Juventus

 

 

(63.77% of share capital)

 

 


The data commented and presented below refers to the accounting data for the first quarter 2012/2013 (July 1 – September 30, 2012) of Juventus Football Club S.p.A. taken from the Interim Report at September 30, 2012.

  Quarter I  Quarter I  
€ million 2012/2013 2011/2012 Change
Revenues 54.6 33.7 20.9
Operating costs (49.3) (45.0) (4.3)
Operating loss (8.8) (24.6) 15.8
Loss for the period (11.6) (26.1) 14.5
  Balances at    
€ million 30/09/2012 30/06/2012   Change
Shareholders' equity 52.9 64.6 (a) (11.7)
Net financial debt 145.8 127.7   18.1
(a) The figure refers to the financial statements for the year ended June 30, 2012. It does not coincide with the figure relating to the accounting data for the period January 1 – June 30, 2012 prepared by Juventus Football Club for the first half consolidation in EXOR, owing to transactions that occurred subsequent to the approval of EXOR’s Half-Year Financial Report. The effect of such transactions, for EXOR, is presented in the third quarter of 2012.

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

Economic performance reflects the highly seasonal nature typical of the sector which is basically determined by the calendar of sports events and the two phases of the players’ Transfer Campaign. In particular:

  • the calendar of sports events determines the recognition of the main revenue items and also has an impact on quarterly results during the year and on the comparability of such results with the corresponding quarters of previous years. This is because the main cost items not linked to single sports events (such as players’ wages and amortization relative to players’ registration rights) are instead recorded in the income statement on a straight-line basis. It should specifically be noted that the revenues from television rights and media income from the Serie A Championships and the Italian Cup (the marketing of which is managed centrally by the National Professional League Serie A) are allocated to the income statement by dividing the total, communicated by the League, in equal parts based on the number and the date of home games;
  • the player Transfer Campaign, which takes place in July and August (first phase) and January (second phase), may have significant economic and financial effects at the start and during the season.

The Company’s economic and financial performance is also affected by the seasonal nature of the economic components; in addition, some revenue items show different financial patterns, such as receipts, compared to the pertinent economic period.

The first quarter of the financial year 2012/2013 confirms the improving trend in economic results:

  • ­the loss, totaling €11.6 million, is more than half the loss of €26.1 million reported in the first quarter of 2011/2012; 
  • revenues, amounting to €54.6 million, increased 62.1% from €33.7 million in the same period of last year; 
  • operating costs, totaling €49.3 million, despite increasing €4.3 million over the first quarter of 2011/2012, rose at a much lower rate (approximately +9.5%) than revenues.

In detail, the improvement derives mainly from higher ticket sales (+€0.8 million), from the participation in the UEFA Champions League (+€8.1 million), higher revenues from television and radio rights and media income (+€8 million), higher revenues from sponsorships (+€1.2 million) and the increase in other revenues (+€3 million) mainly from use of the Juventus Stadium on non-match days (museum, tours, events). These positive changes were partially offset by higher costs of players’ wages and technical staff (-€1.9 million), higher costs for external services (-€0.6 million), higher expenses from players' registration rights (-€0.8 million), higher amortization of players' registration rights (-€0.5 million), higher amortization on other assets (-€0.4 million) and higher net financial expenses (-€0.6 million).

Shareholders’ equity at September 30, 2012 is €52.9 million, down from €64.6 million at June 30, 2012 mainly on accounting of the loss reported for the period (-€11.6 million).

Net financial debt at September 30, 2012 amounts to €145.8 million (€127.7 million at June 30, 2012). The negative change of €18.1 million is due to cash flows used in investment activities (-€26.2 million) and financing activities (-€1.6 million), compensated in part by cash flows provided by operations (+€9.7 million).

Significant events in the first quarter of 2012/2013

Transfer Campaign 2012/2013 – first phase
The transactions finalized in the first phase of the players’ Transfer Campaign 2012/2013, conducted from July 1 to August 31, 2012 (and up to September 6, 2012 for certain foreign markets only), led to an overall increase in capital invested of €47.8 million as a result of acquisitions for €62.7 million and disposals for €14.9 million (net carrying amount of rights sold).
The net gains generated by the sales amount to €5.6 million. Moreover, the temporary acquisitions and sales produced a net gain for €0.8 million.
The total net financial commitment, including capitalized incidental expenses and implicit financial income and expenses on deferred receipts and payments, is €42.4 million divided as follows: €26 million in the year 2012/2013, €8 million in the year 2013/2014 and €8.4 million in the year 2014/2015.

