Formula 1’s revenue has increased by almost 50% in the second quarter of 2022 compared to the same period last year.
Naturally, Formula 1’s owners, Liberty Media, would have expected to see a rise in revenue, as at this stage in 2021 the global pandemic was still impacting attendances and hospitality – but the figures for the second quarter of 2022 certainly make for encouraging reading.
As in 2021, seven races took place in the second quarter of 2022, for which Liberty Media reported revenue of $743m generated by Formula 1, compared to $501m at the same stage last year.
Operating income also firmly returned to positive figures for the Formula One Group, a $49m profit recorded compared to a loss of $43m in Q2 of 2021.
Fan attendance has been a major factor in Formula 1’s financial recovery, Liberty Media confirming “throughout the first half of the 2022 season, F1 has experienced record attendance in both grandstands and the Paddock Club”.
Race promotion, media rights and sponsorship, which forms the primary revenue stream for Formula 1, saw a 35% increase from $464m to $628m.
“Race promotion revenue increased due to higher fees generated from the different mix of events held and contractual increases in fees,” Liberty Media report.
“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.”
An eye-catching 214% increase in ‘other Formula 1 revenue’ was also noted.
“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,” Liberty stated, “as well as higher hospitality revenue generated from the Paddock Club, which F1 operated at five races in the second quarter of 2022 but was unable to operate in the prior year period.”
Formula 1 president and CEO Stefano Domenicali commented: “The Formula 1 2022 season continues to set records as we have seen exciting action and unpredictable outcomes on track.
“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.”