The report of Mercedes-Benz Grand Prix Ltd. recorded a loss of £76.9 million in Formula One last year. According to Autosport website, the team had £240.2 million operating expenses in the 2014 season.

Based on the source, the overall expenditures of the team was £49.5 million higher than in 2013, wherein it only listed a figure of £190.7 million during that period. On the other hand, the losses incurred by the team was significantly higher in 2014 than in its previous year by £25.8 million.

The higher spending of the group was attributed to higher wages, more performance bonuses, and other costs arising from the regulation change in the sport. It noted that the overall wages of the employees in its payroll increased from £49.7 million in 2013 to £65.2 million in the following year.

However, turnover increased by £21.7 million. The 2014 figures was at £146.9 million compared to its previous year’s £125.2 million. The numbers were achieved thanks to the teams higher sponsorship profits and more income from the Commercial Rights Holder.

Mercedes cleared out though that the losses were within the allowed parameters of shareholders. It expects to improve its returns after that period though, especially now that the brand has established itself on top of the game as it has bagged both the Constructors and Drivers Championships this year. In fact, it seems to be going down a similar path again in the current F1 season.

In addition to its existing status in the sport, the management foresees an increase in revenue based on the cost reduction practices that they are now applying.