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Man Utd reports record revenues for first quarter | Man Utd reports record revenues for first quarter |
(about 1 hour later) | |
Manchester United has reported record revenue of £98.5m for the first three months of its financial year. | Manchester United has reported record revenue of £98.5m for the first three months of its financial year. |
The 29% revenue rise came after a 63% jump in sponsorship income and an increase in earnings from TV deals. | The 29% revenue rise came after a 63% jump in sponsorship income and an increase in earnings from TV deals. |
There were 12 new sponsorship deals signed, including one with Russian airline Aeroflot. | |
The club predicts revenues for the whole year of £420-430m, bringing it closer to Europe's wealthiest clubs, Real Madrid and Barcelona. | |
Staff costs for the quarter rose by 31% to £52.9m | |
TV boost | |
Manchester United - which is controlled by the US-based Glazer family - also welcomed the latest broadcast deal under which BT Sport paid nearly £900m for a three-year deal to broadcast live Champions League and Europa League matches. | |
United's executive vice-chairman Ed Woodward said in a statement: "This deal represents a meaningful increase over the current arrangement, which should translate into higher broadcasting revenue for the participating clubs." | |
The club said 12 new sponsorship deals were activated in the quarter with a range of companies, including Russian airline Aeroflot and the soft drinks company PepsiCo. | |
Licensing of clothing and other products brought in £10.7m, a rise of 13.8% on last year, and broadcasting revenue rose 41% to £19.3m, | |
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said commented "Manchester United's stuttering start to the domestic season is in stark contrast to its performance off the field. | |
"There are some causes for concern, such as the steep percentage rises in operating expenses generally, and staff costs in particular." | |
However, he said that while the share price would inevitably be affected by the on-field performance, "there is no sign of the Manchester United marketing machine beating a retreat". | |