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Liberty Media has announced a $172 million jump in F1 revenue in the third quarter over the same period a year ago.
Formula One Group had revenues of $887 million in the third quarter, up from $715 million in 2022, a 24 percent increase.
That translated into an operating income 61 percent up on the same period a year ago, helped by the inclusion of eight races versus seven in 2022.
“Primary F1 revenue increased in the third quarter with growth across race promotion, media rights and sponsorship partly driven by one more race held in the current period, which resulted in a greater proportion of season-based revenue recognised,” Liberty Media confirmed.
“Race promotion revenue also increased due to higher fees generated from the different mix of events held, with two additional races outside of Europe, and other contractual increases in fees.
“Media rights revenue benefited from increased fees under new and renewed contractual agreements and continued growth in F1 TV subscription revenue.
“Sponsorship revenue also increased due to recognition of revenue from new sponsors and growth in revenue from existing sponsors.
“Other F1 revenue increased in the third quarter primarily due to higher freight income driven by two additional races held outside of Europe and higher hospitality revenue generated from the Paddock Club, partially offset by lower licensing income.”
Along with the rise in F1 revenue, and operating income, were higher payments to teams.
Where the 10 teams had received $370 million for the third quarter last year, this year that rose to $432 million.
That increase is explained by increased races in the period and an expectation of increased payments for the full year.
F1 also saw start-up costs associated with the Las Vegas Grand Prix as costs rose from $124 million in Q3 in 2022 to $183 million this year, a 48 percent change.
“Formula 1 continues to experience sell-out crowds, record race attendance and strong growth across our social and digital platforms, outpacing that of other major sports leagues,” noted Stefano Domenicali, F1 president and CEO
“This growth is attracting commercial partners, including our recent agreement with American Express that marks the first new sports vertical they have sponsored in over a decade.
“We are making material progress on our sustainability initiatives, including reducing F1’s corporate emissions and amplifying F1 Academy by fully integrating the series into the 2024 F1 calendar with participation from all ten F1 teams.”
