Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a659095
Man United reports 47.9% rise in pre-tax profits
by James Phillipps on Feb 15, 2013 at 07:01
Manchester United has reported a 47.9% rise in pre-tax profits in the fourth quarter while commercial revenues rose by 29% over the same period.
The three-time European champions completed six new sponsorship deals increasing its footprint across Asia and also announced it has signed a new eight year sponsorship deal with a new training kit partner after buying out DHL from its previous arrangement.
Pre-tax profits rose from £19.2 million to £28.4 million year-on-year, despite staff costs rising by 14.2% to £44.2 million over the same timeframe. Commercial revenue hit £35.6 million, up from £27.6 million, but broadcasting revenue remained the biggest source of income, up 4.8% to £39.5 million over the three months, contributing to total revenue growth of 8.7% from £101.3 million to £110.1 million.
Following United’s partial stock market flotation last August, £62.6 million of senior secured notes were bought back, reducing the company’s net finance costs by 25.2% to £9.2 million. Gross debt has fallen by 16.1% to £366.6 million from £438.9 million at the end of June.
The club, which is riding high in the Premier League with a 12 point cushion from neighbour’s City, expects revenue for fiscal 2013 to come in between £350 million to £360 million.
United’s shares were down 0.64% at $18.59 on the announcement in midday trading, but remain 31.76% up since flotation in August.
News sponsored by:
Subscribe to Wealth Manager to get the inside track on your rivals' moves
Keep up to date with how your peers are allocating their clients' assets by subscribing to Wealth Manager magazine.
Today's top headlines
More about this:
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road