Ferrari’s CEO Louis Camilleri says the lack of Formula 1 action in 2020 has had a “big hit” on its financial situation, as the manufacturer revealed its Q1 results on Monday.
Sponsorship, commercial and brand revenue was down almost €40 million year-on-year, a large portion of which has been attributed to the absence of Formula 1 activities.
Reduced in-store traffic, and the closure of its museum to visitors, was also a factor.
Ferrari’s net revenues for 2020 were revised to between €3.4bn to €3.6bn, down from a pre-pandemic forecast of €4.1bn.
It also warned that its Q2 numbers will be weaker owing to the Q1 period covering the months of January to March.
Production at its Maranello and Modena facilities resumed on Monday following the longest factory closure in Ferrari’s history.
In line with government guidelines distancing measures have been put in place as the respective facilities ramp up to full production, which is expected to take place this Friday.
“There is no way we can offset the hit to the revenues on sponsorship fees, and especially on the revenues that are generated by the Commercial Rights Holder,” said Camilleri.
“The hit to revenue essentially goes down to the bottom line, with some minor offsets, but it’s a big hit. The good news is it’s confined to this year – hopefully.”
Camilleri voiced his optimism that the current forecasted reduction in Formula 1’s prize money will be a one-off, pointing to a return to previous levels for 2021.
“Our current thinking is that in terms of revenues, although it is somewhat unpredictable, in 2021 they should some back certainly, in terms of the races, which is a big part of it,” he said.
“In terms of sponsoring we know the Formula One Group has worked a lot on trying to attract new sponsors. This situation has delayed certain things but hopefully by 2021 that will come back.
“At this stage we don’t really foresee a continued reduction in CRH revenues, in terms of Formula 1 for next year, all things being equal.”