Season Ticket Campaign 2012/2013
The Season Ticket Campaign for the 2012/2013 season officially closed with the subscription of all the 27,400 season passes available, for net revenues of €19.8 million, including Premium Seats and additional services. Sales compared to the 2011/2012 football season record an increase of 11.7% in the number of season tickets and an increase of 30.3% in net revenues.

New Jeep Sponsorship
Following a three year agreement signed on July 23, 2012, the Fiat Group became the sole Juventus jersey sponsor for all competitions, against a fixed total payment of €35 million, as well as the supply of group vehicles. The Jeep logo is on the jerseys in the current football season.

Continassa Project
On July 24, 2012, Juventus and City of Turin signed a new agreement, updating the preliminary agreement made on June 11, 2010, for the redevelopment and upgrading of the area adjacent to the Juventus Stadium, called "Area Continassa", currently in a situation of neglect and urban decay.
The general project submitted by Juventus involves the purchase, for a renewable period of 99 years, of a long-term lease on part of the Area Continassa, totaling 180,000 square meters, and the related gross floor area (GFA) totaling 33,000 square meters, to create commercial, sports, cultural and residential areas. A GFA of 5,000 square meters, already held by Juventus to be used for the new registered office, will also be transferred to the same area.
Subject to adoption of all the urban planning instruments and removal of people and/or objects from the area by the City of Turin, by July 24, 2013 the final project will be the subject of a specific implementing agreement between the parties.

Significant events subsequent to the first quarter of 2012/2013

Resolutions of the ordinary shareholders’ meeting held on October 26, 2012
The ordinary shareholders’ meeting of Juventus Football Club S.p.A. approved the financial statements for the year ended June 30, 2012 which closed with a loss of €48.7 million which was covered by the use of the share premium reserve. Consequently, no dividends were declared.
The shareholders’ meeting also established the number of members of the board of directors at ten for the financial years 2012/2013, 2013/2014 and 2014/2015, and appointed the following directors: Andrea Agnelli, Maurizio Arrivabene (Independent Director), Giulia Bongiorno (Independent Director), Paolo Garimberti (Independent Director), Assia Grazioli Venier (Independent Director), Giuseppe Marotta, Aldo Mazzia, Pavel Nedved, Enrico Vellano and Camillo Venesio (Independent Director).

The board of statutory auditors was also appointed and is composed of Paolo Piccatti (Chairman), Silvia Lirici and Roberto Longo (Regular Auditors). The alternate auditors appointed were Nicoletta Paracchini and Roberto Petrignani.
By motion of the board of statutory auditors, the shareholders’ meeting then conferred the audit of the financial statements for the financial years 2012/2013-2020/2021 to Reconta Ernst & Young S.p.A.

Consob Audit - Notifications
With reference to the audit performed by Consob between October 20, 2011 and February 22, 2012, on October 2, 2012 notifications were received, pursuant to Legislative Decree 58 of February 24, 1998, art. 195 for alleged violations of art. 114, paragraph 1 of this decree and the Regulation of Issuers, art. 66, paragraph 1 and 2 for:

  • not having provided information in the press release of June 23, 2011, relating to the company’s earnings and equity and the foreseeable effects connected thereto, suitable to enable a complete and correct evaluation of the events and circumstances represented therein and to promptly disclose any significant change in price-sensitive information already made known to the public;
  • not having promptly provided the market any information as regards the progress of the dispute over the income from television rights and, particularly the “catchment area”, the decision in respect of this matter taken by the shareholders’ meeting of the League of Serie A on July 8, 2011 and the related effects on the company’s earnings and equity, until a number of months after the events and only following a request from Consob.

The company has prepared a memorandum containing its conclusions which was delivered to Consob on October 31, 2012 within the required time frame.

Commercial Register No.64236277 Legal notes | Credits