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Formula E records further losses

Formula E has again recorded substantial losses as the cost of establishing the electric car-racing series impacts on its organisers.

UK newspaper The Telegraph said the series’ London-based holding company, Formula E Operations, made a net loss of £29.8m (€33.9m/$37.9m) for the year ending July 31, 2016. This compares to a loss of £49.4m for the period covering Formula E’s debut season in 2014.

The accounts said the improvement in the financial situation was due to taking on broadcasting and sponsorship agreements that were previously held by another company in the group. While Formula E Operations generated £47.8m in revenue, costs rose by 9.6 per cent to £76.3m.

Commenting on the financial results, Formula E chief executive Alejandro Agag said organisers are comfortable with the series’ position. “Everything is going according to plan,” he told the Reuters news agency. “Actually we are doing incredibly well financially according to our plan.

“We could have broken even this year but we decided to invest more in marketing and promotion. We decided to add races like the one in New York, which is in year one a race which is costing, we have significant capital expenditure. It’s really up to us when we want to go to break even or not. We could be in break-even now, we could be in break-even next season but we may decide to invest more in marketing and promotion.”

The International Automobile Federation (FIA) last month confirmed the calendar for the 2017-18 Formula E season, with new events to be held in Brazil, Chile and Italy. The fourth edition of the series will comprise 14 races – the most events since the championship’s inception. The season will be held across 11 cities in five continents, and will run from December to July.

The season will begin in Hong Kong for a second year running on December 2-3, with the event to mark the first double-header to take place in Asia. Marrakesh in Morocco will return to host its leg on January 13.

The series then travels to the Chilean capital of Santiago for the first time in February before Mexico City stages an event on March 3. Sao Paulo in Brazil will make its series debut two weeks later, before the Italian capital of Rome stage its first-ever Formula E event in mid-April.

Paris in France will return to host an ePrix on April 28, before a German leg takes place at a to-be-determined location on May 19. A further event will be held on June 9, details of which have not been finalised.

New York City will stage a double-header on July 7-8, before the season concludes with another two-race weekend in Montreal, Canada, on July 28-29.