The ABB FIA Formula E Championship is set to make its first profit in five seasons according to series founder and CEO Alejandro Agag.
Formula E's inaugural season commenced in 2014 in Beijing and after five seasons, has failed to turn a profit, with the series seeing both its revenues and losses rise in 2018, showing a £22.6 million pre-tax loss for last year.
Since 2014, the all-electric single-seater series has lost £142.2 million, however, according to Agag, is set to make its first profit in 2020 through revenue growth through sponsorship, media rights and hosting fees.
“We are going to have our biggest ever marketing expenditure, many tens of millions," Agag told Reuters.
"But even with that spend we are going to show a profit. It’s [down to] sponsors, city fees for some cities that are starting to get significant and media rights are starting to go up.”
This expenditure on marketing is expected to be mitigated by several deals between the series, with ABB holding a contract to be championship's title partner until 2025, signed last year.
For next season, Formula E will visit a number of new venues, holding a five-year deal to compete in South Korea with a race in Seoul while the series will return to London for the first time since its second season of competition.
Esteemed German car manufacturers Mercedes and Porsche will also join the championship for Season 6 which will commence on November 22 later this year.
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