F1: Mercedes posts record £636m revenue despite fourth-place finish
Shareholders, including Toto Wolff, set to share £125m windfall.
Despite finishing outside the top three for the first time since 2012, Mercedes F1 posted a record turnover of £636 million, latest accounts reveal.
Mercedes-Benz Grand Prix Limited’s revenue grew 16% from £546.5m in 2023, according to its annual report for the year ended 31 December 2024.
“This resulted primarily from higher commercial revenues from sponsorship and licensing which accounted for 60% of income in 2024,” the company said.
“This strong commercial performance coupled with close control of the cost base, resulted in annual EBIT of £160.6m.”
EBIT (Earnings Before Interest and Taxes) is the income generated from the company’s core operations and is referred to as operating profit.
Mercedes’ operating profit grew 41.1% from £113.8m the previous year. This metric is one of the company’s most important financial key performance indicators, according to the Group Strategic Report.
After taxes (£42.7m), profit for the financial year was £120.3m.
Mercedes is one of the most profitable teams on the grid. Additionally, the ongoing commercial boom in Formula One meant that the 2024 Constructors’ Championship results had no impact on the team’s finances.
The Brackley-based outfit finished the season in fourth, behind Red Bull Racing (3rd), Ferrari (2nd), and McLaren (1st). The last time the 8-time champions finished outside the top three was in 2012 when Sebastian Vettel and Red Bull dominated the track.
Since the new regulations came into force in 2022, the 2024 campaign has been the most successful year in terms of driver performance.
“In 2024, the team finished P4 overall in the Constructors' Championship,” the team said. “Notwithstanding this result, the team made notable year-on-year progress in key performance metrics including overall reliability (car performance), points scored, and claiming four Grand Prix wins, five further podiums and four pole positions.”
The 2024 season saw seven different drivers win races in an era largely dominated by Red Bull’s Max Verstappen, resulting in increased coverage and broadcasting income.
“The close competition on track led to a more even distribution of television coverage,” the company revealed. “Our share of coverage grew to 15.2% for 2024, reflecting improved on-track competitiveness and higher number of podium finishes.”
Sponsors and shareholders got more advertising value due to better visibility. The total estimated value of this TV exposure (Advertising Value Equivalent or AVE) reached $5.7 billion (£4.1b), an 8% increase from the previous year.
Shareholders to receive 125m in dividends
The shareholders Ineos Industries Holdings Limited, the CEO and Team Principal of Mercedes AMG Petronas F1 Team, Toto Wolff, and Mercedes-Benz Holdings UK Limited each own a third of the company, will receive £41.6m in dividends out of the £125m proposed.
Dividends are a distribution of profits or earnings by a company to its shareholders.
“The directors have proposed a final ordinary dividend in respect of the current financial year of £125m of which a minimum of £75m is due to be paid by the end of March 2025 and any remainder in full will be paid by July 2025,” the company said.
“The dividend comprises an element of previously undistributed earnings from prior years.”
Last year, Mercedes proposed £100m in dividends.
“The Directors look forward to competing in the new season and delivering a more performant and competitive championship campaign in the final year of the current regulations.”
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