Juventus

(63.77% of share capital)

 

 

 



The following are Juventus Football Club S.p.A.’s results for the first half of the financial year 2011/2012:

€ million
Half I 2011/2012 Half I 2010/2011 Change
Revenues 85.4                     88.8 (3.4)
Operating loss (31.8) (37.7) 5.9
Loss before taxes (33.9) (38.4) 4.5
Loss for the period (34.6) (39.5) 4.9
€ million
 12/31/2011  6/30/2011 Change
Shareholders' equity 31.8 (5.0) 36.8
Net financial position (125.1) (121.2) 3.9

Interim data cannot be construed as representing the basis for a full-year projection.

For a correct interpretation of the six-month data it should be noted that Juventus’ financial year does not coincide with the calendar year but covers the period July 1 – June 30, which corresponds to the football season.

Economic performance is characterized by the highly seasonal nature typical of the sector, determined mainly by the calendar of sports events and the two phases of the football players’ Transfer Campaign.

The loss in the first half of the 2011/2012 financial year is €34.6 million, against a loss of €39.5 million in the same period of the prior year. The positive change of €4.9 million is mainly due to higher ticket sales (+€8.6 million), higher revenues from sponsorships (+€3.7 million), lower costs related to players and technical staff (+€4.4 million), lower expenses related to players' management (+€6.5 million) and the absence of non-recurring expenses (+€7.4 million). These changes are partially offset by lower income from television rights and media income (-€8.2 million), lower revenues from players' registration rights (-€7.2 million), higher amortization of players' registration rights (-€5.9 million) and higher amortization on other assets (-€3.6 million).

Revenues in the first half of 2011/2012 total €85.4 million. This is a decrease of 3.8% compared to €88.8 million in the first half of 2010/2011.

The amount of revenues from television rights recognized in the first half of the 2010/2011 financial year came from an estimate carried out prior to the ruling on the so-called "catchment area" dispute, only resolved in July 2011 with an additional penalization of the revenues estimated by Juventus, totaling around €9.8 million, entirely recognized in the fourth quarter of the 2010/2011 financial year. As a result of this penalization, the television rights of the first half of the 2010/2011 financial year would have been €4.1 million less. 

Shareholders’ equity at December 31, 2011 is €31.8 million, an increase compared to the negative balance of €5 million at June 30, 2011 owing to the payment made by the parent EXOR S.p.A. against the future increase in capital (+€72 million), the loss for the period (-€34.6 million) and adjustments to the cash flow hedge reserve (-€0.6 million).

The Net financial position at December 31, 2011 is a negative €125.1 million compared to the negative balance of €121.2 million at June 30, 2011. The negative change of €3.9 million is primarily due to investments for the new stadium of €36 million and net disbursements relating to the Transfer Campaign of €38.6 million, partly offset by the payment of €72 million by EXOR S.p.A. against a future capital increase.

Significant events

2011/2012 Transfer Campaign – first phase
The in-depth upgrading of the First Team that had already begun last year, continued in the first phase of the 2011/2012 Transfer Campaign. This led to various disposals and significant investments to complete the changeover of the team and raise the quality level.
The operations completed in the first phase of the Transfer Campaign 2011/2012, held in Italy from July 1, to August 31, 2011 (and up to September 5, 2011 only for some foreign markets) entailed a total increase in the capital invested of €85.3 million deriving from acquisitions for €91 million and disposals for €5.7 million (net book value of the registration rights sold).
The net gains generated by the disposals came to €5.6 million. Moreover, the temporary acquisitions and disposals produced net revenues for €1.5 million year-over-year.
The overall net financial commitment (including additional expenses capitalized and implicit financial expenses and revenues on deferred receipts and payments) amounts to €79.2 million, divided as follows: €35.8 million in the financial year 2011/2012, €22.6 million in the financial year 2012/13 and €20.8 million in the financial year 2013/14.

2011/2012 season ticket campaign 
A total of 24,526 season tickets were sold for 2011/2012 season, including Premium Seats, for revenues of €15.1 million, including additional services.
Compared to the 2010/2011 football season, a 63.5% increase was recorded in the number of season tickets and a 190.4% increase in terms of revenues.

Inauguration of the new stadium
With the inauguration of the new stadium on September 8, 2011, the most important property investment in Juventus Football Club’s history was completed and a new phase opened up in which Juventus, for now, is the only Club in Italy to have its own stadium built to the highest modern architectural standards.

