Manchester United results: Ed Woodward hails 'financial strength' despite revenues falling
United remain on course to record end-of-year revenues of between £615m and £630m
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Your support makes all the difference.Manchester United remain confident of posting record end-of-year revenues despite announcing reduced quarterly income in their latest financial results.
Ed Woodward, United’s executive vice-chairman, hailed the club’s “financial strength” on Thursday after revealing income of £135million for the first quarter, down by 6.1 per cent.
United saw commercial and matchday revenue streams fall over the summer due to a shorter pre-season tour and fewer games at Old Trafford at the start of the season.
The club’s first quarter profits duly fell to £13.9m, 22.3 per cent down on last year, yet Woodward still expects to post record total revenues of between £615m and £630m.
“Our financial strength enables us to continue to attract and retain top players and to invest in our academy, as we look to drive the success on the pitch that the club and our fans expect,” he said.
“We remain on track to deliver our record full-year revenue guidance, underpinning our long-term, strategic plan to create sustainable growth across all areas of the club.”
United’s gross debt stands at £492m, more than 13 years on from the Glazer family’s leveraged buy-out of the club for a debt of £525m. Net debt – the club’s gross debt minus cash reserves – is £247.2m, a decrease of £20.9m from the prior year.
Wages rose by 10.2 per cent to £77m “due to investment in the first-team playing squad”, particularly the major signing of Alexis Sanchez on a basic salary understood to be worth £300,000-a-week.
While commercial and matchday revenues fell to 5.7 and 27.2 per cent respectively, broadcasting revenue rose by 4.9 per cent to £42.8m, largely due to a new Champions League television deal.
Cliff Baty, United’s chief financial officer, told investors on a lunchtime conference call that the distribution of European fixtures combined with one less Premier League game at Old Trafford in the first quarter was the cause of reduced revenues.
“Had we played our second Champions League fixture against Valencia within the first quarter, consistent with the prior year, broadcasting revenues alone would have been approximately £10m higher,” he said.
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