Healthy profits continue to roll in for Mercedes in F1

Another banner year for Mercedes in 2018 produced another round of healthy profits for the championship winning team according to its latest accounts.

Mercedes AMG F1’s revenues, sourced from its prize money sponsorship and parent company Daimler AG, improved only slightly from £337.2m in 2017 to £338.4m in 2019.

Overall costs year-over-year rose from £309.7m to £311.4m, leaving the Brackley squad with a nice post-tax profit of £13.3m.

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Relatively stable regulations in Formula 1 kept R&D levels in check, but Mercedes’ payroll continued to rise – from £87.2m to £93.7m – as it boosted its headcount once again.

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Daimler AG’s contribution to Mercedes’ budget in 2018 totaled £64.3m, a £4m boost from the previous tear.

However, the parent company received a £25.3m kickback generated by the leasing revenue associated with the power units supplied to teams by its Brixton HPP subsidiary.

©Mercedes

Overall, Mercedes enjoys a spectacular return on its investment in F1 when factoring in the massive TV coverage it receives from the sport and that is worth several billion dollars to its commercial sponsors.

“In parallel to the team’s success in recent seasons,” the team said,”the Mercedes-Benz brand has grown in value from $31.9bn in 2013 to $48.6bn in 2018 (as measured by Interbrand), with F1 making an important contribution to the brand’s status as the eighth most valuable in the world.”