Formula 1 took a $20 million hit in revenue due to the cancellation of the 2023 Emilia Romagna Grand Prix, but posted a small increase in profits in the second quarter of this year compared to 2022.
F1 owner Liberty Media posted their figures from April to June 2023, and remain on track to increase profits from 2023 despite the cancellation due to heavy flooding around Imola.
The reduction in revenue was split into two equal falls in different categories, starting with primary revenue. This includes race fees, sponsorship and media rights – the latter is amortised across the whole season so F1 will continue to report losses from that across the rest of the year.
The other $10 million is from other revenue streams associated with the race, meaning F1‘s total revenue was $724 million year-on-year.
However, payments to the 10 F1 teams across the quarter reduced from $368 million to $344 million, and along with other factors mean the sport’s profits actually increased in the period. Combined, F1‘s profits increased by $3 million – from $49million to $52 million.
Lucrative Las Vegas rescues F1
F1 returns to Las Vegas in 2023 after its failed attempt in the city in the 1980s, in what promoters are marketing as the biggest party in the sport.
F1 spent $7 million across the quarter on planning costs, but that’s expected to pay dividends later in the year with the race in Las Vegas a much more lucrative replacement for the French Grand Prix.
F1TV also saw an increase in subscriptions over the period despite the predictable action on-track, which helped offset the Imola loss.
Where is the next F1 2023 race?
F1 will return from its summer break with the 2023 Dutch Grand Prix from Zandvoort on August 25-27, where championship leader Max Verstappen will be racing on home soil.