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F1 reports profits of $ 92 million in 2021 when profits return to normal

In 2020, as a result of the COVID-19 pandemic, only 17 races were held, most of them without spectators.

Total revenue fell from $ 2.022 billion in 2019 to just $ 1.145 billion in 2020.

However, in 2021, despite the long-term impact of COVID-22 racing, races took place, and many saw the return of spectators, Formula One revenue recovered to $ 2.136 billion.

Formula One revenue has also been boosted by a one-off payment linked to the termination of a contract at the Vietnam Grand Prix, an event expected to be held for the first time in 2020.

As a result of higher revenues, the catastrophic loss of operating profit of $ 386 million in 2020 turned into profit of $ 92 million in 2021, after 10 F1 teams were paid.

The team’s total payouts provided an impressive recovery. From $ 1.012 billion in 2019, they fell to $ 711 million in 2020 and returned to $ 1.068 billion in 2021.

Explaining revenue growth, Liberty Media has made it clear that fan returns have been a major driver in 2021.

“Fan attendance was still assessed by the relevant government agencies depending on the race throughout the year, with restrictions decreasing throughout the year and much higher fan attendance starting in the third quarter of 2021 compared to the previous year,” the statement said. company messages.

“Revenue from the promotion of the races grew due to five more events held in 2021, including more non-European races, some of which led to the return of crowd capacity, while the restriction of fan attendance in the previous year led to one-time changes in contract conditions of the races “.

Although Vietnam was not named, Liberty also noted: “Revenue from the promotion of races for the whole year also benefited from a one-time calculation recognized in the first quarter, related to the cancellation of the race, originally scheduled for early 2020.” .

Lewis Hamilton, Mercedes W12, Walter Botas, Mercedes W12, Max Ferstappen, Red Bull Racing RB16B, Sergio Perez, Red Bull Racing RB16B, Charles Leclerc, Ferrari SF21 and other participants at the start

Photo: Jerry Andre / Drawings of motorsport

Liberty stressed that in addition to higher earnings from racing, Formula One revenues from broadcasting and sponsorship have also grown.

“Revenue from media rights increased year-over-year due to higher broadcasting fees due to improved terms of some new and updated broadcasting agreements, higher other contract rates, strong growth in F1 subscription revenues, and the impact of one-off changes in previous year contracts. fees due to the pandemic and related calendar violations.

“Sponsorship revenue has increased due to revenue from new sponsors and the impact of more races, as well as declining revenue from sponsorship due to the pandemic recognized in the previous year.”

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F1 reports profits of $ 92 million in 2021 when profits return to normal

In 2020, as a result of the COVID-19 pandemic, only 17 races were held, most of them without spectators.

Total revenue fell from $ 2.022 billion in 2019 to just $ 1.145 billion in 2020.

However, in 2021, despite the long-term impact of COVID-22 racing, races took place, and many saw the return of spectators, Formula One revenue recovered to $ 2.136 billion.

Formula One revenue has also been boosted by a one-off payment linked to the termination of a contract at the Vietnam Grand Prix, an event expected to be held for the first time in 2020.

As a result of higher revenues, the catastrophic loss of operating profit of $ 386 million in 2020 turned into profit of $ 92 million in 2021, after 10 F1 teams were paid.

The team’s total payouts provided an impressive recovery. From $ 1.012 billion in 2019, they fell to $ 711 million in 2020 and returned to $ 1.068 billion in 2021.

Explaining revenue growth, Liberty Media has made it clear that fan returns have been a major driver in 2021.

“Fan attendance was still assessed by the relevant government agencies depending on the race throughout the year, with restrictions decreasing throughout the year and much higher fan attendance starting in the third quarter of 2021 compared to the previous year,” the statement said. company messages.

“Revenue from the promotion of the races grew due to five more events held in 2021, including more non-European races, some of which led to the return of crowd capacity, while the restriction of fan attendance in the previous year led to one-time changes in contract conditions of the races “.

Although Vietnam was not named, Liberty also noted: “Revenue from the promotion of races for the whole year also benefited from a one-time calculation recognized in the first quarter, related to the cancellation of the race, originally scheduled for early 2020.” .

Lewis Hamilton, Mercedes W12, Walter Botas, Mercedes W12, Max Ferstappen, Red Bull Racing RB16B, Sergio Perez, Red Bull Racing RB16B, Charles Leclerc, Ferrari SF21 and other participants at the start

Photo: Jerry Andre / Drawings of motorsport

Liberty stressed that in addition to higher earnings from racing, Formula One revenues from broadcasting and sponsorship have also grown.

“Revenue from media rights increased year-over-year due to higher broadcasting fees due to improved terms of some new and updated broadcasting agreements, higher other contract rates, strong growth in F1 subscription revenues, and the impact of one-off changes in previous year contracts. fees due to the pandemic and related calendar violations.

“Sponsorship revenue has increased due to revenue from new sponsors and the impact of more races, as well as declining revenue from sponsorship due to the pandemic recognized in the previous year.”

Reported by Source link

RELATED ARTICLES
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Most Popular