Bernie Ecclestone deals drive Formula One firm’s turnover

Formula One boss Bernie Ecclestone has good reason to smile as testing for this weekend's Turkish Grand Prix gets underway today.

According to results released yesterday, turnover of Delta 3, F1's commercial rights-holder, increased 6.4% to $1.1 billion (£755.6 million) in the year to December 31.

The increase was driven by a slew of deals secured by Ecclestone, including sponsorship from Korean electronics firm LG which became F1's timing partner last year at an annual estimated cost of $15 million.

Around half of Delta 3's revenue comes from broadcasters, with the remainder split between sponsorship and fees paid by Grand Prix promoters.

The increase in turnover, combined with aggressive cost cutting, more than doubled
Delta 3's operating profit to $193.1 million.

The company's biggest cost is a payment of 50% of its underlying profits to the top 10 teams in F1, but even this was lower than expected last year.

The team payment only increased 4.4% to $54 million in 2009 since BMW left F1 before signing a new contract to stay in the sport.

Lower oil prices cut travel and freight overheads, and staff costs were slashed despite the company taking on eight employees.