Carey says F1 has abolished $1bn of debts

Published on 11 Aug 2017 12:04
image

Formula 1's CEO Chase Carey has revealed that F1 has eliminated $1bn in debts as Liberty Media reveal its financial results for the second quarter of 2017. Earlier this year, from April to June, F1 noted a 3% increase in revenues earning $616m.

Operating income fell from $90m to $45m as the costs of various events rose, such as the interactive and groundbreaking F1 Live, which was held in the city of London in the build up to the British Grand Prix. An offering of 12.9 million shares of stock allocated to $388m, which allowed F1's new owners to repay a second lien term loan.

A subsequent refinancing of debt has reportedly allowed that loan to be paid back in the full sum. The total debt for F1 decreased by $442m, but Carey said a total $1bn was successfully eliminated. He also admitted that spending costs will rise as the company plans to hire senior staff, but its spending plans would be refined before the end of 2017.

"The corporate head count has been sort of 70-75, and it has probably about doubled," Carey said to Autosport. "We're still building it out. We've hired most of the senior executives, but we haven't built the team out fully. We don't really have an appropriate digital platform today, so there are investments that we've made to support a digital platform for us going forward. In the next few months for the first time we're refining our plans around that."

 

Fergal Walsh



Replies (6)
SE calle.itw 11 Aug 2017 12:380
Posts: 2125
Quite the debt.
Avatar
Posts: 180
I'll bet the shareholders aren't. Doubling perhaps tripling the wage bill isn't exactly an auspicious start and I'll wager there'll be reduncies as early as next year.
Avatar
Posts: 180
Sorry! Reply to wrong poster. Meant for a pennypincher lol.
SE calle.itw 13 Aug 2017 11:140
Posts: 2125
Hehe no probs. :P
 
US ajpennypacker 11 Aug 2017 17:200
Posts: 132
Shows you how 'great' a job Bernie Ecclestone was doing... I am so happy there's new ownership.
SE calle.itw 13 Aug 2017 11:160
Posts: 2125
It all depends on where the money went. Ecclestone did however have a rumor of lining his own pocket with money from the show, so it would sadly not surprise me if thats where the money went. Either way, props to Liberty for recovering from such a debt without diminishing the quality of the show.
 

Test sessions
HU
        Grand Prix of Hungary
Local time
Give your opinion!
Would you like Formula 1 to have equal cars?





Track Hungaroring
 
Track Hungaroring
Location HU Budapest, Hungary
Website Website
 
Formula 1 Calendar
Previous Grand Prix: 30 July 2017
HU Grand Prix of Hungary Grand Prix of Hungary
Next Grand Prix: 27 August 2017
BE Grand Prix of Belgium Grand Prix of Belgium