F1 Liberty Media have released their financial assessment of the last season.
The group controlling the Formula 1 have issued their results. The data shows that the group have been unable to mark any profit during 2017 and 2018. While last season have closed with profit for the group.
Formula 1 registered a loss of $37 million in 2017 which almost doubled during 2018 with $68 million.The data shows an increase in income during 2019 with a profit of $17 million as the income shoots from $1827 to $2022 million.
The increase in revenue depicts that income distribution among teams has been changed. It seems highly likely as the new Concorde Agreement for 2021 is in the process..
The teams income was decreased form $966 million in 2016 to $913 million in 2018. However, the income for 2019 was quite high with a registered figure of $1012 million.
The figures shows improved performance of the group with broadcast fees and sponsorship. While for race hosting fees the group performed very poor in last season.
Liberty explained: “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.”
The F1’s profit was enabled by the non-traditional elements like digital media where the group have been focusing to increase the audience.
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.”
