Liberty Media shared the financial figures for Q2 of F1 2024 in comparison to the same period in 2023 to showcase continued growth.
Amidst a closely-fought 2024 season so far, Liberty Media has presented its financial record for the last three months of the financial year when compared to the same period last year. There is significant growth in the numbers as F1 continue to rise up the market.
Looking at the Q1 numbers, the total revenue of F1 stood at $871 millions in 2024 when compared to $724 millions in 2023. The increase in the ‘primary’ revenue was primarily due to two extra races being held this year, with increase in sponsor and F1 TV money.
The primary revenue – race promotion revenue, media rights fees and sponsorship fees – in 2024 was up to $739 millions to 2023’s $618 millions. The other revenue increased to $132 millions in 2024 from $106 millions in 2023 due to additional F2, F3 races.
The same period saw F1 pay the teams $435 millions in 2024 as opposed to $344 millions paid in 2023. The operating income increased to $84 millions in 2024 from $72 millions in 2023. In same way, the total income of F1 after adjusted OIBDA increased too to $160 millions in 2024 from $155 millions in 2023.
“The F1 season is seeing phenomenal racing, with seven different winners through fourteen races and tighter gaps across the grid,” said Stefano Domenicali. “Social media followers are up over 30% across F1 platforms and we had 3.7 million race attendees through the first half of the season with ten sellout crowds.
“F1 Academy is off to a strong start in its first season running all events alongside F1 race weekends. Together with the Sprint and FIA F2 and F3, it is adding to the exciting on-track action and bringing added value to our fans, promoters and sponsors.”
Here’s the full explanation from Liberty Media regarding their growth in terms of finance in Q2 of 2024:
Primary F1 revenue increased in the second quarter with growth across media rights and sponsorship partly driven by two more races held in the current period, which resulted in a greater proportion of season-based revenue recognized, as well as contractual increases in fees. Media rights revenue also benefited from continued growth in F1 TV subscription revenue. Sponsorship revenue also increased due to the impact of the mix of races on event specific fees and recognition of revenue from new sponsors.
Race promotion revenue was relatively flat in the second quarter as fees from the additional races were offset by the different mix of events compared to the prior year period. Other F1 revenue increased in the second quarter primarily due to higher hospitality, freight, travel, technical services and F2 and F3 income driven by the additional races held in the current period.
Operating income and Adjusted OIBDA increased in the second quarter. Team payments increased due to the pro rata recognition of payments across the race season with two more races held in the current period and the expectation of higher 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 commissions and partner servicing costs associated with growth in Primary F1 revenue streams as well as higher hospitality, FIA regulatory, digital, technical and travel costs from the additional races held in the current period.
Other cost of F1 revenue in the second quarter was also impacted by higher costs associated with F1 Academy and lease expense for the Las Vegas Grand Prix Plaza which wasn’t incurred in the prior year. Selling, general and administrative expense increased due to higher personnel, IT and property costs as well as legal and other professional fees, partially offset by lower marketing costs, foreign exchange favorability and bad debt recoveries.
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