Formula 1 primary revenue slips in Q3 but record year in sight

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Formula 1 has released its financial results for the third quarter of its fiscal year 2024 and while the overall picture remains positive, the company reported a slight dip in primary revenue compared to the same period last year.

Total revenue for Q3 stood at $911m, up from $887m in the same period in 2023 – an increase of 2.7 percent. However, Formula 1's primary revenue fell from $887m to $861m – a dip of 3 percent.

This decline is primarily attributed to a difference in the number of races held within the quarter, a factor that typically affects season-based revenue recognition.

Grand Prix racing's commercial rights holder, Liberty Media, clarified the impact of the altered race calendar in its Q3 earnings release.

"There were seven races held in the third quarter of 2024, compared to eight races held in the third quarter of 2023," it stated.

"There are 24 events scheduled for the 2024 race calendar, compared to 22 events held in 2023."

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This year's Q3 schedule spanned from the British Grand Prix through to Singapore, with a notable swap: Azerbaijan replaced Japan in this period, while Austria was moved to the prior reporting period.

"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 recognized," Liberty explained.

Additionally, sponsorship revenue took a slight hit due to what Liberty described as "the impact of the mix of races on event-specific fees," though the drop was partially mitigated by new sponsorship deals.

In Q3, Formula 1's three main revenue streams – race promotion fees, media rights, and sponsorship – continued to be impacted by this adjusted race schedule.
Fewer races meant a lower payout from media rights agreements, and the specific lineup of race venues affected sponsorship revenue in terms of event-specific fees.

Nonetheless, new sponsors have helped soften the financial impact, and Liberty Media anticipates a solid full-year result.

While primary revenue dipped, Formula 1 saw an 11 percent increase in operating income, rising from $132 million in 2023 to $146 million in 2024.

The sport's early-year performance was particularly strong, allowing the business to keep its sights set on an annual record. Formula 1 is on track to surpass last year's total revenue of USD $3.22 billion, with Q4 expected to push it over the finish line.

"Our business is benefitting from excellent competitive and financial momentum," commented Stefano Domenicali, Formula 1 president and CEO.

"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."

While the third-quarter results present a mixed picture, Formula 1 remains a financially robust and rapidly growing business.

The sport's long-term strategy, coupled with its strong brand and global appeal, positions it for continued success in the years to come.

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