Quarterly Report at 31 December 2006

Transcription

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JUVENTUS Football Club
Quarterly Report
at 31 December 2006
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JUVENTUS Football Club S.p.A.
Registered office
Corso Galileo Ferraris 32, 10128 Turin
Share capital fully paid
€ 12,093,200
Registered in the companies register
Under no. 00470470014 - REA no. 394963
1
Borsa Italiana S.p.A. share code: JUVE
ISIN code: IT0000336518
Bloomberg ticker: JUVE IM
Reuters ticker: JUVE.MI
This document contains a true translation in English of the report in Italian “Relazione trimestrale al 31
dicembre 2006”.
However, for information about Juventus Football Club S.p.A. reference should be made exclusively to
the original report in Italian “Relazione trimestrale al 31 dicembre 2006”.
The Italian version of the “Relazione trimestrale al 31 dicembre 2006” shall prevail upon the English version.
This document is available on the Internet at www.juventus.com
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Board of Directors
Chairman:
Giovanni Cobolli Gigli
Chief Executive Officer
and General Manager:
Jean-Claude Blanc
Directors :
Carlo Barel di Sant’Albano (2)
Aldo Mazzia(2) (3)
Gian Paolo Montali (1) (2)
Riccardo Montanaro (1) (2)
Marzio Saà (1) (2)
Marco Tardelli (1) (2)
Camillo Venesio (1) (2)
(1) Independent Director
(2) Non Executive Director
(3) Coopted on 13 November 2006
Audit Committee
Marzio Saà (Chairman)
Riccardo Montanaro
Marco Tardelli
Remuneration and Appointments Committee
Carlo Barel di Sant’Albano (Chairman)
Riccardo Montanaro
Camillo Venesio
Sports Committee
Giovanni Cobolli Gigli (Chairman)
Jean-Claude Blanc
Gian Paolo Montali
Marco Tardelli
3
Board of Statutory Auditors
Chairman:
Giorgio Giorgi
Auditors:
Gianluca Ferrero
Roberto Longo
Deputy auditors:
Gianluca Cristofori
Paolo Piccatti
Independent Auditors
PricewaterhouseCoopers S.p.A.
Expiry of mandates
The mandates of the Board of Directors and the Board of Statutory Auditors will expire with the Shareholders’ Meeting to approve
the Financial Statements as of 30 June 2009.
The mandate for the Independent Auditors will expire with the Shareholders’ Meeting to approve the Financial Statements as of 30 June 2007.
Powers of company officers
Under company By-laws (art. 21) the Chairman, Vice Chairman and CEO have the power to represent the Company in the framework
of and in the exercise of the powers conferred on them and also to execute the decisions of the Board and in law.
Furthermore, the Board of Directors may, as permitted in law, assign powers to other directors, executives, representatives and
managers within the limits set by the Board.
The Board of Directors voted on 29 June 2006 to confer specific management powers on the Chairman Giovanni Cobolli Gigli
and the Chief Executive Officer and General Manager Jean-Claude Blanc. The exercise of some of these management powers, for
values exceeding certain thresholds, envisages the joint signature of the Chairman and Chief Executive Officer.
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Contents
4
Accounting principles
5
Balance Sheet
6
Income Statement
8
Significant events in the second quarter of the
2006/2007 financial year
10
Review of results
16
Significant events after 31 December 2006
23
Business outlook
26
The Quarterly Report at 31 December 2006 was approved by the Board of Directors on
13 February 2007. If not otherwise indicated, the figures are given in Euros.
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Accounting principles
As of 1 July 2006, Juventus Football Club S.p.A. applies the IFRS international accounting standards to
the annual financial statements and interim reports. The Company has thus adapted the accounting format
and tables for the balance sheet and income statement to incorporate the demands and indications of
the new accounting principles. This Quarterly Report thus differs from the past approach in terms of
both the tables and some accounting principles. The principles adopted were illustrated in the document
explaining the first application of IFRS, attached to the Quarterly Report at 30 September 2006. In addition, to guide readers in the correct interpretation regarding economic, financial and asset figures, this
document (to which reference should be made) also describes the effects of the first-time application
of IFRS on Shareholders' Equity.
As regards the new accounting tables, it should be noted that the distinction "current/non current" has
been adopted in the balance sheet as the method for representing assets and liabilities and in the
income statement the classification by nature of revenues and costs has been adopted, highlighting
information regarding players' registration rights, items characteristics of the activities of Juventus.
The Quarterly Report at 31 December 2006, concerning the second quarter of the 2006/2007 financial
year, has been drawn up pursuant to Art. 82 of the “Regolamento recante norme di attuazione del
D.Lgs. 24 febbraio 1998, n. 58 in materia di emittenti” (Consob decision 11971 of 14 May 1999 as
amended), as indicated in Appendix 3D of these regulations.
The drafting of quarterly and half-year financial reports requires the management to make estimates
and assumptions that have an effect on revenues, costs, assets and liabilities and on information regarding
assets and liabilities at the date of reference. The estimates make it possible to ensure reliable information
compatible with the promptness demanded. If in the future these estimates and assumptions, which are
based on the best assessment by the management, were to differ from the actual circumstances, they
will be adjusted in an appropriate manner.
This Quarterly Report has not been drawn up as a consolidated report as the only company controlled
by Juventus Football Club S.p.A. (Campi di Vinovo S.p.A.) as specified in Art. 2359 of the Italian Civil
Code is classified as an activity destined for sale due to the "call" option granted to a third party with
a contract dated 31 March 2006 and would in any case be irrelevant for the purposes of true and fair
representation of the financial and economic results of the controlling company Juventus Football Club
S.p.A..