Final distribution of loans contracted with Istituto per il Credito Sportivo
On October 25, 2011, Istituto per il Credito Sportivo disbursed the last tranches, for a total of €15 million, of the loans granted for the construction of the new stadium. Therefore, the two loans (for a total of €60 million) are being amortized from November 1, 2011 over 12 years at a fixed rate equal to the IRS 6-year rate (recorded on October 21, 2011) plus 220 bps, and therefore, equal to 4.383%. The loan will also benefit from an interest rate subsidy, determined according to prevailing law. 

Line of credit granted by the parent company EXOR S.p.A. and payment against the share capital increase
Starting on July 1, 2011, the parent EXOR S.p.A. granted the company a €70 million line of credit for to be used for cash needs until December 30, 2011, the date originally scheduled for the completion of the capital increase transaction. Specifically, the contract included the following economic conditions:

  • Amount and due date: maximum of €70 million to be repaid by the due date of December 30, 2011.
  • Drawdowns: drawdowns of one or more tranches for a minimum amount of €5 million.
  • Settlement and payment of interest: interest settled and paid monthly at the end of each calendar month.
  • Interest rate: interest rate revisable monthly and equal to the 1-month Euribor rate plus a 2% spread.
  • Early repayment: without any penalty, with Juventus having the option to repay all or part of the amount drawn down giving notice of two business days; minimum repayment amount equal to €5 million.
  • Revocation: without any penalty, with EXOR having the option to request repayment of all or part of the amount drawn down, giving notice of two bank business days. 

The transaction fell under Juventus' ordinary operations and was finalized at arm's length; among other things the interest rate on the EXOR line of credit matched that of one of the major lines of credit granted by a bank.
After approving the financial statements at June 30, 2011, which closed with a loss of €95.4 million that completely eroded shareholders' equity, EXOR S.p.A. paid in €72 million on September 23, 2011 against a future issue of share capital to ensure that Juventus operated as a going concern.
Thus on the same date Juventus extinguished the line of credit granted by EXOR S.p.A., repaying the total amount drawn down up to that date, amounting to €47.5 million; the interest expenses generated by the transaction totaled €0.3 million.

Resolutions by the ordinary and extraordinary shareholders’ meetings
The shareholders' meeting held on October 18, 2011 approved the financial statements at June 30, 2011 and motioned to cover the relative loss of €95.4 million by:

  • full use of reserves for €70.3 million, recorded in the financial statements as at June 30, 2011;
  • reduction of share capital for €20 million, upon elimination of the par value of the shares, to the minimum required amount for limited liability companies, equal to €120,000;
  • use of the share premium reserve which will be replenished following the share capital increase for a maximum of €120 million approved by the same shareholders' meeting held on October 18, 2011, for the remaining €5.1 million.

On December 15, 2011, following issue of Consob’s approval to publish the Prospectus relating to the subscription rights and admission to listing of the shares from the issue for the capital increase for a maximum of €120 million (the "Offering"), the board of directors decided to implement the share capital increase through the dematerialization of a maximum 806,213,328 new no par value ordinary shares with the same characteristics as those in circulation and regular rights (July 1, 2011). The shares were offered as an option to shareholders, at the issue price of €0.1488 per ordinary share, of which €0.1388 is share premium, in a ratio of 4 new ordinary shares for every 1 ordinary share held for a total maximum equivalent amount of €119,964,543.21 including share premium.

Capital increase results

On January 30, 2012 the option offering was completed with the entire subscription of the new ordinary shares of Juventus Football Club S.p.A. related to the share capital increase of €119,964,543.21 approved by the extraordinary shareholders' meeting held on October 18, 2011.
In the period between December 19, 2011 and January 18, 2012, a total of 176,124,107 subscription rights was exercised and thus 704,496,428 new shares were subscribed, equal to 87.4% of the total shares offered (806,213,328), for an overall equivalent amount of €104,829,068.49.
The 25,429,225 unexercised option rights were completely sold on the stock market between January 23 and January 27, 2012, in accordance with article 2441, paragraph 3 of the Italian Civil Code. On January 30, 2012, 24,520,798 rights were exercised to subscribe 98,083,192 new shares, at a unit price of €0.1488, of which €0.1388 for share premium, for a total value of €14,594,778.97 (of which 34,306,760 new shares were subscribed by EXOR S.p.A. for an equivalent amount of €5,104,845.89).
The remaining 3,633,708 new shares, corresponding to 908,427 unexercised rights, were subscribed by the shareholder EXOR S.p.A. based on commitments already undertaken, for an equivalent amount of €540,695.75.
Thus the new share capital of Juventus Football Club S.p.A. totals €8,182,133.28 and is represented by 1,007,766,600 no par ordinary shares.

Commercial Register No.64236277 Legal notes | Credits