F1 revenues to grow near double digits till 2016: UBS

Wednesday, 6 June 2012 00:37 - - {{hitsCtrl.values.hits}}

Reuters: UBS AG (UBSN.VX) expects “strong growth” in revenue at motor racing business Formula One in coming years, driven by an increase in the number of races and rising advertising and sponsorship sales, a research note seen by Reuters on Wednesday showed.

Revenue should grow 9.2 per cent a year from 2011 to 2016, climbing to $2.37 billion from $1.52 billion over that period, UBS analysts estimated in the report dated May 21.

The growth rate will be lower than the 9.6 per cent in the 2003-2011 period, when Formula One added more races to the circuit.

The research note from UBS, one of the joint global coordinators of Formula One’s up to $3 billion planned Singapore IPO, gives a first peek into the finances of a business that has grown into a global franchise with some 515 million TV viewers eager to watch its 20 races that take place in 19 countries around the world every year.

Formula One started premarketing the IPO on 22 May, meeting potential investors to gauge demand for the deal ahead of an official launch expected in early June.