Manchester United Post Record Third Quarter Revenues
Fri 3rd May 2013 | Money & Finance
Manchester United’s commercial prowess shows no signs of abating after the club announced record third-quarter revenues of £91.7m.
The figures released yesterday show commercial revenues in the third quarter had increased 31.9% year-on-year to £36m.
United Executive Vice Chairman, Ed Woodward commented, “Each of our three primary sectors – Commercial, Broadcasting and Matchday – delivered strong top-line gains and helped us achieve a record third quarter for both revenue and adjusted EBITDA.
The rise in revenues was driven by the addition of several new sponsorship deals, most notably the new eight-year training kit and complex partnership with current shirt sponsor Aon.
“In addition, we are delighted to be continuing and deepening our relationship with Aon, as our new Training Kit, Training Centre and Tour Partner, for an additional eight years,” added Woodward.
For the third quarter, sponsorship revenue increased 52.2% to £21.0m whilst its retail and merchandising arm increased 9.5% to £9.2m. New media and mobile revenues also increased 13.7% to £5.8m.
Broadcasting revenues increased 28.4% year on year to £21.7m relating to their progress to the Champions League Round of 16 compared to exiting at the group stages in the prior year. This also led to an increase in matchday revenues of 27.8% to £34.0m, due primarily to an additional three home cup games in the quarter compared to the prior year quarter.
Total operating expenses for the third quarter increased 18.6% year on year to £79.0m.
Despite the increase in revenues, staff costs increased 25.1% year on year to £44.9m, primarily due to new player signings, existing player wage increases and growth in commercial headcount. The nine months year to date increase is 15.1% year on year to £129.4m.
United’s other operating expenses for the third quarter also increased 50.3% year on year to £21.8m, primarily due to an increase in domestic cup gateshare costs, catering direct costs, and police and security costs – associated with the four FA cup home games played in the quarter compared with none in the prior year quarter.
Profit on the disposal of players’ registrations for the third quarter was £2.5m compared with £2.1m in the prior year quarter
Significantly United’s total debt stood at £367.6m on 31 March 2013 compared to £423.3 million at 31 March 2012.
Posted by: Aaron Gourley
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