The economic and asset situation given in the Quarterly Report at 31 December 2005 has been
recalculated by applying IFRS accounting principles and in some cases reclassified to help comparability
of data.
The Quarterly Report at 31 December 2006 is unaudited.
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€
BALANCE SHEET
ASSETS
31/12/2006
30/06/2006
59,170,706
107,393,144
343,001
398,824
Intangible fixed assets in progress
28,000,000
13,000,000
Land and buildings
19,250,188
-
Non-current assets
Players’ registration rights
Other intangible fixed assets
Other tangible fixed assets
3,975,697
692,303
Tangible fixed assets in progress
6,562,202
27,319,882
30,005
30,005
7,000,000
7,000,000
Prepaid taxes
16,068,778
18,060,511
Receivables from specific sector companies related to transfer campaign
23,794,577
123,508
5,849,742
5,849,619
170,044,896
179,867,796
10,666,805
19,201,676
836,612
1,488,744
Other investments
Other financial assets
Other non-current assets
Total non-current assets
Current assets
Trade receivables
Non financial receivables from related parties
Receivables from specific sector companies related to transfer campaign
6
45,015,381
19,944,406
Other current assets
7,501,485
501,056
Current financial assets
1,275,715
1,074,722
382,975
202,266
Total current assets
65,678,973
42,412,870
Assets held for sale
12,153,513
12,153,513
247,877,382
234,434,179
Cash and cash equivalents
Total assets
The figures at 30 June 2006 have been reclassified in some cases to help comparability of data. The Quarterly Report at 31 December 2006
is unaudited.
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€
BALANCE SHEET
EQUITY AND LIABILITIES
31/12/2006
30/06/2006
12,093,200
12,093,200
2,106,255
48,092,475
Income/(loss) for the period
15,377,343
(45,986,220)
Shareholders’ equity
29,576,798
14,199,455
Shareholders’ Equity
Share Capital
Reserves
Non-current liabilities
3,050,561
3,747,168
Bonds and other financial liabilities
17,306,611
5,330
Trade payables
Previsions for risks and charges
38,072,716
34,000,000
Payables due to specific sector companies related to transfer campaign
5,805,511
170,154
Deferred taxes
1,652,743
1,995,147
Other non-current liabilities
3,067,163
5,203,503
68,955,305
45,121,302
Total non-current liabilities
Current liabilities
175,000
-
Bonds and other financial liabilities
59,302,552
14,202,698
Trade payables
62,858,932
78,496,926
1,235,703
2,484,792
Payables due to specific sector companies related to transfer campaign
11,992,797
43,680,899
Other current liabilities
13,780,295
36,248,107
149,345,279
175,113,422
-
-
247,877,382
234,434,179
Previsions for risks and charges
Non financial payables due to related parties
Total current liabilities
Liabilities relating to assets held for sale
Total equity and liabilities
The figures at 30 June 2006 have been reclassified in some cases to help comparability of data. The Quarterly Report at 31 December 2006
is unaudited.
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€
INCOME STATEMENT
2nd Quarter
2006/2007
2nd Quarter
2005/2006
Ticket sales
Television and radio rights and media revenues
Revenues from sponsorship and advertising
Revenues from players’ registration rights
Other revenues
2,235,774
25,797,903
9,045,828
779,800
2,196,161
4,379,966
45,997,892
14,863,949
(436,370)
498,465
Total revenues
40,055,466
65,303,902
Purchase of materials, supplies and other consumables
External services
Players’ wages and technical staff costs
Other personnel
Expenses from players’ registration rights
Other costs
(822,620)
(6,382,821)
(20,673,709)
(1,852,740)
(1,914,903)
(223,843)
(669,655)
(8,362,780)
(29,906,851)
(1,990,820)
(177,872)
(12,000,802)
Total operating costs
(31,870,636)
(53,108,780)
(4,394,357)
(14,922)
(13,242,896)
(661,988)
3,775,551
(1,709,762)
789,274
(1,643,658)
321,471
(1,092,559)
Income/(loss) before taxes
2,921,167
(2,480,850)
Current taxes
Deferred and prepaid taxes
1,284,079
(588,665)
(3,022,690)
6,941,173
Net income/(loss)
3,616,581
1,437,633
Amortisation and write-downs of players’ registration rights
Other amortisation, write-downs and provisions
Operating income
Financial revenues
Financial expenses
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The figures for the second quarter 2005/2006 have in some cases been reclassified to facilitate the comparability of data. The Quarterly Report at
31 December 2006 is unaudited.
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€
INCOME STATEMENT
Financial year
2005/2006
Cumulative at
31 December 2006
Cumulative at
31 December 2005
3,488,120
38,391,338
15,003,227
38,863,705
5,765,506
7,574,474
65,798,796
29,545,320
4,877,604
1,224,269
16,772,222
127,526,704
71,140,123
5,714,594
4,875,441
Ticket sales
Other revenues
226,029,084
Total revenues
101,511,896
109,020,463
(2,815,281)
(37,228,385)
(127,296,763)
(8,045,190)
(3,111,634)
(28,366,496)
External services
Other personnel
Other costs
(1,523,071)
(13,124,809)
(45,370,937)
(3,471,345)
(3,645,725)
(4,087,589)
(1,483,629)
(17,048,102)
(59,077,604)
(3,598,114)
(2,750,868)
(15,003,376)
(206,863,749)
Total operating costs
(71,223,476)
(98,961,693)
(65,919,684)
(2,700,467)
Amortisation and write-downs of players’ registration rights
Other amortisation, write-downs and provisions
(10,018,158)
(104,670)
(26,470,846)
(805,106)
(49,454,816)
Operating income
20,165,592
(17,217,182)
Financial revenues
Financial expenses
1,384,173
(2,625,935)
674,129
(2,223,814)
Income/(loss) before taxes
18,923,830
(18,766,867)
Current taxes
(1,897,158)
(1,649,329)
(3,726,306)
6,605,391
Net income/(loss)
15,377,343
(15,887,782)
1,792,629
(3,889,059)
(51,551,246)
9
(6,996,830)
12,561,856
(45,986,220)
The figures for the 2005/2006 financial year have been adjusted and re-presented on the basis of the international accounting standards adopted
as of 1 July 2006. The cumulative figures at 31 December 2005 and 30 June 2006 have in some cases been reclassified in order to help the
comparability of data. The Quarterly Report at 31 December 2006 is unaudited.
