However, the change was not as dramatic as in previous quarters because income in the latter part of 2021 was not impacted as dramatically by the pandemic, as last year race attendances began to return to normal levels and the lucrative Paddock Club got back up to speed.
Overall F1 revenue rose from $668m in 2021 to $715m in 2022 for July-September, although operating income was only up from $80m to $82m thanks to increased costs. The 10 F1 teams shared payments of $370m, up from $338m in 2021.
The July-September periods of 2021 and 2022 provide for a fairly accurate comparison as both featured seven races.
Six events were the same across both seasons, while the major difference was that the first year featured the more lucrative Russian GP, whereas France fell into the same period in 2022.
Because of that change race promotion income was actually slightly down, but that was offset by increases in broadcast and sponsorship revenue.
Explaining the figures, F1 noted: “F1’s results in 2022 are not being impacted by capacity limitations, and throughout the first nine months of the 2022 season F1 has seen strong growth in attendance in the grandstands and the Paddock Club.
“Primary F1 revenue increased in the third quarter with growth across media rights and sponsorship, partially offset by a decline in race promotion revenue.
“Race promotion revenue decreased due to lower fees generated from the different mix of events held, with one additional race held outside of Europe in the prior year period.
“Media rights increased due to growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements, and sponsorship revenue increased due to the recognition of revenue from new sponsors.
“Other F1 revenue increased in the third quarter primarily due to higher hospitality revenue generated from the Paddock Club, which operated at one additional race in the third quarter of 2022 compared to the prior year period and has seen record attendance year-to-date.”
Explaining the overall rise in costs relative to 2021, F1 said: “These costs increased in the third quarter driven by the costs of higher hospitality attendance in the Paddock Club and one additional Paddock Club event operated compared to the prior year period.
“In addition, other cost of F1 revenue grew due to higher commissions and partner servicing costs associated with the Primary F1 revenue streams and higher Formula 2 and Formula 3 related costs.
“Selling, general and administrative expense increased in the third quarter due to higher personnel and IT costs and increased legal and other advisory fees.”