Formula 1 remains in growth mode per its latest financial report, with the sport improving its third quarter 2022 top line relative to the same period in 2021 as the global Covid pandemic fades away.
From the start of July to the end of September, the Formula One Group took in $715m in revenue versus $668m in the same three-month period in 2021.
However, increased costs meant that operating income before depreciation and amortization decreased for the Group overall from $176m to $158m.
One will note that the comparable quarters included the same number of seven races.
"Primary F1 revenue increased in the third quarter of 2022 with growth across media rights and sponsorship, partially offset by a decline in race promotion revenue," stated F1 in its financial report.
"Race promotion revenue decreased due to lower fees generated from the different mix of events held, with one additional race (the Russian Grand Prix) held outside of Europe in the prior year period.
"Media rights increased due to growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements, and sponsorship revenue increased due to the recognition of revenue from new sponsors."
Regarding the sport's third quarter's rise in costs, The Formula One Group also noted: "These costs increased in the third quarter driven by the costs of higher hospitality attendance in the Paddock Club and one additional Paddock Club event operated compared to the prior year period.
"In addition, other cost of F1 revenue grew due to higher commissions and partner servicing costs associated with the Primary F1 revenue streams and higher Formula 2 and Formula 3 related costs.
"Selling, general and administrative expense increased in the third quarter due to higher personnel and IT costs and increased legal and other advisory fees."
Formula 1 president and chief executive officer Stefano Domenicali delivered the following comments:
"Formula 1 is delivering in 2022 across all areas including financial results, engagement with fans and action on the track.
"We look forward to a strong finish to the season with drivers and teams battling on the track.
"We were excited to announce our record-setting 24 race calendar for 2023 which includes the much-anticipated Las Vegas Grand Prix.
"We also announced significant multi-year broadcast renewals to extend our relationships at attractive rates with ESPN in the US and in 3 key European markets with Sky."
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