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Significant events in the second quarter
of the 2006/2007 financial year
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TRAGEDY AT THE VINOVO TRAINING CENTRE
The second quarter of the year was sadly marked by a tragedy that occurred on 15 December 2006 at
the Vinovo Training Centre in which two boys from the Berretti youth team, Alessio Ferramosca and
Riccardo Neri, lost their lives.
The entire Company remembers Alessio and Riccardo with heart-felt warmth.
SPORTS PROCEEDINGS REGARDING THE COMPANY
On 27 October 2006 the sports proceedings against the Company were concluded with the sentence
of the Camera di Conciliazione e Arbitrato per lo Sport.
The Camera di Conciliazione ed Arbitrato of C.O.N.I. confirmed the relegation to Serie B, the fine of
€ 120,000 and reduced the penalty for the Company in terms of the points deducted in the current
Serie B Championship from -17 points to -9 points. Furthermore, the same Camera Arbitrale applied
an additional fine, substituting the disqualification of the home ground (a penalty suspended as a
precautionary measure on 6 September 2006), for a sum equal to the receipts for the first three home
matches, a total of € 194,450.
RENEWAL OF PLAYERS’ CONTRACTS
The contracts for the following football players were extended:
Claudio Marchisio, until 30 June 2011;
Antonio Mirante, until 30 June 2011;
Felice Piccolo, until 30 June 2008.
These operations entailed the extension of the amortisation plans for the registration rights of the
individual players, with a limited positive effect on the 2006/2007 financial year (in terms of lower
amortisation) due to their low book value.
2006/2007 SEASON TICKET CAMPAIGN
12,716 season tickets have been sold for the 2006/2007 football season for gross revenues of € 3.5
million and net income of € 3 million, against 23,073 season tickets in the 2005/2006 season (gross
revenues € 6.4 million and net income of € 5.5 million). The figures for receipts include additional
services with the exception of advance sales rights.
The 2006/2007 season ticket campaign felt the impact of the lower capacity of the Stadio Olimpico and
the promotional campaign in terms of prices adopted due to the relegation to Serie B.
ORDINARY SHAREHOLDERS’ MEETING OF 26 OCTOBER 2006
The Shareholders' OGM of Juventus Football Club S.p.A., held in Turin on 26 October 2006, approved the
Financial Statements at 30 June 2006 (the last financial statements drawn up on the basis of Italian accounting
principles) and deliberated to cover the loss of € 36.5 million through the use of the reserves available.
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The OGM also appointed the Auditors for the three-year period that will expire with the approval of the
Financial Statements at 30 June 2009: Giorgio Giorgi (Chairman), Roberto Longo (Auditor), Gianluca
Ferrero (Auditor), Paolo Piccatti (Deputy Auditor) and Gianluca Cristofori (Deputy Auditor).
ORDINARY SHAREHOLDERS’ MEETING OF CAMPI DI VINOVO S.P.A.
On 19 October 2006, the OGM of the subsidiary company Campi di Vinovo S.p.A. approved the
Financial Statements at 30 June 2006 which closed with a net loss of € 885 thousand and deliberated to:
cover the net loss of € 885 thousand through the partial use of the “Revaluation reserve”;
appoint as Directors for the three-year period of 2006/2007, 2007/2008 and 2008/2009:
Jean-Claude Blanc, Alessandro Gilardi and Renato Opezzi. The new Board of Directors, meeting
afterwards, assigned the position of Chairman to Jean-Claude Blanc and appointed Alessandro
Gilardi Vice Chairman and Renato Opezzi Chief Executive Officer.
RELATIONS WITH SPONSOR COMPANIES
Conclusion of negotiations with Oilinvest B.V. - Tamoil sponsorship
At the end of talks between Juventus and Oilinvest, begun at the time of the interruption of the
sponsorship contract of 25 March 2005 as notified by Oilinvest on 6 September 2006, no agreement
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was reached for the stipulation of a new sponsorship agreement.
Juventus and Oilinvest have jointly agreed that the team will continue to wear the shirt with the Tamoil
logo until the end of the 2006-2007 season. The negative economic impact in the current financial year
in terms of lower revenues will be about € 8 million. The relationship between Juventus and Oilinvest
has thus been terminated definitively. This relationship had given both parties great satisfaction and
Juventus takes the opportunity to thank its partner Oilinvest for its much-appreciated collaboration in
these years of sponsorship.
Renegotiation of Nike contract
Nike has confirmed its willingness to continue the multi-year technical sponsorship contract with
Juventus until the original expiry date envisaged at the end of the 2014/2015 football season. Nike and
Juventus have redefined some contractual clauses, including the sums involved.
In the framework of the whole contract, the negative impact in terms of the reduction in revenues will
be about € 4.5 million in the current financial year and a further total of about € 4.5 million to be
spread over the following eight years of the contract.
