This is our first report on a global media and entertainment player, Formula One Group. The company had a good 2022 as all major revenue streams saw a 20% increase. Its fourth quarter result was mixed and the company surpassed the revenue expectations of Wall Street but missed out on meeting earnings expectations. The growth in other F1 revenue, which totaled $180 million, was 63%, with around $110 million coming from hotels and experiences and $55 million from rising freight. Ford announced its return to F1 starting in 2026 in a new relationship with Red Bull as support for the sport’s rising worldwide popularity, technological relevance, and sustainability efforts. The management anticipates Ford’s contribution as a technical engine supplier will be valuable for the sport and Red Bull. In race promotion, they moved the Zandvoort event from 2024 to 2025, and the 2023 Dutch Grand Prix has already reached capacity. For sponsorship, they disclosed signing a multiyear partnership with Qatar Airlines as a major airline. The company introduced a new brand campaign in the quarter to demonstrate F1’s position in the sporting and entertainment worlds. We initiate coverage on the stock of Formula One Group with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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