F1’s financial results for 2023 highlight a 25% revenue jump and a 64% profit increase, driven by the Las Vegas GP’s success.
F1 has released its financial results for the fourth quarter of 2023, as well as for the entire year, showcasing positive growth.
Over the past 12 months, revenue has increased by 25%, rising from $2.573 billion to $3.222 billion, while operating profit has impressively surged by 64%, from $239 million to $392 million.
This revenue growth is not merely a result of inflation but also, according to F1, the impact of the Las Vegas event (the first Grand Prix directly promoted by Liberty Media).
A comparison of the fourth quarter of 2023 figures (not the full year) with those of the fourth quarter of 2022 reveals the difference: in the fourth quarter of 2022, Liberty Media generated $754 million in revenue, versus $1230 million in the fourth quarter of 2023, thanks to Las Vegas.
Hence, the revenue increase from 2022 to 2023 appears to largely stem from Nevada…
“F1’s promoter-related revenues have mainly increased due to ticket sales from the inaugural Las Vegas GP and other contractual fee increases,” F1 clarified.
Las Vegas also enabled F1 to attract new sponsors, contributing to the overall revenue increase, FOM continues.
Other F1 revenue sources, including the Paddock Club and F1 TV, have also continued their strong year-on-year growth.
Teams have benefited from this revenue increase, as the total payments went from $1.157 billion to $1.215 billion, a 5% increase.
This total revenue pool would decrease by 10% per team in the event of Andretti’s entry, which clarifies the teams’ opposition!
FOM also reminds that these payments are “100% variable” as per the Concorde Agreements signed in 2021, and thus depend on F1’s profits. However, what would happen in the event of a crisis like during Covid?
Las Vegas: F1 Opens Its Wallet
While revenues have increased, expenses have also risen.
F1 has not been spared from inflation, especially regarding administrative, personnel, IT, and marketing expenses.
However, the Las Vegas Grand Prix appears to have been particularly costly: approximately $300 million (difference between expenses in the fourth quarter of 2022 and the fourth quarter of 2023).
Nonetheless, the global decrease in freight costs has directly benefited the sport.
Overall, expenses have still increased by 29% in 2023 compared to 2022.
Nonetheless, the stock market welcomed these results, with F1’s shares up 4% on Wednesday.
Domenicali Celebrates Financial Results
Commenting on these financial results, Stefano Domenicali, President of F1, praised an “incredible season for F1” in 2023.
“We’ve seen strong engagement across all platforms, with record race attendances, and F1 has maintained its position as the fastest-growing sports league on social media for the fourth consecutive year.”
“F1 has continued to grow its fan base, particularly in the American market, bolstered by the success of the Las Vegas GP, and among a younger and more female audience.”
“Our sustainability initiatives remain a priority for F1 and our partners, and we look forward to hosting the seven F1 Academy races this season, alongside the F1 calendar.”
“We are excited for the 2024 season as we focus on deepening our fan relationships and optimizing our commercial partnerships.”
F1’s 2023 Financial Surge: Las Vegas Boost. F1’s 2023 Financial Surge: Las Vegas Boost
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