At the halfway point of the 2003-2006 financial period, FIFA is on course to meet its targets as the organization's Centennial year of 2004 drew to a close with surplus income of 158 million swiss francs (CHF) and an increase in equity, which now stands at CHF 238 million.

The world football's governing body can look back on a financial year with a great deal of satisfaction, FIFA said in a statement issued in Zurich, Switzerland on Tuesday.

The second quarter of the four-year period up to and including 2006 brought income of CHF 740 million and expenses of CHF 582 million, resulting in a profit of CHF 158 million according to International Financial Reporting Standards (IFRS). When compared to 2003's result (CHF 141 million), this represents an increase of CHF 17 million (12 percent).

In terms of income, FIFA surpassed the budgeted figure due to accelerated collection of revenue. FIFA also had its costs fully under control, despite all the celebrations marking FIFA's Centennial year in 2004. As of expenses, FIFA kept to its budgeted figures and in some cases exceeded expectations, it said. At the end of 2004, FIFA had liquid assets amounting to CHF 439 million. This positive financial development has allowed FIFA to decide, two years before the final competition of the 2006 FIFA World Cup in Germany, to increase the total prize money payments for the 32 finalist teams by 38 percent to CHF 332 million.

FIFA President Joseph S. Blatter is delighted with FIFA's robust financial health and the outlook for the governing body. "We have taken another significant stride towards our goal of having equity of between CHF 350 and 450 million by the end of 2006. That equity, together with the results we have already posted from marketing, will further strengthen FIFA's solid financial foundations," he said. Ninety-five percent of the total revenue of CHF 740 million in 2004 related to income from FIFA's competitions and the 2006 FIFA World Cup in particular. FIFA also spent CHF 254 million on competitions and a further CHF 141 million on development projects. Consequently, 68 percent of FIFA's income in 2004 has been reinvested in the game of football.

For the first-ever time, FIFA's balance sheet has broken the CHF 1 billion mark. FIFA's assets of CHF 1.005 billion are countered by current and non-current liabilities of CHF 767 million and as mentioned earlier, equity of CHF 238 million, according to the statement.

Note: 1 U.S. dollar = 1.1866 Swiss francs

Source: Xinhua