Feb. 21 (Bloomberg) -- Arsenal, London's most successful soccer team, reported a first-half loss because of refinancing costs for its new stadium and higher player wages.

Parent company Arsenal Holdings Plc had a net loss of 6.2 million pounds ($12.1 million), or 99 pounds a share, in the six months ended Nov. 30 after a profit of 9.6 million pounds, or 154 pounds a share, in the year-earlier period. Sales jumped to 100.8 million pounds from 57 million.

The Gunners in August relocated to the 60,000-seat Emirates stadium from the 38,500-capacity Highbury, its home of the previous 93 years, in an attempt to bridge the financial gap on Manchester United and Chelsea. First-half match-day revenue more than doubled to 38 million pounds from 15.6 million.

``The Emirates Stadium project had an objective of providing Arsenal with the financial strength and resources to compete at the very highest level,'' Chairman Peter Hill-Wood said in a statement today. ``The results for the group's first period in its new home demonstrate that we have already achieved this milestone.''

Arsenal paid 21.4 million pounds to refinance loans on a stadium costing 357 million pounds and which is the English Premier League's second-largest behind Manchester United's 76,000-seat Old Trafford.

The Gunners sold 260 million pounds of bonds backed by ticket sales and increased the loan repayment period to 25 years from 13 years, reducing the interest payable by two percentage points to 6 percent, Managing Director Keith Edelman said in September.

`Diamond Club'

``The one-off charge is something we predicted and highlighted to shareholders,'' Edelman said in a telephone interview today. ``It really doesn't impact on the profitability of our ongoing business.''

Edelman said sales from the new stadium are on course to lift full-year revenue by as much as 35 million pounds. Wealthy fans are paying 900,000 pounds to guarantee two seats and hospitality in the `Diamond Club,' for the next 35 years.

The club is now making 2.8 million pounds from tickets alone on match days plus commercial sales from items such as an average of 37,000 game programs, Hill-Wood said.

The club has also staged the Brazil national team's matches against Argentina and Portugal. It's in talks to stage further international games even though Wembley stadium, also in north London, will soon be finished, Edelman said.

`Marketing Muscle'

``We see ourselves as an international venue,'' he said. ``We are capable of filling the stadium and we have the marketing muscle to execute.''

Arsenal has also started to receive payments from Emirates, the biggest Arab airline, in a 15-year stadium naming rights and jersey-sponsorship contract worth more than 100 million pounds. The increase in revenue also includes the sale of land next to the stadium for 23.8 million pounds, up from 4.5 million pounds a year ago.

Arsenal, which has won 13 English league titles, this month climbed one place to ninth in accountancy firm Deloitte and Touche LLP's list of the world's 20 richest clubs by revenue. Manchester United is the top U.K. team, in third place.

The club recently signed a cooperation agreement with the Colorado Rapids and has a soccer school in Thailand.

``We're starting our international development,'' said Edelman. ``Future growth is going to be the globalization of the business and really leveraging the brand around the world.''

Thierry Henry

Operating costs rose 69 percent to 84.6 million pounds as player salaries increased by 12.3 million.

Team captain Thierry Henry in May signed a new four-year contract that the Independent newspaper reported would earn him about 110,000 pounds a week. 19-year-old midfielder Cesc Fabregas signed an eight-year agreement and Arsenal recruited William Gallas from Chelsea and Sao Paolo's Denilson.

Offloading Ashley Cole, Pascal Cygan and Sol Campbell helped produce a profit of 108,000 pounds on player trading.

``We are very excited by the potential that exists in the current squad,'' said Hill-Wood. ``The increased wage costs reflect a policy of securing key members to long-term contracts.''

The Gunners last season reached the final of Europe's elite Champions League for the first time, losing 2-1 to Barcelona. They were beaten 1-0 by PSV Eindhoven last night in the away leg of this season's round of 16 and face Chelsea in four days in the final of England's League Cup.

Fourth in the Premiership, the Gunners will play Manchester City in the quarterfinals of the F.A. Cup if they win a fifth- round replay at Blackburn.

``Players come here because they want to play great football with great players and want Arsene Wenger as their manager,'' said Edelman. ``Money is one ingredient, but there are lots of others.''

To contact the reporter on this story: Ryan Mills in London at at Rmills5@bloomberg.net

Last Updated: February 21, 2007 08:16 EST