Formula E electric motor racing series skids to losses of £29m

Formula E, officially the FIA Formula E Championship, is a class of auto racing that uses only electric-powered cars. The series was conceived in 2012, and the inaugural championship started in Beijing on 13 September 2014.

Electric motor racing series Formula E charred up a net loss of £29.8m last year as start-up costs expedited.

The series, which launched in 2014, is the first all-electric single-seater racing championship. Its cars are powered by a 200kW motor providing them with a top speed of 150mph which is about 30 percent slower than their bigger brothers in Formula One, the highest class of single-seat auto racing that was sanctioned by the Fédération Internationale de l’Automobile, which only has twenty drivers.

Manufacturers such as Audi, BMW and Renault use the series to show off their green credentials, and it has expressed up to a string of city centre tracks as the cars generate no emissions and little noise.

Its Hammersmith-based holding company, Formula E Operations, created a net loss of £49.4m in its first season and while this narrowed by 46 percent in the year to 31 July 2016, records say this was pushed by taking on reporting and sponsorship agreements that were previously owned by another firm in the group.

Expenses rose by 9.6 percent to £76.3 million and exceeded its £47.8 million in revenue. The group covered the debt with £38.5m of loans from its Hong Kong-based parent Formula E Holdings (FRH), and its net liabilities quickened in line with this to £90.5 million.

The largest shareholder in Formula E is owned by Liberty Global, the owner of television network Virgin Media and a shareholder in ITV.

Liberty owns around twenty-five percent of the group and is succeeded by the investment vehicle of Spanish tycoon Enrique Banuelos.