Business news in digest: duo Magnussen and Povlsen lose big on F1 venture

In other news: house prices rise across Denmark, old-age employees less worried about losing job and the German market is most popular among Danish exporters

Lucie Rychla

Dec 23, 2016

The Danish racing driver, Kevin Magnussen, and billionaire Anders Holch Povlsen have lost a record amount on their Formula 1 venture. Their company called ‘Anpartselskabet af 1. april 2010’ has just announced an annual deficit of 76 million kroner before tax. This brings the company’s five-year deficit down to about 151 million kroner before tax. The company’s aim is “to invest in motorsport activities” and the latest annual report suggests action is already being taken to improve the earnings and capital base. According to Jyllands-Posten this is possibly done in the form of prizes and sponsorship revenue. Povlsen has been for many years supporting Magnussen’s racing career.

House prices rise across Denmark
The average price for a square metre in villas and semi-detached houses in Denmark increased by 3.2 percent in the third quarter of 2016 compared with the second quarter of this year. The Zealand region has registered the biggest increase, followed by North Jutland. Prices of apartments fell by 1.8 percent per in Region Zealand, while they increased by 3.8 percent in South Denmark region. The government expects house prices to grow by 4 percent both in 2017 and 2018.

Middle-aged employees less worried about losing job
Employees aged 50 and over have the lowest level of unemployment in Denmark, according to the confederation of Danish industry, Dansk Industri (DI). Unemployment in this group is down to 3.5 percent compared to the national average of just over 4 percent. The oldest employees are also the least worried about being made redundant, found the survey ‘Working Environment and Health in Denmark 2012-2020’. “Because of their high level of employment, I am tempted to conclude that maybe the oldest employees in the job market take more time to consider their situation and find a new job than their younger colleagues do,” said Steen Nielsen, the head at DI.

Germany popular exports destination
A survey carried out by Dansk Industri (DI) has revealed that Germany is by far the country in which Danish exporters are most interested. Of the 528 businesses surveyed, 223 said they were interested in the German market, while 120 were interested in exporting to Sweden, which came as second. Outside the EU, most businesses (128) are interested in the US market, while 63 expressed an interest in China. None of the surveyed companies are currently interested in exporting to Pakistan.