ManU's 30pc rise in earnings a winner
PREMIER League champions Manchester United reported an increase in first-quarter earnings and said it had reduced its debt, thanks to a sharp rise in commercial revenue.
The club, which in September put on hold a planned $1bn flotation in Singapore due to market volatility, said yesterday that earnings before interest, tax, depreciation and amortisation rose by 30pc to £19.3m (€22.5m) in its first quarter to end September.
Manchester United, which currently sits in second place in the Premier League, said its gross debt had fallen to a total of £433.2m from £516.7m.
The club, which is the most successful in English football, received permission in September for an IPO, through which it was looking to sell up to 30pc of the club.
It had planned to use some of the proceeds to bring down its debt, a burden which has made the Glazer family, the club's American owners, deeply unpopular with United supporters.
The club said it had seen continued momentum in its commercial business and a recovery in seasonal and match-day hospitality businesses.
Total revenue rose by 17pc to £73.8m, including a 22pc increase in commercial revenues to £29.6m as the club reaped the benefits of a new £80m shirt sponsorship deal with Aon Corp.
Media revenues, including television rights, rose by 17pc to £22.6m. Match-day revenues were up 10pc to £21.6m.
Clubs across Europe are trying to increase their revenue streams in order to meet tough new financial criteria set by the game's governing body, UEFA. (Reuters)