United breaks third-quarter financial records

Manchester United has announced record third-quarter revenues of £91.7 million – figures boosted by the club’s prolific commercial department.

Commercial revenue for the third quarter increased 31.9% year-on-year to £36 million driven by the addition of several new sponsorship deals, most notably its new eight-year training kit and complex partnership with current shirt sponsor Aon. For the third quarter sponsorship revenue increased 52.2% to £21 million; retail, merchandising, apparel and product licensing increased 9.5% to £9.2 million; and new media and mobile increased 13.7% to £5.8 million. Broadcasting revenues for the third quarter increased 28.4% year-on-year to £21.7 million, mainly due to United’s progress to the Round of 16 of the UEFA Champions League. The Premier League champion also revealed that match day revenues for the third quarter increased 27.8% year on year to £34 million, due primarily to an additional three home cup games in the quarter compared to the prior year quarter.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 22.5% to a third quarter record of £25 million, with the club adjusting this figure for the 2013 fiscal year to £107-110 million. Full-year revenue forecasts remain steady at between £350-360 million. United paid for its comparatively poor season on-the-pitch in 2011-12 after reporting a 3.3% fall in revenues to £320.3 million for the year ending June 30, 2012. EBITDA for this period stood at £91.6 million.

Commenting on Thursday’s results, Manchester United executive vice-chairman Ed Woodward said: “Each of our three primary sectors – commercial, broadcasting and match day – delivered strong top-line gains and helped us achieve a record third quarter for both revenue and adjusted EBITDA.” United’s gross debt now stands at £367.6 million, a decrease of 15.9% since June 30 last year.