Man United announces massive rise in TV, match-day revenues

Man United announces massive rise in TV, match-day revenues
November 18 08:35 2017

Manchester United has announced that total revenues for the three months to October grew by 17.3% to £141m.

Broadcasting and match-day revenues leapt more than 30%, while commercial and sponsor income also grew.

But the Old Trafford club’s income from retail, merchandising, sportswear and product licensing slipped by 0.4% on the previous year.

The club also reported a big leap in operating profits, from £6.2m a year ago to £15.2m now.

Manchester United is second in the Premier League and poised to qualify for the Champions League knock-out phase. It is also in the last eight of the Carabao League Cup.

“We are just over a quarter of the way through what promises to be another exciting season,” said club executive chairman Ed Woodward.

“In the Champions League, we have won all four games played to-date; we are through to the quarter-final of the Carabao Cup and are looking forward to the next few months as the number of matches ramps up.”

During the quarterly period, the club took part in a US tour and also signed three new players – Victor Lindelof, Romelu Lukaku and Nemanja Matic.

Champions League effect

Broadcasting revenue was £38.1m, an increase of 30.9%, thanks to participation in the Champions League, playing one extra Premier League home game and participation in the Uefa Super Cup final. But that was partially offset by having one fewer Premier League game broadcast live.

Match-day revenue for the quarter was £22.4m, an increase of 33.3% over the previous year, primarily due to playing two additional home games across all competitions.

For the total financial year, Manchester United is now predicting total revenues of between £575m and £585m.

Meanwhile, total operating expenses for the period were £143.1m, an increase of £20.9m, or 17.1%, on the previous year, largely as a result of additional payments caused by Man Utd qualifying for this season’s Champions League.

Overall, employee benefit costs rose for the quarter, to £69.9m, an increase of 12.2%.

Other operating expenses for the quarter were £34.5m, a hike of 29.2%, over the year before, primarily due to club playing more tour games this year – five, than in the previous season, when they played one and one was postponed.

Net debt was £268.1m, a decrease of £69.6m over the year.