Sponsorship drives Man Utd revenue increase

MANCHESTER United’s on-field performances have translated into off-field success as the firm managed to increase sales during the first quarter of 2011.

Figures for parent firm MU Finance plc show that in the first three months of 2011 sales climbed by 1% to £75.2m, bringing the total increased for the nine months of the club’s financial year to March 31 up 6% to £231.7m (£219.3m).

The increase for the nine months to March 31 is largely due to a 30.1% increase in income sponsorship and commercial activity, which is 30.1% higher – increasing by £17.4m to £75.3m.

Matchday revenues fell by £3.1m to £81.5m, while media income also dropped by £1.9m to £74.9m, although both can be attributed to the fact that more games were played in the first quarter of 2010.

Costs also increased during the quarter and were £1.2m higher than in the same three-month period last year, which means that its earnings before tax, interest and amortisation dipped by 2% to £22.9m.

Earnings for the nine-month period remain around 2% ahead of last year at £83.4m.
In a brief statement to bondholders the club said that its balance sheet remained strong with net assets of £765.1m and a retained cash balance of £113m. The club also confirmed that it had repurchased £5.5m worth of bonds during the quarter.

Debt at the end of the period stood at £477m, compared with £520.9m a year earlier.