Formula One world champions Mercedes are reaping the financial rewards of their track dominance, according to the team’s latest accounts.

Figures published by Mercedes-Benz Grand Prix Ltd yesterday showed a loss after tax of £22.3 million ($28.50 million) in 2015 from a previous £76.9 million with the team remaining on course to break even.

Turnover grew by £66.3 million thanks to additional sponsorship revenues and more money from the sport’s commercial rights holder as a result of the team’s improved 2014 performance.

Mercedes said their agreement with the commercial rights holder meant revenue flows based on sporting performance would be “significantly increased” from 2016 on-wards as a result of their track dominance.

“The future outlook for sponsorship revenues is also very promising,” the team added.

Turnover, which does not include any contribution from majority shareholder and Mercedes’ parent Daimler, has grown 86 per cent since 2011 – a current £213 million compared to £115 million.

We have been watching the growth of Formula E with great interest

– Toto Wolff

Operating costs rose by £8.1 million, or 3.5 per cent, mainly due to inflationary increases in salary costs.

Mercedes said that as of December 31, the company had negative net liquid assets of £130.1 million, compared to £90.1 million in 2014, with net liabilities of £109.3 million (vs £87 million).

Last year was another record-breaking season on the track for drivers Lewis Hamilton and Nico Rosberg, who remain dominant this year as well.

Hamilton won his third World Cham-pionship, and the Briton’s second in a row with Mercedes, in 2015 while Germany’s Rosberg again finished runner-up.

Between them they won 16 of the 19 races, with a record 12 one-two finishes.

The team also set records for most points in a championship season (703), most one-twos in qualifying (15), podium finishes (32) and equalled the record for pole positions (18).

Mercedes put the team’s advertising value equivalent (AVE) from broadcast alone at $3 billion in 2015, which they said represented 10 times the team’s operating costs.

The net cost of the team to Daimler was around $30m, effectively the net loss.

“Success is never down to one individual – it’s the product of an incredible collective effort,” said Mercedes motorsport head Toto Wolff, who has a 30 per cent stake in the team.

Meanwhile, it was revealed yesterday that Mercedes could enter the Formula E electric motor racing series in 2018-19 after taking an option to be one of two new teams.

“Mercedes-Benz Grand Prix Ltd (MGP) and Formula E Operations Ltd have signed an agreement by which Mercedes takes an option to enter the FIA Formula E Championship in Season Five,” they said.

“According to the option agreement, Mercedes may choose to be one of the maximum of 12 entries to be proposed by the championship promoter to the FIA to enter the 2018-19 Formula E Championship.”

The series has 10 teams at present, who are all expected to continue, with the two new entries to be allocated for 2018-19 subject to the approval of the governing International Automobile Federation (FIA).

The fifth season is set to be a milestone for the world’s first all-electric championship with battery development expected to allow drivers to complete races in one car rather than having to switch to a second one mid-race as at present.

Car manufacturers Renault, Citroen’s DS brand, Audi, BMW, Jaguar and India’s Mahindra are all involved in Formula E, whose 2016-17 season starts in Hong Kong this weekend.

“We have been watching the growth of Formula E with great interest,” Wolff told reporters.

“At the current time, we are looking at all the options available in the future of motor racing, and we are very pleased with an agreement that secures us an opportunity to enter the series in season five.

“Electrification will play a major role in the future of the automotive industry – racing has always been a technology R&D platform for the motor industry, and this will make Formula E very relevant in the future.”