Manchester United financial results: Club announce debt up 12% to £395.4m and post pre-tax loss of £11.4m

Lack of Champions League football and weakening of the dollar to blame

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The Independent Online

Manchester United have announced their financial results for the first three months of 2015 and while commercial revenue is up, broadcast revenue and matchday revenues are down, whilst debt has risen by 12 per cent.

The Q3 total revenue is £95million, with commercial revenue up 12 per cent to £47.8m. But debt has risen to £395.4m, 12 per cent, after the club missed out on the Champions League.

Missing out on the competition has cost the club 39 per cent of their year-on-year revenue, to £22m, whilst matchday revenue is down 31 per cent to £26m.

In all, Manchester United have posted an £11.4m pre-tax loss for the first three months of the year, in comparison to a £20.4m profit for Q3 the previous year, but estimated EBITDA opertating profits for the season are up from £90m to £95m to between £105m to £110m.

EBITDA is related to operating profits and is the measure some companies use for their operating performance.

Manchester United vice-chairman Ed Woodward was not worried, however, and remains confident the results are a one season blip.

"We are pleased with the team’s performance in Louis van Gaal’s first season as manager and are well positioned to achieve a top four finish," said Woodward.

"[The drop] is primarily due to five fewer FAPL live broadcast games and two fewer FAPL home games in the current quarter, and non-participation in the Uefa Champions League," read a club statement.

"What we have seen from these numbers is growing confidence in the recovery of the team’s performance over the coming year," Joshua Raymond, Chief Market Strategist at City Index told The Independent.

"With a return to Champions League football all but assured, assuming smooth progression through a qualification stage, likely to help the club increase both match day and broadcast revenues. This, alongside with another strong set of commercial revenues has helped the company to hike its guidance."

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