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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.
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