Formula 1's financial health is looking increasingly strong following its Q1 2024 results which registered a 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.
However, this year’s featured three events compared to only two races taking place in the corresponding period last year.
Looking under the hood, Liberty Media reported healthy growth across all primary revenue streams for Formula 1: race promotion, media rights, and sponsorships.
This suggests strong fan engagement, continued media interest, and a healthy sponsorship market surrounding the sport.
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 trickle-down effect of Formula 1’s strong translated into a 45% increase in revenue for the teams as payments to the latter increased from $112 million to $163 million in Q1 2024.
F1’s report also mentions a 31% increase in "other costs of revenue." This is attributed to lease costs associated with the upcoming Las Vegas Grand Prix Plaza. While an expense, it also signifies F1's continued investment in infrastructure and expansion.
Overall, Formula 1's financial results for Q1 paint a positive picture. The growth across various revenue streams suggests a healthy and engaged ecosystem.
The strong financial performance bodes well for the future of the sport, with benefits for both F1 itself and the participating teams.
“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.,” F1 CEO Stefano Domenicali said.
“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.”
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