Manchester United's Revenues Down But Not all Bad
Thu 12th Feb 2015 | Money & Finance
Manchester United have announced their financial results for the 2015 fiscal second quarter and six months ended 31 December 2014.
United’s revenues have dropped to £194,431 six months ending 31 December 2014.
Revenues fell from £221,448 over the same period 2013 and is largely due to lack of Champions League football.
But it wasn’t all bad news as United’s commercial revenues of £46.4m were up 9.7% for the quarter.
Ed Woodward, Executive Vice Chairman commented, “The recently announced Premier League broadcasting rights package for 2017-19, representing an increase just over 70%, once again demonstrates that we are part of the top football league in the world.
“Notwithstanding no European football this season, our Revenues and EBITDA remain strong and demonstrate the underlying strength of our business model, with commercial revenues up year over year.
“On the pitch, the team is well positioned to challenge for a top four finish in the Premier League and we look forward to the rest of the season.”
For fiscal 2015, Manchester United continues to expect:
- Revenue to be £385m to £395m.
- Adjusted EBITDA to be £90m to £95m.
Commercial revenue for the second quarter was £46.4 million, an increase of £4.1 million, or 9.7%, over the prior year quarter.
- Sponsorship revenue for the second quarter was £35.8 million, an increase of £6.8 million, or 23.4%, over the prior year quarter, primarily due to an increase in shirt and other sponsorships.
- Retail, Merchandising, Apparel & Product Licensing revenue for the second quarter was £7.9 million, a decrease of £1.2 million, or 13.2% over the prior year quarter, primarily due to reduced Nike guaranteed revenue due to non-participation in the UEFA Champions League in the current season.
- Mobile & Content revenue for the second quarter was £2.7 million, a decrease of £1.5 million, or 35.7% over the prior year quarter, due to the expiration of a few of our mobile partnerships.
Broadcasting revenue for the second quarter was £28.4 million, a decrease of £18.5 million, or 39.4%, over the prior year quarter, primarily due to non-participation in the UEFA Champions League in the current season.
Matchday revenue for the second quarter was £30.9 million, a decrease of £2.8 million, or 8.3%, over the prior year quarter, primarily due to no home domestic cup nor UEFA Champions League matches in the current quarter.
Other Financial Information
Total operating expenses for the second quarter were £93.1 million, an increase of £5.4 million, or 6.2%, over the prior year quarter.
Staff costs for the second quarter were £48.7 million, a decrease of £2.9 million, or 5.6%, over the prior year quarter.
Other operating expenses
Other operating expenses for the second quarter were £14.6 million, a decrease of £5.7 million, or 28.1%, over the prior year quarter, primarily due to non-participation in the UEFA Champions League and favourable movements in foreign exchange.
Image: Action Images / Lee Smith Livepic
Posted by: Aaron Gourley
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