Formula 1’s Q3 results reveal rising profits despite fewer races, highlighting strategic cost cuts and new revenue avenues.
The latest financial results from Formula 1 reveal a fortunate paradox: fewer races held in the third quarter of 2024, yet a notable increase in profits.
Compared to the previous year, F1’s overall revenue dipped slightly by 4%, reaching $758 million. This decline primarily stems from reduced income from media rights and sponsorship. However, ancillary revenue, including income from licensing and special events—particularly those organized at the Las Vegas Grand Prix Plaza—rose by 6%, totaling $103 million.
The standout figure is the 11% rise in profits, increasing from $132 million to $146 million. This growth is largely attributed to a reduction in team payments, which dropped from $432 million to $371 million due to the fewer races on the calendar. These payments are expected to increase again in October and November, with six races scheduled, as in 2023.
F1’s operational costs also rose slightly by 4%, due to additional expenses in sales, administration, staffing, new technology, and marketing.
Stefano Domenicali’s Optimistic Vision
Stefano Domenicali, CEO of F1 for Liberty Media, welcomes this exceptional momentum. “Our business is experiencing remarkable competitive and financial momentum,” he noted, adding that thrilling races and a tight championship have boosted viewer and digital engagement as the season progressed. Race attendance is also up, with 5.8 million fans attending so far, and nearly all races selling out.
Domenicali is also pleased with the key partnerships that will drive F1’s revenue growth in the coming years: “We have signed an innovative partnership with LVMH for 2025, strengthened ties with Lenovo and American Express, and secured licensing agreements with LEGO and Hot Wheels, which extend F1’s reach into fans’ homes.”
Liberty Media: A Strategy of Diversified Growth
Liberty Media CEO Greg Maffei reinforces this dynamic, stating, “The third quarter was marked by strategic advances, including the merger of Liberty SiriusXM with SiriusXM and the refinancing of F1’s credit facilities. We also secured funding for the acquisition of MotoGP, further diversifying our position in motorsports.”
Maffei concludes by highlighting “strong global demand” for Live Nation events and a promising outlook for 2025, which is shaping up to be a record-breaking year.
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Formula 1’s Strategic Cuts Drive Profit Growth Amid Fewer Races Formula 1’s Strategic Cuts Drive Profit Growth Amid Fewer Races
