Formula 1’s disrupted 2020 season which has yet to get underway had an impact on Ferrari’s top and bottom lines during the first three months of the year.
Ferrari’s Q1 operating profit of 220 million euros – on a revenue of 932 millions euros – was down 5% from a year ago, as an increase in deliveries failed to offset the loss of income generated by the Scuderia following the cancellation of races.
As the Italian manufacturer warned of another problematic quarter ahead, it cut its profit forecast for the full year.
Overall, Ferrari’s sponsorship, commercial and brand revenue, which includes its F1 activities, generated 89 million euros, an amount that was down 30 % from a year ago.
“Formula 1 is undoubtedly the activity that will adversely affect our results in 2020 in the harshest manner and also the one that is by far the hardest to predict,” Ferrari chief executive Louis Camilleri told analysts and investors on a conference call.
“This clearly implies a drastic reduction in the revenues that are generated by the commercial rights holder, as well as sponsorship fees, our two primary sources of revenue.
“The hit to revenue essentially goes down to the bottom line, with some minor offsets. It’s a big hit.
“The good news is it’s confined to this year, hopefully.”
During Formula 1’s recent debate on the level of next years’ budget cap, Ferrari has resisted calls by F1’s midfield teams to lower the cost cap to under $145 million.
Camilleri was nevertheless hopeful the level will have a positive impact on F1’s economics.
“It remains our hope such a ceiling will render Formula 1 more economically sustainable for all participants while ensuring that it remains the premier racing championship globally and the source of significant advances in automotive innovation and technology,” said the Ferrari boss.
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