Formula 1 reported its revenue for the third quarter of 2022 rose by 7% compared to the same period last year.
The series generated $715 million (£638m) of revenue across July, August and September.Race hosting fees are a significant area of income and F1 was originally due to hold eight rounds during this time. However the Russian Grand Prix was cancelled before the season began in response to the country’s invasion of Ukraine. F1 therefore held seven rounds, as it also did during the same period in 2021.
Of these races it was able to operate its lucrative Paddock Club at one more round compared to last year.
F1’s third quarter earnings fell slightly compared to the second quarter of this year, when it brought in $744m. Its third quarter revenues yielded a profit of $64m (£57m), a fall of 5.8% year-on-year. This was partly because its payments to teams rose by 9.4% to $370m (£330m).
F1 noted it has also seen a decline in revenue from race promotion, despite the series scheduling a record-equalling 22 races this year. It has also announced a record 24 rounds on the 2023 F1 calendar.
However increased income from sale of media rights and sponsorship helped to overcome this, as CEO Stefano Domenicali pointed out.
“We were excited to announce our record-setting 24 race calendar for 2023 which includes the much-anticipated Las Vegas Grand Prix,” said Domenicali. “We also announced significant multi-year broadcast renewals to extend our relationships at attractive rates with ESPN in the US and in three key European markets with Sky.”
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Sam
4th November 2022, 13:16
Financial stability is obviously important. I just hope that some of the recent changes do not generate short term profits but long term losses due to turning away long term fans.
Jere (@jerejj)
4th November 2022, 13:46
The next season will ultimately feature 23 GPs, in all likelihood, given the Chinese GP’s inevitable cancellation & that the event won’t get replaced, AFAIA. Still, a record-breaking amount.
mantresx (@mantresx)
4th November 2022, 13:56
@keithcollantine Always wanted to ask…
Have you also seen the Netflix effect here on your site, in terms of increased traffic and so on?
I’ve certainly noticed more comments and posts in general compared to the F1 Fanatic days.
petebaldwin (@)
4th November 2022, 15:40
You can see from the comments themselves that there has been a large influx of Netflix fans. As with all aspects of F1, the challenge is keeping hold of the long-term fans whilst also capitalising on the temporary, Netflix ones whilst they’re still interested.
Armchair Expert (@armchairexpert)
4th November 2022, 17:07
Do you really think so? From what I’ve seen only quite small portion of these new “fans” visits and comments on sites like RaceFans or Autosport. Zoomers post their spam mainly on Discord channels and Twitter, which is a crying shame because it also means forums are dying left, right and centre. Unfortunately it does apply not only to motorsport, but basically everything and as a result lot of knowledge and information is lost in the process. Things you could’ve easily found within seconds by simply using Google are now hidden on these landfill sites.
Also, maybe I’m wrong, but it seems Netflix and F1 are slowly killing everything outside of F1 weekend bubble. MotoGP, Indycar, WRC, WEC, BTCC, you name it, slowly but surely losing popularity because it’s all about F1 now. You have to hand to to Liberty, how they promoted cheap and fake entertainment called “Formula 1” to the masses, it’s impressive. At the same time last few years proved how easy it is to manipulate people, so maybe it’s not that big achievement after all.
Darryn Smith (@darryn)
5th November 2022, 0:18
That’s a really good point about the MotoGP. I’m not into bikes, but it is a far superior product to F1 and I was gradually watching it more and more. For some reason I don’t see anything about it and haven’t watched it in a few years. It’s just slipped off my radar even though it is more enjoyable with less time needed to watch it.
Darryn Smith (@darryn)
4th November 2022, 17:02
This seems similar to the NASCAR boom at the turn of the century both from fans and the way the leadership is changing the product. I expect a similar result with completely changed “sport” and all of the new fans gone and half of the original fans angry and gone. In 10 years F1 will be unrecognizable and struggling. A few people will be a lot richer.
Armchair Expert (@armchairexpert)
4th November 2022, 17:28
Hear, hear. I used to love F1 and I still love watching races from the past, but right now I actually hate it. It has changed beyond recognition and I feel like it’s insulting my intelligence and free time. I used to watch every session, haven’t missed quali in something like 20 years, but last weekend I only watched the race and even then I was pondering my life choices.
I really wonder how long these new “fans” will survive years and years of only Red Bull, Mercedes and maaaaybe Ferrari competing at the top. It’s bad enough to believe in “closer competition, equal chances”, but if your beloved driver finishes P8 several seasons in a row, it’s a tough sell. Not to mention gimmicks, souless circuits and all the other problems that are creeping in at alarming rate.
Darryn Smith (@darryn)
5th November 2022, 0:16
Right. The next step is a spec series to prevent the years and years of one team dominating.
Crawliin-from-the-wreckage (@davedai)
5th November 2022, 5:29
Fantastic news all round. I hope this upwards trajectory continues apace. Who knows one day they may be able to pay the volunteers!
playstation361
5th November 2022, 19:24
I think things are going to decline further since mostly things are US driven.
I think we can compare this situation with Alcohol.