English soccer club Manchester United said it was on course to meet its full-year financial targets as it posted an 18 per cent rise in second-quarter revenue despite its absence from the lucrative Champions League.
United, whose best known players include Paul Pogba and Zlatan Ibrahimovic, are currently sixth in the 20-team English Premier League and have reached the League Cup final.
“The robustness of our business model continues to be reflected in our strong quarterly financial results and we remain on track to deliver record revenues for the year,” executive vice chairman Ed Woodward said in a statement.
Revenue increased by 18 per cent to £157.9 million (€185.4 million) in the three months to the end of December, with big increases for matchday and broadcast income.
Matchday revenue for the three months climbed 27 per cent to £38.6 million (€45.3 million) as the team played three more home games at Old Trafford across all competitions.
Broadcasting rights agreement
Broadcasting revenue soared almost 41 per cent to 52.5 million (€61.6 million), helped by a new broadcasting rights agreement for the Premier League. Commercial revenue – the largest component – edged up by 1 per cent.
The club’s adjusted earnings before interest, tax, depreciation and amortisation rose to £69 million (€81 million) in the three months to the end of December, from 56.1 million (€65.8 million) a year earlier.
Net debt as of the end of December increased 27 per cent to £409.3 million (€480.6 million) which the club attributed to the strengthening of the US dollar against the pound.
The club was boosted by a one-off credit of £4.8 million (€5.6 million) after German midfielder Bastian Schweinsteiger won back a place in the first team squad, having previously written off his value in the accounts.
Controlled by the American Glazer family, United have won the English league title a record 20 times but have slipped from their own lofty standards in recent seasons.
United failed to reach the Champions League for the current 2016-17 season after finishing only fifth in the Premier League in the last campaign. The club reiterated its revenue target of between £530 to £540 million (€622 to €634 million) for the year to the end of June.
– (Reuters)
