In both seasons, seven Grands Prix were held over the April-June period, allowing for a useful comparison as the effects of the COVID-19 pandemic faded. The number of races is significant as F1 splits its revenue over the year depending on the number of events held in each quarter.
Restricted races were still being held in the early part of 2021, while the lucrative Paddock Club hospitality division had not yet picked up speed following the pandemic. The Paddock Club is not only back at full strength, but also proving to be more popular than ever.
Thanks to the returns, total revenue increased from $501 million in the second quarter of 2021 to $744 million in the same period this year.
Within that figure, primary revenues from race promotion, broadcasting and sponsorship grew 35% from $464 to $678 million, while other revenues – primarily Paddock Club and freight – grew 214% from $37 million to $116 million.
An operating loss of $43 million in the second quarter of 2021 turned into a profit of $49 million this year.
Among them, the 10 F1 teams shared payments of $368 million, up from $308 million in the second quarter of 2021.
Fans enter the track for the podium ceremony at the end of the race
Photo By: Zak Mauger / Motorsport Images
Explaining the results, Liberty Media highlighted that all three primary revenues received a boost in 2022: “Race promotion revenues increased due to higher fees generated by the different mix of events held and contractual fee increases.
“Media rights increased as a result of growth in F1 TV subscription revenues and higher fees under new and renewed contractual agreements.
“Sponsorship revenue increased thanks to the recognition of revenue from new sponsors and higher race-specific revenue generated by the different mix of events being held.”
However, the numbers were slightly skewed by the late cancellation of the 2021 Japanese GP: “There is a slightly higher proportionate recognition of season-based media rights and sponsorship revenue recognized during the quarter as 22 7/22 of revenue was recognized in the second quarter. Q2 2022 compared to 7/23 of sales recognized in Q2 2021 before confirmation of the 2021 race calendar reduction to 22 races. ”
Liberty noted that COVID was still a major problem last year: “Throughout 2021 and particularly in the first half of the season, race attendance was limited due to the pandemic, and the Paddock Club was inactive in the first half.
“F1 does not expect results in 2022 to be affected by such capacity constraints, although fan attendance is still subject to race-by-race assessment by the relevant government bodies.
“During the first half of the 2022 season, F1 has had a record number of visitors in both the stands and the Paddock Club.”