F1 announces stable revenue and profit in the third quarter of 2024
Liberty Media has published its results concerning Formula 1 during the third quarter of 2024 and the numbers are stable compared to 2023. Cumulatively, for the first three quarters, F1 is currently in a pole position.
Total revenues attributed to the Formula One group for the third quarter of 2024 amount to 911 million dollars, approximately 856 million euros, a slight increase compared to the 887 million dollars (833 million euros) from the third quarter of the previous year. This progression is partly due to revenue diversification strategies and partnerships, despite a slight decrease in F1’s main revenues due to hosting one less race than in 2023.
The 4% decrease in F1 revenues, which include TV rights, sponsorship fees, and income related to race promoter payments, is offset by a 6% increase in other revenues.
This slight growth is driven by new sources of revenue, such as licensing agreements with LEGO and Hot Wheels, as well as third-party events related to the Las Vegas Grand Prix. However, VIP hospitality revenues have decreased due to the scheduling of the Grand Prix races in the third quarter of 2024, with one race fewer than in 2023.
In terms of expenses, costs related to teams decreased by 14% as there was one less race. In the end, F1 reported an operating profit of 146 million dollars, or approximately 137 million euros, up from the 132 million dollars (124 million euros) from the same period in 2023.
Regarding the profits generated by F1 alone, they have slightly increased by 3%, reaching 221 million dollars (207 million euros). This improvement was impacted by expenses to cover the F1 Academy and for the rental of space in the Las Vegas Grand Prix Plaza, a new expense that did not exist in 2023. In the end, they amount to 207 million dollars.
On the partnerships and commercial rights side, Liberty Media has strengthened its position by signing major agreements, notably with LVMH, Lenovo, and American Express, strategic collaborations that illustrate the growing appeal of Formula 1 for luxury and technology brands. The increased popularity of F1 is also reflected in attendance figures: more than 5.8 million spectators have attended races since the beginning of the season, with record crowds at almost every event. Digital and television audiences also benefit from the suspense in the championship, fueled by spectacular performances from experienced drivers and the rise of promising young talents, creating a captivating spectacle for fans around the world.
An increase in turnover and profit in the first three quarters of 2024
During the first three quarters of 2024, Formula 1 has so far declared revenues of 2.486 billion dollars, compared to 1.992 billion in 2023, which represents a 25% increase in its revenues so far. The profit reached in 2024 is 574 million dollars compared to 443 in 2023, representing an increase of 29.6%.
