The Formula One Group section of Liberty Media increased both its revenue and operating income year-on-year during the third quarter of 2024.
That division of Liberty, which incorporates the Formula 1 (F1) iconic international motor racing series, saw its operating income rise from $107 million to $110 million, while quarterly revenue increased from $887 million to $911 million.
Elsewhere in its third-quarter results, which went live yesterday (November 7) featuring financials for the three months up to September 30, Liberty Media noted that its acquisition of the MotoGP motorcycling series is “on track to close by year-end 2024,” and that all funding for this deal - unveiled in early April - has been secured.
Of the Formula One Group revenue, primary income (which accounts for revenue from race promotion, media rights fees, and sponsorship fees) came to $758 million in Q3, actually down year-on-year by 4%. However, team payments and other expenses also dropped in Q3, leading to overall higher operating income.
The primary revenue decreased, Liberty Media has said, due to one fewer race being held in that period than Q3 of 2023 (seven, as opposed to eight), meaning media rights and sponsorship payments were lower as a consequence.
Race promotion revenue, however, rose year-on-year, due to “the different mix of events held compared to the prior year period.”
Revenue categorized as ‘other’ also increased year-on-year, due to higher licensing income “generated from third-party events at the Las Vegas Grand Prix Plaza.”
The Las Vegas Grand Prix, which this year will be held in late November, has been one of F1’s most lucrative Grands Prix over the last couple of seasons (it debuted last year, and a 10-year agreement between F1 and the circuit’s owners has been struck).
The other revenue sector also included $7 million of rental income related to the Las Vegas race.
In terms of F1 activity during Q3, meanwhile, one of the foremost saw F1 unveil a major new commercial deal with French luxury goods conglomerate LVMH.
The 10-year deal, running from 2025 through the end of the 2034 F1 campaign, will see several LVMH brands receive prominent exposure across F1 activities, most notably watch giant Tag Heuer, spirits company Moët Hennessy, and major fashion label Louis Vuitton.
New partnerships were also struck with Santander and Lego, while expanded deals were agreed with Lenovo and American Express.
Greg Maffei, chief executive and president of Liberty Media, has now said: “Formula 1’s commercial progress is incredible and we were thrilled to announce a number of hallmark deals beginning in 2025, including our new multi-year partnership with LVMH.”
Stefano Domenicali, F1’s president and chief executive, added: “Our business is benefitting from excellent competitive and financial momentum. We signed a ground-breaking partnership with LVMH for 2025, expanded our relationships with Lenovo and American Express, and secured licensing agreements with Lego and Mattel’s Hot Wheels which expand F1 beyond our race calendar into the homes of our fans.”
Adjusted OIBDA (operating income before depreciation and amortization) for Formula One Group in Q3, meanwhile, came to $207 million, up $10 million from the previous year.
F1's 2024 season now has just three races (Las Vegas, Qatar, and Abu Dhabi) remaining, out of a total of 24.
The deal through which Liberty Media is acquiring MotoGP’s organizer and commercial rights-holder Dorna, meanwhile, was unveiled in early April and is valued at over €4 billion ($4.3 billion at the time).
Liberty is acquiring 86% of MotoGP, with the series' management retaining approximately 14% of their equity in the business.
Liberty agreed the deal with Bridgepoint, the UK-based private equity firm and largest shareholder in Dorna.
The agreement will see Dorna remain an independently run company attributed to Liberty Media’s Formula One Group tracking stock. Carmelo Ezpeleta, Dorna’s chief executive since 1994, will remain in his position and continue to run the business with his management team headquartered in Madrid.
