Ferrari has reported its best ever financial results

Ferrari has reported its best ever financial results with 2018 producing sales of 9,251 cars in 2018, an increase of 10.2 percent compared to 2017. This resulted in revenues of $3.9 billion and earnings of $901 million, which is an impressive 46 percent hike over the previous year.

The revenues included $580 million from sponsorship, commercial and brand revenue, slightly up on the previous year, which resulted from more sponsorship deals as well as more revenues from the F1 prize fund, which is reckoned to provide the company with around $200 million a year. The company reported slightly lower industrial and research & development costs, largely due to the fact that it spent less on F1 activities.

The marque is believed to be planning to spend more on F1 in 2019 as it continues its push to win a World Championship, something which it has failed to do since 2008. It is impossible to work out exactly what Ferrari is spending on F1, as the company makes it difficult to do, but some estimates suggest that the total is now higher than $400 million a year. 

With the planned F1 budget cap of $200 million in 2020, reducing to $135 million by 2023, the team is obviously going to need to find ways to save money, although the planned budget cap will not include a number of items - notably engine development costs - which are probably included in the current figures.

The Ferrari share price rose 10 percent when the news was announced and has retained the rise since then and is now back to where it was last October.

Source: JSBL