Juventus, half-yearly in the red by 95 million

Juventus closed the first half of 2023-24 with a loss of 95.1 million, compared to -29.5 on 31 December 2022. Heavy red but expected after exclusion from the cups. The direct effects of non-participation in UEFA competitions amount to 60 million in the first six months, including prizes, ticketing and sponsorships, for a projection of over 90 on an annual basis. It is no coincidence that the directors expect a higher loss for the financial statements as at 30 June 2024 than that of 2022-23 (-123.7 million). With a clarification: without those lost revenues the income statement “would show an appreciable improvement compared to that of the previous year, above all thanks to the incisive structural cost rationalization actions implemented starting from the pandemic period”.

savings

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The savings plan continues and in the half-year report records reductions in expenses of 22 million, of which 17 million as the cost of the squad between salaries (-3 million) and depreciation (-14), which will more than double on an annual basis, because the accounts on December 31st they absorb incentives for exodus which will not be repeated. In addition to the reduction in typical revenues, the 2023-24 financial year suffers from the lower contribution of player trading: in the half-yearly transfer market revenues went from 43 million on 31 December 2022 to 17 on 31 December 2023. And in January only 2 were accounted for million in net capital gains. Already in anticipation of these losses, the October shareholders’ meeting had approved the capital increase of 200 million (of which 127 already paid as an advance by Exor) which will be completed in the first quarter. The recapitalisation, in addition to consolidating the net worth, will lead to a “significant reduction” in net financial debt compared to the 327 million on 31 December 2023 in which not only the lack of UEFA revenues but also the heavy installments (for 86 million) of the transfer campaigns of previous years. In the meantime, the company will repay the expiring bond of 175 million (plus 6 in interest) with a mix of operations already implemented: pre-existing and new banking lines, factoring operations on TV rights and, for approximately 70 million, the non-recourse transfers of receivables from foreign clubs which took place in August and January. Obviously, the multi-year plan which provides for “a progressive improvement in the economic and financial performance, with the achievement of a net result and positive cash flows in the 2026-27 financial year” remains confirmed.