Electric car racing series has turned profitable in a span of five years.
The London-based company has reported a revenue of more than € 200 million for the year ending on July 31, which is Formula E’s fifth year of operations. This has results in earnings before interest, tax, depreciation and amortisation for the year at about €1m – the first year without a deficit, Formula E chairman and founder Alejandro Agag has revealed.Formula E during the period did not reduce its marketing budget of € 30 million.
The profits has primarily been recorded on a 25% growth on sponsorships, Agag has confirmed without revealing other financial details. German electricals group Bosch, Dutch beer maker Heineken, French champagne brand Moët & Chandon and Saudi Arabian Airlines have been new Formula E sponsors on board.
Formula E, which had struggled for survival after running out of money in the inaugural season, has undoubtedly made some big strides. Financial support from Liberty Global, and broadcasters Discover had kept the racing competition afloat.
“Reaching break-even is a historic moment for us,” Alejandro Agag has told Financial Times. “For a business that almost didn’t make it after three races, now after 60 races we reach breakeven — and with strong revenue growth — and that is going to continue.
“The biggest growth is coming from the consumer side,” said Mr Agag. “We are definitely diversifying our revenue streams.”
The series has also announced that a record total of over 400,000 spectators and ticket holders attended races in 2018-19, while viewing figures worldwide rose by 24 per cent to reach a “cumulative TV audience” of 411m across the 13 races.