P1racenews AI automatic summary:
Mercedes F1 generates £89m profit despite 2022 slump
Mercedes-Benz Grand Prix Limited reported a 24% increase in revenue to £474.5m compared to the previous year, primarily driven by higher F1 revenues, sponsorship deals, and work from its Applied Science Division. The team’s revenue breakdown showed that 51% came from sponsorship and licensing, while 30% was derived from the F1 prize fund. The Applied Science Division contributed to revenue through projects like the development of Ineos Britannia’s America’s Cup sailboat. The accounts also revealed that the company approved a £75m dividend to shareholders, including team principal Toto Wolff and Ineos founder Sir Jim Ratcliffe. As the winners of the 2021 Constructors’ Championship, Mercedes carried forward approximately £71m in prize money to the 2022 financial report. The company increased its average monthly workforce to 1,114 employees while reducing wages by £14m annually. Their strategic report highlighted their aim to recruit 25% of new starters from under-represented backgrounds, which they surpassed with their Accelerate 25 initiative. Mercedes’ operational costs rose to £351m due to increased spending on car development, additional fly-away races, and inflation. The team also acquired ownership of its Brackley site and plans to upgrade facilities by 2025. After-tax profits reached £89.7m, demonstrating the team’s ability to thrive in the cost-cap era. The company’s Applied Science division has been successful in offering services to clients, including a partnership with Ineos Britannia for the America’s Cup, contributing to the team’s overall growth.
Source: Motorsport Week
