Williams F1 Team Posts '15 Profit After Back-To-Back Third Place Finishes (Update)

UPDATE

Frank Williams

Back-to-back third place finishes in the world championship have helped "lift the Williams Formula One team out of the red," according to Kevin Eason of the LONDON TIMES.

Profits before tax were a "slender" Â£200,000 ($284,836) but that was a "substantial revival" from a loss of Â£31.5M in the year before. Larger payments from F1 CEO Bernie Ecclestone’s Formula One group of companies were the "main driver behind the improvement as the team placed behind Mercedes and Ferrari on the grid."

However, Williams is becoming a group that has "widened its focus from results on the racetrack, with interests in defense, green energy and even making golf clubs." The Williams Grand Prix Holdings parent business "saw revenues increase" from Â£90.2M in '14 to Â£125.6M last year. Pre-tax losses of Â£37M in '14 were also cut to Â£3.3M in '15.

Formula One remains "the most important activity, though, and bigger payments from F1" resulted in the track team’s revenues rising from Â£70.2M in '14 to Â£101.5M last year.

With "improved results has come increased sponsor income and interest, completing the perfect F1 circle as success breeds success."

Williams Group CEO Mike O'Driscoll said, "Our improved performance on the race track has also enhanced our power in the sponsorship market, with major brands such as Unilever, Avanade, BT and Hackett joining the Williams Martini Racing Team. We have also seen a number of our partners increase their commitments to the team, which demonstrates the continued strength of our brand." LONDON TIMES

JOINING THE CALL: REUTERS' Alan Baldwin reported Williams said that "it will seek a more even distribution of revenues under Formula One's next commercial agreement, joining calls by other teams ahead of negotiations to replace deals that expire in 2020."

Williams Deputy Team Principal Claire Williams said, "We have to bide our time. I imagine we will all start negotiating new terms … well ahead of 2020 and I hope that a revision and a re-distribution is something that's tabled as part of those discussions."

Formula One teams have individual deals with commercial rights holder CVC, represented by Ecclestone, which replaced the confidential "Concorde Agreement" that previously "governed the way the sport is run and revenues shared out."

Struggling smaller F1 teams like Sauber and Force India have long "argued that the distribution is skewed in favor of leading manufacturers, who receive special payments regardless of how they perform on the track."

Williams said that all teams "had signed up to the current terms but hoped the landscape would change."

Williams: "I very much hope so because I am a firm believer that sports should have equitable platforms to be successful. I wouldn't have an issue if Ferrari got a heritage payment, but not as great as it is." REUTERS

Williams GP Holdings financial results improve

04/11/16

Williams Grand Prix Holdings PLC today announced the Group’s financial results for the year ended 31 December 2015. WGPH is the holding company of the Williams group of companies, which includes Williams Grand Prix Engineering Limited.

Group revenue increased from Â£90.2m in 2014 to Â£125.6m last year. EBITDA improved from a loss of Â£37.0m in 2014 to a loss of Â£3.3m in 2015. The Group generated operating free cash flow of Â£2.7m for the full year. The increase in revenue is primarily due to increased commercial rights and sponsorship income following a significant improvement in on-track performance during the 2014 Formula One season.

The Formula One business generated revenues of Â£101.5m (2014: Â£70.2m), with an EBITDA of Â£0.2m (2014: loss of Â£31.5m). Williams Advanced Engineering generated revenues of Â£21.3m (2014: Â£17.8m) with an EBITDA of Â£2.1m (2014: Â£1.5m).

Mike O’Driscoll, Group Chief Executive Officer, said; “Our 2015 financial results represent a major improvement, with strong revenue growth and positive cash flow. Over the past two years we have completely restructured our business, and our results reflect significant progress, both operationally and financially. We were able to continue our resurgence on the track, and balance revenue and expenditure, despite enormous levels of competitive spending in what is sport’s most challenging financial environment. Williams Advanced Engineering continues to make excellent progress and contributes to our overall results.

“Our Formula One team achieved third place in the Constructors’ Championship for the second successive season in 2015, illustrating the clear step change we have made in our racing competitiveness since we began our restructuring. Commercial rights income is paid a year in arrears, and these accounts reflect our much improved third place in the 2014 Constructors’ Championship. Our improved performance on the race track has also enhanced our power in the sponsorship market, with major brands such as Unilever, Avanade, BT and Hackett joining the WILLIAMS MARTINI RACING team during the period. We have also seen a number of our partners increase their commitments to the team, which demonstrates the continued strength of our brand.

“Williams Advanced Engineering continued to build and strengthen its customer base in 2015, and also began to diversify into new market sectors, notably aerospace and defense. Its project portfolio has expanded significantly over the past twelve months, and there has also been an encouraging trend towards longer term contracts, enabling more robust planning. Williams Advanced Engineering has a solid platform for continued growth and we are encouraged by the progress of this exciting business.

“These financial results show that we are continuing to build a solid foundation for future sporting and commercial success."