Williams F1 team suffered $161.6 million loss in 2023
Williams have reported a huge financial loss in 2023, but the company’s financial director Matthew Savage confirmed that the company’s losses have increased compared with 2022, but it has not been surprising.
Williams finished the 2023 F1 season in seventh place of the Constructors' Championship, having collected a total of 28 points and which was enough to beat their direct rivals AlphaTauri, Alfa Romeo and Haas. However, their financial position worsened compared to the 2022 season despite the more encouraging final position in the teams' standings.
The Grove-based company recorded a net revenue of AUD $243.42 million (£126.97m), down from AUD $273.87 million the previous year.
In addition to the lower revenue, the firm reported higher costs, which surged from AUD $259.86 million in 2022 to AUD $309 million in 2023.
The lower revenue and the higher costs translated into a gross operating loss of AUD $153.95 million (£80.298) and a post-tax loss of AUD $161.59 million (£84.286m). It was significantly higher than what Williams recorded the year before as it was only $34.31 million in 2022. (£17.894m).
Multiple factors contributed to that result, not least of which were the reduced prize money payments from Formula 1.
While Williams finished in P7 in 2023, the team found itself at the bottom of the teams' standings the year before which meant a much lower income from Formula One.
By contrast, the F1 income was significantly higher in 2022 as the team finished the 2021 season in eighth place, which brought with it improved prize money payments through 2022.
The British company also reported increased payments due to creditors, with liabilities of AUD $127.94 million the sharpest increase was due to accruals, which totalled AUD $76.64 million (up from AUD $38.1 million in 2022).
Despite the significantly higher loss, wage costs increased by 10 percent, with the squad’s average salary rising from £78,000 to £85,500.
Williams’ financial director Matthew Savage confirmed that the company’s losses have increased compared with 2022, but it has not been surprising.
“While losses have increased compared with 2022, this is in line with expectations and the Company’s strategy to continue investing in all areas of the business to drive both on-track and commercial performance in pursuit of success in the medium and long-term.
“Revenue was lower in 2023 as a result of lower commercial rights revenue associated with finishing 10th in the 2022 constructors’ championship (2021: 8th).
“The balance sheet remains strong with net assets of £67.3m as at 31 December 2023 (2022: £116.4m), providing a sound financial base on which to continue the team’s long term strategy of returning to the front of the grid and being financially sustainable.”
