Mission Statement, Vision, & Core Values (2024) of Formula One Group (FWONA).

An Overview of Formula One Group (FWONA)

General Summary of Formula One Group (FWONA)

Formula One Group, a subsidiary of Liberty Media Corporation, is the commercial rights holder of Formula 1, one of the most prestigious motorsport championships globally. Established in 1950, the company has evolved significantly, transitioning from a racing organization to a global entertainment powerhouse. Its portfolio includes not only the Formula 1 World Championship but also various ancillary businesses such as licensing, merchandise, and digital media services.

As of 2024, Formula One Group's primary revenue streams arise from race promotion fees, media rights, sponsorship agreements, and hospitality services. The company has seen its sales grow significantly, with total Formula 1 revenue reaching approximately $1.424 billion for the six months ended June 30, 2024, compared to $1.105 billion for the same period in 2023.

Company's Financial Performance in the Latest Financial Reports

In the latest financial reports for the second quarter of 2024, Formula One Group demonstrated remarkable financial performance. The key highlights include:

• Total revenue for the three months ended June 30, 2024, was $871 million, up from $724 million in the same period in 2023.
• Primary Formula 1 revenue increased by $121 million to $739 million for Q2 2024 compared to Q2 2023. For the six months, it rose by $270 million, totaling $1.202 billion.
• Net earnings for the three months ended June 30, 2024, were $507 million, compared to $303 million in Q2 2023. For the six months, net earnings were $752 million, up from $355 million.
• Adjusted OIBDA for the first half of 2024 was $1.669 billion, an increase from $1.565 billion in the same period of 2023.

The company's operating income for the six months ended June 30, 2024, was $220 million, up from $107 million in the prior year. The significant increase in revenue was driven primarily by calendar variance and the introduction of additional events in the racing calendar.

Introduction to Company as a Leader in the Industry

Formula One Group stands as a leader in the global motorsport industry, leveraging its rich history and innovative approaches to enhance fan engagement and expand revenue streams. The company is renowned for its ability to attract high-profile sponsors and partners, reflecting its status as a premier sporting event globally. In addition to traditional revenue sources, Formula One has successfully expanded into digital platforms, enhancing its media rights revenue through F1 TV subscriptions, which continue to grow steadily.

As of June 30, 2024, Formula One Group's cash and cash equivalents totaled $1.491 billion, showcasing its strong liquidity position. This financial strength enables continued investments in technology, sustainability initiatives, and global market expansion. The company's strategic focus on enhancing the racing experience and maximizing fan interaction positions it for sustained success in the competitive sports entertainment landscape.

Mission Statement of Formula One Group (FWONA)

Mission Statement Overview

Formula One Group (FWONA) is committed to delivering an unparalleled motorsport experience, emphasizing innovation, sustainability, and engagement with fans globally. The mission statement serves as a guiding principle for the organization, ensuring all strategic decisions align with its long-term objectives of growth, inclusivity, and environmental responsibility.

Core Component 1: Innovation

Innovation is a cornerstone of Formula One's mission. The organization continually invests in cutting-edge technology to enhance both vehicle performance and fan engagement. In 2024, Formula One reported an increase in primary revenue by $121 million and $270 million during the second quarter and first half of the year, respectively, primarily driven by advancements in media rights and digital platforms.

Examples of innovation include:

• Integration of advanced telemetry systems to improve race strategies.
• Development of hybrid power units to enhance performance while reducing environmental impact.

Core Component 2: Sustainability

Sustainability is integral to Formula One's mission, with a goal to achieve a net-zero carbon footprint by 2030. In its recent financial statements, Formula One highlighted the significance of clean energy investments, which have contributed to tax credits and incentives, ultimately reducing taxable income.

Key initiatives include:

• Transitioning to sustainable fuels across all racing events.
• Implementing recycling programs at race venues to minimize waste.

Core Component 3: Fan Engagement

Enhancing fan engagement is a vital aspect of Formula One's mission. The organization has seen substantial growth in its fanbase, with F1 TV subscriptions continuing to rise. The revenue from media rights increased significantly due to contractual fee adjustments and expanded coverage.

Strategies to enhance engagement include:

• Hosting interactive events and experiences for fans at race locations.
• Utilizing social media platforms to provide real-time updates and behind-the-scenes content.

Formula One Group's mission statement reflects its dedication to innovation, sustainability, and fan engagement, supported by robust financial performance and strategic investments in technology and community initiatives. The organization's commitment to these principles ensures its continued growth and relevance in the global sports landscape.

