05/11/2022
NEWS STORY
Revenue for the third quarter of 2022 for the F1 Group is up from $668m (£587m) to $715m (£628m) , according to the latest figures, as sport is no longer impacted by pandemic limitations.
This year's third quarter witnessed 7 races as was the case in , however, despite the increase, due to increased costs operating income before depreciation and amortization actually witnessed a drop from $176m (£155m) to $158m (£139m). Furthermore, the $715m in revenue was down on the $744m (£654m) reported in this year's second-quarter.
“Formula 1 is delivering across all areas including financial results, engagement with fans and action on the track," said Stefano Domenicali. "We look forward to a strong finish to the season with drivers and teams battling on the track.
“We were excited to announce our record-setting 24 race calendar for 2023 which includes the much-anticipated Las Vegas Grand Prix," he added. "We also announced significant multi-year broadcast renewals to extend our relationships at attractive rates with ESPN in the US and in 3 key European markets with Sky.”
Primary F1 revenue represents the majority of F1's revenue and is derived from race promotion revenue, media rights fees and sponsorship fees.
Throughout 2021 and particularly in the first half of the season, attendance at races was limited due to the pandemic, said F1 in its third-quarter report. Restrictions on fan attendance reduced as 2021 progressed, with all races in the second half of the year operating at either full capacity or with fewer restrictions. The Paddock Club resumed normal operations beginning with the Austrian Grand Prix on July 4, 2021.
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.
Primary F1 revenue increased in the third quarter with growth across media rights and sponsorship, partially offset by a decline in race promotion revenue. Race promotion revenue decreased due to lower fees generated from the different mix of events held, with one additional race held outside of Europe in the prior year period.
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.
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.
Referring to the increased costs, F1 said: These increased in the third quarter driven by the costs of higher hospitality attendance in the Paddock Club and one additional Paddock Club event operated compared to the prior year period.
"In addition, other cost of F1 revenue grew due to higher commissions and partner servicing costs associated with the Primary F1 revenue streams and higher Formula 2 and Formula 3 related costs. Selling, general and administrative expense increased in the third quarter due to higher personnel and IT costs and increased legal and other advisory fees."