10/05/2024
NEWS STORY
Formula One's revenue for the opening quarter of the year is up 45% on the corresponding quarter in 2023.
With 3 races in the opening quarter this year, compared to two in 2023, the operating income for Q1 was £108m ($136) up a staggering 289%.
Team payments were up 46% from £89m ($112m) in the first quarter of last year to £130m ($163m) in this year's opening quarter.
Primary F1 revenue increased in the first quarter with growth across race promotion, media rights and sponsorship partly driven by the additional race, which resulted in a greater proportion of season-based revenue recognized. Race promotion revenue also increased due to fees from the additional race held in the period and contractual increases in fees.
Media rights revenue also benefited from contractual increases in fees, higher fees from new and renewed contractual agreements and continued growth in F1 TV subscription revenue, while sponsorship revenue also increased due to recognition of revenue from new sponsors and growth in revenue from existing contracts.
Other F1 revenue increased in the first quarter primarily driven by the sale of new F2 cars and associated parts at the start of the new F2 vehicle cycle, higher hospitality and experiences revenue and higher freight income driven by the additional race held in the current period.
Operating income and Adjusted OIBDA increased in the first quarter, while the team payments were higher compared to last year due to the pro rata recognition of payments across the race season with one more race held, as well as an expectation of increased 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 the cost of supplying the new F2 cars and associated parts, increased commissions and partner servicing costs associated with higher Primary F1 revenue streams as well as increased freight, travel, technical, digital and FIA regulatory costs from the additional race.
Other cost of F1 revenue in the first quarter was also impacted by lease costs for the Las Vegas Grand Prix Plaza, the 39-acre site in Las Vegas. Selling, general and administrative expense was relatively flat during the quarter.
"The 2024 season is underway," said Stefano Domenicali, "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 US.
"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 One 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."
Trebles all round!