In a shocking turn of events, it was announced a day later that Lewis Hamilton will be making a move to Ferrari in 2025. This news was quickly followed by a scandal involving Red Bull’s Christian Horner, while FIA President Mohammed Ben Sulyaem unintentionally became infamous with a photobomb. Amidst all the chaos, there was actually some positive news for the sport and its owners, Liberty Media, which unfortunately went unnoticed.
What should have been the headline news for Formula 1 barely received any attention. CEO Maffei reported to shareholders that Formula 1 had yet another exceptional year, experiencing double-digit growth in all areas of revenue. The Las Vegas Grand Prix created a huge buzz worldwide, and the future looks promising for delivering thrilling races, amazing fan experiences, and economic benefits to both Formula 1 and the local community for years to come.
Stefano Domenicali, the President and CEO of Formula 1, added that 2023 was another remarkable season for the sport. They achieved strong engagement across various platforms, with record-breaking race attendance. Formula 1 maintained its position as the fastest-growing league on social media for the fourth consecutive year.
There was significant growth in fanbase, particularly in the US market, thanks to the successful Las Vegas Grand Prix. The sport also saw an increase in younger and female audiences. Sustainability initiatives remain a top priority for Formula 1 and its partners. They are excited to host all seven F1 Academy races this season, alongside the regular F1 calendar.
Domenicali further explained that they are looking forward to the 2024 season, where they aim to strengthen their connection with fans and optimize their commercial partnerships to bring added value.
The financial results attributed to the Formula One Group for the fourth quarter and full year of 2023 are provided in the table below:
– $16 million and $72 million of corporate-level selling, general, and administrative expenses (including stock-based compensation expenses) were allocated to the Formula One Group in the fourth quarter and full year of 2023, respectively.
The report also states that for the year ending December 31, 2023, these revenue streams accounted for 29.3%, 32.2%, and 18.0% of the total Formula 1 revenue.
In both 2023 and 2022, there were 22 races held in the full year and 6 races in the fourth quarter. During the fourth quarter of 2023, Formula 1 directly promoted the inaugural Las Vegas Grand Prix and recognized the revenue and costs associated with the event, including ticket sales, sponsorships, and hospitality expenses.
The article stated: “Primary Formula 1 earnings saw growth throughout the entire year and fourth quarter, with increases in all sources of revenue. The revenue from promoting races grew primarily due to ticket sales from the first-ever Las Vegas Grand Prix and other contractual fee increases.
The revenue from promoting races in the full year and fourth quarter also benefited from the variety of races held during each period, compared to the same periods in the previous year.
Sponsorship revenue increased as a result of recognizing revenue from the Las Vegas Grand Prix, income from new sponsors, and growth in revenue from existing sponsors. Media rights revenue saw growth due to higher fees from new and renewed contractual agreements, as well as continued growth in revenue from F1 TV subscriptions.
Other Formula 1 revenue saw an increase in the full year and fourth quarter, mainly driven by higher revenue from hospitality services and experiences at the Las Vegas Grand Prix. Additionally, there was growth in Paddock Club revenue at other events. However, the full year growth was partially offset by lower income from freight due to a decrease in freight cost inflation on billing rates.”
Read the full report here>>>