F1 records big revenue losses in early 2020

The absence of competition since last year weighs heavily on the balance sheet for the first half of the F1. While the season was due to start in March in Melbourne, the Australian GP was canceled at the last minute following a positive coronavirus case in the paddock and the season has since been put on hold with a recovery hoped for in July.

This absence of races causes significant losses for Liberty Media. In the first quarter between January and March, when only two Grands Prix were canceled, the F1 owner only counted $39 million in revenue (around 36 million euros) compared to $246 million per year. last (around 228 million euros). This therefore represents a loss of 207 million dollars (192 million euros).

F1 has, however, received entry fees for the Melbourne and Bahrain circuits but does not wish to include these payments in these results for the first quarter, just like revenues from broadcasting rights and contracts with sponsors. Primary income thus fell from 198 million dollars in 2019 (around 183 million euros) to 13 million dollars (around 12 million euros). Other income fell from 48 million to 26 million dollars (approximately 44,5 to 24,1 million euros).

Already at a loss of $47 million (43,6 million euros) for the first quarter of 2019, operating revenues show a loss of $137 million (around 127 million euros) for the same period this year . F1's only real income comes from sponsorship contracts not linked to the events.

While it expects further losses for the second quarter, F1 has been able to reduce its operating costs from 52 to 43 million dollars (around 48 to 40 million euros). Advance payments made to the teams have not been recorded since they must only be taken into account when the Grands Prix are contested.