Formula One revenue fell marginally during the third quarter of the financial year but its parent group, Liberty Media, remains very confident of future prospects.
Liberty Media’s financial results for Q3 showed a 2.9% year-over-year decline in F1 revenue from $887m to $861m. Much of this can be explained, however, by the fact seven races were held in Q3 this year against eight the year before.
Additionally, operating income actually rose despite the slight drop in profit. This figure rose 10% year-over-year from $123m to $146m, partly due to F1 costs of revenue being cut back by 9% to $561m (Q3 2023: $615m).
Primary F1 revenue is derived from race promotions, media rights fees and sponsorship fees. Liberty Media cited drops in the latter to explain F1’s commercial performance this quarter though noting that ace promotions revenue grew, offsetting the difficulties faced in sponsorship and media.
With 24 events scheduled for the 2024 calendar, up from 22 the year prior, Liberty Media expects to continue reaping the rewards of F1. Given that the series felt the impact of one less race this quarter, it can be expected that an increase in the number of races this season will see revenue increase – it’s notable that a packed racing calendar helped drive revenue in Q2 this year.
Greg Maffei, Liberty Media President and CEO, said: “The third quarter was active both at the corporate level and at our operating businesses. 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. Live Nation continues to see high global demand for their events and is already positioned for a very strong 2025 with increased stadium activity.”
F1 expansion efforts have seen the series crack new, high value markets in recent years, including the US. The popularity of the ‘Drive to Survive’ docuseries in particular helped grow the US audience, with three races now held in the country in the series’ calendar.
This has helped F1 significantly improve its performance after taking significant hits in 2020 and 2021, along with other major sports organisations, due to the restrictions of the COVID-19 pandemic.
F1 now boasts an impressive sponsor roster, with Crypto.com one of the most notable primary partners of the series. More recent moves saw the series link with international bank Santender and construction toy company Lego.
