone. Can you just help us understand how rising prices for gasoline will affect both F1 and MotoGP, kinda short, medium term, and where we might see some of that reflected longer term in the P&L? Then, Stefano, I just wanted to ask you about competition. You know, we've seen Cadillac and Audi come in this year. Ford is making a big push with Red Bull. The racing has definitely improved with the new technical changes.

We haven't, though, yet seen kinda any new teams get from the midfield to the top tier. What do you think needs to happen, for that to change? Is it a technical issue? Is it a financial issue? Since I think competition is always good for the value of the sport. Thank you.

I'll let Brian start with the fuel question, then he'll turn it over to Stefano for the racing question.

Steven, thanks for the question. On fuel, it's a little bit different for the two businesses. As you rightly point out, at F1, if we have increasing fuel costs and freight costs, those are generally passed through to the teams. You'll see a bit of a gross up on the income statement throughout the year, but pretty minimal impact to net margins. On MotoGP, it's a little bit different. There's more of a kind of a fixed structure there. To the extent we experience rising fuel costs, you might see some pressure to our overall cost of revenue without that offset on the top line.

Stefano, you wanna take the racing question?

Thanks, Derek. Steven, I mean, I think that what we see is definitely from an experience point of view, something that you were expecting. You know, F1 is a big beast. When you come in, we are of course, very pleased what has been the new entry. The process is not related to money, is related to experience and time. This is something that has been always, you know, elements that happened since the beginning of this sport. Is a big technological challenge. Is a work of team players that need to understand what is, you know, the dimension of the challenge.

It's something that, of course, is related to the fact they are new, and they will have the chance with the budget cap to have less burden in respect of the past. It's just a method of being a little bit patient, even if, you know, when in a racing world, after only four races, you believe that it's 400 races because every day, every minute, you know, the pressure is getting higher. The advice that I would say they know very well is not to fall in that kind of anxiety, because the anxiety will not help to be even more performant. The beauty of what we have seen in a totally different scenario of a totally new regulation is something related to the fact that there is a lot of margin for the improvement.

That of course, the more you are behind, the more could be bigger if you are able to take the right stream of development and if you're working hard with your drivers and teams to improve the performance. In this specific year, there are so many new elements that could allow them to be even faster if they understand where to focus the need for them to recover the gap they have now.

Thanks.

Thank you. Our next question has come from the line of Joseph Stauff with Susquehanna. Please proceed with your questions.

Thank you. Good morning, everyone. Just trying to maybe better understand the rescheduling scenarios. I know it's complicated, but seems to me a second race in Las Vegas might be, of all your scenarios, a relatively easier one, given the city's flexibility and your vertical ownership of the Las Vegas Grand Prix. Is that a fair assumption? Then two, with respect to whether or not you reschedule or not reschedule, how much, say, pre-marketing, how much of a lead time do you need in terms of being able to properly market that and so forth? Is it two, three months? Just wondering.

Sure. Look, I think we are evaluating all the various alternatives and, you know, trying to make decisions in a timely fashion that will give us as much lead time to the extent we make changes and make adjustments. I'll let Stefano talk through some of those specifics as he and his team are working overtime trying to keep up.

Yeah. Thanks, Derek. Thanks, Joe. I mean, to be very direct, I mean, to avoid any speculation, you know, the only thing I can say that we have plans, hopefully not to be applied because we really hope that the situation for the world, not only for the racing, will go back to normal situation. We have plans, of course. The lead time or the cutoff really is different between the fact that we can eventually recover what has been not run in April versus what could eventually happen or not happen in end of November, beginning of December. We are of course aligning with the teams, with the promoters, because that's something that has a big chain of reaction. We are in the due time, we will keep everyone informed.

I hope you understand, Joseph, if we just say something that will be a speculation that we want to avoid, because as I said, the first hope is to make sure that we go back in the place that we should be.

Understood. Thank you.

Thank you. Our final questions will come from the line of Ian Moore with Bernstein. Please proceed with your questions.

Hi. Thanks. I know the announcements are all relatively new and fresh, but given the broadcast agreement extensions, like with Sky, the return of the Turkish Grand Prix next year and the updates to the Miami Grand Prix, are you noticing any, I guess, positive halo effects or incremental opportunities with respect to F1 sponsorship interests or just broader demand that might have implications for the rest of the year and beyond that? Thanks.

I'll let Stefano take that. My guess, though, is that from a just purely what lands in this year is probably limited at this point, just given the given how these deals are done. Stefano will probably give you more color on the broader halo effects.

I mean, the halo effect, thanks, Ian, is what we said at the beginning, the fact that the activation is getting bigger, better in terms of quality. Of course, we want to be as creative as possible without taking away the quality of what we are offering to our customer and guests. Of course, you know, the fact that we have bigger audiences is pushing the ecosystem to try to find solutions. This is good because everyone is on the same page and the F1, let's say, sponsorship package is really very solid.

If the question is related to what will be the effect on this year, the definitely the effect on this year is not related to have more numbers because it's already almost sold out everywhere. This is also even better because will allow us to grow in the future on numbers that are not yet indicated in the accounts that we have today. It's just something that goes back to the long-term strategy and all the partners and sponsors that will be part of this incredible growth that we really do believe will happen even in the next couple of years in front of us.

Great. Thanks, Stefano. I think with that, we will conclude the call. Before we end, though, I did wanna say a special thank you to Carmelo and Stefano and their teams, just because managing through sort of some of the disruptions that we've had, I realize the events in the Middle East have hit most companies, but obviously very directly to ours in terms of a lot of the rescheduling and logistics and thinking through contingencies and all that. We're on it. I wanted to thank those guys and their teams because they've been working overtime. I wanna thank everyone on the call for taking the time. We always appreciate your interest in Liberty Media, and look forward to speaking with you guys again soon.

Ladies and gentlemen, thank you so much. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.