Manchester United's Commercial Revenue Up 18.8%
Wed 12th Feb 2014 | Money & Finance
Manchester United's commercial revenues increased 18.8% according to the club's latest financial results.
Despite a shaky start to the new season under David Moyes, Manchester United's off field performance continues unabated.
Figures released today for the 2014 fiscal second quarter and six months ended 31 December 2013 shows commercial revenues of £42.3 million up 18.8% for the quarter and 30.0% for the year to date.
Six new sponsorship deals were activated in the second quarter with Unilever and Hong Kong Jockey Club (regional); Banif Bank (financial services); Fuji TV and SPOTV Korea (MUTV) and STC (mobile) all joining the United ranks.
Broadcasting revenues increased 18.7% for the quarter primarily due to the new FAPL domestic and international TV rights agreements.
Commenting on the figures, Ed Woodward, Executive Vice Chairman , said, “We once again achieved a record revenue quarter with strong contributions from our commercial and broadcasting businesses despite the current league position, which everyone from the Team Manager down has acknowledged is disappointing.
“We continue to see meaningful opportunities to grow our commercial business and the popularity of football on TV is leading to continued broadcasting revenue growth – all of which bodes well for the long-term stability and financial strength of our business. We are also very pleased to have added a world class player in Juan Mata to our squad, who has already made a positive impact."
A break down of the club's commercial earnings shows sponsorship revenue for the second quarter was £29.0 million, an increase of £8.2 million, or 39.4%, primarily due to higher renewals and the activation of new global and regional sponsorships.
Retail, Merchandising, Apparel & Product Licensing revenue was £9.1 million, a decrease of £0.4 million. For the year to date, revenue was £19.8 million, an increase of £0.9 million.
New Media & Mobile revenue was £4.2 million, a decrease of £1.1 million, due to the expiration of a number of mobile partnerships.
Broadcasting revenue for the second quarter stood at £46.9 million, an increase of £7.4 million, or 18.7%, over the prior year quarter, due to increased revenue from the Premier League domestic and international rights agreements, partly offset by one fewer Premier League game, and increases in share of UEFA Champions League fixed pool distributions as we finished 1st in the Premier League in season 2012/13 compared to 2nd in the 2011/12 season.
Matchday revenue for the second quarter was £33.7 million, a decrease of £1.3 million, or 3.7%, over the prior year quarter, primarily due to playing one fewer home Premier League game, partly offset by one more Capital One cup game.
Total operating expenses stood at £87.7 million, an increase of £14.5 million over the prior year quarter whilst staff costs were £51.6 million, an increase of £7.4 million, or 16.7%, primarily due to the impact of player acquisitions and renegotiated player contracts.
Other operating expenses for the second quarter were £20.3 million, an increase of £4.6 million, or 29.3% primarily due to foreign exchange losses and an increase in domestic cup gate share expenses from having one home domestic cup game in the second quarter (none in the prior year quarter).
Net finance costs for the second quarter were £5.7 million, a decrease of £3.5 million, or 38.0%, over the prior year quarter due to a reduction in interest payable on secured borrowings following the refinancing in June 2013.
Image: Action Images / Carl Recine Livepic
Posted by: Aaron Gourley
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