Red Bull Racing revenues accelerate as profit drops

Red Bull Racing enjoyed a dominant season a year ago, winning 21 of 22 races – the most comprehensive performance in F1 history.

That saw its annual turnover increase from AUD $537.7 million to $594.7 million (£278.03m to £307.47m) to December 31, translating into gross profit of a decrease in gross profit from AUD $48.15 million in 2022 to AUD $38.09 million (£24.90m to £19.69m) last year.

While gross profit reduced, so too did its post-tax position, which moved from AUD $3.98 million to AUD $2.51 million year on year.

The report attributes much of the growth in its revenue to “success based payments, reflective of the teams (sic) performance on track in 2023.”

It also details the remuneration payable to its highest paid director, totalling AUD $13.54 million (£7m), with the ‘other’ director paid AUD $367,490.

Red Bull Racing has only two directors; Christian Horner and Helmut Marko.

The accounts must be taken with a grain of salt, as the squad has a complex relationship with related entities such as Red Bull Technology and Red Bull Advanced Technologies, which completes some F1-related work for the operation.

As such, some of its costs are tied up in those companies, as is some of its income, obfuscating the brand’s F1 financial figures amongst other non-motorsport related projects.

Red Bull Technology posted 2023 revenues of AUD $863.02 million (£446.2m), an increase of AUD $117.05 million on 2022 and a 2023 calendar year profit of AUD $21.33 million, while Red Bull Advanced Technologies saw revenues of AUD $20.62 million (£10.662m), realising a loss of AUD $67,700.

Back at Red Bull Racing, the F1 team’s report made specific mention of F1’s growth in the United States, and the value that brings given its own increased interests in North America.

“For 2023, the inclusion of the Las Vegas Grand Prix, in addition to the races held in both Austin and Miami, meant a third US based race, reflecting continued interest and success in a key growth market for the sport,” the report noted.

“Formula 1 has continued to demonstrate record attendances, with global fandom of the sport growing 4.8 percent YoY and race attendance in 2023 growing 3.4 percent versus 2022.

“Commercially, the Team’s performance continues to be exceptionally strong, acquiring seven new parterships, five of those HQ’d in the US, a territory the team has continued to generate mass appear in.

“In addition to these new partners, the team also renewed four major partnerships, two of which are over four year deals, demonstrating commitment to the long-term ambitions and value that the team offers brands.”