FWONA - Formula One Group: Changing With Times To Stay Relevant

2024-06-12 09:01:21 ET

Summary

• With 24 races per season, we had argued that growth potential was somewhat limited.
• Acquisition of MotoGP changes this and we expect that it may bring synergies and improved earnings from 2025.
• Despite high ticket prices, Formula One Group remains a solid business with potential for growth and improved share price.
• We still have concerns about their complex inter-company structure and see no path to any return of capital to shareholders.

Investment Thesis

In our previous article on Formula One Group ( FWONA ) ( FWONB ) in February this year, just before the Formula 1 season started, we continued our Hold stance on the back of our concern that further growth for the company could be stalling....

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