Manchester United Report Record Quarterly Revenues
Wed 14th Nov 2012 | Money & Finance
Manchester United have today reported record first quarter revenue of £76.3m. The financial results for the 2013 fiscal first quarter ending 30 September 2012 also showed sponsorship revenue increased by 32.4% giving United first quarter net income of £20.5M
United also revealed total borrowings stood at £359.7 million compared to £436.9 million at 30 June 2012. This was attributed to the re-purchasing and retirement of £62.6 million. United paid out £3.1 million in professional advisor fees in connection with the IPO earlier in the year which raised £70.3 million on the New York Stock Exchange.
Commercial revenue for the quarter increased 24.3% to £43.0 million driven by the addition of several new global (including General Motors - Chevrolet) and regional sponsorships; an increase in receipts from existing partnerships; an increase in profit share pursuant to the arrangement with Nike; and the commencement of new mobile partnerships.
Retail, merchandising, apparel and product licensing revenue increased 11.9% to £9.4 million; and new media and mobile revenue increased 11.5% to £5.8 million.
However, broadcasting revenues for the quarter decreased 37.4% year on year to £13.7 million but matchday revenues increased 13.3% to £19.6 million principally as a result of one-off fees earned from the staging of nine Olympic Games football matches at Old Trafford together with the impact of a home fixture in the League Cup (compared with nil in the prior year quarter).
Total operating expenses for the quarter increased 12.7% to £74.8 million whilst staff costs for the quarter increased 6.6% to £40.3 million, primarily due to growth in commercial headcount and partially offset by a one-off receipt of £1.3m for players on International duty at Euro 2012.
Overall, profit for the period from continuing operations for the quarter increased to £20.5 million, compared to a loss in the prior year quarter of £5.0 million. Capital expenditures on property, plant and equipment and investment property for the quarter were £3.4 million compared to £13.8 million in the prior year quarter.
Posted by: Aaron Gourley
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