UNITED’S REVENUES ARE RISING, AS WELL AS NET DEBT

Manchester United FC recorded a 7.3% year-on-year increase in revenue in its latest quarter, although the Premier League club’s net debt reached £494.8million at the end of the quarter. ‘last year.

United’s financial figures for the three months to December 31, 2021 detail an increase in revenue to £185.4m, from £172.8m in the same period in 2020. Commercial revenue for the quarter were £64.4 million, an increase of 2.9%.

However, United’s operating profit has fallen significantly year-on-year, from £48.5m in 2020 to £5.4m in 2021. The club’s net debt has also rose sharply, by 8.6% year-on-year to £494.8 million.

Sponsorship revenue was £35.2m, down 6.9%, which United said was mainly due to his training kit contract expiring at the end of May 2021.

Retail, merchandising, apparel and product licensing revenue was £29.2m, an increase of £4.4m, due to higher revenue megastore and e-commerce.

United said that unlike the previous year’s quarter, the Megastore has remained open to customers for the past three months and has also benefited from home games being played to full capacity crowds at Old Trafford. E-commerce revenue growth was driven by increased website traffic, supported by the impact of new player signings.

Broadcast revenue for the quarter was £86.4m, down £22.3m (20.5%) as there were four home and away games away less in all competitions over the three months.

Matchday revenue for the quarter rose significantly to £34.6m, an increase of £33.1m, with all eight home games being played in front of full capacity crowds. All 10 home games in the previous year’s quarter were played behind closed doors.

Manchester United chief executive Richard Arnold said: “Everyone associated with Manchester United should believe in the opportunities that are available to us, both on the pitch and in the way we engage and serve our fans.

“We have a clear vision and we are implementing a strategy to win with an empowered management team to drive this forward. We will foster a culture of excellence through a world-class football environment, while strengthening the role of supporters at the heart of the club and harnessing the power of Manchester United to have a positive impact on people, the environment and society. society.

“All of this will be underpinned by a sustainable operating model that ensures the club is strong for the present and secure for the future.”

Cliff Baty, Chief Financial Officer, added: “The results reflect continued strength in our sponsorship revenue, supported by record digital fan engagement, in addition to the return of more normalized matchday operations. We look forward to the remainder of the financial year with optimism.”

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Ann J. Cox