Mercedes-Benz Grand Prix Ltd., the company behind the Mercedes Formula 1 team, shared its financial report for 2023. They made £546.5 million in turnover, which is how much money they brought in from sales and other activities. This is a big increase from the £474.6 million they made in 2022.
Comparing this to Red Bull Technology, the company that runs Red Bull’s F1 team, they made £385.6 million in 2022.
Even though Mercedes made more money, their profits went down a bit. They made £83.8 million in 2023, compared to £89.7 million in 2022. This happened because they had to spend more money and pay higher taxes in 2023.
They spent more on developing their race car for the next season. This includes making changes to their car for the 2024 season. They also worked on parts for other teams, like Williams and Aston Martin.
Mercedes hired more people in 2023, with 175 new staff, bringing the total to 1289 employees. This made their salary bill go up to £111.7 million from £82.1 million in 2022.
Their tax bill also went up because the government raised the corporation tax rate. Mercedes had to pay £32.5 million in taxes in 2023, compared to £8.6 million in 2022.
Even though their profits went down, their business is still strong. They made £113.8 million in earnings before interest and tax in 2023, which is similar to what they made in 2022.
Mercedes did well in the F1 championship, finishing second behind Red Bull in 2023. However, they got less TV coverage because they didn’t have as many podium finishes. But they still did well in other areas. Their sponsors and shareholders got good value from the team, and their social media following grew.
They also got new sponsors and improved their hospitality offerings for VIP guests at races. Forbes estimated the team’s value to be $3.8 billion in July.
