If there are no races, there is no money. That was v Formulas 1 clearly from the onset of the coronavirus crisis and the constant cancellations of races. It's April 7th Liberty Medium posted financial intermediate result for the first three months of the year 2020 and the numbers are expected to be very poor.
Taken as a whole, it is a company Formula 1 od Liberty Media experienced 84 percent sales intrusion. If in the first three months of last year they recorded revenues in the amount of 246 million dollars, only merged into their coffers this year 39 million. With that, traffic dropped by 207 million. After deducting her own expenses, she had Liberty Medium eventually a loss of amount 137 million dollars.
In fact, we should v the first three months to derive two races, but in fact there was none. Because of this, they did not record revenue from fees race organizers. It was not in the first quarter either revenues from television rights. The only money that flowed into the coffers was from sponsorship agreementsthat do not depend on races. Also other revenues, such as from paddock club, were absent. Otherwise Formula 1 states that due to the crisis also reduce costs, but this is far from enough. Last but not least, the caravan Formula 1 set off for the inaugural race in Australia, which, however, was canceled. They recorded here 43 million costs for an empty nothing, you might say.
However, in compared to 2019 leadership Formula 1 saved 96 million in another area, as they did not have to pay the teams cash prizes. Usually teams Formula 1 during the year, they receive installment payments based on profit forecasts. It should be noted here, however, that steps were introduced in April to help teams in these difficult times helps with money transfers. Pulled below the line, however, that means operating loss (profit minus operating expenses and depreciation) in the amount of $ 137 million. For comparison: Years 2019 je Formula 1 also recorded a loss in the first quarter, but this was only 47 million.
Now v second quarter, which is already running, there will also be no race. The introduction of the season is planned for July 5, and this is already in the third quarter. But it's April Liberty Medium take steps to mitigate the crisis. $ 1,4 billion were liquidated by internal redeployment and that money is now available for settlement of costs. Some teams also received money from this budget. Besides, it was around 50 percent of employees teams in the UK sent on hold. All these measures will be visible only in the report for the second quarter. In a press release accompanying the report for the first quarter, it is Liberty Medium reiterated that they want to carry out from July to December this year 15 to 18 dirk.
