UBS AG expects revenue at motor racing business Formula One to grow 9.2% a year from 2011 to 2016, 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 reach USD 2.37 billion in 2016 from USD 1.52 billion in 2011, UBS analysts estimated in the report dated May 21.UBS, which is one of the joint global coordinators of Formula One's up to USD 3 billion Singapore planned initial public offering, forecasts earnings before interest, tax, depreciation and amortisation (EBITDA) to climb 7.6% a year over the same period.Formula One started premarketing the IPO on May 22, meeting potential investors to gauge demand for the deal ahead of an official launch expected in early June.Despite expectations the company will price the deal next month, Formula One's chairman Peter Brabeck told Reuters last week no decision had been made whether to proceed with the IPO. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
