F1 team announces SHOCK $7.3 million profit drop

F1 News

F1 team announces SHOCK $7.3 million profit drop

Mercedes have released their 2023 season accounts which includes a drop in profits and an increase in turnover.

Originally written by Sheona Mountford. This version is a translation.

Wednesday 17 April 2024 05:00

Mercedes have recorded a $7.3m drop in profits after publishing their accounts for 2023.

Not only have the team suffered a drop, but they have also lost their star driver Lewis Hamilton to Ferrari, whilst enduring a miserable start to the season.

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When the British driver joined Ferrari, the company’s value increased by $7 billion, demonstrating Hamilton’s financial value as well as his racing abilities.

The report adds to Mercedes' woes, as they find themselves fourth in the constructors title behind nearest rivals Ferrari and McLaren.

Mercedes report a £5.9 million drop in profits

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Mercedes publish 2023 accounts

Mercedes are the first F1 team to exceed £500m (~$620m) in turnover and brought in $680m in total during their 2023 campaign.

2023 sees a $89.3m million increase in their turnover from 2022, however their profits have dipped from $111.4m to $104.1m.

Mercedes have increased spending on development in order to catch up towards F1 rivals, which boss Toto Wolff believes they have made ‘solid progress’ towards.

Speaking ahead of the Chinese GP he discussed how important the country is to the sport and the progress his team have made.

“Returning to China is an important moment for the sport. As the world's largest automotive market and second biggest economy, China is crucial to the sport's global footprint. The growth of F1 in recent years has been positive and China is a key market in which to continue this progress,” Wolff said, according to Crash.net.

“We are looking forward to racing in Shanghai for the first time in five years and bringing F1 back to the Chinese fans. With a sell-out crowd expected, I am sure it will be a fantastic event.”

“The headline results didn't necessarily show it, but we made solid progress with our car in Japan. We are looking forward to building on that this weekend.”

Lewis Hamilton Ferrari Mercedes McLaren