F1 Group makes a profit for first time in three years

The Formula One Group made a profit in 2019 for the time in three years, financial results issued by Liberty Media have revealed.

F1 Group makes a profit for first time in three years

F1's overall income rose from $1827m in 2018 to $2022m last year, and after posting losses of $37m in 2017 and $68m in 2018 the group logged a profit of $17m.

The increased revenue meant that the recent fall in the income paid to the 10 teams has been reversed at a time when discussions over a new Concorde Agreement for 2021 and beyond are still ongoing.

The teams earned $966m between them in 2016, which dropped to $919m in 2017 and then $913m in 2018. In 2019 they shared a pot of $1012m.

F1's improved performance was led by a boost in primary revenue, derived from broadcast fees (38%), sponsorship (15%) and race hosting fees (30%), although the latter element actually performed worse in 2019.

Liberty explained F1's performance in its main areas of business thus: "Broadcast revenue increased in the fourth quarter and full year due to contractual rate increases, partially offset by the impact of weaker foreign exchange rates.

"Advertising and sponsorship revenue was relatively flat in the fourth quarter, and advertising and sponsorship revenue grew in the full year due to revenue from new sponsorship agreements.

"Growth in these revenue streams was partially offset by a decline in race promotion revenue in both the fourth quarter and full year.

"The fourth quarter decline in race promotion revenue was primarily due to the renewal terms of one contract, and the full year decline was driven by the impact of renewal terms of two contracts and weaker prevailing foreign exchange rates."

Liberty said that income grew in its non-primary streams, including digital media.

It noted: "Other F1 revenue increased in the fourth quarter and full year 2019 driven by increases in digital media revenue, higher Paddock Club attendance, increased revenue from other event-based activities and higher sales of equipment, parts and maintenance to F2 and F3 teams."

Liberty also acknowledged that F1's costs rose in 2019. The payments to teams, which are considered the main cost, are related to the overall income levels and "the associated impact on variable elements of team payments."

Other costs rose "due to various technical initiatives, the continued further development and delivery of digital and social media products and platforms, increased costs related to the sale of equipment, parts, maintenance and other services provided to F2 and F3 teams and higher FIA fees."

F1 CEO Chase Carey was bullish regarding future prospects for the company.

"F1 continues to benefit from the investments made in the business over the past few years," he said. "We see this in the strong financial results, viewership, attendance and engagement. 2020 marks the 70th anniversary of the sport, which will provide further momentum."

Liberty president and CEO Greg Maffei noted: "F1 produced exceptional financial results, added viewers and grew race attendance."

Alongside the financial numbers Liberty noted that in 2019 aggregate race attendance rose by 2% to 4.2m, social media followers rose 33% to 24.9m, and cumulative TV viewers were up 9% to 1.9bn.

shares
comments
Racing Point approach a "slightly concerning evolution" for F1

Previous article

Racing Point approach a "slightly concerning evolution" for F1

Next article

Ricciardo "will answer" rivals' calls, but prefers Renault stay

Ricciardo "will answer" rivals' calls, but prefers Renault stay
Load comments

About this article

Series Formula 1
Author Adam Cooper
The back-bedroom world-beater that began a new F1 era Prime

The back-bedroom world-beater that began a new F1 era

The first in a line of world beaters was designed in a back bedroom and then constructed in a shed. STUART CODLING recalls the Tyrrell 001

Why Mercedes isn't confident it's really ahead of Red Bull at Imola Prime

Why Mercedes isn't confident it's really ahead of Red Bull at Imola

While Mercedes struck back against Red Bull by topping the times at Imola on Friday ahead of the Emilia Romagna Grand Prix, the overall picture remains incredibly close. Despite having a possible edge this weekend, the reigning Formula 1 world champion squad is not taking anything for granted...

Formula 1
Apr 16, 2021
What Mercedes must do to keep its F1 title challenge on track Prime

What Mercedes must do to keep its F1 title challenge on track

Mercedes may find itself leading the drivers' and constructors' standings after Lewis Hamilton's victory in the Bahrain Grand Prix, but it is well aware that it came against the odds, with Red Bull clearly ahead. Here's what the Brackley team must do to avoid its crown slipping .

Formula 1
Apr 16, 2021
The double whammy that is defining Vettel’s F1 fate Prime

The double whammy that is defining Vettel’s F1 fate

It's been a tough start to Sebastian Vettel's Aston Martin F1 career, with a lack of pre-season testing mileage followed by an incident-packed Bahrain GP. But two key underlying factors mean a turnaround is no guarantee.

Formula 1
Apr 14, 2021
The themes to watch in F1's Imola return Prime

The themes to watch in F1's Imola return

Three weeks is a long time in Formula 1, but in the reshaped start to the 2021 season the teams head to Imola to pick things up after the frenetic Bahrain opener. Here's what to look out for and the developments to follow at the Emilia Romagna Grand Prix

Formula 1
Apr 13, 2021
The 'new' F1 drivers who need to improve at Imola Prime

The 'new' F1 drivers who need to improve at Imola

After a pandemic-hit winter of seat-swapping, F1 kicked off its season with several new faces in town, other drivers adapting to new environments, and one making a much-anticipated comeback. Ben Anderson looks at who made the most of their opportunity and who needs to try harder…

Formula 1
Apr 12, 2021
The delay that quashed Aston Martin’s last F1 venture Prime

The delay that quashed Aston Martin’s last F1 venture

Aston Martin’s only previous foray into Formula 1 in the late 1950s was a short-lived and unsuccessful affair. But it could have been so different, says Nigel Roebuck.

Formula 1
Apr 10, 2021
Verstappen exclusive: Why lack of titles won't hurt Red Bull's ace Prime

Verstappen exclusive: Why lack of titles won't hurt Red Bull's ace

Max Verstappen’s star quality in Formula 1 is clear. Now equipped with a Red Bull car that is, right now, the world title favourite and the experience to support his talent, could 2021 be the Dutchman’s year to topple the dominant force of Lewis Hamilton and Mercedes?

Formula 1
Apr 9, 2021