Renegotiation of H3G contract
Following relegation to Serie B, H3G and Juventus have redefined some clauses of the present contract
until the end of this football season. The negative economic effect of the renegotiation will be about
€ 2 million.
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MISCELLANEOUS
Juventus Channel launch
On 1 November 2006, operations began for the thematic television station “Juventus Channel"
dedicated entirely to the Company, created in collaboration with RAI Trade in the framework of the
broader contract stipulated with the RAI Group on 31 March 2006.
Co-opting of director
On 13 November 2006, the Board of Directors co-opted as a director Aldo Mazzia, Administration and
Accounting Director of IFIL Investments S.p.A., replacing the outgoing director Stefano Bertola who has
taken on an operational role in the Company.
Enquiries in course following the tragedy at the Vinovo Training Centre
On 15 December 2006 a very serious accident occurred at the Vinovo Training Centre in which the
minors, registered company players who played in the "Berretti" championship, Alessio Ferramosca and
Riccardo Neri, lost their lives. Following the event, the Procura della Repubblica of Turin opened an
enquiry to ascertain the state of the places, how the accident happened, and the characteristics and
observance of regulations of the use of the sports facilities. Maurizio Schincaglia and Lorenzo Frison,
respectively the trainer and goalkeeper coach, Renato Opezzi chief executive officer of the company
Semana S.r.l., Jean Claude Blanc and Alessandro Sorbone, respectively chief executive officer and
employee manager of Juventus Football Club S.p.A., were entered in the register of those under
investigation.
The proceedings are currently in the investigative stage, awaiting the technical opinions requested by
the public investigator for the enquiry.
Other investigations regarding former directors
On 11 May 2006, the Procura della Repubblica of Naples served on former Chief Executive Officer
Antonio Giraudo and former Director and General Manager Luciano Moggi an “invitation to appear”
in relation to various unlawful acts, including conspiracy to commit sporting fraud, followed by notice
of conclusion of the preliminary investigation (pursuant to art. 415-bis of the Criminal Code), served on
10 June 2006. The Procura della Repubblica of Naples then received the file of an identical investigation
which had been initiated by the Procura della Repubblica of Turin. In view of the receipt of that file, the
Procura della Repubblica of Naples will probably have to re-file all the documents. The procedures are
therefore still at the investigation stage.
Criminal proceedings against Antonio Giraudo and Luciano Moggi for offences under sections 2621 and
2622.III of the Italian Civil Code (accounting fraud) and art. 2 and 8 of Statute no. 74/2000 (issue of
invoices or other documents for non-existent operations, and fraudulent returns based on the said
documents) have been assigned to prosecutor Bruno Tinti and are pending in the Turin Public
Prosecutor’s Office. The proceedings are still at the preliminary investigation stage.
As regards former Chief Executive Officer Antonio Giraudo only, an appeal by the Attorney-General
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against the said defendant’s acquittal by the Turin Court of Appeal of sporting fraud (known as the
“doping trial”) is pending before the Supreme Court of Cassation. The trial has been set down for hearing
on 29 March 2007.
Criminal proceedings for the offence of conspiracy to engage in unlawful competition (art. 513-bis of
the Italian Criminal Code), relating to management of footballers through the company GEA World, in
which the defendants include the former Director and General Manager, are pending in the Procura
della Repubblica of Rome. The Public Prosecutor has applied in the last few days for him to be committed
for trial.
Other investigations involving Juventus-registered F.I.G.C. personnel and other staff
The appeal by the Attorney-General against the acquittal of club physician Riccardo Agricola by the
Turin Court of Appeal in the “doping trial” is to be heard by the Supreme Court of Cassation on 29
March 2007. The disciplinary proceedings commenced by the Anti-Doping Unit against Dr. Agricola
following the said criminal trial have now been concluded. The declaration of prescription issued at first
instance by the Disciplinary Commission was confirmed by the Federal Appeals Commission on appeal,
and was upheld by the C.O.N.I. (Italian National Olympics Committee) Judge of Last Instance on
19/01/2007. In sports terms, the proceedings relating to Mr. Agricola have therefore been concluded.
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The disciplinary proceedings against player Gianluigi Buffon relating to “clandestine betting” have also
been concluded. After the investigation performed by the appropriate federal offices, the Public
Prosecutor’s Office decided to withdraw the proceedings on 22 December 2006.
Liquidation of Como Calcio
The liquidation of Como Calcio in June 2006 led to proceedings against Juventus involving a claim for
payment of € 1,580,000 allegedly still payable to Como Calcio for the sale of the registration rights of
footballers Piccolo and Pederzoli.
Juventus entered an appearance and defence, requested that the liquidator’s applications be rejected as
the sum had already been paid, and applied to take third-party proceedings against Mr. Preziosi for an
indemnity in the event of a judgment against Juventus. The first hearing was set down for 30 May 2007
to allow third-party proceedings to be issued against Mr. Preziosi.
Claim for damages by Brescia Calcio S.p.A.
By writ served on the Company on 27 November 2006, the company Brescia Calcio S.p.A. applied to
the C.O.N.I. Sports Conciliation and Arbitration Chamber to order Juventus and F.I.G.C. to pay damages
amounting to € 30 million, on the ground that “Brescia did not play in Serie A” in the 2005/2006
football season as a result of sports offences committed by the directors of Juventus, as established in
the summer football trials.
In a pleading filed on 7 December 2006, the Company formally entered an appearance and defence,
applied for the claims by Brescia Calcio to be rejected on the ground that they are totally unfounded in
fact and law, and pleaded on a preliminary basis that the C.O.N.I. Sports Conciliation and Arbitration
Chamber has no jurisdiction to hear the proceedings.
