Formula E Company Still in the Red Since 2014

The international electric car racing event, Formula E Jakarta, will be held on June 4, 2022.

According to the Jakarta Provincial Communications, Informatics, and Statistics Agency (Diskominfotik), this event can create economic, financial, and reputational impacts for Indonesia.

“The economic impact is the multiplier effect generated by the Formula E event, the financial impact is the profit obtained by Jakpro, and the reputational impact conveys the message that Indonesia is back to business,” explained the DKI Jakarta Provincial Diskominfotik in the *Katanya vs Faktanya Formula E* document released on Wednesday (29/9/2021).

The Company Has Suffered Losses for Six Consecutive Years

Although it is expected to bring economic benefits to Jakarta, Formula E Operations Ltd (FEO), the company that owns the Formula E brand, has been experiencing losses since its inception.

In the first year of the Formula E event, up to the financial year ending July 2014, FEO incurred a loss of £5.37 million, or approximately Rp96.6 billion (calculated at an exchange rate of £1 = Rp17,987).

In subsequent years, FEO's losses tended to increase, although the figures fluctuated, with the worst loss being approximately Rp788.3 billion by July 2015.

The lowest loss was recorded in September 2020, at approximately Rp956.8 million. In the first year of the pandemic, for the first time, FEO experienced a loss of less than Rp1 billion.

Formula E Revenue Trend Continues to Strengthen

On the other hand, FEO's revenue has also continued to grow each year, as shown in the graph.

In its first year, FEO only managed to record revenue of £1.13 million, or approximately Rp20.4 billion by July 2014.

This figure then continued to grow until it reached its highest point in July 2019, with total revenue of approximately Rp2.5 trillion.

Since the company's inception, FEO's revenue has only decreased once, in 2020 when the Covid-19 pandemic hit the world.

However, the decrease was not significant, and in the first year of the pandemic, FEO still managed to achieve revenue of approximately Rp2.2 trillion by September 2020.

(Also Read: How Much Are Formula E Jakarta 2022 Tickets?)