The revenues of Liberty Media increased for the second quarter as well of 2019 F1 season as per the latest postings made by the company.
Like seen in the first quarter postings of the 2019 F1 season, the second quarter has slight increase in overall revenue of F1 than 2018. Both the years had similar number of races at seven each.
Unlike 2018, where the total revenue was $585 million, there is a $35 million increase in 2019 between April and July, which sits at $620 million. The primary income saw an increase which helped in better revenue.
There was an eighth percent positive change with the value being $531 million to 2018’s $491 million, which was mainly made possible due to the broadcast fees increase as race promotion and sponsorship fell slightly.
The mix of races in the period saw the other F1 revenue drop to $89 million from $94 million last year. At the same time, the Adjusted OIBDA though increased to $145 million from $136 million.
The operating income also increased by 86 percent as it stood at $26 million from $14 million. F1 noted about incurring about $10 million of corporate level selling, general and administrative expense.
Meanwhile, the explanation from Liberty Media on the second quarter revenues, read as:
Primary F1 revenue is comprised of (i) race promotion fees, (ii) broadcasting fees and (iii) advertising and sponsorship fees. Seven races took place in both the second quarter of 2018 and 2019, but the specific races held differed.
Race promotion revenue decreased due to the differing fees associated with specific races held in the second quarter of 2019 compared to 2018, partially offset by rate increases in the underlying contracts. Broadcast revenue increased primarily due to contractual rate increases.
Advertising and sponsorship revenue increased due to revenue from new sponsorship agreements entered into beginning in the second half of 2018. Other F1 revenue decreased in the second quarter primarily due to the mix of races, which resulted in lower TV production and Paddock Club revenue.
Operating income and adjusted OIBDA increased in the second quarter as revenue growth more than offset elevated costs. Cost of F1 revenue increased primarily due to higher team payments driven by our improved performance and the pro rata recognition of such payments across the race season. Selling, general and administrative expense decreased modestly primarily driven by the impact of foreign exchange rate fluctuations.
In addition, Chase Carey said: “F1 heads into our summer break on the heels of some unforgettable races. We’re excited by the growing competitiveness of Red Bull and Ferrari and the return of Honda as a winning engine supplier.
“We were thrilled to announce that season two of the Netflix Series: ‘Formula 1: Drive to Survive’ will air in 2020 and will feature all ten teams. We are pleased with our growth in revenue and profitability and on target to hit our goals for 2019.”