Manchester United still financial
champions
16 November 2011
Manchester United looks to have
kicked off another record-breaking year off the pitch with an increase in
revenues and operating profits for the first three months of its financial
year.
The Premier League champions
cited a revival in demand for match-day hospitality as a key factor in its
growth during the three months to September 30.
Total turnover at Red Football
Group, the holding company of Manchester United, during the period rose from
£63.3m to £73.8m. Group operating profits climbed from £14.9m to £19.3m.
The club also slashed its gross
debts from £516.7m to £433.2m.
It is planning to tackle its
debts with a partial flotation on the Singapore Stock Exchange, which has been
delayed as a result of the uncertain financial markets but is still expected
before the end of the year.
Match-day revenues were up 16.6
per cent from £19.7m to £21.6m after hospitality boxes for the whole season
sold out for the first time.
Media revenues increased 16.5 per
cent from £19.4m to £22.6m, largely because United topped the league last
season and has received a bigger slice of TV revenues.
Commercial revenues climbed 22.3
per cent from £24.2m to £29.6m, boosted by partnerships with a number of telecoms
companies to provide exclusive content to fans.
Deals have been struck in
Vietnam, Saudi Arabia, Nigeria, Ghana, Indonesia, India, South Africa and
Malaysia.
The club has also secured a
four-year training kit sponsorship with logistics giant DHL, said to be worth
£10m a season.
However, total operating costs
increased year-on-year from £48.4m to £54.5m, including the club's pre-season
tour of the United States and £8m spent on land purchases around the Old
Trafford stadium.
The amount United spent on
players during the period was up year-on-year from £8.2m to £47.1m, which
included new signings David De Gea from Real Madrid and Ashley Young from Aston
Villa, as well as new contracts with existing players such as Antonio Valencia
and Chris Smalling.
That hit the group's cash
balances, which fell from £151.7m to £65m.
General capital expenditure was
up from £3.7m to £13.8m after the club splashed out on developing its corporate
boxes and hospitality areas, as well as its Carrington training facilities.
In June, United announced record
annual revenues of £331.4m, up £45m on the previous year.
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