Liberty Media shares Q1 figures of F1 2023 from the same period in 2022 with decent financial figures when compared.
With the start of the year in 2023, Liberty Media has presented its financial record for the first three months of it when compared to the same period in 2022. The figures are mixed on the financial front with F1 putting in their own too towards Las Vegas’ marketing.
Looking at the Q1 numbers, the total revenue of F1 stood at $381 millions in 2023 when compared to $360 millions in 2022. The increase in the ‘primary’ revenue was primarily due to the media rights and grand prix contract renewals in the period.
The primary revenue – race promotion revenue, media rights fees and sponsorship fees – in 2023 was up to $314 millions to 2022’s $287 millions. The other revenue dropped to $67 millions in 2023 from $73 millions in 2022 due to lower freight income.
The same period saw F1 pay the teams $112 millions in 2023 as opposed to $100 millions paid in 2022. The operating had minimal increase to $35 millions in 2023 from $34 millions in 2022. The total income of F1 after adjusted OIBDA dropped too to $105 millions in 2023 from $112 millions in 2021.
There was $6 million of costs associated with the planning of the Las Vegas GP later in the year. “The F1 season is off to a fantastic start, with thrilling races to-date and many more to come on our record 23-race 2023 calendar,” said Stefano Domenicali.
“The race weekends are drawing huge crowds, with the Australian Grand Prix hosting 445,000 fans and sellouts for the majority of the remaining calendar. The power of our platform continues to draw interest also from commercial partners, with a number of new and expanded sponsors already announced season-to-date.”
Here’s the full explanation from Liberty Media regarding Q1 of F1 2023:
Primary F1 revenue increased in the first quarter with growth across media rights, race promotion and sponsorship. Media rights revenue increased due to continued growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements. Race promotion revenue grew due to contractual increases in fees, and sponsorship revenue increased due to the recognition of revenue from new sponsors and growth in revenue from existing sponsors. Other F1 revenue decreased in the first quarter primarily due to lower freight income driven by the easing of freight cost inflation on billing rates, partially offset by increased hospitality revenue from higher Paddock Club attendance.
Operating income was relatively flat and adjusted OIBDA decreased in the first quarter. Team payments were higher compared to the prior year due to the pro rata recognition of increased payments across the race season. 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 were relatively flat, as significantly lower freight costs were largely offset by increased Paddock Club costs associated with servicing higher hospitality attendance at the two events held in the first quarter, and higher commissions and partner servicing costs associated with increased Primary F1 revenue streams, including F1 TV subscriptions. Selling, general and administrative expense increased in the first quarter due to higher personnel, IT and marketing costs. There were approximately $6 million of costs associated with the planning of the Las Vegas Grand Prix included in selling, general and administrative expense in the first quarter of 2023.
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