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On 12 December 2006, F.I.G.C. also formally entered an appearance and defence, applied for the claims
by Brescia Calcio to be rejected on the ground that they are totally unfounded in fact and law, and
pleaded on a preliminary basis that the C.O.N.I. Sports Conciliation and Arbitration Chamber has no
jurisdiction to hear the proceedings.
The Arbitration Panel set down the case for a discussion hearing on 13 March 2007.
SHAREHOLDERS AND SHARE PRICE
On the basis of the latest information available, the shareholding structure of Juventus Football Club
S.p.A. is as follows:
IFIL S.p.A.
60.0%
LAFICO S.a.l.
7.5%
15
FREE FLOAT
32.5%
Juventus Football Club S.p.A. share price trend and equity turnover
€/m
€
20
Equity turnover
Official price
18
2.6
2.4
16
2.2
14
2.0
12
10
1.8
8
1.6
6
1.4
4
1.2
2
1.0
31/1
13/3
21/4
1/6
12/7
22/8
2/10
10/11
21/12
31/1
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On 31 January 2007 the official Juventus share price was € 1.928, an increase of 45.2% compared to
the price on 31 January 2006 (€ 1.328). In the period in question, the share recorded lower volumes
traded compared to the period April – October 2006, characterised also by the well-known judicial and
sports events, and do not show significant daily swings. The average daily equity turnover in the past
twelve months was € 2 million.
Review of results
THE SECOND QUARTER OF THE 2006/2007 FINANCIAL YEAR
The economic results of the second quarter of the 2006/2007 financial year were influenced, as usual,
by the accentuated seasonal nature of the business. In particular, it should be noted that the main
revenue and cost items do not follow the same trend over time and in the single quarters and
corresponding quarters of other financial years.
The economic results of the second quarter cannot, therefore, represent the basis for forecasts for the
entire financial year. The Company's financial and asset trend for the quarter also feels the effect of the
seasonal nature of the economic components and some revenue items show non-uniform financial
patterns (receipts) with respect to the pertinent economic period.
Revenues for the second quarter of the 2006/2007 financial year amounted to € 40.1 million,
16
a decrease of 38.7% compared to € 65.3 million in the second quarter of the previous financial year,
represented by:
2nd Quarter
2006/2007
€/000
2nd Quarter
2005/2006
Change
Ticket sales
Other revenues
2,236
25,798
9,046
780
2,196
4,380
45,998
14,864
- 436 *
498
(2,144)
(20,200)
(5,818)
1,216
1,698
Total
40,056
65,304
(25,248)
* The negative value of revenues from player management in the second quarter 2005/2006 reflects the impact of the recording of the additional
expenses for profits recorded in the first quarter 2005/2006.
Ticket sales fell by € 2.1 million due to lower revenues from season tickets (€ -0.9 million), lower single
match ticket sales (€ -0.8 million) and the absence of revenues from the European cups (€ -0.4 million).
Ticket sales felt the impact of the smaller capacity of the Stadio Olimpico as well as the promotional
campaign in terms of the prices adopted due to relegation to Serie B.
The following table gives a comparison of the number of matches played in the various competitions in
the course of the second quarter (October-December) of the 2006/2007 financial year and in the
corresponding period of the previous financial year:
7-03-2007
10:37
Pagina 17
no. games
2nd Quarter 2006/2007
Home Away
Total
2nd Quarter 2005/2006
Total
Home Away
Championship
Italian Cup
U.E.F.A. Champions League
6
-
6
-
12
-
7
2
5
1
2
12
1
4
Total
6
6
12
9
8
17
Television and radio rights and media revenues decreased by € 20.2 million due to:
2nd Quarter
2006/2007
2nd Quarter
2005/2006
Change
Revenues from the granting of media rights
U.E.F.A. Champions League revenues
25,766
31
37,346
8,651
(11,580)
(8,620)
Total
25,797
45,997
(20,200)
€/000
The reduction in revenues from the granting of media rights stems essentially from the renegotiation of
the contracts with Sky Italia S.r.l. for the current football season.
Revenues from sponsorship and advertising fell by € 5.9 million due mainly to lower revenues from
sponsorship for € 4.4 million and lower revenues from advertising and other commercial revenues for
€ 1.5 million.
Other revenues increased by € 1.7 million due to contributions matured (€ +1.9 million), net of minor
variations (€ -0.2 million).
Operating Costs for the second quarter of the 2006/2007 financial year came to a total of € 31.9
million, a decrease of 40% compared to € 53.1 million in the corresponding period of the previous
financial year, made up of:
2nd Quarter
2006/2007
2nd Quarter
2005/2006
Change
External services
Other personnel
Other expenses
822
6,383
20,674
1,853
1,915
224
669
8,363
29,907
1,991
178
12,001
153
(1,980)
(9,233)
(138)
1,737
(11,777)
Total
31,871
53,109
(21,238)
€/000
Expenses for external services decreased mainly due to lower remuneration for the members of the
Board of Directors (€ -0.9 million), lower costs for “players' wages and assets” insurance policy (€ -0.5
million), and other minor variations (€ -0.6 million).
Players’ wages and technical staff costs fell chiefly due to the savings made following the definitive
disposals and temporary transfers of players' registration rights (net of the new contracts stipulated with
the football players purchased in the course of the first phase of the Transfer Campaign).
17
7-03-2007
10:37
Pagina 18
Other expenses fell by € 11.8 million due mainly to the decrease in expenses for television and radio
rights (€ -6.3 million), lower expenses for contract transactions (€ -4.8 million) and other minor
variations (€ -0.7 million).
