Yesterday, Ferrari, the renowned Italian luxury brand, released its financial results for the third quarter, showing total revenue of €1.64 billion (approximately $1.79 billion at current exchange rates), marking a 7% increase from the same period last year.
Although vehicle shipments dipped by 2% to 3,383 units, Ferrari’s business model stands in stark contrast to high-volume manufacturers like Toyota, which moved 2.75 million vehicles in its latest quarter. Ferrari, however, focuses on exclusivity and high margins, bringing in over $100,000 in profit for each car sold.
“We always said we give a priority to the quality of revenues, not to the quantity,” Benedetto Vigna, Ferrari chief executive officer, revealed during the earnings call. “This is also the way you have to read the evolution of our business plan.” – he pointed out.
In 2024, car sales make up 86% of Ferrari’s revenue, but its quarterly earnings reveal more about its Formula 1 operations, which account for 10% of the brand’s business. Ferrari’s F1 revenue reached $190 million in the third quarter, marking a 20% increase from the previous year, partly due to its new title partnership with HP. Announced in April, this multiyear sponsorship has already shown a positive impact.
Through the first nine months of 2024, Ferrari’s Formula 1 revenue has totaled $531 million, up 15% year-over-year. This segment includes Ferrari’s presence in the World Endurance Championship as well as revenues from merchandising and licensing, strengthening the brand’s global reach.
Ferrari remains the most valuable F1 team and holds the record for the most titles, with 16 constructor championships—far ahead of second-place Williams, with nine titles. However, Ferrari’s last championship win was in 2008, while Mercedes and Red Bull have dominated with a combined 14 titles since then.
This season, Ferrari is not in contention for the drivers’ championship. Charles Leclerc is currently third in the standings, trailing Red Bull’s Max Verstappen by 86 points, with three races until the end of the championship, which means that Max Verstappen virtually secured his fourth consecutive title with his recent win at the Interlagos circuit. Meanwhile, Carlos Sainz holds fifth place, which helps the Italian side maintain a chance at the constructors’ title, as the team currently trails McLaren Mercedes by 36 points ahead of the Las Vegas Grand Prix.
“The recent victories and improvements in Austin and Mexico City have provided us with the boost we need to continue to fight in the last few races of the championship. The road till the end of Abu Dhabi … we will make all we can to fight till the very last lap.” – Benedetto Vigna concluded.
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