Liberty Media, Formula 1’s owner, reported total revenue of $1.381 billion, while operating income fell by 30%. The cancellations of the races in Saudi Arabia and Bahrain were particularly significant because the two events are among Formula 1’s most valuable races in terms of hosting fees. Liberty Media published the figures in its latest financial report, providing the clearest indication yet of the cost of the disrupted opening half of the season. Saudi Arabia and Bahrain cancellations prove costlyThe financial report underlines why Formula 1’s race calendar is so important to Liberty Media’s business model. Hosting fees, hospitality, sponsorship and event revenues all contribute to Formula 1’s financial model.