Manchester United’s financial results for the quarter ended 30 September show that total revenue was up 29.9%, with record first quarter revenue of £98.5m. The club predicts revenues for the whole year of £420m-£430m, bringing it closer to Europe’s wealthiest clubs, Barcelona and Real Madrid.
Manchester United’s financial results for the quarter ended 30 September show that total revenue was up 29.9%, with record first quarter revenue of £98.5m. The club predicts revenues for the whole year of £420m-£430m, bringing it closer to Europe’s wealthiest clubs, Barcelona and Real Madrid.
Twelve new sponsorship deals activated in the first quarter, including Aeroflot and PepsiCo, saw sponsorship revenues increase 62.6%, with commercial revenues increasing by 39.3% and retail, merchandising apparel and product licensing revenue up 13.8%. The new Premier League domestic and international TV rights deal gave United a 40.9% lift in broadcasting revenues.
Matchday revenue for the quarter was £19.3 million compared to £19.6 million in the prior year quarter, which included one-off fees earned from the staging of Olympic Games football matches at Old Trafford whereas the current year quarter included fees earned from participating in this season’s Community Shield match which the club did not participate in last season.
Total operating expenses for the quarter were £90.2 million, an increase of £15.4 million, or 20.6%, over the prior year quarter whilst staff costs for the quarter totalled £52.9 million, an increase of £12.6 million, or 31.3%, over the prior year quarter and marginally above the recommended figure of 50 per cent of turnover. These figures did give analysts some concern.
The staff costs increase was primarily due to the impact of a full period of wage costs relating to players signed part way through the prior year quarter, contractual player wage increases and bonuses associated with the growth of the commercial business. Additionally, the prior year quarter benefitted from a one-off receipt of £1.3 million in respect of players on International duty at Euro 2012.
United’s net finance costs for the quarter were £9.8 million, a decrease of £2.6 million, or 21.0%, over the prior year quarter. However, this still amounts to £40m on an annualised basis.
The decrease was primarily due to a £4.1 million reduction in interest payable on secured borrowings and a £7.8 million reduction in premium paid and accelerated amortization related to the senior secured note repurchases in the prior year quarter; partially offset by a £7.6 million gain on re-translation of US dollar borrowings in the prior year quarter.