Manchester United reports record second quarter revenue

Manchester United said on Thursday it expects revenue for fiscal 2016 to be between £500m and £510m as it announced record second quarter revenues.

Revenues in the quarter rose 26.6% from the previous year to a record £133.8m.

Commercial revenues were up 42.5% to £66.1m, mainly thanks to the commencement of the new agreement with Adidas from 1 August 2015, which included a step-up in minimum guaranteed revenues and the contribution from several businesses previously operated by Nike.

Meanwhile, broadcasting revenues increased 31.3% to £37.3m, primarily due to participation in the UEFA Champions League, partially offset by two fewer Premier League home games and two fewer Premier League live broadcast games in the current quarter.

Profit in the period came in at £18.6m compared with a loss of £55,000 the year before.

Executive vice chairman Ed Woodward said: “Our strong commitment to investing in our squad, youth academy and the broader club are ultimately underpinned by our financial strength and the hard work and dedication of everyone at the Club.

Our solid results off the pitch help contribute to what remains our number one priority - success on the pitch.”

The club now expects revenue of up to £510m in fiscal 2016 – which would be its first time over the £500m mark – and adjusted earnings before interest, taxes, depreciation and amortisation of £178m to £188m.