Inter Milan post large losses following Covid-19
Inter Milan have become the latest top European club to reveal the cost of Covid-19 after posting losses of €102.4 million (US$122.7 million) for the 2019/20 financial year, reports, www.sportspromedia.com/.
The Italian giants saw their revenues compared to last year fall €45 million (US$53.9 million) to €372.4 million (US$446.4 million). Earnings before interest, taxes, depreciation, and amortisation (Ebitda) came to €14.5 million (US$17.3 million).
Despite generating new revenues and profitability streams for the first half of the year, the pandemic meant a bumpy second half for Inter. Matchday revenues were unsurprisingly hit hard as Serie A resumed behind closed doors. As a result, the club had to refund any affected tickets and a proportion of season tickets. This was only partly mitigated by insurance cover.
The club's latest financials for the year ending 30th June 2020 are also partially affected by the European soccer season extending beyond that date. As a result, some TV rights and sponsorship revenues, totalling around €51 million (US$61.1 million), were deferred to the 2020/21 financial year. Net of these deferred revenues, Ebitda stands at €46 million (US$55.1 million), compared with €105.2 million (US$126.1 million) the previous year.
For the 2018/19 financial period, Inter's consolidated revenues increased 20 per cent YoY to a club-record €417 million (US$499 million). The Nerazzurri still recorded a €48.4 million (US$58 million) loss, which they attributed to significant investments made to strengthen on-field performances.
