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Friday, February 23, 2024

F1’s second quarter revenue hit by Imola GP cancellation

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General numbers for the total season are anticipated to be increased than final season, with 22 races held in each years, and the extra profitable Las Vegas race in impact changing the French GP.

Nonetheless, the lack of the Imola race as a consequence of native flooding meant that solely six occasions had been held within the April-June interval, as a substitute of seven as was initially scheduled, and as was the case in 2022.

The importance is that race promotion income is recorded within the quarter that an occasion takes place, and media rights and sponsorship income is cut up professional rota throughout the 4 quarters relying on what number of races there are in the course of the interval.

Consequently, F1’s income for the second quarter dropped from $744m in 2022 to $724m, with a drop of $10m in main income (race charges, media rights and sponsorship) and one other $10m misplaced in different income streams.

The funds to the ten groups for the interval equally fell from $368m to $344m, whereas after these and different prices had been taken onto account F1 income elevated barely from $49m to $52m.

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The most important detrimental impression of the Imola cancellation associated to how media rights income is recognised, with the drop from seven to 6 occasions out of twenty-two. The entire for race promotion was really increased, regardless of there solely being six slightly than seven races, as a consequence of elevated contractual charges throughout the opposite occasions.

Greg Maffei, F1 on the grid

Picture by: Mark Sutton / Motorsport Images

Liberty added that different income “decreased within the second quarter primarily as a consequence of decrease freight revenue pushed by the easing of freight value inflation on billing charges and decrease hospitality income as a consequence of one much less race held within the present interval, partially offset by elevated licensing revenue and better income associated to F2/F3 automobile chassis gross sales.”

Liberty additionally famous F1’s general prices elevated partly due to expenditure associated to the misplaced Imola race.

It famous that “considerably decrease freight prices had been offset by elevated hospitality prices related to servicing increased Paddock Membership attendance and value inflation and better commissions and companion servicing prices related to development in main F1 income streams.

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“Different value of F1 income within the present interval additionally consists of hospitality, journey and different prices associated to the Imola occasion that had largely been incurred previous to the occasion’s late cancellation.

“Promoting, basic and administrative expense decreased within the second quarter as a consequence of decrease personnel and authorized prices and overseas alternate favourability, partially offset by increased advertising and marketing, property and IT prices.”

Liberty additionally revealed that F1 spent $7m in April-June on prices related to the planning of the Las Vegas GP.

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