Juventus reports losses

The Serie A club announced its results for the six months ended December 31 2004. Pre-tax losses fell by 67.4% to reach €9.1m compared with €27.9m the previous year. Turnover increased by 6.5% to reach €95.5m compared to €88.5m in the first six months of the previous financial year. The entire rise in revenue can be attributed to an increase in income from broadcasting which increased by €6.4m or 12.4% to reach €58.3m, ticket sales rose marginally to €8.5m, sponsorship and commercial income was stagnant at €26.1m (a rise of only 0.8%) and other revenues actually fell from €3.6m to €2.6m. The additional broadcast income was mainly due to increased money from the sale of television, radio and mobile phone rights for the club’s participation in the UEFA Champions League based on increases already contracted for and the new agreement with the Mediaset Group for the sale of digital “terrestrial” rights. Operating costs rose by 6.8%, partly because of a rise of 5.1% in personnel costs (stemming from new contracts agreed with players joining the club after its activity in the July-Auguts transfer window) and from increased expenses for services up by €1.8m to €12.5m. The turnaround in the club’s financial performance in the first half of the year compared to the same period the year before is explained totally by its activity in the transfer market with an increase in net profits from player trading rising from €4.0m in 2003 to €16.9m in 2004. The club’s net financial position at December 31 2004 was negative with net debt of €20.5m.

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