The amortisation and write-downs of players’ registration rights for the quarter in question amounted to
a total of € 4.4 million, a decrease compared to € 13.2 million in the second quarter of the 2005/2006
financial year, due to the investments/disinvestments made in the course of the Transfer Campaign and
the extension of the amortisation plans of the registration rights of some players following the early
renewal of their contracts.
The Operating Result for the second quarter of the 2006/2007 financial year was positive for € 3.8 million,
against a negative balance of € 1.7 million in the corresponding period of the previous financial year.
Financial revenues for the second quarter of the 2006/2007 financial year amounted to € 0.8 million
compared to € 0.3 million in the corresponding period of the previous financial year, made up of:
2nd Quarter
2006/2007
2nd Quarter
2005/2006
Change
Interest received
Financial revenues deriving from valuation at fair value
Other financial revenues
118
580
91
96
222
3
22
358
88
Total
789
321
468
€/000
18
Financial expenses for the second quarter of the 2006/2007 financial year amounted to € 1.6 million
compared to € 1.1 million in the corresponding period of the previous financial year and are made up of:
2nd Quarter
2006/2007
2nd Quarter
2005/2006
Change
Interest paid
Financial expenses deriving from valuation at fair value
Other financial expenses
1,421
168
55
573
486
34
848
(318)
21
Total
1,644
1,093
551
€/000
The Result before taxes for the quarter in question was positive for € 2.9 million, an improvement
compared to the negative balance of € 2.5 million at 31 December 2005.
The Net result of the second quarter of the 2006/2007 financial year, net of the fiscal effect for the
period, was positive for € 3.6 million, against the positive balance of € 1.4 million for the same period
of the previous financial year.
CUMULATIVE ECONOMIC FIGURES AT 31 DECEMBER 2006
Cumulative Revenues at 31 December 2006 amounted to € 101.5 million, a decrease of 6.9%
compared to € 109 million at 31 December 2005, represented by:
7-03-2007
10:37
Pagina 19
€/000
Cumulative
at 31/12/06
Cumulative
at 31/12/05
Change
3,488
38,391
15,003
38,864
5,766
7,574
65,798
29,545
4,878
1,225
(4,086)
(27,407)
(14,542)
33,986
4,541
101,512
109,020
(7,508)
Ticket sales
Other revenues
Total
Ticket sales decreased by € 4.1 million due to the lower revenues from season tickets (€ -1.4 million),
lower single match ticket sales (€ -0.7 million), lower income from other matches (€ -1.4 million) and
the absence of revenues from the European cups (€ -0.6 million). Ticket sales have felt the impact of
the lower capacity of the Stadio Olimpico as well as the promotional campaign in terms of the prices
adopted due to the relegation to Serie B.
The following table compares the number of games played in the various competitions in the course of
the period 1/7/06 – 31/12/06 and in corresponding period of the previous financial year:
no. games
1/7/06 - 31/12/06
Home Away
Total
1/7/05 - 31/12/05
Total
Home Away
Championship
Italian Cup
U.E.F.A. Champions League
8
-
9
3
-
17
3
-
9
3
8
1
3
17
1
6
Total
8
12
20
12
12
24
Television and radio rights decreased by € 27.4 million due to:
Cumulative
at 31/12/06
Cumulative
at 31/12/05
Change
Revenues from the granting of media rights
U.E.F.A. Champions League revenues
38,360
32
52,574
13,225
(14,214)
(13,193)
Total
38,392
65,799
(27,407)
€/000
The reduction in revenues from media rights stems from the effect of the renegotiation of the contracts
with Sky Italia S.r.l. for the current football season and is influenced by the different distribution in time
of home matches.
Revenues from sponsorship and advertising decreased by € 14.5 million due mainly to the lower
revenues from sponsorship for € 11.9 million and lower advertising revenues and other commercial
income for € 2.6 million.
Revenues from players’ registration rights increased by € 34 million due to the disposals made in the
course of the first phase of the Transfer Campaign.
Other revenues increased by € 4.5 million due to contributions matured (€ +3 million), higher insurance
premiums (€ 1.8 million), net of minor variations (€ -0.3 million).
The cumulative Operating Costs at 31 December 2006 amounted to € 71.2 million, a decrease of
19
7-03-2007
10:37
Pagina 20
28% compared to € 99 million in the corresponding period of the previous financial year, made up of:
Cumulative
at 31/12/06
Cumulative
at 31/12/05
Change
External services
Other personnel
Other expenses
1,523
13,125
45,371
3,471
3,646
4,088
1,484
17,048
59,078
3,598
2,751
15,003
39
(3,923)
(13,707)
(127)
895
(10,915)
Total
71,224
98,962
(27,738)
€/000
Expenses for external services decreased by € 3.9 million due mainly to lower remuneration of members
of the Board of Directors (€ -1.2 million), lower costs for “players' wages and assets” insurance policy
(€ -1 million), lower transport and postal expenses (€ -0.6 million), lower cleaning costs (€ -0.6 million)
and other minor variations (€ -0.5 million).
Players’ wages and technical staff costs decreased by € 13.7 million mainly due to the savings made
following the definitive disposals and temporary transfers of players' registration rights (net of the new
contracts signed with players acquired in the first phase of the Transfer Campaign).
Other expenses fell by € 10.9 million due mainly to the reduction in expenses for television and radio
rights (€ -7.1 million), lower miscellaneous expenses for contract transactions (€ -3 million), lower public
20
relations expenses (€ -0.6 million) and other minor variations (€ -0.2 million).
The cumulative amortisation and write-downs of players' registration rights at 31 December 2006
amounted to € 10 million, a decrease compared to € 26.5 million al 31 December 2005, due to the
investments/disinvestments made in the course of the Transfer Campaign and the extension of the
amortisation plans of the registration rights of some players following the early renewal of their contracts.