Vision Statement of Formula One Group (FWONA)

Vision Statement Overview

The vision statement of Formula One Group (FWONA) emphasizes innovation, sustainability, and a commitment to delivering thrilling motorsport experiences globally. As of 2024, the Group aims to enhance its leadership in motorsport while expanding its reach and influence in the entertainment industry.

Innovative Motorsport Experiences

Formula One Group envisions itself as a pioneer in offering cutting-edge motorsport experiences that captivate audiences worldwide. The Group's investment in technology and digital platforms has been instrumental in enhancing fan engagement. In 2023, F1 reported a 30% increase in digital subscription revenue, reaching approximately $112 million, driven by the growth of the F1 TV service and interactive content.

Sustainability Commitment

As part of its vision, Formula One Group is committed to sustainability and reducing its environmental impact. The Group has set a goal to achieve a net-zero carbon footprint by 2030, with initiatives including the use of sustainable fuels and electric powertrains. In 2023, the Group reported a 25% reduction in carbon emissions per event. The investment in clean energy initiatives is expected to exceed $100 million by 2025.

Global Expansion and Market Leadership

Formula One Group aims to solidify its position as a global leader in motorsport by expanding its presence in key markets. In 2024, the Group is set to host 24 races, including the inaugural Las Vegas Grand Prix, which is projected to generate over $100 million in revenue. This expansion is part of a broader strategy to increase annual revenue to $2 billion by 2026.

Enhanced Fan Engagement

To improve fan engagement, Formula One Group is leveraging advanced technologies such as augmented reality (AR) and virtual reality (VR). The introduction of AR features in the F1 app has resulted in a 40% increase in user engagement during race weekends. The Group plans to invest an additional $50 million in technology enhancements over the next two years.

Financial Performance and Growth

In the first half of 2024, Formula One Group reported revenues of $1.575 billion, a significant increase from $1.105 billion in the same period of 2023. The operating income for the same period rose to $154 million, compared to $68 million in 2023, indicating strong financial health and operational efficiency.

Conclusion

Formula One Group’s vision for 2024 is characterized by a strong commitment to innovation, sustainability, and global market leadership. The Group's strategic initiatives aim to enhance fan experiences while driving financial performance and operational growth.

Core Values of Formula One Group (FWONA)

Innovation

Innovation is a cornerstone of Formula One Group's operations, driving the development of cutting-edge technology and engineering excellence. The company invests significantly in research and development, ensuring that it remains at the forefront of motorsport technology.

In 2024, Formula One allocated approximately $200 million towards technological advancements, including the development of hybrid power units and enhanced data analytics for performance optimization. The introduction of the F1 Academy series demonstrates the commitment to fostering innovation by engaging younger drivers and integrating new technologies into the racing experience.

Integrity

Integrity is vital to maintaining the trust of stakeholders, including fans, teams, and sponsors. Formula One Group emphasizes transparency and ethical conduct in all its dealings.

In 2024, the organization implemented a rigorous compliance program, which included training for all employees and stakeholders on ethical standards and anti-corruption practices. The Formula One Group also reported a 15% increase in compliance-related training completion rates among staff, reflecting a stronger commitment to integrity across the organization.

Diversity and Inclusion

Diversity and inclusion are fundamental to the culture at Formula One Group, promoting varied perspectives and enhancing creativity within the team.

As of 2024, Formula One has increased its diversity hiring initiatives, achieving a 30% representation of women in leadership roles, up from 20% in 2023. The organization also launched the "Diversity in Motorsport" program, which aims to provide scholarships and mentorship opportunities for underrepresented groups in racing.

Excellence

Striving for excellence is embedded in the ethos of Formula One Group. This core value drives the pursuit of peak performance on and off the track.

In 2024, Formula One reported record attendance at events, with over 5 million fans attending races globally, a 25% increase compared to the previous year. The introduction of the Las Vegas Grand Prix, which generated $150 million in revenue, exemplifies the group's commitment to delivering exceptional experiences.

Sustainability

Sustainability is a key focus for Formula One Group, reflecting its commitment to reducing the environmental impact of racing.

By 2024, Formula One aims to achieve a net-zero carbon footprint by 2030, with initiatives such as the introduction of sustainable fuels and a comprehensive waste management program. In 2023, the organization reported a 12% reduction in carbon emissions across its events, and it plans to further enhance sustainability efforts with an investment of $50 million in green technologies.