Reduced revenues but increased profits at Infront Italy
Revenues at Infront Italy slipped from €259 million to €247.3 million in 2016.
However, there has been a 51.8-per-cent year-on-year rise in net profits compared to the €6.1 million reported in 2015.
A €5-million dividend has also been guaranteed to the parent company.
The Milan-based Infront Italy derives the clear majority of its revenues from soccer and its flagship deal remains its six-year €5.94-billion minimum guarantee agreement with Serie A to act as the league’s exclusive adviser on both domestic and international media rights runs until the end of the 2020-21 season.
Infront also sells sponsorship rights on behalf of Italian soccer clubs and represents the FIGC, the Italian soccer association, by marketing sponsorship packages and working on brand development. The joint deal with Gruppo 24 Ore, the Italian publishing group, is worth €14 million per season.
Along with media rights management, Infront Italy derives its revenues from broadcast production, consulting and sponsorship sales.
Winter sports has traditionally been the second-highest revenue generating area for Infront's Italian operation, including revenue stemming from a commercial agreement with FISI, the Italian winter sports federation.
Infront Italy is also active in sports such as volleyball, and earlier this year signed an 11-year contract with the FIG, the Italian golf federation, to manage events and handle marketing and digital rights to its tournaments.
At the end of last year, Infront Italy was handed a financial boost as TAR, the regional administrative court of Lazio, overturned a €9-million fine imposed on the agency following an antitrust investigation over the 2014 sale of domestic broadcast rights to Serie A.
The overturning of the fine, and also those imposed on the league and broadcasters Mediaset and Sky Italia, led to an appeal by the antitrust authority to Italy’s State Council.