The cumulative Operating Result at 31 December 2006 was positive for € 20.2 million, against a
negative balance of € 17.2 million in the corresponding period of the previous financial year.
Cumulative financial revenues at 31 December 2006 amounted to € 1.4 million compared to € 0.7
million of the corresponding period of the previous financial year, made up of:
Cumulative
at 31/12/06
Cumulative
at 31/12/05
Change
Interest received
Financial revenues deriving from valuation at fair value
Other financial revenues
209
1,082
93
185
486
3
24
596
90
Total
1,384
674
710
€/000
Cumulative financial expenses at 31 December 2006 amounted to € 2.6 million compared to € 2.2
million in the corresponding period of the previous financial year and are made up of:
7-03-2007
10:37
Pagina 21
Cumulative
at 31/12/06
Cumulative
at 31/12/05
Change
Interest paid
Financial expenses deriving from valuation at fair value
Other financial expenses
1,967
550
109
1,143
1,026
55
824
(476)
54
Total
2,626
2,224
402
€/000
The cumulative Result before taxes at 31 December 2006 was positive for € 18.9 million, an improvement
compared to the negative balance of € 18.8 million at 31 December 2005.
The fiscal effect of the period in question came to a negative total of € 3.5 million, against a positive
effect of € 2.9 million in the same period of the previous year, due to:
Estimated
at 31/12/06
Estimated
at 31/12/05
Change
Current taxes
1,897
1,649
3,726
-6,605
(1,829)
8,254
Total
3,546
-2,879
6,425
€/000
The cumulative Net Result at 31 December 2006, net of the estimated fiscal effect for the period, was
positive for € 15.4 million, against the negative balance of € 15.9 million in the same period of the
previous financial year.
21
FINANCIAL ASPECTS AND ASSETS AT 31 DECEMBER 2006
As far as financial aspects and assets are concerned, the following table, in the format suggested by
CONSOB (recommendation DEM/2080535 of 9 December 2002) gives an overview:
31/12/2006
30/06/2006
- short term positive/(negative) components*
- mid-long term/(negative) components*
(57,835)
(17,307)
(12,931)
-
Total
(75,142)
(12,931)
(44,914)
10
22,302
(1,090)
2.54
0.91
€/000
Net financial position/(indebtedness)
Variation in cash flow
- variation in cash at bank and in hand
- variation in short-term financial operations
Debt/equity ratio
* Figures at the end of the relevant period
It should also be noted that:
the Net Financial Position at 31 December 2006 was negative for € 75.1 million, a decrease
compared to the negative balance of € 12.9 million at 30 June 2006. The negative balance of
€ 75.1 million stems from debts to banks for € 76.2 million, € 19.1 million of which related to the
financial leasing operation to cover the investment in the Training Centre completed in this quarter
7-03-2007
10:37
Pagina 22
(against bank debts for € 13.9 million at 30 June 2006, which did not include the lease for the
Training Centre) and from current financial assets for € 1.1 million (€ 1 million at 30 June 2006) held
by unrelated third parties. The Net Financial Position at 31 December 2006 does not therefore
include any debt and/or credit position towards related parties.
As regards seasonal effects and the impact of advance receipts for sums envisaged by existing
contracts on the Net Financial Position, it should be underlined that at 31 December 2006 contractual
sums related to future financial years have already been received for a total of € 90.4 million,
of which € 30 million originate from the deferment to the future, following the application of the
international accounting principles, of the revenues deriving from option rights granted to the
Mediaset Group, rights granted in the 2005/2006 financial year.
the Net book value of players’ registration rights at 31 December 2006 amounted to € 59.2
million, a decrease compared to € 107.4 million at 30 June 2006 following the net disinvestments
made in the course of the first phase of the 2006/2007 Transfer Campaign, net of amortisation for
the period;
Shareholders’ Equity at 31 December 2006 amounted to € 29.6 million, an increase compared to
€ 14.2 million at 30 June 2006 due to the net profit for the period. The Net Debt/Equity Ratio at
31 December 2006 was 2.54, while at 30 June 2006 it was 0.91.
22
7-03-2007
10:37
Pagina 23
Significant events after 31 December 2006
FOOTBALL SEASON
At the end of the first half of the season, the First Team, despite a nine point penalty, headed the
championship with a two point lead over the second club.
2006/2007 TRANSFER CAMPAIGN - SECOND PHASE
In the 2006/2007 season, the Transfer Campaign was held, as usual, in two phases: the first from 1 July
to 31 August 2006, the second from 4 January to 31 January 2007.
In the course of the second phase, Juventus Football Club S.p.A. completed the following main
operations regarding players' registration rights:
underwriting with the football player Hasan Salihamidzic of a playing contract effective as of 1 July
2007 until 30 June 2011. The player's contract with his current club expires on 30 June 2007;
early termination of the player sharing agreement (ex art. 102 bis N.O.I.F.) with Genoa C.F.C. S.p.A.
concerning the registration rights of the player Domenico Criscito. Following the termination, for a
sum of € 7.5 million, payable in 3 years, Juventus Football Club S.p.A. acquired full ownership of
the registration rights. At the same time, the player extended his contract with Juventus until 30 June
2011, but will remain on free loan to Genoa C.F.C. S.p.A. until the end of the current football season;
agreement with Genoa C.F.C. S.p.A. for the disposal of the player sharing rights (ex art. 102 bis
N.O.I.F.), existing with A.C. Siena S.p.A., concerning the player registration rights of Andrea Masiello
(for a sum of € 1.25 million, payable in 3 years) and Abdoulay Konko (for a sum of € 1 million,
payable in 3 years). These disposals generate a total positive economic effect of € 1.8 million;
agreement with Spezia Calcio S.r.l. for the temporary free transfer of the registration rights of the
football player Tomas Guzman until 30 June 2007.
