Manchester United has reported a 60 percent increase in quarterly profit, saying it had the financial muscle to improve its squad after a poor season on the pitch.
Manchester United has reported a 60 percent increase in quarterly profit, saying it had the financial muscle to improve its squad after a poor season on the pitch.
Executive vice-chairman Ed Woodward said that United had generated record revenue and profit in the three months to the end of March despite the problems on the pitch. “This puts us in a healthy financial position to continue to invest in the squad,” he said.
Revenue in the three months to March rose 26 percent to 115.5 million pounds and operating profit reached 40 million. For the year as a whole, the club stuck to its forecast for revenue of between 420 and 430 million pounds and EBITDA (operating profit) of 128 to 133 million.
Commercial revenue was up 20 per cent to £42.8m as new sponsorship deals kicked in. Broadcasting revenue was up 64 per cent at £35.6m. Match day revenue was up slightly at £38.6m. Total debt is down £16m at £351.7m. Staff costs were up 18.9 per cent to £53.4m, but this is less than 50 per cent of revenue. Failure to qualify for the Champions League will cost the club about £30m.