- F1 sees financial benefits from record attendances
- Revenue from race promotion, media rights, and sponsorship all increase
Formula One’s Q2 revenue has increased by 49 per cent compared to last year’s figures, series owner Liberty Media has revealed.
The increase to US$744 million is largely attributed to 2021 being impacted by the pandemic and, therefore, attendances were limited. That uplift saw Formula One turn a profit of US$65 million, up from a loss US$36 million in the same period last year.
This year has seen record attendances in both the grandstand and its VIP offering, the Paddock Club. The latter was unable to run at all at this point of the last Formula One season.
During the reporting period, the series secured several bumper contract extensions across its various verticals. Notably, the host contract for the Australian Grand Prix was extended until 2035, Bandeirantes renewed its broadcast partnership in Brazil through to 2025, while Netflix signed off on the fifth and sixth seasons of ‘Drive to Survive’.
Other revenue areas that saw increases were race promotion, media rights and sponsorship, resulting in primary revenue hitting US$628 million.
Race promotion revenue increased due to higher fees generated from the different mix of events held and contractual increases in fees.
Liberty saw Formula One’s sponsorship income grow with income from new partners and higher race-specific revenue generated from the different mix of events held.
Operating income and OIBDA (operating income before depreciation and amortisation) also increased by 133 per cent to US$154 million.Total costs also increased to reach US$534 million as operations expenses rose with the return of fans post-pandemic.
“Formula One is making the most of our growing worldwide popularity as evidenced by race attendance, TV viewership, and engagement across platforms,” said Greg Maffei, president and chief executive of Liberty Media.