Formula E suffers losses due to pandemic after a strong start
Revenue figures for the fifth-season of Formula E show that the organization was heavily hit by the effects of the pandemic, particularly when considering its strong start. The fresh take on the world’s most popular racing series has seen the company come closer and closer to breaking even in most of its seasons, a feat that, though impressive, was undoubtedly made possible by the company’s big-name backers such as Liberty Media and Discovery Communications, along with a lucrative 10-year deal with Saudi Arabia that would mandate frequent events in the Middle Eastern nation.
Despite losses in every season, the series became more and more profitable
The fifth season was by far the most profitable for the company, with a revenue of $177.6 million and a loss of $11.6 million. This follows the upwards trend that the company has had since the beginning. The racing series started off its first season with a loss of $63 million and a revenue of $21 million, followed by a jump to a revenue of $57 million and a loss of $39 million during the second season. The third season saw the margin draw closer, with the company earning $106 million with a loss of $21 million. This was followed by an even more profitable fourth season which earned the company $149 million along with a loss of $29 million.
However, like most other events of a similar nature, the pandemic has forced the company to reorganize and placed the sixth season into question. The sixth season was delayed as the pandemic struck, but perhaps more importantly, the delay caused a postponement or possible cancellation of its much-awaited new model. The organizers, however, revealed that another promising vehicle design should be ready for the 2022-2023 season.