Inter announced their revenue dropped €30m and costs rose by €70m, so new bonds have been emitted for €75m.
A statement released by the Nerazzurri outlined the financial status of the club in the nine months leading up to March 31, 2020.
“Inter’s total revenue decreased by €30.5 million or 11.3% to €240.5 million from €271 million for the nine months ended March 31 2019,” read the press release.
Inter announced their revenue dropped €30m and costs rose by €70m, so new bonds have been emitted for €75m.
A statement released by the Nerazzurri outlined the financial status of the club in the nine months leading up to March 31, 2020.
“Inter’s total revenue decreased by €30.5 million or 11.3% to €240.5 million from €271 million for the nine months ended March 31 2019,” read the press release.
“The decrease in total revenue was mainly due to a €35.9 million decrease in commercial revenue and a €6.1 million decrease in media revenue, partially offset by a €9.0 million increase in matchday revenue.
“The decrease in commercial revenue is mainly a result of the termination of sponsorship agreements with Fullshare Holding Limited, King Dawn Investment Limited and of the expiration of the contract with the marketing agency Beijing Yixinshijie as at June 30, 2019.
“Moreover, following the suspension of the 2019/2020 season at the beginning of March 2020 due to the COVID-19 pandemic, there has been a deferral in the recognition of Sponsorship Revenue for approximately €6 million relating to March 2020.
“Inter’s total operating costs for the nine months ended March 31, 2020 increased by €73.0 million to €335.7 million from €262.6 million for the nine months ended March 31, 2019 mainly due to a €26.6 million increase in personnel costs for playing staff resulting from an increase in player wages, due to the purchase of high-profile players.
“Inter uses its cash on hand to pay operating expenses, staff costs, interest payments and other liabilities as they become due and Inter’s sources of liquidity have historically been the shareholder loans and other distributions by its subsidiary Inter Media, including through upstream loans and dividends.
“As of March 31, 2020, Inter group’s consolidated net financial position decreased by €69.8 million or 15.1% to €391.6 million from €461.4 million of March 31, 2019. The decrease was primarily due to the conversion into equity of shareholder loans for an amount equal to €100 million and a decrease of €4.7 million in the principal outstanding amount of the senior secured notes issued on December 21, 2017 (through a mandatory amortization payment). As of March 31, 2020, €138.9 million was outstanding in respect of the shareholder loans.
“Notwithstanding Suning’s renewed commitment to support the Group by waiving the repayment of a portion of the shareholder loan then outstanding for an amount of €10 million so that the corresponding amount could be allocated to capital reserve on or about June 22, 2020, Inter’s equity position at an unconsolidated level may become negative starting from the new fiscal year commencing July 1, 2020 as a result of losses accumulated during the fiscal year ended June 30, 2020.
“Such negative equity position may persist as a result of the applicability of an emergency decree recently enacted which allows companies to temporary waive their minimum capital requirements until December 31, 2020.”