F1 News, Reports and Race Results

Ferrari first quarter results hit by Formula 1's hiatus

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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Phillip van Osten

Motor racing was a backdrop from the outset in Phillip van Osten's life. Born in Southern California, Phillip grew up with the sights and sounds of fast cars thanks to his father, Dick van Osten, an editor and writer for Auto Speed and Sport and Motor Trend. Phillip's passion for racing grew even more when his family moved to Europe and he became acquainted with the extraordinary world of Grand Prix racing. He was an early contributor to the monthly French F1i Magazine, often providing a historic or business perspective on Formula 1's affairs. In 2012, he co-authored along with fellow journalist Pierre Van Vliet the English-language adaptation of a limited edition book devoted to the great Belgian driver Jacky Ickx. He also authored "The American Legacy in Formula 1", a book which recounts the trials and tribulations of American drivers in Grand Prix racing. Phillip is also a commentator for Belgian broadcaster Be.TV for the US Indycar series.

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