Liberty Media has posted its financial record for the second quarter of 2018 with a decrease in Formula 1’s revenue from 2017.

There is a five percent fall in F1’s revenue from April-June period in 2017 to 2018 with the income falling from $616 to $585 million – the primary income source saw a fall from $527 to $491 million, while the other revenue increased from $89 to $94 million.

The F1 teams though earned less from the prize money with the fall in their payments as it dropped by seven percent from $330 to $307 million. Taking in all the costs, administrative expenses, etc, the operating income fell by 69 percent from $45 to $14 million.

Even though there were seven races in the same period, the fall in income happened due to one less race last year while there was also one less flyaway race (Russia) in the first half of 2018 to an added European race (France).

Liberty Media states the flyaway races bring more income than European. In terms of revenues, it revealed that the change in the way of income recorded through partners and suppliers boosted its income – also through sale of new parts in Formula 2.

It also repaid $125 million of the debt it had. F1’s boss Chase Carey said: “The 2018 season continues to excite with unpredictable outcomes and a varied group of podium finishers. We successfully returned to France, at the Paul Ricard Circuit, for the first time since 1990 and hosted our second fan festival for 2018.

“We made progress across many fronts as we entered into an exciting global sponsorship agreement with AWS, renewed global sponsorship deals, renewed the Belgian Grand Prix and continued to expand on our digital content offerings.”

Full financial statement from Liberty Media related to F1:

“Primary F1 revenue is comprised of (i) race promotion fees, (ii) broadcasting fees and (iii) advertising and sponsorship fees.

“Broadcast revenue decreased due to the impact of slightly lower proportionate recognition of season-based income during the quarter (7/21races in the second quarter of 2018 compared to 7/20races in the second quarter of 2017).

“Race promotion and advertising and sponsorship revenue decreased in the second quarter primarily due to differing events on the calendar, with one additional European race taking place in the second quarter of 2018 (France) compared to one additional flyaway event taking place in the second quarter of 2017 (Russia), partially offset by fee inflation in underlying contracts. Typically, flyaway races such as the Russian Grand Prix carry a higher promotion fee than European races.

“Advertising and sponsorship revenue was impacted by the adoption of the new revenue recognition accounting standard (ASC 606), which accelerated the recognition of certain elements of fees related to F1’s Global Partner and Official Supplier contracts.

“These fee elements were previously recognized pro-rata with the race calendar, but the majority are now being recognized evenly over the calendar year and others over a smaller number of specific events. This change provided a modest tailwind to advertising and sponsorship revenue in the second quarter of 2018 but will be neutral on a full calendar year basis.

“Other F1 revenue increased during the second quarter primarily due to the sale of F2 component parts to competing F2 teams as 2018 marks the start of the next three year vehicle cycle for the championship.

“Operating income and adjusted OIBDA decreased in the second quarter. Cost of F1 revenue decreased modestly, driven by reduced team payments due to the pro rata recognition of such payments during the season, partially offset by increased costs associated with providing component parts to F2 teams and costs associated with increased fan engagement activities, freight, technical activities and digital media. Selling, general and administrative expense increased primarily as a result of increased marketing and research costs and foreign exchange movements.

“Total debt attributed to Formula One Group decreased $354 million during the quarter primarily as a result of debt repayment. During the second quarter, F1 repaid $125 million under its revolving credit facility.”