New Delhi:- The overall number for the full season is expected to be higher than last season, with 22 races held in both years and the more lucrative Las Vegas race that will effectively replace the French GP.
However, the loss of the Imola race due to local flooding meant that only six events took place between April and June, instead of the seven as originally planned and as is the case in 2022.
It is important that race promotion revenue is recognized during the event quarter, and that sponsorship and media rights revenue is prorated over four quarters based on the number of races during that period.
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As a result, F1's revenue for the second quarter fell from $744 million in 2022 to $724 million, of which key revenue (race fees, media rights and sponsorships) fell by $10 million. and other revenue streams lost an additional $10 million.
Payouts to 10 teams during the period also increased from $368 million to $344 million, while after taking these and other costs into account, F1's profit rose slightly from $49 million. shouted to $52 million. The biggest negative impact of Imola's cancellation was the way media revenue was recorded, with a drop from seven to six out of 22 events. contract fees for other events.
Liberty added that other income "died in the second quarter, mainly due to lower freight revenue as freight cost inflation drove down payment prices and lower freight revenue. Reception was driven by a less organized race in the current period, partially offset by increased licensing revenue and higher revenue from F2/F3 vehicle chassis sales.
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Liberty also notes that total F1 costs have increased in part due to lost Imola race-related expenses.
He noted that "the significant drop in transportation costs was offset by increased hotel costs associated with increased Paddock Club attendance and cost inflation, as well as increased commissions and partner maintenance costs related to the growth of F1's main revenue streams.
"F1's other revenue expenses for the current period also include hotel, travel and other expenses related to the Imola event which were largely incurred before the late cancellation of the event. “Selling, general and administrative expenses fell in Q2 due to lower legal and personnel costs and favorable exchange rates, partly offset by marketing, real estate and IT costs. higher."
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Liberty also revealed that F1 spent $7 million between April and June on costs related to planning the Las Vegas GP.
After the official holidays announced by the FIA for all teams, all events were canceled and one of them was this Imola GP.