Formula 1 has revealed an impressive 45% increase in revenue for the first quarter of 2024, soaring to $553 million from $381 million in the corresponding quarter of the previous year. This financial leap is attributed to the introduction of a reorganised season-start and enhanced media engagement.
The dramatically increased figures for the first quarter of 2024 underline a period of vigorous growth for Formula 1. With total revenues climbing to half a billion dollars, it’s clear that the additions and changes implemented in the 2024 season have paid substantial dividends.
The introduction of three high-profile races early in the year—in Bahrain, Saudi Arabia, and Australia—played a pivotal role. This increase from two races in the same period last year to three this year significantly boosted race promotion fees, which are a critical revenue stream for the sport.
Moreover, the revenue surge from media rights cannot be understated. The addition of an extra race weekend, along with a broader broadcast scope, meant that Formula 1’s media earnings saw a substantial lift. In tandem, F1’s digital platforms, especially the F1 TV subscription service, continued to expand their contributions to the overall profit pool.
It wasn’t just these usual suspects that contributed to the financial uptick. The diversified revenue streams, including sales of the new Formula 2 chassis and enhanced bespoke hospitality experiences, played their part as well. Additionally, the leasing of the Las Vegas Grand Prix facilities added another layer to Formula 1’s robust financial performance in the first quarter.
Formula 1 CEO Stefano Domenicali commented on the financial results and the season’s developments, as quoted by RacingNews365:
“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.
“We are seeing continued momentum both in financial performance and amplification of our fanbase, including through expanding our methods of fan engagement.”
This financial health has directly benefitted the teams as well, with payouts to teams acknowledging the expanded race calendar, showing a 46% increase to $163 million. Looking further ahead, F1’s operational income showcases an impressive management of costs with a staggering 289% rise to $136 million, up from $35 million in the first quarter of the last year.
On future commitments, Domenicali indicates a trajectory aimed at maintaining and boosting these financial successes:
“We have already announced our 24-race calendar for 2025, a landmark year that will mark the 75th anniversary of the FIA Formula 1 World Championship.
“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.”
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