Formula E losses fall 36% in 2022/23 but remain more than US$45m

Formula E has seen revenues rise and losses fall in its accounts for the year ended 30th September 2023.

Confirmed:

• Revenue rises 21.2 per cent year-over-year (YoY) to €219.9 million (US$237.9 million)
• Marginal 2.6 per cent increase in cost of sales to €202.3 million (US$218.9 million)
• Losses fell 35.6 per cent from €64.9 million (US$70.2 million) to €41.8 million (US$45.2 million)

Context:

The revenue increase was largely driven by sponsorship revenue, according to Formula E, with extensions agreed with the likes of Julius Baer and DHL. The series also agreed a major deal with Hankook prior to the start of the 2023 season. 

A near €40 million (US$43.3 million) increase is significant, so it is important to factor in the principal partnership agreed in July 2022 with Aramco subsidiary Sabic. Indeed, this evolved into the Electric 360 partnership with Saudi Arabia’s Public Investment Fund (PIF) becoming principal sponsor, which will be reflected in the next accounts. Prior to this, PIF already owned a US$7 million stake in the all-electric series.

The small rise in costs came due to an increase in events, from ten to 11, and increased operational costs, but the series claims ‘the long-term financial performance of the series is expected to improve as the championship builds its fan base and expands [its] media following’.

The accounts also reveal that shareholders are supportive of the company’s plan for growth despite the consistent, significant financial losses. However, Formula E’s solvency continues to depend on its parent company.

The series did see improvements on the emission front, though. Overall, there was a 27 per cent reduction in absolute Scope 1 and 2 emissions compared to 2022. The season also saw 100 per cent sustainable power used for all but six locations.

Gross emissions fell from 33,842 tCO2e to 32,569 tCO2e YoY. This is despite an increase in flyaway races compared to the year prior (up from six rounds outside Europe to nine).

Coming next:

Formula E has just one round left of its 2024 campaign, with the ExCeL in London playing host to the season finale from 20th to 21st July.

Go deeper:

• Competitive racing, street circuits, and a US$250k bet: Why Formula E is making more noise about F1 than ever before
• How Formula E is balancing its sustainable mission with global expansion as it begins its Gen3 era