The Formula One Group recorded a humble revenue increase in 2019's second financial quarter compared to 2018.
Revenue has increased from $ 585 million to $ 620 million for the April to June period, compared to the same period last year. Although one of the most lucrative races has stepped back from the second quarter this year. meanwhile, operating income rose from $14m to $26m.
This increase in revenue in the second quarter was due to the seven races held during that period (form the Chinese GP to Austrian GP) but last year the Bahrain GP, which pays one of the biggest hosting fees of the season, has moved to the first quarter (in April). That is an impact.
However, 7 Grands Prix were held in the second quarter in 2018 and '19, but this year Bahrain GP was replaced in the list by the less lucrative Austrian event, which just squeezed into the period as it took place on June 30th. This change also has effected on "F1's Paddock Club revenue", as Bahrain generates more VIP interest than Austria.
"Race promotion revenue decreased due to the differing fees associated with specific races held in the second quarter of 2019 compared to '18, partially offset by rate increases in the underlying contracts.
"Broadcast revenue increased primarily due to contractual rate increases. Advertising and sponsorship revenue increased due to revenue from new sponsorship agreements entered into beginning in the second half of 2018.
"Other F1 revenue decreased in the second quarter primarily due to the mix of races, which resulted in lower TV production and Paddock Club revenue." Explains Formula One Group
CEO Chase Carey insisted F1 will hit its financial targets for this year.
"F1 heads into our summer break on the heels of some unforgettable races," said Carey.
"We're excited by the growing competitiveness of Red Bull and Ferrari the return of Honda as a winning engine supplier.
"We were thrilled to announce that season two of the Netflix Series 'Formula 1: Drive to Survive' will air in 2020 and will feature all ten teams.
"We are pleased with our growth in revenue and profitability and [are] on target to hit our goals for 2019."