Formula E almost made a profit during the pandemic

0

The all-electric Formula E racing series almost made its first profit in the 2019-20 season, its sixth, despite the cancellation of nine of the 14 races originally scheduled in response to the coronavirus pandemic. Six of those races were ultimately held on a single track in Berlin, Germany, which, along with other internal changes, ultimately helped keep the series’ total costs down.

In total, Formula E lost just € 38,514 pre-tax in its sixth season, up from € 10.6m in season five (around $ 45,700 and $ 11.6m, respectively) , according to a new file filed with the UK Companies House Registry. This is despite the show making less money – revenue dropped to 143 million euros from 161.5 million euros in season five (169.6 million dollars and 177.6 million dollars, respectively), thanks to lost ticket sales and other lucrative sponsorship deals related to canceled races.

It was the first time that Formula E generated less revenue than the previous season. countries like Saudi Arabia. But while the pandemic has cost millions of people around the world their jobs, Formula E has actually increased the number of people employed in season six to 97, from 89 in season five.

It’s a remarkable testament to the success of the young series, which was widely teased when it launched in 2014, but now has more manufacturers than any other motorsport in the world. Automakers like Mercedes-Benz, Porsche, Nissan and Jaguar have flocked to the series because of its relatively low cost (especially compared to something like Formula 1) and because it’s an attractive way to promote their efforts. electrification. In fact, although BMW and Audi have announced that they will be leaving Formula E at the end of the seventh season, Formula E will still have more car manufacturers than other racing series.

Formula E has said on file that it expects to be able to generate increasing revenues now that it has protocols in place to deal with the pandemic and is back to hosting races in front of the fans. (The series just hosted two races in New York last weekend and is slated to wrap up season seven in August.) Although, if it struggles to do so, the series has built a bit more of a safety net. . According to the file, Formula E dramatically increased its cash reserve in season six, ending fiscal 2020 with nearly € 83million in the bank, down from just € 8.3million in the season. five ($ 98.4 million and $ 9.8 million, respectively).

Share.

Comments are closed.