Formula 1 reported this week a year-over-year $5m increase of its operating income for the third quarter of 2019 despite a small drop in revenue linked to there being one less race taking place in the quarter relative to Q3 2018.
The sport's primary revenue - comprised of race promotion fees, broadcasting fees and advertising and sponsorship fees - fell from $560m to $553m during the three-month period.
While race promotion revenue decreased due to one less race held in the third quarter of 2019 and the impact of the renewal terms of one contract, broadcast revenue increased primarily due to contractual rate increases, partially offset by the lower proportionate recognition of season-based income during the quarter.
Advertising and sponsorship revenue also increased due to revenue from new sponsorship agreements. But other F1 revenue decreased in the third quarter, again primarily due to one less race being held, along with non-recurring television production fees in the prior year period.
Overall, operating income increased year-on-year from $39m to $44m as the revenue decline was more than offset by reduced costs.
Payments to teams were reduced from $344m to $335m driven by the pro rata recognition of such payments across the race season, and other cost of F1 revenue was lower due to one less race in the quarter.
"We were thrilled to have the World Motor Sport Council unanimously approve the 2021 regulations, which were the result of input from all stakeholders across the sport of F1," said F1 CEO Chase Carey.
"We believe these regulations stay true to the DNA of F1 while seeking to improve the competition and action on the track.
"This season continues to produce some spectacular racing and we congratulate Lewis Hamilton and Mercedes on their amazing achievements.
"We now look forward to the final two races of 2019 and a record 22 race 2020 season, including our new event in Vietnam and our return to the Netherlands."