F1 sees YoY decrease in Q2 revenue to US$724m

Small decrease for three months ending 30th June largely attributable to Imola cancellation.
  • Race promotion revenue increases despite loss of Imola race
  • Las Vegas costs continuing to rise for Liberty Media

Formula One’s Q2 revenue fell 2.7 per cent year-over-year (YoY) to US$724 million, series owner Liberty Media has revealed.

The decrease in revenue when compared to 2022 is largely due to the cancellation of the Emilia Romagna Grand Prix at Imola.

Despite the loss of this race, race promotion revenue actually increased YoY thanks to contractual increases in fees and increasing sponsorship revenue.

Media rights revenue decreased due to one fewer race being held in comparison to the previous year’s period, though. This was partially offset by continued growth in F1 TV subscriptions.

During the reporting period, Formula One secured contract extensions with the Hungarian and Austrian Grands Prix until 2032 and 2030, respectively. The series also extended its global partnership with Heineken in a multi-year deal.

“Formula One is capitalising on our growth momentum and our fans are engaging with the sport across traditional, digital and social media platforms,” said Stefano Domenicali, president and chief executive of Formula One.

“We congratulate Red Bull on their record-breaking performance season-to-date, and are thrilled to see the gaps closing across the rest of the grid to produce exciting rivalries on track

“Next year we will host 24 races around the globe, with back-to-back races in closer proximity which will benefit the efficiency of operations for both F1 and our teams.”

What will be of concern moving forward are the rapidly increasing costs of the inaugural Las Vegas Grand Prix.

With Liberty Media undertaking race promotion for the first time, the financial performance of the race rests solely on the series owner.

“Our paddock building is now 85 per cent complete,” said Liberty’s chief financial officer Brian Wilding on an earnings call. “We expect CapEx related to the Vegas race including both the paddock building structure and track-related CapEx to be close to US$400 million, of which approximately US$155 million was incurred in the first half of the year.”

Much of the cost increases are being attributed to track-related expenses “such as minimising disruption to businesses along the Strip”.

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