Formula One reports impressive financial results from the second quarter of 2024

Having recently announced its second financial report of the year, Formula 1 has reported a 20 growth in total revenue to the end of the second quarter of 2024 from the same period in 2023.

When it comes to the primary F1 revenue, Formula One defines three categories: race promotion revenue, media rights fees and sponsorship fees.

When comparing the results with the equivalent period of last year, it is important to note that there were eight races held in the second quarter of 2024, compared to six races held in the second quarter of 2023. Furthermore, this year's schedule encompasses 24 races, compared to 22 events held in 2023.

Revenue rose with growth across media rights and sponsorship. The former benefitted from the two additional races in the period, while Formula One agreed a partnership with the Las Vegas Convention and Visitors Authority (LVCVA). Media rights revenue also benefitted from continued growth in F1 TV subscriptions.

Sponsorship revenue also increased due to the impact of the mix of races on event specific fees and recognition of revenue from new sponsors.

Interestingly, race promotion revenue was relatively flat in the second quarter, with the report noted that "fees from the additional races were offset by the different mix of events compared to the prior year period.

Other F1 revenue increased by 25 per cent in the second quarter. The growth was primarily achieved due to higher hospitality, freight, travel, technical services and F2 and F3 income driven by the additional races held in the current period.

The additional races meant team payments increased by 26 per cent compared to last year. Moreover, FOM had to pay a lease expense for the Las Vegas Grand Prix Plaza, a cost that wasn’t incurred previously.

Other cost of F1 revenue in the second quarter was also impacted by higher costs associated with F1 Academy

The reports also confirmed higher costs regarding Selling, general and administrative expense increased due to higher personnel, IT and property costs as well as legal and other professional fees, partially offset by lower marketing costs, foreign exchange favorability and bad debt recoveries.

The financial results also revealed that Liberty Media expects to close its acquisition of MotoGP by the end of this year, and SportsPro understands it should be by November.

Greg Maffei, Liberty Media President and CEO commented: “Formula 1 is having an incredible season with particularly high engagement in growth markets.

"Five races have already set US live viewership records for their events, and we look forward to our new opportunities ahead including Apple’s highly anticipated F1 film which will debut in June 2025. Live Nation achieved record concerts profitability and global demand hasn’t slowed as indicators point to another record year ahead.”

Commenting on the financial report, F1 President and CEO noted: “The F1 season is seeing phenomenal racing, with seven different winners through fourteen races and tighter gaps across the grid. Social media followers are up over 30% across F1 platforms and we had 3.7 million race attendees through the first half of the season with ten sell-out crowds.

“F1 Academy is off to a strong start in its first season running all events alongside F1 race weekends. Together with the Sprint and FIA F2 and F3, it is adding to the exciting on-track action and bringing added value to our fans, promoters and sponsors.”