Formula 1 continued its impressive financial trajectory in 2023, recording significant growth in both revenue and profits.
This positive performance was bolstered by the successful debut of the Las Vegas Grand Prix in the final quarter of the year.
Overall, F1's revenue climbed from $2.573 billion to $3.222 billion, reflecting a 25% increase compared to 2022.
This growth was mirrored in operating profits which jumped 64%, from $239 million to $392 million during the same period and on a comparable basis given that 22 races were held in both 2022 and 2023.
The addition of the Las Vegas Grand Prix played a pivotal role in this upsurge. Liberty Media, the sport's owner, explicitly highlighted the event's contribution, particularly regarding ticket sales and sponsorship income.
Increased revenue from new and existing sponsors, along with hosting a different race mix compared to 2022, further fueled F1's financial success in 2023. Additionally, lower freight costs contributed to improved profitability.
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However, the Las Vegas spectacle also incurred significant expenses. Hosting, promoting, and organizing the event, coupled with increased hospitality costs, led to higher overall expenditure.
Furthermore, general and administrative expenses increased due to various factors. These included higher personnel, IT, and marketing costs, alongside the planning and execution of the Las Vegas race.
However, these increases were partially offset by lower legal and professional fees, as well as favorable foreign exchange rates.
Overall, F1's 2023 financial performance paints a picture of a sport with robust growth potential.
The strategic addition of the Las Vegas Grand Prix, along with continued sponsor interest and cost-management strategies, has positioned F1 for an exciting future both on and off the track as CEO Stefano Domenicali emphasized in his comments.
“2023 marked another incredible season for F1,” said the Italian. “We had strong engagement across all platforms, with record race attendance and F1 holding its position as the fastest growing league on social media for the fourth consecutive year.
“F1 saw continued fan growth especially in the US market, strengthened by the successful Las Vegas GP, and across a younger and more female audience.
“Our sustainability initiatives remain a priority for F1 and our partners, and we look forward to running all seven F1 Academy races this season alongside the F1 calendar.
“We are excited for the 2024 season as we focus on deepening our relationships with fans and optimising our commercial partnerships to bring incremental value.”
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