Mercedes-Benz Grand Prix Limited’s full-year accounts, published today by Companies House in the United Kingdom, list an AUD $220 million operating profit.
Mercedes’ annual turnover was AUD $1.06 billion, up from $919.4 million in 2022, primarily as a result of higher sponsorship revenue.
That translated into an after-tax profit of AUD $162.3 million as opposed to $173.8 million the previous year, while it paid out $145.3 million in dividends to shareholders.
“The 2023 season began with the team on the back foot in terms of performance, but our reliability coupled with a strong driver pairing ensured solid points scoring during the early races,” the report noted.
“In a season dominated by Red Bull, and with a fluctuating battle for second position, solid technical development enabled the team to fight for P2 in the Constructors’ Championship as the car improved through the season.
“Although the team scored fewer podium finishes in 2022, and ultimately fewer points, P2 was secured ahead of Ferrari at the final race in Abu Dhabi.”
The annual report also notes a proposed ordinary dividend in the current financial year of $193.7 million, of which $174.3 million was due before the end of March and the remaining $19.4 million by June 2024.
The Mercedes-AMG Petronas Formula One Team, to give the F1 operation its full commercial name, is owned by Toto Wolff, Daimler, and Ineos, all of whom hold a one-third stake.
Ineos bought into the team at the start of 2022 as Daimler reduced its interest from 60 percent, and Wolff marginally increased his from 30 percent.
“In January 2024, the team confirmed that Toto Wolff (team principal and CEO) and James Allison (technical director) had signed long-term contract extensions with the team, providing leadership stability for the years ahead,” the report added of the company’s future outlook.
“The following month, Lewis Hamilton informed the team that he wished to activate an exit clause in his new driver agreement and that he would be leaving the team at the end of 2024.
“This departure, one year ahead of the expiration of the contract’s full term, gives the team an exciting opportunity to set its future course ahead of the major technical regulation changes in 2026.”
The report also details that the team experienced a 14.7 percent decline in television coverage, equating that to the reduced number of podium results it achieved.
However, it claims the Advertising Value Equivalent “remained strong for commercial partners and shareholders, at [USD] $5.3 billion,” while Forbes estimated the team’s value at [USD] $3.8 billion.
On diversity, equality and inclusion efforts, the operation exceeded its stated ambition of having 25 percent of new starters joining from under-represented groups, with 33 percent of new hires meeting those criteria.
The team has seen a near five percent increase in female staff (now 16.8 percent), and ethnic minorities representing 8.9 percent of staff (having been 3 percent) from when the business instigated its Accelerate 25 programme, a five-year programme to “build a more diverse, inclusive and performant team.”
Mercedes currently sits fourth in the 2024 constructors’ championship with 34 points, less than half of third-placed McLaren and only one more than Aston Martin in fifth.
Figures converted from GBP to AUD at 1:1.94
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