F1 is continuously recovering from the economic shock suffered last year due to the impact of the new crown epidemic.
The results of the third quarter of 2021 show that F1’s revenue has increased by 12% over the same period last year, from US$597 million to US$668 million. After 10 teams received a dividend of US$338 million, their loss of US$104 million turned into a profit of US$80 million.
Although due to the compression of the schedule, only 10 and 7 games will be held from July to September in 2020 and this season, but the income level is still rising.
Usually fewer games in a quarter means less revenue. But this result reflects the fact that in the absence of spectators, many games in 2020 have reached special agreements with F1, and no regular bidding fees have been paid. In contrast, most events this season are allowed to be played in full or close to full.
In addition, revenue from broadcasting rights transactions is distributed on a quarterly basis, depending on the number of games held. Therefore, the decline in actual revenue in this part of 2021 means that in order to create a higher total revenue, the additional promotion of the game will be obtained. Income has also increased. Moreover, the return of paddock clubs in six out of seven games also contributed to the growth.
F1 pointed out that its main revenue increased in the third quarter, mainly due to a year-on-year increase in competition promotion revenue compared to last year. At the same time last year’s restrictions on car fan attendance also led to a one-time change in the terms of the race contract.
“Media copyright and sponsorship revenue declined in the third quarter, mainly due to the low proportion of quarterly revenue (only 7 games in the third quarter of 2021/22 games in total, 10 games in the third quarter of 2020/17 games in total Competition), which was partially offset by the growth in F1 TV subscription revenue and new sponsor revenue.”
Lewis Hamilton, Mercedes, and Stefano Domenicali, CEO, Formula 1, on the grid
Photo by: Mark Sutton / Motorsport Images
F1 CEO Stefano Domenicali is still optimistic about the prospects of F1. After being questioned earlier this season, the schedule of 22 games this season has now been settled.
“F1 is going all out to create results on the track for our fans, partners and investors,” said the Italian. “We all know that 2021 will be an unprecedented season, both on the track and between the manufacturers have launched ups and downs of fierce battles.”
“Through the presence of the fans and the participation of all platforms, we have also seen the results. We are looking forward to the next races in Mexico and Brazil, and then the season will end with three races in the Middle East, setting a record of 22 races. At the same time, we are already committed to setting a new record of 23 games in 2022.”
Translation/Peter Pan