The first quarter financials for F1 show a 27% drop in revenue while team payments are also down.
Of course, a rescheduling to the opening phase of the season means that whereas there were three races in the first quarter of 2024, this year there were only two.
Revenue for the opening quarter last year was $553m (£415m) but this year slipped to $403m (£302m), a drop of 27%.
Primary F1 revenue, which includes race promotion, media rights and sponsorship, decreased across all three streams. Race promotion revenue decreased due to one less race and the different mix of races held, while lower media rights and sponsorship revenue was also driven by the one less race.
The decline in media rights revenue was partially offset by contractual increases in fees and continued growth in F1 TV subscription revenue, while the decline in sponsorship revenue was largely offset by revenue from new sponsors and growth in revenue from existing contracts.
Other F1 revenue decreased in the first quarter primarily due to lower hospitality and experiences revenue driven by one less Paddock Club and the mix of events held, but partially offset by higher freight income.
Operating income went from $136m (£102m) in the first quarter of 2024 to a $28m (£21m) loss this year. Again, this is put down to that one less race, along with the higher costs associated with the Grand Prix Plaza in Las Vegas, while selling, general and administrative expenses increased primarily due to the higher marketing costs associated with the 75th season launch event at London’s The O2 and increased personnel costs.
“2025 is off to a strong start,” said Liberty Media President & CEO, Derek Chang. “Formula 1 is benefiting from exciting racing on the track and financial momentum underpinned by new commercial partnerships that took effect this year.
“We believe Formula 1’s contracted and diversified revenue streams position it well against the current macro and consumer backdrop,” he added. “The business fundamentals remain strong and we’re confident in our ability to deliver long-term value.”
“Formula 1 is six races into another incredible season and delighting fans in new and creative ways,” added Stefano Domenicali. “Close racing throughout the field has created captivating on-track action, helping drive viewership growth on linear and digital platforms.
“Our promoter partners continue to innovate on their race weekend experiences, generating demand and sell-out crowds. Importantly, we agreed to the commercial terms with all F1 teams for the 2026 Concorde Agreement which is financially attractive to all parties and provides stability for our future.”
“I’ve had the opportunity to spend some time with Stefano over the last couple of races,” added Chang, “and in speaking to both current sponsors, as well as potential sponsors, I don’t think I’ve been in a situation where I’ve seen this sort of energy and excitement around the possibilities to engage with the sport as with F1.”
