Liberty Media has announced reduced revenue but a bigger profit for the Formula 1 Group for the third quarter of 2024 relative to last year.
The numbers were impacted by there being only seven races in July-September of this season compared to eight the previous year.
Austria was held in June and thus fell into the second quarter, while the more lucrative Azerbaijan GP took the place previously occupied by Japan in September.
The significance is that several aspects of F1’s income are recognised in the period that races take place, and the same is true for some expenditure – including payments to teams.
Total revenue for the third quarter fell from $887 in 2023 to $861 in 2024, while income was up 11% from $132m to $146m.
The latter figure reflects the fact that team payments fell from $432m to $371m because of the difference in the number of races.
However team payments are set to increase in October-November – when the calendar includes the same six races that featured on the 2023 schedule.
F1 CEO Stefano Domenicali noted that recent months also saw some significant deals announced.
“Our business is benefitting from excellent competitive and financial momentum,” he said in Liberty’s announcement.
“We signed a ground-breaking partnership with LVMH for 2025, expanded our relationships with Lenovo and American Express, and secured licensing agreements with LEGO and Mattel’s Hot Wheels which expand F1 beyond our race calendar into the homes of our fans.
“The thrilling racing and tight championship has benefitted viewership and digital engagement as the season has progressed.
“Race attendance is up season-to-date at 5.8 million with sellout crowds at nearly all races. It is great to see the on-track talent of both our seasoned drivers as well as young talent who hopefully have long F1 careers ahead.”
In explaining the latest numbers Liberty made clear the impact of the drop from eight to seven races: “Primary F1 revenue decreased in the third quarter due to less media rights and sponsorship revenue driven by one fewer race held in the current period which resulted in a lower proportion of season-based revenue recognised.
“Sponsorship revenue also decreased due to the impact of the mix of races on event specific fees, partially offset by recognition of revenue from new sponsors.
“The decline in media rights revenue recognised was partially offset by contractual increases in fees and continued growth in F1 TV subscription revenue. Race promotion revenue grew in the third quarter due to fees from the different mix of events held compared to the prior year period.
“Other F1 revenue increased in the third quarter primarily due to higher licensing revenue and revenue generated from third-party events at the Las Vegas Grand Prix Plaza, partially offset by lower hospitality income due to the mix of events in the current period.”
Regarding costs Liberty noted: “Team payments decreased due to the pro rata recognition of payments across the race season with one fewer race held in the current period, partially offset by the expectation of higher team payments for the full year.
“Other cost of F1 revenue is largely variable in nature and is mostly derived from servicing both primary and other F1 revenue opportunities.
“These costs increased due to higher commissions and partner servicing costs associated with servicing primary F1 revenue streams and higher digital costs, partially offset by lower FIA regulatory, technical, hospitality and travel costs due to the mix of events held.
“Other cost of F1 revenue in the third quarter was also impacted by higher costs associated with F1 Academy and lease expense for the Las Vegas Grand Prix Plaza which wasn’t incurred in the prior year.
“Selling, general and administrative expense increased due to higher personnel, IT, property and marketing costs as well as legal and other professional fees, partially offset by foreign exchange favourability.”
