Formula E chief executive Alejandro Agag has revealed that the electric car-racing series is set to make a profit for the first time during the 2020 season thanks to growing revenue generated from sponsorships, media rights and hosting fees.
In an interview with the Reuters news agency, Agag said the series would be spending more than ever on marketing but this is set to be offset by revenue generated from other sources.
Reuters noted that Formula E posted a loss of €26.4m ($30.1m) in the year ending July 31, 2018, and €20.8m for the previous year.
Agag told Reuters: “We are going to have our biggest ever marketing expenditure, many tens of millions. But even with that spend we are going to show a profit. It’s (down to) sponsors, city fees for some cities that are starting to get significant and media rights are starting to go up.”
Formula E last year unveiled Swiss industrial technology company ABB as its first title sponsor in a deal running until 2025.
Last month, Formula E extended its race-hosting agreement with Paris through a new three-year deal covering the 2019-20 to 2021-22 campaigns. The series also recently announced plans to stage a race in the South Korean capital of Seoul from 2020 under a five-year deal with local promoter JSM Holdings.