P1racenews AI automatic summary:
It was a strong year for Mercedes’ F1 team, both on and off the track.
The parent company of the Mercedes Formula 1 team reported a 16 percent increase in revenue for the 2024 calendar year, driven by growing commercial income and enhanced on-track performance. Mercedes Grand Prix Limited’s turnover rose from £546.5 million in 2023 to £636 million in 2024, as per accounts recently filed at the UK’s Companies House. The boost was mainly attributed to higher commercial revenues from sponsorship and licensing, comprising over 60 percent of total income. Benefiting from a larger share of F1’s prize money due to its 2023 constructors’ championship runner-up position, Mercedes saw a significant rise in profit, with earnings before interest and taxes (EBIT) climbing to £160.6 million. With a corporation tax rate of 25 percent in the UK, Mercedes paid over £40 million in taxes, resulting in a net profit of £120.34 million — almost 50 percent higher than the previous year. To reward its shareholders, Mercedes declared an ordinary dividend of £125 million, to be distributed in two portions of £75 million and £50 million, while also emphasizing a 2024 cumulative Advertising Value Equivalent (AVE) of $5.7 billion. Further, Mercedes announced the commencement of redeveloping its Brackley chassis facility and planning the construction of two new buildings in 2025 to enhance operational efficiency.
