Ferrari suffer "very sizeable" financial hit "in high tens of millions"
Ferrari has revealed it will take a financial hit "in the high tens of millions" on its Formula 1 operations this year.
The impact of Covid-19 and a significantly reduced F1 calendar, given the prize money payments to the teams from F1 are directly linked to the number of races, means the Scuderia faces "a very sizeable hit", according to CEO Louis Camilleri.
In announcing its Q2 results, the company as a whole suffered a net revenue loss of €413million, down from €984m to €517m.
In terms of the sponsorship, commercial and brand revenues, within which the F1 team is included, and incorporates sponsorship agreements, commercial revenues, as well as revenues generated through the Ferrari brand, along with merchandising, licensing and royalty income, there was a drop of 37% to €83m compared to €131m in 2019.
Assessing the financial impact of this year on the F1 team, speaking in an investor call, Camilleri said: "Formula One this year will be, in terms of the P&L [profit and loss], the biggest hit we face."
Explaining, Camilleri added: "Because of the reduction in the revenues we receive from the commercial rights holder, as well as reductions in sponsorships, given the reduction in races, so it's clearly in the high tens of millions, in terms of the hit.
"We'll see in terms of next year, it should be better, because hopefully, by next year, we'll be back to a full-race schedule, and we will get the necessary revenues in terms of sponsorship and from the commercial rights.
"So it's a bit difficult to compare 2020 to 2021. But definitely in 2020, it is a very sizeable hit as we had anticipated in early May."
Echoing the recent comments of chairman John Elkann, who does not expect the Scuderia to be competitive again until 2022, Camilleri added: "There's no denying that we're facing a very difficult season, with a car that lacks performance on several levels.
"Our competitors, Mercedes, in particular, are incredibly strong and hats off to them. I can assure you that the team is working day and night to improve the car and that somehow addresses the cost impact.
"Although, we have to recognise that many elements have been frozen by the regulators, and the regulations that were put in place, given the economic uncertainty resulting from the Covid pandemic.
"I believe we have a very strong talent pool, which we will continue to strengthen, and I have every confidence in Mattia [Binotto] and his team going forward.
"As John Elkann said, it will take time, but the focus and determination to meet our ambitions remain intact."
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