Formula One Sees Insane Growth In Revenue As Liberty Media Strikes Gold

Formula 1's strong financial performance in Q1 of 2024 reveals the sport's increasing global appeal and successful expansion strategies.

May 4, 2024; Miami Gardens, Florida, USA; Red Bull Racing driver Max Verstappen (1) lead the field / Peter Casey-USA TODAY Sports

Formula 1 has reported a remarkable 45% increase in revenue for the first quarter of 2024 compared to the same period in 2023. This surge has been fueled by additional race promotions, higher media fees, an increased subscription base, and other diversified income streams.

Formula 1's financial muscles flexed impressively in the first quarter of 2024, with revenues soaring to $553 million from $381 million in the corresponding quarter of the previous year. The key driver of this revenue surge was the incorporation of three high-profile races in the early part of the season—the Bahrain, Saudi Arabian, and Australian Grands Prix—compared to just two during the same time in 2023. This expansion not only boosted race promotion fees but also fortified media rights earnings due to the heightened broadcast scope necessitated by the additional race weekend.

Equally significant was the performance of F1's digital properties. The F1 TV subscription service continued to witness growth, contributing robustly to the top line. On another front, the series capitalized on the sale of the new Formula 2 chassis and enjoyed increased revenue from bespoke hospitality experiences and the leasing of Las Vegas Grand Prix facilities, indicating a solid diversification of revenue streams.

Reflecting on the financial outcomes, F1 CEO Stefano Domenicali noted, as quoted by Racing News 365:

"The 2024 season is underway, including our return to China for the first time since 2019 and our third year in Miami which saw another incredible event demonstrating the growing strength of F1 in the US.

"We are seeing continued momentum both in financial performance and amplification of our fanbase, including through expanding our methods of fan engagement."

In line with increased revenues, the payouts to teams, often a significant expenditure, surged by 46% to $163 million. This increase is a direct reflection of the higher number of races and anticipates further increments over the year as the racing calendar continues to expand.

Operationally, the sport has become more lucrative as well, with operating income skyrocketing by nearly 289% to $136 million in Q1 2024 from $35 million in the previous year. This remarkable growth illustrates not only increasing revenue streams but also effective cost management strategies being implemented across the board.

Domenicali also highlighted extensive plans for the future, aiming to build on the current momentum:

"We have already announced our 24-race calendar for 2025, a landmark year that will mark the 75th anniversary of the FIA Formula 1 World Championship.

"We recently published our first ever Impact Report and are proud to highlight that we are on track to reach our net zero target by 2030 and continue to prioritise our diversity and inclusion efforts with programs like the F1 Academy Discover Your Drive, STEM Challenge Days and more."