Race winner Max Verstappen (NLD) Red Bull Racing RB18 celebrates at the end of the race with team mate Sergio Perez (MEX) Red Bull Racing RB18. 23.10.2022. Formula 1 World Championship, Rd 19, United States Grand Prix, Austin, Texas, USA, Race Day. – www.xpbimages.com, EMail: [email protected] © Copyright: Coates / XPB Images
Red Bull Technology Ltd, which oversees Red Bull’s Formula 1 operation, has reported increased turnover and profits over the course of its domination of the 2022 season.
Red Bull Technology effectively acts as the parent company to Red Bull Racing, with only 50 people employed by the latter.
Four individual but related companies operate out of the team’s Milton Keynes campus, including Red Bull Powertrains for current and future power unit development.
RBT reported a 13% year-on-year increase in turnover, reaching £385.6m. Profits also grew, rising from £8.6m the year previous to £13.4m.
For Red Bull Racing specifically, the team saw £278m in turnover, an almost £40m jump on 2021. Post-tax profits sat at £2m.
In 2022, the team claimed its first Constructors’ title since 2013. The achievement awarded Red Bull a greater slice of F1’s prize fund, contributing somewhat to the group’s financial success.
Red Bull also announced the incorporation of title sponsor Oracle ahead of the 2022 season in a deal reportedly worth £74m a year through 2026.
Found to breach the cost cap in 2021, the team stated that it was able to reduce production costs through “careful management of spend, strong relative performance and reliability, and limited race event accident damage.”
Max Verstappen (NLD) Red Bull Racing RB18. 20.11.2022. Formula 1 World Championship, Rd 22, Abu Dhabi Grand Prix, Yas Marina Circuit, Abu Dhabi, Race Day. – www.xpbimages.com, EMail: [email protected] © Copyright: Bearne / XPB Images
RBT also said that as a result of the £6.2m fine imposed by the FIA for the cost cap breach, administrative expenses were also up.
Auditors investigated the breach and the “circumstances and reasons” for it. After speaking to Red Bull bosses and the FIA, they deemed that the case was closed.
The championship-winning season came with a financial hit when accounting for team and driver bonuses.
The company’s headcount fell to 736 employees compared to 773 in 2021 and 934 in 2020. Staff have been redeployed to sister companies as the cost cap continues to impact outfits.
Red Bull’s power unit division has been split to create two distinct groups. One which will continue working on Honda power units through 2025, and one created in preparation for the arrival of Ford in 2026. Both operations function as a subsidiary of Red Bull GmbH rather than RBT/RBR.
In January 2022, Red Bull Advance Technologies Ltd was also incorporated as another subsidiary of the parent Red Bull GmbH group.
The Advanced Technologies division serves to utilise F1 technology outside of the sport, again in an effort to redeploy talent elsewhere to become cost cap compliant.
The Advanced Technologies division has been involved in the development of the RB17 hypercar, and also “hydrogen-powered racing cars, racing motorbikes, elite racing bicycles, high-performance sailing boats and even hot air balloons.”
Turnover for RBAT was noted as £6.1m with a headcount of 70 people. Red Bull Advance Services Ltd supplies support to all the above-mentioned entities and declared turnover of £3.6m.
Keyword: Red Bull declares turnover and profit boosts in 2022