F1 revenues soar thanks to extra grands prix

F1 owners Liberty Media have overseen a soaring increase in revenue in F1 partly due to the expansion of the calendar.

For F1 specifically, the American media conglomerate has seen significant revenue growth, in part due to holding two more grands prix than during the same period last year, going from six to eight over the three months. However, losses are also up compared with 2023.

Its recently released second-quarter figures for this financial year confirm that total revenue jumped from $724 million to $871m, a 20 per cent rise. The total cost of F1 revenue went from $519m to $645 - a 24 per cent increase.

The two additional grand prix were the long-awaited return of the Chinese Grand Prix and the Emilia Romagna Grand Prix, both of which were cancelled last year.

The after-effects of COVID-19 prevented the former, whereas heavy flooding stopped the race in Imola from going ahead.

Upon the publication of the results, F1 CEO Stefano Domenicali said: “The F1 season is seeing phenomenal racing, with seven different winners through fourteen races and tighter gaps across the grid.

"Social media followers are up over 30% across F1 platforms and we had 3.7 million race attendees through the first half of the season with ten sellout crowds.

“F1 Academy is off to a strong start in its first season running all events alongside F1 race weekends. 

"Together with the Sprint and FIA F2 and F3, it is adding to the exciting on-track action and bringing added value to our fans, promoters and sponsors.”

F1's primary revenue increased mainly due to growth in media rights and sponsorship, which was partly boosted by the additional two grand prix.

Significantly, media rights revenue has been aided by increased F1 TV subscriptions, as confirmed by the report.

Additionally, it added: "Race promotion revenue was relatively flat in the second quarter as fees from the additional races were offset by the different mix of events compared to the prior year period.

"Other F1 revenue increased in the second quarter primarily due to higher hospitality, freight, travel, technical services and F2 and F3 income driven by the additional races held in the current period."

The report also explained that the increase in team payments ($344m to $345 year-on-year) was partly due to having two additional grand prix.

It added: "Other cost of F1 revenue in the second 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 and property costs as well as legal and other professional fees, partially offset by lower marketing costs, foreign exchange favorability and bad debt recoveries."