Porto reports losses

The Primeira Liga club announced operating losses of €12.8 million in the six months ended 31 December 2004. The sum is higher than the €12.6m losses registered in the previous financial term but lower than the €18.8m amount recorded for the period running between 1 July and December 31 2002. A statement from the club read: "The results should be analysed taking into consideration the seasonal effect of football plcs as a significant part of their operational benefits are made concrete in the second financial term at the end of the season when transfers have taken place." Despite the operating losses, the club will have generated a surplus due to the transfers of Ricado Carvalho and Paulo Ferreira to English Premier League club Chelsea and Deco to Spanish Primera Liga club Barcelona. Reported profits in the financial year ended between July 2003 and June 2004 came in at €24.8m but to repeat similar results the club must make a surplus of €37.6m in the second term of the current financial year. Revenue was up 20% to €27.1m, an increase the board has attributed to the positive impact made by the new Dragao stadium, while gate receipts rose to €7.5m and income from TV deals increased to €3.4m. Operational costs dropped by 15% to €38.6m. "These figures mostly reflect the salaries of the players and their growth is down to buy-out clauses and contract conditions agreed with new players," the statement added. Operational 'cash flow' improved, but its balance continues to be negative to the amount of €3.4m. The club, however, managed to reduce its total debts by €11.1m and they now stand at €101.9m. Porto today moves its listing from Euronext's soon-to-be-defunct Second Market to the main Euronext market, which is Portugal’s official stock exchange.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.