Liberty Media has revealed a drop in revenue in the third quarter of 2025, down from $887m (£684m) to $861m (£664m).
The American media giant cites the fact there was one less race in Q3 this year, compared to last year, which meant a fall in media rights and sponsorship revenue.
However, in recent weeks F1 has revealed various new agreements with LVMH, Lenovo, American Express and Santander, not to mention licensing deals with LEGO and Mattel Hot Wheels.
"The third quarter was active both at the corporate level and at our operating businesses," said CEO, Greg Maffei. "We closed the Liberty SiriusXM merger with SiriusXM, refinanced the F1 debt facilities and secured all necessary funding for our planned acquisition of MotoGP.
"Formula 1's commercial progress is incredible and we were thrilled to announce a number of hallmark deals beginning in 2025, including our new multi-year partnership with LVMH."
Along with Q3's 3% drop in revenue, team payments were down 14%, from $432m ($333m) in 2023 to $371m (£286m) this year, while operating income was up 11%.
The decline in media rights revenue recognized was partially offset by contractual increases in fees and continued growth in F1 TV subscription revenue. Race promotion revenue grew in the third quarter due to fees from the different mix of events held compared to the prior year period.
Other F1 revenue increased in the third quarter primarily due to higher licensing revenue and revenue generated from third-party events at the Las Vegas Grand Prix Plaza, partially offset by lower hospitality income due to the mix of events in the current period.
Operating income and Adjusted OIBDA(2) increased in the third quarter, while the team payments decreased due to the pro rata recognition of payments across the race season with one fewer race held in the current period, partially offset by 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 servicing Primary F1 revenue streams and higher digital costs, partially offset by lower FIA regulatory, technical, hospitality and travel costs due to the mix of events held. Other cost of F1 revenue in the third 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, property and marketing costs as well as legal and other professional fees, partially offset by foreign exchange favourability.
Corporate and Other revenue increased in the second quarter due to the inclusion of Quint results and $7 million of rental income related to the Las Vegas Grand Prix Plaza. In the third quarter, Quint results were primarily driven by F1 Experiences across the seven races held. Quint's revenue is seasonal around its largest events, which are generally during the second and fourth quarters. Corporate and Other Adjusted OIBDA for the third quarter of 2024 includes the rental income related to the Las Vegas Grand Prix Plaza, Quint results and other corporate overhead.
"Our business is benefitting from excellent competitive and financial momentum," said F! CEO, Stefano Domenicali. "We signed a ground-breaking partnership with LVMH for 2025, expanded our relationships with Lenovo and American Express, and secured licensing agreements with LEGO and Mattel's Hot Wheels which expand F1 beyond our race calendar into the homes of our fans.
"The thrilling racing and tight championship has benefitted viewership and digital engagement as the season has progressed. Race attendance is up season-to-date at 5.8 million with sell-out crowds at nearly all races. It is great to see the on-track talent of both our seasoned drivers as well as young talent who hopefully have long F1 careers ahead."
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