Professional Documents
Culture Documents
In July 2013 FOWC and certain other Delta Topco Group companies (see note 31) entered into a further agreement with the FIA
pursuant to which the FIA has committed to enter into a new Concorde Agreement for the period to 2020 on substantially the same
terms as the 2009 Concorde Agreement.
On 25 December 2013 FOWC completed the liquidation of its other wholly owned subsidiary Formula One Organizasyon A.S., the
fonner promoter ofthe Turkish Grand Prix.
Trading performance
Taking into account the continuing effects of the global economic downturn on the countries staging the Championship's events
and in other territories with which the group does business, the directors consider the performance of the group during 2013 to
have been satisfactory, and believe that the group is wel! positioned at the reporting date.
The group's key financial and other performance indicators during the year were as follows:
Change
$m
Change
%
Srn
2012
Srn
Revenue
1,306.4
1,365.8
(59.4)
(4%)
1,083.4
1,174.4
(91.0)
(8%)
(797.S)
(751.8)
(45.7)
6%
285.9
422.6
(136.7)
(32%)
-I
(5%)
0.5
1%
2013
Team payments
EBITDA pre-exceptional costs
Championship races
19
68.8
20
68.3
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d
,
Turnover
2013
$ 000
1,294,320
2012
$ 000
1,352,199
Cost of sales
(850,349)
(781,997)
Gross profit
443,971
570,202
(157,154)
(148,290)
286,817
421,912
Administrative expenses
Operating profit pre-exceptional costs
Operating exceptional costs
Operating profit
Interest receivable and similar income
Interest payable and similar charges
7
10
10
14
4,102
(162,153)
290,919
3,037
(1,262)
259,759
1,495
(10,872)
292,694
250,382
(82,330)
(115,192)
210,364
135,190
, _.
__
, .
.A
_.
_"'~'~
'-Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The company is exposed to credit risk from its operating activities (primarily for trade and intra-group
receivables) and from its financing activities, including deposits with banks and financial institutions.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Financial instruments affected by market risk include loans and borrowings and deposits.
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates.
The fair value of financial assets and liabilities are the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.
6. Revenue
Revenue represents invoiced amounts, stated net of value added tax. Revenue is attributable to the group's principal activites
namely the sale of advertising and sponsorship packages and the provision of premium VIP event hospitality at Championship
events.
The analysis of the group's revenue for the year from continuing operations is as follows:
2013
2012
$ 000
$ 000
205,577
259,033
87,751
33,874
Total revenue
380,658
87,102
39,114
331,793
Other revenue includes revenues generated from the sale of other event-based commercial rights including support races,
vending, concessions and displays and programmes, none of which are considered individually material to th~ group.
The group is exempt from the requirements of IFRS 8 to disclose segmental information.
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