F1’s first quarter revenue soared by 45 percent to US$553 million, primarily as a result of an extra race held over the three-month period since the beginning of the season.
F1 reported a remarkable 45% increase in revenue for the first quarter of 2024, with revenues rising to $553 million from $381 million in the same quarter last year thanks to the roll-out of a revised season-start and increased media engagement.
The significantly high numbers for the first quarter of 2024 highlight a period of rapid growth for Formula 1. The fact that total revenues have surpassed half a billion dollars indicates that the changes and modifications made for the 2024 season have paid off handsomely.
Three high-profile races were scheduled early in the year: in Bahrain, Saudi Arabia, and Australia. A crucial source of funding for the sport, race promotion fees saw a huge increase this year owing to the three opening rounds compared to the two events held during the same period last year.
Furthermore, it’s impossible to overstate the growth in revenues generated from media rights. F1 saw a significant increase in its media earnings due to the inclusion of an extra race weekend and expanded TV coverage. At the same time, F1’s digital channels—particularly the F1 TV subscription service—kept increasing their share of the total earnings.
This comes after the sport expanded its global partnership with DHL and brought on IT firm Globant as a series partner. In the broadcast space, a new deal with BeIN Sports was reached for the MENA region through 2033, as well as a long-term extension with Viaplay for the Netherlands and Nordic countries.
Additionally, F1 saw a revenue increase from the sale of new Formula Two cars and related parts alongside a rise in freight revenues from the extra Grand Prix. However, the costs associated with leasing the Las Vegas Grand Prix Plaza negatively impacted the sport, along with having to increase team payments.
The teams have benefited directly from the financial stability as well; payouts to the teams, which took into account the extended race calendar increased by 46% to $163 million. Looking ahead, F1’s operating income, which increased by an astounding 289% to $136 million from $35 million in the first quarter of the previous year, demonstrates an excellent cost control strategy.
“The 2024 season is underway, including our return to China for the first time since 2019 and our third year in Miami which saw another incredible event demonstrating the growing strength of F1 in the US,” Formula 1 CEO Stefano Domenicali commented on the financial results and the season’s developments, as quoted by RacingNews365.
“We are seeing continued momentum both in financial performance and amplification of our fanbase, including through expanding our methods of fan engagement.”
Regarding future commitments, Domenicali outlines a course intended to maintain and improve these financial achievements.
We have already announced our 24-race calendar for 2025, a landmark year that will mark the 75th anniversary of the FIA Formula One World Championship,” he added.
“We recently published our first ever Impact Report and are proud to highlight that we are on track to reach our net zero target by 2030 and continue to prioritise our diversity and inclusion efforts with programs like the F1 Academy Discover Your Drive, STEM Challenge Days and more.”
