Formula 1 achieves revenue of over $500 million in first quarter 2024

Formula 1 has started the current season very strongly in financial terms as the first quarter of 2024 saw the sport achieve 45% increase in revenue compared to the same period in 2023.

The sport raked in $553 million for the first three months of the year compared to $381 million in Q1 2023, while the Formula One Group’s total operating income clocked in at $95 million compared to $16 million in the first quarter of 2023.

The increase was boosted by the fact that the 2024 F1 season started slightly earlier, and the first quarter included three races compared to two rounds in 2023.

Liberty Media acquired Formula One's Commercial Rights in 2017. The beginning of their work was hindered by the Covid-19 pandemic that saw the sport achieve low-key financial results due to obvious reasons.

However, since the restrictions were completely abandoned, Liberty Media's results have been highly encouraging.

The first quarter of 2024 saw a healthy growth across all primary revenue streams for Formula 1: race promotion, media rights, and sponsorships.

Primary F1 revenue increased in the first 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 recognized.

Race promotion revenue also increased due to fees from the additional race held in the period and contractual increases in fees. Media rights revenue also benefited from contractual increases in fees, higher fees from 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 contracts.

The financial report also highlights a 34% increase in "other F1 revenue." This includes income from the sale of the new Formula 2 car and associated parts, higher hospitality and experiences revenue and higher freight income driven by the additional presence on the calendar of the Australian Grand Prix.

The increase in F1 revenues saw teams receive an increased payment in the first quarter of 2025 with the payment having increased from $112 million to $163 million.

Liberty Media's report also mentioned a 31% increase in "other costs of revenue." This other cost was also impacted by lease costs for the Las Vegas Grand Prix Plaza, the 39-acre site in Las Vegas.

Selling, general and administrative expense was relatively flat during the quarter with only two per cent higher than in the first quarter of 2023.

The first part of the current season saw F1 secure several key deals. Liberty Media announced the acquisition of MotoGP and expects to complete the transaction by year-end 2024.

Furthermore, F1 has expanded its partnership with DHL as Global Partner and secured new sponsorship deals at F1, including Globant as Official Partner and McDonald’s as Regional Partner in Latin America.

As far as the broadcast is concerned, F1 secured new broadcast deal with beIN SPORTS across MENA through 2033, extended partnership with Viaplay in Netherlands and Nordic countries through 2029 and signed FanCode in India through 2025.

Moreover, the sport has already announced its 24-race calendar for 2025 which will mark its 75th anniversary of Formula 1. In the past, F1 announced its calendar for the forthcoming year at a later point of the year.

Expanding on the results of the first quarter of 2024, Liberty Media President and CEO Greg Maffei said: “We were thrilled to announce Liberty’s planned acquisition of MotoGP, adding to our attractive assets in the premium live event and sports industries. We look forward to bringing this exhilarating sport to a wider global audience.

“Formula 1 kicked off the 2024 season with over 1 million fans in attendance across the first five races. At SiriusXM, they delivered solid revenue and adjusted EBITDA growth and are focused on improving subscriber results with enhancements to content and digital innovation.

"The planned merger with Liberty SiriusXM is on track to be completed at the beginning of the third quarter. Live Nation has already sold 86 million concert tickets for an expected record-setting 2024.”

Speaking of the opening part of the year, F1 CEO Stefano Domenicali said: “The 2024 season is underway, including our return to China for the first time since 2019 and our third year in Miami which saw another incredible event demonstrating the growing strength of F1 in the U.S.

“We are seeing continued momentum both in financial performance and amplification of our fan base, including through expanding our methods of fan engagement. We have already announced our 24-race calendar for 2025, a landmark year that will mark the 75th anniversary of the FIA Formula 1 World Championship.

“We recently published our first ever Impact Report and are proud to highlight that we are on track to reach our net zero target by 2030 and continue to prioritize our diversity and inclusion efforts with programs like the F1 Academy Discover Your Drive, STEM Challenge Days and more," Domenicali added.