Formula 1 second quarter revenue hit by Imola cancelation

Formula 1 suffered a slight drop in its revenue for the second quarter of 2023 due to the cancelation of the rain-hit Emilia Romagna Grand Prix at Imola back in May.

The race was due to be held on May 23, but disastrous floods in the region around Imola forced F1 to cancel the event just 48 hours before the scheduled start of race weekend.

The cancellation meant that only six events instead of seven were held during the April-May quarter, which resulted in a drop of revenue from $744m in 2022 to $724m, or a 3% decrease.

Team payments for the period also fell from $368m to $344m, which equated to a 7% drop year-over-year. Operating income for The Formula One Group nevertheless improved in Q2 from $49m to $52m.

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"Primary F1 revenue decreased in the second quarter with growth across race promotion and sponsorship offset by a decline in media rights revenue," stated F1's commercial rights holder Liberty Media.

"Despite one less race held in the current period, race promotion revenue grew due to contractual increases in fees, and sponsorship revenue increased due to recognition of revenue from new sponsors and growth in revenue from existing sponsors.

"Media rights revenue decreased due to the impact of lower proportionate recognition of season-based income, partially offset by continued growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements.

"Other F1 revenue decreased in the second quarter primarily due to lower freight income driven by the easing of freight cost inflation on billing rates and lower hospitality revenue due to one less race held in the current period, partially offset by increased licensing income and higher revenue related to Formula 2 / Formula 3 car chassis sales."

Commenting on the sport's latest quarter, F1 president and chief executive officer Stefano Domenicali said:

"Formula 1 is capitalizing on our growth momentum and our fans are engaging with the sport across traditional, digital and social media platforms.

We congratulate Red Bull on their record-breaking performance season-to-date, and are thrilled to see the gaps closing across the rest of the grid to produce exciting rivalries on track.

"Next year we will host 24 races around the globe, with back-to-back races in closer proximity which will benefit the efficiency of operations for both F1 and our teams."

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