Formula 1’s revenue exceeds $3 billion for 2023 fiscal year

US media powerhouse Liberty, the parent company of Formula 1, has announced a 25 percent surge during the 2023 fiscal year.

The iconic motor racing series’ financial performance was propelled by a robust fourth quarter fuelled by the debut of the Las Vegas Grand Prix.

Under the banner of the Formula One Group, this segment of Liberty’s empire generated a total of $3.2 billion in revenue over the 12-month period ending December 31, 2023 – an increase from the $2.57 billion recorded in 2022.

The revenue stream was predominantly derived from race promotion (29.3%), media rights income (32.2%), and sponsorship fees (18%).

This surge translated into an income of $297 million for F1 in 2023, with an adjusted operating income before depreciation and amortisation amounting to $686 million.

The substantial boost in revenue was driven by the reintroduction of the Las Vegas Grand Prix (held in November) after a hiatus spanning four decades.

F1 capitalised on the event by securing lucrative sponsorship deals, increasing ticket sales and enhancing hospitality offerings.

The inclusion of the Las Vegas race in the fourth quarter significantly contributed to a revenue spike, reaching $1.23 billion during the period – up from $754 million the previous year.

Media rights revenues also experienced growth, attributed to elevated fees from new and renewed contractual agreements, as well as sustained expansion in F1 TV subscriptions.

F1 reported a cumulative TV viewership of 1.5 billion and amassed 70.5 million social media followers in 2023, while in-person attendance reached 6 million, marking a five percent rise compared to 2022.

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The Las Vegas Grand Prix race week alone generated an impressive 16 billion global social media impressions.

“2023 marked another incredible season for Formula 1,” commented Stefano Domenicali, President and CEO of Formula 1.

“We had strong engagement across all platforms, with record race attendance and F1 holding its position as the fastest-growing league on social media for the fourth consecutive year.

“F1 saw continued fan growth especially in the US market, strengthened by the successful Las Vegas Grand Prix, and across a younger and more female audience. We are excited for the 2024 season as we focus on deepening our relationships with fans and optimising our commercial partnerships to bring incremental value.”

The financial results precede the commencement of the 2024 season, which kicks off in Bahrain on March 2.

The upcoming season will feature a record 24 races, including a return to China for the first time since 2019.

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Ahead of the new campaign, F1 has finalised several commercial and broadcast agreements.

Recent developments include the extension of the sponsorship agreement with DHL, a prominent international logistics company, and the renewal of the partnership with Saudi Telecom Company, which has retained its role as the title rights partner of the Saudi Arabian Grand Prix.

Additionally, F1 secured a 10-year media rights deal with BeIN Sports – covering the Middle East, Turkey and North Africa – and inked a multi-year agreement with Romanian free-to-air network Antena.

F1 has also solidified multiple race promotion agreements, including a new multi-year deal to host races in Madrid starting from 2026, as well as renewals for the British, Japanese and Brazilian Grands Prix.