By Paul Nicholson
May 16 – Manchester United, setting themselves up for a Europa Cup final season finale, are also predicting a big year-end finish for their financials, forecasting a better than expected financial performance.
Third quarter financial results for the nine months ending 31 March 2017 show broadcasting revenue being the main driver at £31.4 million, an increase of £3.6 million, or 12.9%, over the prior year quarter.
The club now expects year end revenue to be between £560 million and £570 million with adjusted EBITDA to be between £185 million and £195 million.
Ed Woodward, Executive Vice Chairman, said: “As we near the end of the season, I am delighted we have picked up two trophies so far, and look forward to competing for a third in the Europa League final, the only trophy we have never won.
“We are forecasting better full year financial performance than expected and as such have raised our revenue and profit guidance for the year. We look forward to a strong finish to 2016-17, both on and off the pitch.”
Commercial revenue for the quarter was £66.5 million, an increase of £0.7 million, or 1.1%, over the prior year quarter. Sponsorship revenue made up the bulk of this at £39.6 million, a increase of £0.8 million on the previous year with the quarter seeing new global deals signed with Uber and Aladdin Street.
Retail and licensing revenue was up by £0.3 million while mobile and content revenue dropped by £0.4 million against the previous year quarter. Mobile and content revenue was £2.2 million suggesting its real value is in supporting the sponsorship sale.
While revenue was up, so were total operating expenses for the quarter at £129.8 million, an increase of £27.6 million, or 27%, over the prior year quarter.
Employee benefit expenses for the quarter were £66.5 million, an increase of £10.3 million while other operating expenses for the quarter were £30.7 million, an increase of £8.4 million, reflecting higher home domestic cup revenue share costs and unfavourable foreign exchange movements with the falling value of sterling.
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