The Formula 1 boasts exponential profits in the first months of 2022. Revenue from the world championship of motorsports doubled to 360 million dollars in the first quarter of the year compared to the same period in 2021.
Championship owners Liberty Media attributed the growth to two events taking place in the first quarter, from January to March, compared to 2021, combined with the return of fans and the paddock club following events affected by the last year’s pandemic.
The general income of the Formula 1 in the corresponding quarter they went from a loss of 33 million dollars to a profit of 34 million dollars.
“Throughout 2021 and particularly in the first half of the season, race attendance was limited due to the pandemic and the Paddock Club was not operational in the first half. F1 does not expect its results in 2022 to be affected by such capacity limitations, although the relevant government authorities continue to assess fan attendance on a race-by-race basis,” a statement read.
He also highlighted that Formula 1 continues to evaluate alternatives to the canceled Russian Grand Prix in order to maintain a 23-round schedule.
The primary income of F1 increased from 159 million to 287 million in the first quarter of 2022 compared to the first quarter of 2021, due to growth in race promotion, media rights and sponsorship.
Media rights also increased due to growth in F1 TV subscription revenue and fees under new and renewed contractual agreements. Growth in subscription revenue from the F1 TV streaming service helped drive media rights along with broadcast extensions with Australia’s Foxtel and Singapore’s StarHub. Notable deals with MSC Cruises, Lenovo and Tata Communications during the first quarter of 2022 contributed to the increase in sponsorship revenue.
Part of the growth in 2022 was described as being due to first quarter 2021 results being impacted by a one-off deal believed to be related to the cancellation of the planned round of Vietnam for 2020.
“We are off to a phenomenal start to the 2022 Formula 1 season, building on our momentum from a successful 2021. The new cars and regulations are working as we hoped, allowing for closer racing, more overtaking, field battles and exciting results. Our events are attracting ever-increasing audiences both in person and across all of our platforms,” said F1 CEO Stefano Domenicali.
On the television performance of the Formula 1 so far this season, Greg Maffei, president and CEO of Liberty Media, said last month’s Emilia Romagna Grand Prix was “28% higher than last year’s qualifying at Imola.” Record demand in the US earlier in the season. On ESPN, viewers for Sunday’s race in both Saudi Arabia and Bahrain were up 56%,” Maffei continued. Ahead of next year’s Las Vegas Grand Prix, Maffei also confirmed that Liberty Media had agreed to acquire 15.7 hectares of land which will be used “to secure circuit layout and create pit and paddock capacity”. Maffei expects the transaction to close in the second quarter at a cost of $240 million.
rrg