Juventus profits drop for first half of year

Juventus have announced a €6.5 million drop in profits for the first half of the 2013-14 financial year.

The Serie A leaders' profits fell from €11.3m to €4.8m compared to the same point a year earlier, with the club blaming the drop, in part, on an increase in player wages.

In addition, Juve's net debt has climbed almost €30m from €160.3m to €188m.

A statement published on the club's website read: "The first half of the 2013-14 financial year closed with a profit of €4.8m, posting a negative change of €6.5m compared to the profit of €11.3m registered in the same period a year earlier.

"This performance substantially derived from the increase in players’ wages and technical staff costs of €11.6m, a slight increase in revenues of €5.8m (also negatively influenced by one less home match in  2013-14 half year), as well as other net negative changes of €700,000.

"These net negative changes mainly included operating costs (€600,000), net financial expenses (€800,000), amortisation of players' registration rights (€700,000) and income taxes (€300,000), partly offset by lower provisions and write-downs (€1.7m).

"As of December 31 2013 Shareholders' equity totalled €53.5m, an increase compared to the balance of €48.6m at June 30 2013 due to the profit for the half year (+€4.8m) and changes in the cash flow hedge reserve (+€100,000).

"Net financial debt at December 31 2013 amounted to €188m (€160.3m at June 30 2013).

"The net decrease of €27.7m was driven by Transfer Campaign net payments (-€25.7m), advances paid to the City of Turin and various suppliers in relation to the Continassa Project (-€4.6m), other investments (-€4.5m) and financial flows (-€3.7m).

"These negative cash flows were partially offset by positive cash flows from operations (+€10.6m) and other net changes (+€200,000)."