Liberty Media shared the financial figures for the year F1 2024 in comparison to 2023, which included not only the Q4 period but whole of 12 months too.
With the end of the year 2024, Liberty Media has presented its financial record for not only the last three months of last year but also the whole of 12 months when compared to the same period in 2023, with a solid growth as fans flock to F1 races in numbers.
Starting with the Q4 numbers, the total revenue of F1 stood at $1,167 millions in 2024 when compared to $1,230 millions in 2023. The decrease in the ‘primary’ revenue was primarily due to lower ticket sales for Las Vegas GP and lower media fee due to six races out of 24 held in 2024 than 22 in 2023.
The primary revenue – race promotion revenue, media rights fees and sponsorship fees – in 2024 was down to $797 millions from 2023’s $838 millions. The other revenue dropped to $329 millions in 2024 from $392 millions in 2022 due to Paddock Club increment and freight revenue – again due to lower sales in Las Vegas GP.
The same period saw F1 pay the teams $297 millions in 2024 as opposed to $327 millions paid in 2023. The operating income decreased to $126 millions in 2024 from $153 millions in 2023. In same way, the total income of F1 after adjusted OIBDA decreased too to $202 millions in 2024 from $238 millions in 2023.
Moving to the bigger picture of the whole year of 2024 when compared to 2023, the total revenue increased to $3,653 millions in 2024 from $3,222 millions in 2023. The primary income rose to $2,757 millions in 2024 from $2,560 millions, while the other revenue dropped to $654 millions in 2024 from $662 millions in 2023.
The F1 teams got more money due to increase in revenue, as they were paid $1,266 millions in 2024 as opposed to $1,215 millions they were paid in 2023. The operating income saw a jump to $492 millions for the whole year in 2024 when compare to $392 millions in 2023. The total revenue after adjusted OIBDA was $791 millions in 2024 from $725 millions in 2023.
“Formula 1 capped off a record 2024 in race count, revenue and Adjusted OIBDA,” said Stefano Domenicali. “We are equally optimistic about 2025 as we mark F1’s 75th anniversary which will provide incremental momentum for our brand, and we celebrated this milestone by welcoming the entire F1 community to a first of its kind season launch event at The O2 last week.
“Our sponsorship roster is the strongest in the sport’s history and the commercial pipeline remains robust. This commercial success is paired with on-track excitement, as we expect more intense competition after last season’s highly competitive Championship and we welcome several rookie drivers to the grid.”
Here’s full explanation –
There were 24 and 6 races held in the full year and fourth quarter of 2024, respectively, compared to 22 and 6 races held in the full year and fourth quarter of 2023. In the fourth quarter of both 2024 and 2023, F1 directly promoted the Las Vegas Grand Prix and recognized the revenue (ticketing, sponsorship, hospitality) and costs related to the event.
Primary F1 revenue grew for the full year with increases across all primary revenue streams. Sponsorship revenue grew due to recognition of revenue from new sponsors, contractual increases from existing sponsors and additional sponsorship inventory with two additional races held. Media rights revenue increased due to contractual increases in fees and continued growth in F1 TV subscription revenue. Race promotion revenue grew primarily due to fees from the two additional races held compared to the prior year, following the return of China and Imola to the calendar, as well as contractual increases in fees, partially offset by lower ticketing revenue generated from the Las Vegas Grand Prix.
Primary F1 revenue decreased in the fourth quarter primarily driven by a decline in race promotion and media rights revenue. Race promotion revenue decreased due to lower ticketing revenue generated from the Las Vegas Grand Prix. Media rights revenue declined due to the lower proportionate recognition of season-based income (6/24 races took place in the fourth quarter of 2024 compared to 6/22 in the fourth quarter of 2023), partially offset by continued growth in F1 TV subscription revenue. Sponsorship revenue increased in the fourth quarter due to recognition of revenue from new sponsors, which offset the lower proportion of season-based revenue recognized.
Other F1 revenue decreased in the full year and fourth quarter. Growth in hospitality income at most events and higher freight and licensing revenue was offset by lower hospitality revenue generated from the Las Vegas Grand Prix. For the full year, Other F1 revenue also benefited from the sale of new F2 cars and associated parts at the beginning of the new F2 vehicle cycle.
Operating income and Adjusted OIBDA(2) grew for the full year. Team payments increased for the full year driven by the growth in F1 revenue and the associated impact on the calculation of the team payments, which are 100% variable under the 2021 Concorde Agreement. Team payments as a percent of pre-team payment Adjusted OIBDA decreased from 62.6% in 2023 to 61.5% in 2024 reflecting growth in Adjusted OIBDA and an associated reduction on the payout percentage calculated under the terms of the 2021 Concorde Agreement. 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 in the full year primarily due to the annual impact of lease expense for the Las Vegas Grand Prix Plaza which became operational in November of 2023, as well as higher commissions and partner servicing costs associated with servicing Primary F1 revenue streams, the costs of supplying the new F2 cars and associated parts and increased freight, technical, digital and FIA regulatory costs from the additional races held. This was partially offset by lower event promotion, hospitality and experiences costs incurred in promoting and delivering the Las Vegas Grand Prix compared to the prior year. Selling, general and administrative expense increased for the full year driven by higher personnel, marketing, IT and property costs as well as legal and other professional fees, partially offset by foreign exchange favorability.
Operating income and Adjusted OIBDA decreased in the fourth quarter primarily due to the decline in revenue. Team payments decreased due to the lower pro rata recognition of payments across the race season and a reduction in team payment costs based on full year results. Other cost of F1 revenue decreased in the fourth quarter primarily due to reduced costs in promoting and delivering the Las Vegas Grand Prix, partially offset by increased freight costs and higher commissions and partner servicing costs. Selling, general and administrative expense increased in the fourth quarter due to higher marketing, personnel, IT and property costs as well as legal and other professional fees, partially offset by foreign exchange favorability.
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