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
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