F1’s financial performance peaks as expanded race schedule lifts Q2 earnings significantly.
F1 has released its quarterly earnings, with profits recorded by Liberty Media showing an increase over 2023. This is primarily due to the schedule, as eight Grands Prix took place in the second quarter of the year, compared to six in the same period last year.
The return of the Chinese GP and the Emilia-Romagna GP has consequently led to a revenue increase. Thus, earnings rose by 20% to reach $871 million, up from $724 million in the same period last year.
“The F1 season has been characterised by phenomenal races, with seven different winners in 14 races and tighter margins on the starting grid,” celebrated Stefano Domenicali, CEO of Formula 1.
“Social media followers have increased by over 30% across F1 platforms, and we have welcomed 3.7 million spectators during the first half of the season, with ten races sold out.”
“The F1 Academy has got off to an excellent start in its inaugural season, by organising all events alongside the F1 race weekends. With the Sprints, F2, and F3, this adds exciting action on the track and delivers added value to our fans, promoters, and sponsors.”
Costs have also increased
Domenicali explains how the increase in the number of races has driven all revenue indicators upwards, as each department has been able to generate more income.
“Race promotion revenues remained relatively stable in the second quarter, as revenues from additional races were offset by a different mix of events compared to the previous year’s period.”
“Other revenues from F1 increased in the second quarter, primarily due to higher revenues associated with hospitality, freight, travel, technical services, and the F2 and F3 races, due to the additional races organised during the current period.”
But costs have also risen this year, and the Italian details the reasons for this: “Other F1 revenue costs in the second quarter were also influenced by higher costs associated with the F1 Academy and rental fees for the Las Vegas Grand Prix Plaza, which had not been incurred in the previous year.”
“Selling, general, and administrative expenses have increased due to higher personnel, IT, and real estate costs, as well as legal fees and other professional expenses, partially offset by lower marketing costs, favourable exchange rates, and recoveries of bad debts.”
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Eight Grands Prix Boost F1’s Q2 Revenue Over 2023 Eight Grands Prix Boost F1’s Q2 Revenue Over 2023
