Profits up, debts down at Manchester United

MANCHESTER United has reported 74% surge in first half profits to £22.3m.

The club, which is on course for a 20th domestic league title, also said revenues in the six months to the end of December were up 6.5% at £186.4m.

Announcing buoyant second quarter figures the club said it had increased commercial revenues by 29% year-on-year, with six new sponsorship deals with corporates in China, Japan, Thailand and Turkey.

Ed Woodward, executive vice chairman commented, ‘Manchester United achieved record revenue and record adjusted ebitda in the second quarter driven by our commercial operation, which continues to experience extremely strong growth particularly in sponsorship.

“In addition, our acquisition of BskyB’s one third stake in Manchester United’s global television channel MUTV will be key in expanding our media business in the future.”

Net finance costs for the second quarter fell 25.2% year-on-year to £9.2m after the repayment of £62.6m of loan notes.  Total borrowings were £366.6m at 31 December 2012 compared to £439m the previous year.

For the full year the club said it expects revenues to come in between  £350m to £360m and adjusted ebitda to be £107m to £110m.

The half year results included recird second quarter revenue of £110.1m and record-breaking Q2 ebitda of £50.2m.