Formula E has reported a significant increase in pre-tax losses, highlighting the financial volatility that continues to challenge the all-electric motorsport series despite encouraging signs of audience growth and global engagement.
According to its financial results for the year ending 30 September 2024, Formula E’s pre-tax losses surged to €78.3 million (US$92.2 million), nearly double the €41.8 million (US$49.2 million) posted the previous year. This represents an 87.4% year-over-year (YoY) increase.
Revenue Drops, Race Calendar Shrinks
The electric racing series saw its revenue fall by 13.7% to €189.6 million (US$223.3 million), primarily due to a reduced race calendar in the 2023/24 season. Compared to the previous campaign, the series dropped stops in Cape Town, Jakarta, and Rome, while a planned race in Hyderabad was ultimately cancelled. Although new locations such as Misano, Tokyo, and Shanghai were added, the overall volume of race-related activities declined, impacting commercial returns.
Meanwhile, the cost of sales remained nearly flat at €202.1 million (US$238 million), creating a growing gap between income and expenditure.
Audience and Fanbase Continue to Grow
Despite the downturn in revenue, Formula E’s global reach continued to expand. The series reported a 35% increase in cumulative viewership, reaching 491 million, while its fanbase grew by 23% to 371 million. These figures underscore the championship’s growing relevance among motorsport enthusiasts and environmentally conscious audiences.
Still, the series remains financially reliant on its parent company to maintain solvency and fund ongoing operations. In a statement accompanying the report, Formula E noted that its shareholders remain “supportive” of its growth ambitions.
Sustainability in Focus
From an environmental standpoint, Formula E continues to lead on sustainability, though challenges persist. Gross emissions rose slightly from 32,569 tCO2e to 33,529 tCO2e. However, the series reported a 33% YoY reduction in Scope 1 and 2 emissions, with all races powered by 100% sustainable energy—except for Tokyo, which did not meet this benchmark.
Formula E’s Outlook: Building for Long-Term Value
In a forward-looking statement, Formula E emphasized its strategic focus on long-term growth:
“The long-term financial performance of the series is expected to improve as the championship builds its fan base and expands media following. Given the stage of growth, the main emphasis of the group continues to be on revenue and achieving profitability.”
Where Formula E Must Shift Gears
At 365247 Consultancy, we believe Formula E sits at a critical inflection point. While it continues to strengthen its environmental credentials and global fanbase, the inconsistency in event delivery and lack of profitability is a cause for concern.
To accelerate commercial sustainability, we recommend:
- Calendar Stability: Establishing core markets with fixed, recurring races to drive local fan bases and commercial partnerships.
- Localized Sponsorships: More agile, city-specific sponsorship models that leverage Formula E’s urban street circuit USP.
- Fan Monetization: Converting digital and broadcast audiences into revenue through tailored subscriptions, gamification, and exclusive content.
- Sustainability Leadership Positioning: Leveraging its ESG edge to attract long-term partnerships with sustainability-focused brands and governments.
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