Mercedes’s most recent publicly available financial statements show that the team has surpassed a £500 million turnover, making it the first in Formula 1.

Mercedes-Benz Grand Prix Ltd., the team’s management firm, reported £546.5 million in revenue for the year that concluded on December 31, 2023.

Compared to the 2022 figure of £474.6 million, this amount shows an increase of £71.9 million.

In contrast, the business that owns Red Bull F1 Team, Red Bull Technologies, had a turnover of £385.6 million in 2022.

Mercedes’ Brackley-based company did, however, record a tiny decline in profits, down to £83.8 million from the £89.7 million it announced in 2022, despite the company’s increased turnover.

This is the outcome of a number of variables, including greater tax payments and rising costs in the fiscal year 2023.

The development assets for race cars, which are carried over to the next season, increased from £41 million in 2022 to £52.2 million in 2023.

This greater amount includes, in part, the additional cost of replacing its 2024 Formula One Challenger, which needed a new chassis for the current season.

The £52.2 million amount also accounts for the team’s early production of the 2023 gearbox and suspension parts that Williams, the customer, received this year. This work allowed the team to finish ahead of Aston Martin’s 2024 components.

Mercedes also announced a significant rise in average personnel, from 1114 in 2022 to 1289 last year, an increase of 175.

Due in part to the enhanced staff incentives awarded for the team placing second in the constructors’ championship rather than third the previous season, their payroll bill jumped by £29.6 million to £111.7 million from the £82.1 million it claimed in 2022.

The final profit computation also took several tax factors into account.

Due to a deferred tax asset included in the team’s 2022 financial statements, its 2022 profits were very high.

Due to this and the government’s decision to raise the corporation tax rate from 19% in 2022 to 25% in April 2023, Mercedes’ bill increased from £8.6 million to £32.5 million in 2022—a $23.7 million increase.

Overall profit was significantly impacted by the difference in tax payments from year to year, but the company appears to be on a strong basis as seen by its relatively consistent EBIT (Earnings Before Interest and Tax). For the year that concluded in 2023, it was £113.8 million as opposed to £113.6 million in 2022.

Mercedes improved on its 2022 performance and finished second behind Red Bull in the Formula One Championship in 2023, although it also claimed a decrease in broadcast coverage due to their reduced podium deliveries. Other aspects, though, demonstrated rapid increase.

“The team’s share of television coverage showed a small decline to 14.7% for 2023, reflecting the lower number of podium finishes the team enjoyed versus 2022,” Mercedes said in a statement included in the filings.

At $5.3 billion, the total Advertising Value Equivalent (AVE) for shareholders and business partners stayed robust. The group’s social media following grew to 36 million over time (+15%), and they have 465 million engagements overall (9%).

In 2023, the team expanded its global reach by welcoming seven new commercial partners and introducing a top-notch hospitality program at the Las Vegas Grand Prix. This move was made in response to the growing demand for VIP race attendance. Forbes pegged the team’s valuation at $3.8 billion in July.