Liberty Media has shared details of Q2 for F1 2020 as COVID-19 pandemic hurts their numbers when compared to the same period in 2019.
It was similar scenes when Liberty Media posted its Q1 results few months back for F1 2020 in comparison to 2019 and Q2 is not any better after it saw no races in the period due to COVID-19 pandemic, to the seven held last year.
The total revenue without any cuts stood at $24 million in F1 2020 Q2 to 2019’s $620 million as per Liberty Media, where the primary and other income stood at $12 million each to $531 million for the former last year and $89 million for the latter.
The operating income continued to be in a loss from Q1 to Q2 at $122 million, whereas at the same time last year, it was $26 million in positive. F1 team payments continued to show zero value as per the pro-rata system at place with Liberty Media.
It added that they incurred $13 million of corporate level selling, general and administrative expense in Q2. “We were excited to return to the track in July and have now completed five races of what we expect will be a 15 to 18 race season,” said Chase Carey.
“During the break we continued to move the business forward with a reduced cost cap for the 2021 season, and announced new broadcast and sponsorship deals. We reengaged with added purpose and determination, announcing our #WeRaceAsOne platform, underpinning our sustainability, diversity & inclusion and community strategies.
“#WeRaceAsOne was launched as an initiative to further our sustainability efforts, to stand united against racism, in fight against COVID-19 and to further address inequality and diversity in Formula 1. We are thankful to the FIA, teams, promoters, our employees and other key partners that made this return to racing possible.”
The full statement from Liberty Media explaining Q2 results of F1 2020:
“Primary F1 revenue is comprised of (i) race promotion fees, (ii) broadcasting fees and (iii) advertising and sponsorship fees. Due to the outbreak of COVID-19, there were no F1 races held in the second quarter of 2020. The 2020 F1 season commenced the weekend of July 3 and is expected to continue through December with a target calendar of 15 to 18 races. F1 and its partners are currently evaluating plans for a reduced number of fans to safely return to certain races in some capacity in 2020.
“Since there were no events held during the second quarter of 2020, revenue recognition was limited, with recognized primary F1 revenue in the period consisting only of the elements of sponsorship contracts associated with non-race related rights. No race promotion fees nor broadcasting fees were recognized. Similarly, other F1 revenue decreased due to zero revenue being generated from the Paddock Club and other event-based and television production activities.
“Operating loss increased and Adjusted OIBDA decreased in the second quarter. There was no team payment expense recorded, since such payments are recognized on a pro-rata basis as races take place on the calendar. Other cost of F1 revenue is largely variable in nature and mostly relates directly to revenue opportunities. These costs decreased primarily due to no races taking place and the deferral of non-critical expenses.
“Selling, general and administrative expense decreased due to lower personnel costs and lower discretionary marketing expenditures, partially offset by the effects of foreign exchange related losses. F1 implemented certain cost cutting measures in the second quarter, including the elimination or deferral of non-essential expenditures, salary reductions and lower bonus accruals.
“F1 also utilized UK government-supported furloughs in respect of approximately 50% of its employee base for varying periods between April 3, 2020 and June 30, 2020. Personnel costs are expected to return to more normalized levels in the third quarter as most furloughed staff returned to work in advance of the F1 season commencement.”
Here’s details of Q1 of F1 2020 from Liberty Media
Here’s details from Q4 and the whole 12 months of 2019 from Liberty Media