Man United first quarter earnings fall 15% as income from TV drops

A reduction in broadcast revenue for Manchester United pushed underlying core earnings 15% lower at the Premier League soccer club in the quarter to the end of September.

Adjusted earnings before interest, tax, depreciation and amortisation fell to £16m (€19.9m) after broadcast revenue declined 37% because the club played only one Champions League game in the period and also received less TV money from pooled payments based on performance.

However, a 24% rise in revenues from commercial deals helped total revenues up 3% to £76m. United signed 10 new sponsorship deals in the first quarter.

United, owned by the American Glazer family, said profit from continuing operations was up to £20.5m against a loss of £5m a year earlier, a figure that was boosted by a tax credit which the club said related to it moving to certain US tax bases.

United listed on the New York Stock Exchange in August under a dual-share structure that left the American Glazer family firmly in control of the club. The shares listed at $14 to value the club at $2.3bn, but have fallen since and closed at $12.98 on Tuesday.

Debt at the club fell to £360m, down 17% from a year ago, following the New York listing. Critics of the Glazers have said debt costs have made it hard for the club to compete on the national and European stage.

United have made a strong start to the current season on the pitch. They lead the Premier League table by two points and have already qualified for the knockout stages of the Champions League after last year’s costly failure to make it past the group stages of Europe’s top club competition.

Reuters

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