Liberty Formula One Annual Results (Issue #51)
Hi all! After a short hiatus from the newsletter, we are back to regular posting. If you haven’t noticed the paywall has been removed, please go here to see all the past posts that have been made free.
Recent Update:
Liberty Media Formula One (NASDAQ: FWONK — $26.85B) just released its annual results. Revenue increased to $2.6B in 2022 from $2.1B in 2021. More importantly, they more than doubled operating income bringing it from $40M in 2021 to $173M. This is substantial growth and is partially due to the steady increase in the number of races per season. The returns are accelerated as the company makes a more efficient return this is probably due to increased streaming revenue which is a high return low overhead revenue stream. Since the acquisition of Formula One in 2016 the sport has been growing in popularity especially in the US with the creation of the Netflix series Drive To Survive which covers the drama of the sport.
Going forward the streaming and broadcasting of Formula One will be key, especially through the company’s streaming service F1TV. Next, the popularity in the US has already gained significant traction, but the Chinese market is a key and virtually untapped one. More importantly, F1TV is almost the only non-Chinese streaming service that is allowed to be sold directly in the country. This is an unutilized opportunity that could practically double F1 viewership worldwide.
Portfolio Updates:
To view the full spreadsheet and linked deep dive go here.
Meme Of The Week:
Until Thursday,
Soren