Ferrari's total revenue remained stable in 2023, with a slight increase of 0.21%1, which suggests that the drop in engine revenue is not a primary factor in the overall revenue decline. However, specific data regarding engine revenue is not available. Ferrari's revenue is primarily derived from car and spare parts sales, with a significant portion coming from engine sales to other manufacturers for use in their own vehicles. The decline in engine revenue can be attributed to several factors:
- Decrease in Media Rights Income: In the context of Formula 1, a similar situation was observed where revenue declined due to a decrease in media rights income2. It is possible that Ferrari, or its engine manufacturing division, experienced a similar decline in income from licensing its engines to other manufacturers.
- Strategic Portfolio Adjustment: Exor N.V., a significant shareholder in Ferrari, reduced its stake in the company in 20253. This strategic move could indicate a reassessment of the value or potential of Ferrari's engine business, suggesting that the revenue from this segment may not have met expectations or may have been seen as less profitable in the broader portfolio.
In conclusion, the drop in Ferrari's engine revenue in 2023 is likely a result of a combination of factors, including a decrease in media rights income and a strategic portfolio adjustment by a major shareholder. Specific data regarding engine revenue is not available, but these factors provide a plausible explanation for the overall revenue decline.