Formula One's revenue in the second quarter of this year was up 20% on the corresponding period in 2023.
Of course, this year there were 8 races over the period whereas there were only 6 last year. Other than the return of Imola, which was cancelled in 2023 due to flooding, in addition to the return of the Chinese Grand Prix, the ever-popular Japanese round was moved to a new slot in April.
"Formula 1 is having an incredible season with particularly high engagement in growth markets," said Greg Maffei, Liberty Media President and CEO. "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."
Revenue in Q2 was $871m (£682m) compared to $724m (£567m) in 2023, and after operation expenses, selling, general and administrative expenses, were taken into account left an operating income of $84m (£66m) compared to $72m (£56m) in 2023, an increase of 17%.
Team payments for the period were $435m (£341m) , up 26% on 2023's $344m (£269m), which explains why they are so against the sport bringing in 'fresh blood'.
Primary revenue increased with growth across media rights and sponsorship partly driven by the two additional races, which resulted in a greater proportion of season-based revenue recognized, as well as contractual increases in fees.
Media rights revenue also benefited from continued growth in F1 TV subscription revenue, while sponsorship revenue also increased due to the impact of the mix of races on event specific fees and recognition of revenue from new sponsors.
Race promotion revenue was relatively flat in the second quarter as fees from the additional races were offset by the different mix of events compared to the prior year period. Other F1 revenue increased in the second quarter primarily due to higher hospitality, freight, travel, technical services and F2 and F3 income driven by the additional races held in the current period.
Operating income and Adjusted OIBDA(2) increased in the second quarter, while team payments increased due to the pro rata recognition of payments across the race season with two more races held in the current period and the expectation of higher team payments for the full year.
Other cost of F1 revenue is largely variable in nature and is mostly derived from servicing both Primary and Other F1 revenue opportunities. These costs increased due to higher commissions and partner servicing costs associated with growth in Primary F1 revenue streams as well as higher hospitality, FIA regulatory, digital, technical and travel costs from the additional races held in the current period.
Other cost of F1 revenue in the second quarter was also impacted by higher costs associated with F1 Academy and lease expense for the Las Vegas Grand Prix Plaza which wasn't incurred in the prior year.
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 favourability and bad debt recoveries.
"By many measures, we have never had more competitive racing," F1 CEO, Stefano Domenicali told investors in a conference call. "I expect that the remainder of 2024 season will continue to deliver great racing for our fans. And as we look forward, the increasingly close racing offers very exciting prospect for 2025.
"The incredible competition on track is leading to even higher engagement as our diverse fan basis continues to grow," he added. "We have welcomed over 3.7 million attendees through the first 14 races of this season with the Canadian Grand Prix seeing record attendance of 350,000 and Silverstone matching its incredible 2023 record attendance of 480,000. We continue to see sold-out events and there is strong demand for the races still to come this season."
At a time the sport is understood to be considering a race in Rwanda, the F1 boss insisted that there are currently no plans to increase the number of races.
"Our duty is to ensure the right strategic balance for the long-term future of the sport," he said. "The added benefit of this demand with limited race slots creates increased incentives for promoters to innovate and improve the experience of races across the calendar."
sign in