Ahead of the 2025 season opening race in Australia, Formula 1 (F1) has announced a record-breaking financial performance that solidifies its place as one of the most lucrative sports in the world.
F1 raked in $3.65 billion in revenue last year, a stunning six percent increase from 2023 despite a slight dip in the fourth quarter.
The sport racked up $492 million in operating income for the year, with adjusted Operating Income Before Depreciation and Amortisation (OIBDA) hitting an astonishing $791m.
F1 reaped the rewards of creating multiple revenue streams. Media rights are leading the way by contributing almost one-third of the sport’s revenue. Race promotion stands at 29.3%, while 18.6% comes from sponsorship fees.
New Partnership & Betting Boom Fuels F1 Growth
One of the major factors responsible for F1’s meteoric financial growth is sports betting. F1 clocked this trend and wasted no time sinking their teeth into it.
They partnered with ALT Sports Data as their official Betting Data Supplier to make the most of the growing demand for real-time wagering markets.
That move was a huge turning point for F1 betting, with ALT Sports Data providing predictive analytics, proprietary data and priced odds solutions for the wagering industry.
It allows fans to bet on new and exciting markets, knowing that the data that sits behind the betting system is accurate, consistent and ratified.
With over 750 million fans around the world tuning in to watch F1, betting activity is expected to hit new heights in 2025. Bettors can expect more dynamic options, from live race predictions to micro-market opportunities.
The 2025 F1 season is poised to spark a betting frenzy, especially in Australia, which is gearing up to host the curtain raiser. Many punters will use an instant withdrawal betting app in Australia to place quick wagers and access their winnings without delay.
The betting spotlight will be on world champion Max Verstappen, but Aussie punters will likely be supporting their compatriot Oscar Piastri this season.
Calendar Tweak Proved to be a Masterstroke Despite Q4 Revenue Hit
F1 tweaked their calendar to include two more races than in 2023, with China and Imola returning to the schedule, and it proved to be a masterstroke that was reflected in the books.
The increase in the number of races, along with hikes in contractual fees, played their part in the overall growth of the sport, although reduced ticketing revenue from the Las Vegas Grand Prix messed with the profits.
Meanwhile, media rights revenue went up a notch thanks to more cash coming in from renewed broadcast deals and steady growth in F1 television subscriptions.
Sponsorship income also improved courtesy of new partnerships, an increase in contract deals, and additional sponsorship inventory made available by the calendar tweak.
F1 can pat themselves on the back for a memorable 2024 all round, even though they hit a rough patch in the final quarter of the year. Revenue took a $60m hit, dropping from $1.23bn in Q4 2023 to $1.17bn, coinciding with a fall-off in race promotions and media rights revenue.
Operating income also took a hit, dropping to $126m, with adjusted OIBDA at $200m.
The Las Vegas Grand Prix was one of the most anticipated additions to the calendar, but it didn’t live up to expectations. It underperformed in ticket sales, which contributed to the decline.
Airwallex Partners with McLaren & Reko Rennie
Innovative partnerships are shaping the financial future of the prestigious motorsport series.
One of the most exciting collaborations is the link-up between Australian-founded global financial platform Airwallex, McLaren Racing and acclaimed First Nations artist Reko Rennie.
The trio are gearing up to launch their ‘Shifted Perspectives’ campaign that fuses technology, art and sporting prowess to showcase the value of their project. The move is a timely reminder of how business innovation can be a part of motorsport culture.
Rennie’s bold, thought-provoking work explores Indigenous identity and modern urban culture, and his vision for this project embodies the concept of ‘shifting perspectives’.
His bespoke artwork will transform the McLaren Artura Coupe into a visually striking installation, celebrating Indigenous heritage while showcasing the fusion of art and high-performance racing.
The car will be displayed in Melbourne’s Queensbridge Square from March 13-16, coinciding with the highly anticipated Australian Grand Prix.
