F1 | Domenicalli on F1´s increase in revenue: "This is due to us taking the right strategic decisions to grow the sport"
F1 has increased its revenue as interest in the category keeps growing. new fans, new partners and how the F1 is growin after the COVID pandemic
F1 has increased its earnings compared to the last seasons after the impacts of covid no longer affect motorsport´s most famous category.
In a conference call yesterday, Stefano Domenicalli explained the interest in F1 is increasing from fans partners and places interested in hosting races due to impressive racing provided during the last two seasons and the right strategies taken by Liberty Media Group
“The interest in Formula 1 is huge from fans, potential partners and those who want to host the race. We continue to believe that this is due to us taking the right strategic decisions to grow the sport in the correct way and to focus on the most important priorities.”
“Excitement for our sport continues to grow. Certainly, we’ve seen that in the race attendance and now had 10 races with crowds over 300,000 with three of those exceeding 400,000. Many of these events have been complete sellout.”
On this topic F1 also reports the growth in attendance, the increased media rights and the recoginition of revenue from new sponsors.
“F1’s results in 2022 are not being impacted by capacity limitations, and throughout the first nine months of the 2022 season F1 has seen strong growth in attendance in the grandstands and the Paddock Club.
“Media rights increased due to growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements, and sponsorship revenue increased due to the recognition of revenue from new sponsors.
Domenicalli highlights the example of the United States GP and the growth of fans through the gates, which more than doubled from 2019.
“A great example of growing interest is Austin, where we welcomed 440,000 fans across the event, more than double the attendance in 2019. The promoter states that the ticket demand could have reached 500,000, but for this focus on maintaining a high-quality fan experience.”
New fans are attending races for the first time and there is also an increase of female fans attending races as well.
"We’ve also seen more first-time and female attendees at our races. Across the 10 races where we gathered spectators’ data this year, first-time attendees were about 50% of the total crowd. And we’ve seen surge in demand on the higher end, too, with record sale in Paddock Club and our hospitality products."
This could translate into the revenue increase generated from the Paddock Club that has also seen a record in attendance compared to previous years.
“Other F1 revenue increased in the third quarter primarily due to higher hospitality revenue generated from the Paddock Club, which operated at one additional race in the third quarter of 2022 compared to the prior year period and has seen record attendance year-to-date.”