Manchester United drives revenues and reduces debt

Manchester United has driven revenues over the past nine months, it revealed in figures filed today.

The Old Trafford Club, which is in a record-equalling 20th FA Cup Final this Saturday against Chelsea, issued financial results for the third quarter, and nine month period to March 31, 2018.

Revenues for the third quarter of £137.5m were up 8.1% on the same period in 2017.

For the nine month period, revenues had risen by 9.2% to £442.4m.

The club made a £1.3m pre-tax loss during the third quarter, compared with a £7.4m loss the same time last year.

Over the nine months it reported a £37.5m profit before tax, up from £18.5m at the same point in 2017

The club said it expects to report revenues of between £575m-£585m for the full year 2018, and an adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of between £175m-£185m.

So far, it has become the fastest growing sports club channel to launch on Youtube, and it clinched four sponsorship deals during the third quarter period, with PingAn (financial services), Science in Sport (regional), renewal of Cho-A-Pharm (regional), and an extension of Mlily (global).

Executive vice chairman Ed Woodward said: “As another season nears its close, we have achieved our highest number of points and finish since 2012/13 and we look forward to another trip to Wembley.

“We anticipate another successful summer tour in the United States in preparation for the 2018/19 season.”

Commercial revenue for the quarter was £66.7m, an increase of £200,000, or 0.3%, over the prior year quarter.

Sponsorship revenue for the quarter was £41.7m, a decrease of £100,000, or 0.2%.

Retail, merchandising, apparel and product licensing revenue for the quarter was £25m, an increase of £300,000, or 1.2%, over the prior year quarter.

Broadcasting revenue for the quarter was £39.7m, an increase of £8.3m, or 26.4%, primarily due to playing one additional Premier League home game and two additional Premier League games being broadcast live.

Matchday revenue for the quarter was £31.1m, an increase of £1.8m, or 6.1%, primarily due to playing an additional Premier League home game, partially offset by playing fewer domestic cup games.

Employee benefit expenses for the quarter were £75.1m, an increase of £8.6m, or 12.9%, primarily due to player salary uplifts related to participation in the UEFA Champions League.

Net debt ,as of March 31, was £301.3m, a decrease of £65m over the year.