FIFA announces rise in profits
ZURICH, Apr 11 (Reuters) Switzerland - World soccer's governing body FIFA has announced annual profits for 2005 of SFr 214 million (164.9 million dollar) -- an increase of SFr 56 million compared to 2004.
At a press conference held at the organisation's Zurich headquarters, FIFA said the increase was influenced partially by an increase in the value of the US dollar.
Total revenue was up from SFr 582 million in 2004 to SFr 660 million with expenditure also rising from 582 million to 660 million.
FIFA said it would be converting its balance sheet into US dollars for the next four-year World Cup cycle (2007-2010) because the currency accounts for the majority of its transactions.
FIFA president Sepp Blatter said the organisation had surpassed its target for SFr 450 million in equity a year ahead of schedule -- accumulating a surplus of SFr 461 million by the close of the year.
General secretary Urs Linsi said that the creation of financial reserves had become ''an essential requirement'' for FIFA because the growth of the World Cup no longer made it possible to secure cancellation insurance cover.
REUTERS PDS PM1713