F1 continues to set records with $243million revenue increase

Start of the Grand Prix of Spain — Photo: © LAT Images

Formula 1

F1 continues to set records with $243million revenue increase

Liberty Media published its second quarter financial report on Friday

Sam Hall

Friday 5 August 2022 14:51

Liberty Media has reported a revenue increase of over $200million compared to last year for F1 in its latest financial report.

F1 has continued its emphatic bounce back from the difficulties of the Covid pandemic with week-on-week record on-site attendances resulting in a significant revenue increase.

In its second-quarter financial report, Liberty Media detailed that the revenue generated from F1 has increased from $501m to $743m, up 49 per cent.

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Seven races took place in the quarter of each year but it must be remembered that events during this period last season were mostly subject to a cap on attendances, with the Paddock Club not active at all.

“The Formula 1 2022 season continues to set records, as we’ve seen exciting action and unpredictable outcomes on the track," said F1 CEO Stefano Domenicali.

"We are attracting fans in person and across all our platforms. We are making meaningful progress working with all of our stakeholders including our teams, race promoters, the FIA and business partners towards our goal to hit net-zero carbon by 2030.”

What drove F1's revenue increase?

The return of fans en masse has been behind the massive revenue increases that the sport is currently enjoying and the breakdown highlights this perfectly.

Primary revenue, items listed as race promotion revenue, media rights fees and sponsorship fees, increased by 35 per cent from $464m to $628m.

With regard to this number, Liberty Media explain: "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."

Explaining the 214 per cent growth of 'other F1 revenue' from $37m to $116m, Liberty Media adds: "Other F1 revenue increased in the second quarter primarily due to an increase in freight revenue driven by the increased number of events held outside of Europe and inflation in underlying costs, as well as higher hospitality revenue generated from the Paddock Club, which F1 operated at 5 races in the second quarter of 2022 but was unable to operate in the prior year period."