F1 has released the financial figures for Q3 of the current 2023 season in comparison to the last same period in 2022.
Well into the 2023 season, Liberty Media has released the financial details of the current F1 season for Q3 which saw eight rounds in all when compared to the seven held in the same period in 2022. Looking at the numbers, the total revenue of F1 stood at $887 millions in 2023 when compared to $715 millions in 2022 for the same period.
The increase in the ‘primary’ revenue was primarily due to growth across race promotion and sponsorship and importantly for one extra race held in the same period. There was rise in income from media rights too plus subscription revenue for F1 TV.
The primary revenue – race promotion revenue, media rights fees and sponsorship fees – in 2023 was up to $790 millions from 2022’s $624 millions. The other revenue also increased to $97 millions in 2023 from $91 millions in 2022.
The same period saw F1 pay the teams $432 millions in 2023 as opposed to $370 millions paid in 2022. The operating income had an increase to $132 millions in 2023 from $82 millions in 2022. The total income of F1 after adjusted OIBDA had slight increase from $170 millions in 2022 from $215 millions in 2023.
There was $8 million of costs associated with the planning of the Las Vegas GP later in the year. “Formula 1 continues to experience sell-out crowds, record race attendance and strong growth across our social and digital platforms, outpacing that of other major sports leagues,” said Stefano Domenicali.
“This growth is attracting commercial partners, including our recent agreement with American Express that marks the first new sports vertical they have sponsored in over a decade. We are making material progress on our sustainability initiatives, including reducing F1’s corporate emissions and amplifying F1 Academy by fully integrating the series into the 2024 F1 calendar with participation from all ten F1 teams.”
Here’s full explanation from Liberty Media:
“There were eight races held in the third quarter of 2023, compared to seven races held in the third quarter of 2022. There are 22 events scheduled for the 2023 race calendar. Primary F1 revenue increased in the third quarter with growth across race promotion, media rights and sponsorship partly driven by one more race held in the current period, which resulted in a greater proportion of season-based revenue recognized. Race promotion revenue also increased due to higher fees generated from the different mix of events held, with two additional races outside of Europe, and other contractual increases in fees.
“Media rights revenue benefited from increased fees under new and renewed contractual agreements and continued growth in F1 TV subscription revenue. Sponsorship revenue also increased due to recognition of revenue from new sponsors and growth in revenue from existing sponsors. Other F1 revenue increased in the third quarter primarily due to higher freight income driven by two additional races held outside of Europe and higher hospitality revenue generated from the Paddock Club, partially offset by lower licensing income.
“Operating income and adjusted OIBDA increased in the third quarter. Team payments were higher compared to the prior 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 higher hospitality costs driven by cost inflation and the mix of events held in the current period, as well as increased freight costs due to two additional races outside of Europe.
“Other cost of F1 revenue in the third quarter was also impacted by increased technical, travel and other event-related costs due to one additional race, as well as increased commissions and partner servicing costs associated with higher Primary F1 revenue streams, certain early stage costs of promoting the Las Vegas Grand Prix and costs incurred for the new F1 Academy series. Selling, general and administrative expense increased primarily due to higher personnel, property, IT and marketing costs, some of which is attributable to the Las Vegas Grand Prix, partially offset by lower legal costs and foreign exchange favorability.
“There were $8 million of costs associated with the planning of the Las Vegas Grand Prix included in selling, general and administrative expense in the third quarter of 2023. The businesses and assets attributed to Formula One Group consist primarily of Liberty Media’s subsidiary F1 and other minority investments.”
Here’s the finances in Q2
Here’s F1 drivers on sprints
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