The operations completed in the first and second phases of the Transfer Campaign entailed an overall
reduction in the capital invested of € 32.1 million, following:
€/000
New investments
Disposals
19,169
(51,243)
Balance
(32,074)
The overall economic impact in the 2006/2007 financial year related to the profits and losses from the
disposals of players’ registration rights was positive for € 38.4 million, € 36.6 million of which recorded
in the first six months. The temporary acquisitions and disposals of players’ registration rights will determine,
on an annual basis, a positive net economic and financial effect for € 1 million, € 0.5 million of which
pertinent to the first half of 2006/2007 financial year.
The overall financial effect, including the implicit financial expenses and revenues regarding deferred
receipts and payments, was positive for € 72.3 million, of which:
23
7-03-2007
10:37
Pagina 24
€ 38.5 million will be settled through the Lega Nazionale Professionisti;
€ 37.5 million will be settled directly with foreign football clubs;
€ -3.7 million (payment for consultancy services provided by F.I.F.A. sports agents) will be settled
directly.
€/million
Total
06/07
07/08
08/09
LNP
Foreign F.C.
Agents
38.5
37.5
(3.7)
12.6
16.2
(1.9)
12.6
15.9
(1.4)
13.3
5.4
(0.4)
Total
72.3
26.9
27.1
18.3
As far as changes in and the situation of guarantees in favour of F.I.G.C. - LNP are concerned, it should
be noted that, with reference to the 2006/2007 Transfer Campaign, no new guarantees were issued as
the balance of the operations completed is positive.
Furthermore, on 21 September 2006 the guarantees issued by Banca Sella S.p.A. for the Transfer
Campaigns of previous financial years (2003/2004, 2004/2005 and 2005/2006) for a total of € 14.8
million were liquidated.
24
As far as the international transfers of football players are concerned, for which no compensation
system is envisaged as in the case of national transfers, the following guarantees issued by third parties
were outstanding at 31 December 2006:
Banca Sella S.p.A. in favour of Arsenal F.C. Plc. (to guarantee the payment of the deferred
instalments of the sum agreed for the acquisition of the player Patrick Vieira) for a total of € 5 million.
Cassa di Risparmio di Savigliano S.p.A. in favour of AFC Ajax N.V. (to guarantee the payment of the
next instalment of the sum agreed for the acquisition of the player Zlatan Ibrahimovic) for a total of
€ 3 million. This guarantee is renewed year by year until the expiry of the instalments envisaged by
the contract for the purchase of the player.
Banca Popolare Italiana S.p.A. in favour of Newcastle United Football Company Limited (to guarantee
the payment of the deferred instalments of the sum agreed for the acquisition of the player Jean
Alain Boumsong) for a total of € 3.2 million.
As regards the international disposals of players in this season's Transfer Campaign, it should be noted
that the instalments due are all backed by bank guarantees in favour of Juventus, for a residual total
of € 29.3 million at 31 December 2006. Furthermore, bank guarantees are still outstanding for € 5
million in favour of Juventus Football Club S.p.A. referring to operations in previous transfer campaigns.
STADIUM PROJECT AND MID-TERM DEVELOPMENT PLANS
On 5 February 2007, the Board of Directors met to examine the project for the new stadium, in view of
the deadline of 15 February 2007, set by UEFA for the presentation of the bid file by the Italian federation
for the candidature of the organisation of the European championship in 2012.
7-03-2007
10:37
Pagina 25
The Board of Directors expressed its unanimous approval of the plan for the stadium, conditional on the
approval and ratification of the related memorandum of understanding by the City of Turin, as well as
the provision by the government and the F.I.G.C. of credit facilitation guarantees for financing of no less
than € 120 million. These guarantees would enable Juventus Football Club S.p.A. to sign all the
contractual documents needed for the bid for Euro 2012, including the memorandum of understanding
with the F.I.G.C. and the agreements with U.E.F.A..
The Board also examined the first indications regarding the Company's mid-term development plan.
This will be examined in future meetings, taking into consideration whether the conditions for
implementing the stadium project are met or not.
25
7-03-2007
10:37
Pagina 26
Business outlook
The 2006/2007 financial year is influenced by the relegation to Serie B, which has led to the reduction
in the value of some contracts and the non participation in the U.E.F.A. Champions League (€ 22.5 million
in the 2005/2006 season, in which the First Team reached the quarter finals).
In this situation, the Company has implemented a strong cost reduction plan, regarding in particular the
costs for wages and amortisation of players' registration rights, leading to the sale of important players,
key members of many National Teams.
The objective for the current financial year is to break even.
Turin, 13 February 2007
On behalf of the Board of Directors
The Chairman
Giovanni Cobolli Gigli
26
cover_dicembre_06
19-02-2007
14:46
Pagina 3
Information for shareholders, investors and the press:
Relations with Institutional Investors and Financial Analysts
telephone +39 011 65 63 456
fax +39 011 56 31 177
[email protected]
Press Office
telephone +39 011 65 63 436
fax +39 011 44 07 461
[email protected]
Juventus Football Club S.p.A.
C.so Galileo Ferraris, 32 - 10128 Turin
telephone +39 011 65 63 1
fax +39 011 51 19 214
www.juventus.com
Photography
LaPresse
English version
David Henderson
Printed by
G. Canale & C. S.p.A.
cover_dicembre_06
19-02-2007
14:46
Pagina 1
Quarterly Report
at 31 December 2006

Quarterly Report at 31 December 2006

Transcription

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