Formula 1 continued to power ahead in the third quarter of 2023, with the sport recording a 24 percent increase in revenue year-over-year.
The Formula One Group clocked in for the July-September period with a total revenue of $887 million, which represented a $172 million increase over the same period in 2022.
The group’s Q3 total operating income amounted to $132 million, or a 61 percent increase over Q3 2022. It’s worth noting however that there were eight races held in the third quarter of 2023, compared to seven races held in Q3 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,” stated Liberty Media.
“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.”
The appreciation in Formula 1 revenue and operating income was logically accompanied by increased payouts to the participating teams.
Compared to the $370 million distributed to the 10 teams in Q3 2022, this year's allocation saw a rise to $432 million. This boost can be attributed to an uptick in the number of races during the period and an anticipation of higher payments for the entire year.
Additionally, Formula 1 incurred startup expenses related to the Las Vegas Grand Prix, with costs escalating from $124 million in the third quarter of 2022 to $183 million this year, signifying a 48 percent increase.
“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,” commented F1 chief executive Stefano Domenicali.
Formula One Group CEO Stefano Domenicali.
“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.”
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