By Paul Nicholson
February 8 – Manchester United have announced revenue of £163.9 million and operating profit of £28.7 million for its 2018 second quarter financial results ending December 31.
The club said it expects year end revenue to be £575-585 million with earnings before tax and interest being £175-185 million.
Compared to the same quarter in 2016 revenues were up £6 million but operating profit actually dropped £8.9 million.
Breaking out the revenue line commercial income (sponsorship and retail) dropped £1.4 million with sponsorship being the lion’s share of that at £1.3 million. Match day income dropped £1.7 million but the club played two fewer home game in the period.
In contrast broadcast income at £61.6 million is an increase of £9.1 million over 2016 due to participation in the Champions League and two additional PL games broadcast live.
The attrition on the profit line – operating expenses for the quarter were £136.2 million, an increase of £15 million -.was primarily due to employee benefit expenses for the quarter hitting £69.6 million, an increase of £6. million, or 9.4%. This is mainly due to player salary uplifts due to participation in the Champions League.
Ed Woodward, executive vice chairman, said: “Our solid business model has allowed us to invest in the future of the club with the extension of Jose Mourinho’s contract as manager and the acquisition of Alexis Sanchez. We look forward to the remainder of the season with confidence.”
Man Utd are second in the Premier League but with no realistic chance of catching runaway leaders and crosstown neighbours Manchester City. They are still however in the last 16 knock-out rounds of the Champions League and the FA Cup. But so are Manchester City.
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