LAS VEGAS, NEVADA – NOVEMBER 05: Greg Maffei, President and CEO of Liberty Media, Stefano Domenicali, President and CEO of Formula 1, and Steven Sisolak, Governor of Nevada, pose for a photograph after painting the starting line during the launch party of the Formula 1 Las Vegas Grand Prix in 2023 on November 05, 2022 on the Las Vegas Strip in Las Vegas, Nevada. (Photo by Clive Mason – Formula 1/Formula 1 via Getty Images)
In a shocking turn of events, it was announced a day later that Lewis Hamilton will make 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 inadvertently became famous with a photobomb. Amidst all the chaos, there were 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 attention. CEO Maffei informed shareholders that Formula 1 had another exceptional year, experiencing double-digit growth in all revenue areas. The Las Vegas Grand Prix created a buzz worldwide, and the future looks promising to deliver exciting races, amazing experiences for fans, and economic benefits for both Formula 1 and the local community in the coming years.
Stefano Domenicali, 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 attendance at races. Formula 1 maintained its position as the fastest-growing league on social media for the fourth consecutive year.
There has been significant growth in the fan base, especially in the US market, thanks to the successful Las Vegas Grand Prix. The sport has also seen an increase in younger and female audiences. Sustainability initiatives remain a priority for Formula 1 and its partners. They are excited to host all seven F1 Academy races this season, along with the regular F1 calendar.
Domenicali also explained that they are looking forward to the 2024 season, where they intend to strengthen their connection with fans and optimize their commercial partnerships to bring added value.
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 administrative and general expenses (including share-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 sources represented 29.3%, 32.2%, and 18.0% of Formula 1’s total revenue.
Both in 2023 and 2022, 22 races were held throughout the 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 earnings for Formula 1 grew throughout the full year and the fourth quarter, with increases in all revenue sources. Revenue from race promotion grew mainly due to ticket sales from the first Las Vegas Grand Prix and other contractual fee increases.”
The revenue from race promotion throughout the year and in the fourth quarter also benefited from the variety of races held during each period, compared to the same periods of the previous year.
Sponsorship revenue increased as a result of revenue recognition from the Las Vegas Grand Prix, revenue from new sponsors, and growth in revenue from existing sponsors. Media rights revenue grew due to higher rates from new and renewed contractual agreements, as well as continued growth in F1 TV subscription revenue.
Other Formula 1 revenues increased throughout the year and in the 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, full-year growth was partially offset by lower freight revenue due to a decrease in freight cost inflation in billing rates.”
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The world of sports is always full of surprises and emotions, and this year is no exception. With several exciting competitions and incredible events, sports fans have a lot to look forward to. From the Olympics to league finals, there is something for everyone.
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In addition to these events, there are also many other exciting sports competitions and events happening this year. From tennis tournaments to golf championships, there is something for all sports fans. So, get ready for a year full of action and excitement in the world of sports. Don’t miss a moment and stay tuned for all the news and updates.
