Formula 1 News: Liberty Media F1 profits soar
Liberty Media F1 Group reported results for the first quarter of 2024 with earnings per share of 32 cents. This was 4 times the analyst estimate for EPS of 8 cents.
2023 featured just two races in the opening quarter of the year, while this season there was an extra round that fell in Q1 as Australia took place on March 24. As a result, 2023 had $381 million in revenue for the first quarter, vs $553m this year, but that was not just because of one additional race
Highlights of Progress
- Announced planned acquisition of MotoGP and expect to complete transaction by year-end 2024
- Liberty Media F1 announced 24-race calendar for 2025 which will mark its 75th anniversary
- Expanded partnership with DHL as Global Partner and secured new sponsorship deals at F1, including Globant as Official Partner and McDonald’s as Regional Partner in Latin America
- Liberty Media F1 secured new broadcast deal with beIN SPORTS across MENA through 2033, extended partnership with Viaplay in Netherlands and Nordic countries through 2029 and signed FanCode in India through 2025
“We were thrilled to announce Liberty’s planned acquisition of MotoGP, adding to our attractive assets in the premium live event and sports industries. We look forward to bringing this exhilarating sport to a wider global audience,” said Greg Maffei, Liberty Media President and CEO.
“Formula 1 kicked off the 2024 season with over 1 million fans in attendance across the first five races. At SiriusXM, they delivered solid revenue and adjusted EBITDA growth and are focused on improving subscriber results with enhancements to content and digital innovation. The planned merger with Liberty SiriusXM is on track to be completed at the beginning of the third quarter. Live Nation has already sold 86 million concert tickets for an expected record-setting 2024.”
The following table provides the financial results attributed to Liberty Media F1 Group for the first quarter of 2024. In the first quarter, Formula One Group incurred $23 million of corporate level selling, general and administrative expense (including stock-based compensation expense).
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1Q23 |
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1Q24 |
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amounts in millions |
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Liberty Media F1 Group |
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Revenue |
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Liberty Media Formula 1 |
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$ |
381 |
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$ |
553 |
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Corporate and other |
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— |
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44 |
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Intergroup elimination |
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— |
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(10 |
) |
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Total Formula One Group |
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$ |
381 |
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$ |
587 |
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Operating Income (Loss) |
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Formula 1 |
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$ |
35 |
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$ |
136 |
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Corporate and other |
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(19 |
) |
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(41 |
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Total Liberty Media F1 Group |
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$ |
16 |
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$ |
95 |
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Adjusted OIBDA (Loss) |
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Formula 1 |
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$ |
117 |
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$ |
208 |
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Corporate and other |
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(12 |
) |
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(6 |
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Total Formula One Group |
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$ |
105 |
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$ |
202 |
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F1 Operating Results
“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. 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,” said Stefano Domenicali, Liberty Media F1 1 President & CEO. “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 prioritize our diversity and inclusion efforts with programs like the F1 Academy Discover Your Drive, STEM Challenge Days and more.”
The following table provides the operating results of Liberty Media F1
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1Q23 |
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1Q24 |
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% Change |
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amounts in millions |
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Primary Formula 1 revenue |
$ |
314 |
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$ |
463 |
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47 |
% |
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Other Formula 1 revenue |
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67 |
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90 |
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34 |
% |
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Total Liberty Media F1 revenue |
$ |
381 |
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$ |
553 |
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45 |
% |
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Operating expenses (excluding stock-based compensation): |
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Team payments |
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(112 |
) |
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(163 |
) |
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(46 |
)% |
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Other cost of Formula 1 revenue |
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(94 |
) |
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(123 |
) |
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(31 |
)% |
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Cost of Liberty Media F1 revenue |
$ |
(206 |
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$ |
(286 |
) |
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(39 |
)% |
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Selling, general and administrative expenses |
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(58 |
) |
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(59 |
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(2 |
)% |
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Adjusted OIBDA |
$ |
117 |
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$ |
208 |
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78 |
% |
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Depreciation and Amortization(a) |
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(82 |
) |
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(72 |
) |
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12 |
% |
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Operating income (loss) |
$ |
35 |
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$ |
136 |
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289 |
% |
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Number of races in period |
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2 |
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3 |
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a) |
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Includes $74 million and $61 million of amortization related to purchase accounting for the periods ended March 31, 2023 and March 31, 2024, respectively, that is excluded from calculations for purposes of team payments. |
Primary F1 revenue represents the majority of F1’s revenue and is derived from (i) race promotion revenue, (ii) media rights fees and (iii) sponsorship fees.
There were three races held in the first quarter of 2024, compared to two races held in the first quarter of 2023. There are 24 events scheduled for the 2024 race calendar.
Primary Liberty Media F1 revenue increased in the first quarter with growth across race promotion, media rights and sponsorship partly driven by one more race held in the current period, which resulted in a greater proportion of season-based revenue recognized. Race promotion revenue also increased due to fees from the additional race held in the period and contractual increases in fees. Media rights revenue also benefited from contractual increases in fees, higher fees from new and renewed contractual agreements and continued growth in F1 TV subscription revenue. Sponsorship revenue also increased due to recognition of revenue from new sponsors and growth in revenue from existing contracts. Other F1 revenue increased in the first quarter primarily driven by the sale of new F2 cars and associated parts at the start of the new F2 vehicle cycle, higher hospitality and experiences revenue and higher freight income driven by the additional race held in the current period.
Operating income and Adjusted OIBDA(2) increased in the first quarter. Team payments were higher compared to the prior year due to the pro rata recognition of payments across the race season with one more race held, as well as an expectation of increased team payments for the full year. Other cost of Liberty Media F1 revenue is largely variable in nature and is mostly derived from servicing both Primary and Other F1 revenue opportunities. These costs increased due to the cost of supplying the new F2 cars and associated parts, increased commissions and partner servicing costs associated with higher Primary F1 revenue streams as well as increased freight, travel, technical, digital and FIA regulatory costs from the additional race. Other cost of Liberty Media F1 revenue in the first quarter was also impacted by lease costs for the Las Vegas Grand Prix Plaza, the 39-acre site in Las Vegas. Selling, general and administrative expense was relatively flat during the quarter.