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F1 | F1’s revenue boosted by 49% post Covid-19

F1 has continued to deliver a big financial improvement, with 49% increase in the second quarter of 2022. 

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F1 | F1’s revenue boosted by 49% post Covid-19
Fuente imagen: f1.com

After 2021 still seen GP’s take place in front of limited crowds, limited Paddock Club hospitality, which is usually the most lucrative in terms of revenue than any other one during F1 weekend. Both season 2021 and 2022 seen seven races in the April-June period, and it’s crucial as Formula 1 divides it’s revenue across the year depending on how many races the season holds. 

The return of Paddock Club and F1 race weekends opening to public again helped to jump up the revenue from $501m in Q2 of 2021 to $744m compared to the same period last year. 

Within this figure, the primary revenue from race promotion, broadcasting rights and sponsorships rose 35% from $464Mm to $678m, while Paddock Club and freight increased by 214%, from $37m to $116m. Operation loses from year prior tired into profits this year, from a loss of $43m in Q2 of 2021 to $49m this year. 10 F1 teams shared payments of $368m, which is an up from Q2 of 2021 where the amount was $308m. 

Liberty Media, while explaining the results, stressed that all three areas of primary revenue have been boosted in 2022. As they said on their call: “Race promotion revenue increased due to higher fees generated from the different mix of events held and contractual increases in fees.

“Media rights increased due to growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements.

“Sponsorship revenue increased due to the recognition of revenue from new sponsors and higher race-specific revenue generated from the different mix of events held.”

Liberty also stressed that COVID-19 pandemic was still la major issue last year. As said: “Throughout 2021 and particularly in the first half of the season, attendance at races was limited due to the pandemic, and the Paddock Club did not operate in the first half.

“F1 does not expect its results in 2022 to be impacted by such capacity limitations, though fan attendance continues to be assessed by relevant government authorities on a race-by-race basis.

“Throughout the first half of the 2022 season, F1 has experienced record attendance in both grandstands and the Paddock Club.”

Additionally, Liberty notes that last years numbers have been skewed due to the late cancellation of the Japanese GP. As stated: “There is a slightly higher proportionate recognition of season-based media rights and sponsorship income recognised during the quarter as 7/22 of revenue was recognised in the second quarter of 2022 compared to 7/23 of revenue recognised in the second quarter of 2021 before the reduction of the 2021 race calendar to 22 races was confirmed.”

Considering this jump in revenue, F1 will definitely try to maximise the profits even further. Apparently, Stefano Domenicali says that F1’s calendar will not only be confirmed in October this year, but it will reach an astonishing number of 24 races, two more compared to this year. 

As he said: “We would like to keep the right flow in terms of efficiency around the world, to consider the needs of a calendar to be spread out from March to November all around the world.

“The demand is very, very high. We cannot [say] anything more than what we are saying because we are, of course, finalising all the details. But we for sure expect to have a couple of races more than this year, but less than 25, that’s for sure.”

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