Liberty Media shared the financial figures for the year F1 2023 in comparison to 2022, which included not only the Q4 period but whole of 12 months too.
With the end of the year 2023, 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 2022, with a solid growth as fans flock to F1 races in numbers.
Starting with the Q4 numbers, the total revenue of F1 stood at $1,230 millions in 2023 when compared to $754 millions in 2021. The increase in the ‘primary’ revenue was primarily due to Las Vegas GP and mix of certain other races in the period.
The primary revenue – race promotion revenue, media rights fees and sponsorship fees – in 2023 was up to $838 millions to 2022’s $568 millions. The other revenue increased to $392 millions in 2023 from $186 millions in 2022 due to Paddock Club increment and freight revenue – again due to Las Vegas GP.
The same period saw F1 pay the teams $327 millions in 2023 as opposed to $319 millions paid in 2022. The operating income increased to $153 millions in 2023 from $58 millions in 2022. In same way, the total income of F1 after adjusted OIBDA increased too to $238 millions in 2023 from $147 millions in 2022.
Moving to the bigger picture of the whole year of 2023 as opposed to 2022, the total revenue increased to $3,222 millions in 2023 from $2,573 millions in 2022. The primary income rose to $2,560 millions in 2023 from $2,107 millions, while the other revenue increased to $662 millions in 2023 from $466 millions in 2022.
The F1 teams got more money due to increase in revenue, as they were paid $1,215 millions in 2023 as opposed to $1,157 millions they were paid in 2022. The operating income saw a jump to $392 millions for the whole year in 2022 when compare to $239 millions in 2022. The total revenue after adjusted OIBDA was $725 millions in 2023 from $593 millions in 2022.
“2023 marked another incredible season for Formula 1,” said Stefano Domenicali. “We had strong engagement across all platforms, with record race attendance and F1 holding its position as the fastest growing league on social media for the fourth consecutive year. F1 saw continued fan growth especially in the US market, strengthened by the successful Las Vegas Grand Prix, and across a younger and more female audience.
“Our sustainability initiatives remain a priority for F1 and our partners, and we look forward to running all seven F1 Academy races this season alongside the F1 calendar. We are excited for the 2024 season as we focus on deepening our relationships with fans and optimizing our commercial partnerships to bring incremental value.”
Here’s the full explanation from Liberty Media regarding their growth in terms of finance in Q4 of F1 2023 and also the 12 months:
There were 22 and 6 races held in the full years and fourth quarters of both 2023 and 2022. In the fourth quarter of 2023, F1 directly promoted the inaugural Las Vegas Grand Prix and recognized the revenue (ticketing, sponsorship, hospitality) and cost related to the event.
Primary F1 revenue grew in the full year and fourth quarter with increases across all revenue streams. Race promotion revenue grew primarily due to ticketing revenue from the inaugural Las Vegas Grand Prix and other contractual increases in fees. Race promotion revenue in the full year and fourth quarter also benefited from the mix of races held in each period compared to the comparable periods in the prior year. Sponsorship revenue increased due to the recognition of revenue from the Las Vegas Grand Prix, income from new sponsors and growth in revenue from existing sponsors.
Media rights revenue grew due to increased fees under new and renewed contractual agreements and continued growth in F1 TV subscription revenue. Other F1 revenue increased in the full year and fourth quarter primarily driven by higher hospitality revenue generated from the delivery of hospitality and experiences at the Las Vegas Grand Prix as well as Paddock Club growth at other events, with full year growth partially offset by lower freight income driven by the easing of freight cost inflation on billing rates.
Operating income and adjusted OIBDA grew in the full year and fourth quarter. Team payments increased in the full year and fourth quarter 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 66% in 2022 to 63% in 2023 reflecting growth in adjusted OIBDA and an associated reduction on the payout percentage 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 and fourth quarter primarily driven by the costs of promoting, organizing and delivering the Las Vegas Grand Prix as well as higher hospitality costs at other events associated with increased Paddock Club attendance and cost inflation, partially offset by significantly lower freight costs. Other cost of F1 revenue also increased in both periods due to higher commissions and partner servicing costs associated with growth in Primary F1 revenue streams and higher travel costs.
Selling, general and administrative expense increased for the full year due to higher personnel, IT and marketing costs as well as costs associated with planning and running the Las Vegas Grand Prix, partially offset by lower legal and professional fees and foreign exchange favorability. Selling, general and administrative expense decreased in the fourth quarter as higher personnel costs were offset primarily by foreign exchange favorability.
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