Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Manchester United Post Record Quarterly Revenue

Thu 12th Nov 2015 | Money & Finance

Manchester United has today announced total revenue of £123.6m for the 2016 fiscal first quarter ending 30th Sept (2015), an increase of 39.3% on the same period last year (£88.7m – 2014).

The latest quarterly results are another record for the club with the expectation that revenues will rise to £500m to £510m for the fiscal year 2016 and adjusted EBITDA to be £165m to £175m.

Commercial revenue for the first quarter was £71.2m, an increase of £14.4m, (+25.4%) over the prior year quarter. This was driven by strong Retail, Merchandising, Apparel & Product Licensing revenue for the first quarter totalling £22.3m, an increase of £14.5m, (+185.9%) on 2014 primarily due to the commencement of the new agreement with adidas from 1 August 2015, which included a step-up in minimum guaranteed revenues and the contribution from several businesses previously operated by Nike.

Sponsorship revenue of £46.3m showed continued growth in the underlying sponsorship business, however lower tour revenue from playing one fewer game, resulted in flat revenues when compared to the prior year quarter.

Mobile & Content revenue saw a decrease of £0.1m to £2.6m over the prior year quarter.

Broadcasting revenue for the first quarter was £27.6m, an increase of £10.8m, (+64.3%) primarily due to participation in the UEFA Champions League, one additional FAPL home game, and one additional FAPL live broadcast game in the current quarter.

Matchday revenue was £24.8m, an increase of £9.7m, (+64.2%) again, primarily as a result of participation in the UEFA Champions League, one additional FAPL home game, and one additional domestic cup home game in the current quarter.

The club’s total operating expenses for the quarter were £106.7m, an increase of £13.9m, (+15%).

Net finance costs for the quarter were £4.3m, a decrease of £1.8m, or 29.5%, over the prior year quarter. The decrease was primarily due to a £1.1m reduction in interest payable on senior secured notes and secured term loan following the refinancing in June 2015.

Ed Woodward, Executive Vice Chairman, commented, “Our record first quarter revenues and EBITDA demonstrate the continued strength of our businesses.

“We are delighted with the early progress made in licensing. During the quarter we entered into an agreement with HCL to be our Digital Transformation partner, which will enable us to connect with our fans around the world in innovative ways and further strengthen and grow our commercial revenues.”

Posted by: Aaron Gourley



If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk

To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Watford FC: An Unlikely Financial Success Story?

Wed 26th Apr 2017 | Money & Finance

The business model carried out by the owners of Watford FC is unlikely to be adopted by too many sectors outside of football, but by hiring and firing a conveyor belt of managers, they have managed to...

Newcastle United & West Ham Face Tax Investigation

Wed 26th Apr 2017 | Money & Finance

Newcastle United and West Ham United have been targeted by HMRC for alleged Tax and National Insurance fraud. Officers are understood to have raided the offices at St James’s Park and the London...

Premier League Revenues Grow But Losses Return

Thu 20th Apr 2017 | Money & Finance

Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm. Analysis of the financial results of Premier League clubs...

7 Tips From The Best Online Football Merchandise Stores

Thu 13th Apr 2017 | Money & Finance

CEO, Lewis Holland and the team at DiscountIF team have been studying various merchandise stores of football clubs in the UK. This article was originally posted here. We’ve compiled a short list...