Tax credit helps profits at United
MANCHESTER United’s first quarter on the New York Stock Exchange was given a boost by a £26.5m tax credit which pushed the club to a £20.5m profit.
Without this cash injection – granted due to a transfer to “certain US tax bases” – United was left with a £6m pre-tax loss, slightly down on the £6.3m loss recorded during the same period last year.
Adjusted earnings, before interest, tax, depreciation and amortisation (EBITDA) fell 15% to £16.3m, down from £19.3m.
In the three months to September 30 revenue was up 3.4% to £76.3m, buoyed by a jump in commercial revenue of 24.3% to £43m. This was driven by 10 sponsorship deals with companies such as Chevrolet and Santander.
Matchday revenue rose 13% to £19.6m thanks to one-off fees from hosting nine Olympic matches. But broadcasting income fell by 37% to £13.7m due to the timetabling of Champions League games and a lower distribution from the Champions League pool after finishing second in the Premier League last season.
Gross debt reduced from £433.2m to £359.7m after the club, “re-purchased and retired the sterling equivalent of £62.6m of senior secured notes”.
The club is forecasting full-year revenue to come in at between £350m-£360m. Adjusted EBITDA should be £107m-£110m.
United made £4.8m on the sale of players, such as Dimitar Berbatov and Park Ji-Sung, compared to £5.6m last year. It spent £29.5m on players such as Robin van Persie, Shinji Kagawa and Nick Powell down £17.6m on £47.1m last time.
Executive vice chairman Ed Woodward said: “Manchester United had a record first quarter driven by our commercial operation, which continues to experience extremely strong global revenue growth in new media and mobile, retail merchandising and sponsorship.
“The team has also made a strong start to the 12/13 season – currently 1st place in the Premier League and 1st place (and undefeated) in our Champions League Group.”
