Manchester United report over five-fold increase in net debt
Manchester United have reported a first-quarter fall in turnover of 2.8 per cent to the New York Stock Exchange following their failure to qualify for this season's Champions League.
The club's revenue for the three months ending September 30, 2016 is down from £123.6million to £120.2million, while debt has risen 18 per cent to £337.7million.
The drop in income reflects United's lack of involvement in the Champions League, and the fact they have played three fewer home games in all competitions compared to the same period last year.
But they remain on course to top last year's record revenues figure of £515.3million, forecasting overall revenue of between £530million and £540million for the end of the financial year.
"While our financial results for this quarter reflect the impact of our non-participation in the UEFA Champions League, we are pleased that we remain on track to deliver record revenues for the coming year," United executive vice-chairman Ed Woodward said.
"During the quarter we added a number of top-quality players to our squad, which once again demonstrates our determination to challenge for trophies."
The club said their net debt, which increased by £51.5million from £286.2million, was "primarily due to the impact of foreign exchange rate movements on our US dollar denominated debt" and that operating profit was down 34.7 per cent from £9.5million to £6.2million.
United, who signed Eric Bailly, Zlatan Ibrahimovic, Henrikh Mkhitaryan and Paul Pogba in the summer, announced total operating expenses for the quarter had increased by £15.5million, up 14.5 per cent to £122.2million.
The Red Devils reported a fall in matchday revenue of 32 per cent from £28.4million to £16.8million after playing three fewer home games compared to the same period last year - one each in the Premier League, in Europe and in the EFL Cup.
Commercial revenue was up 4.4 per cent from £71.2million to £74.3million with five new sponsorship deals announced during the quarter with EA Sports, Tag Heuer, Apollo, Virgin Money and the renewal with Hong Kong Jockey Club.
Broadcasting revenue was up 5.4 per cent from £27.6million to £29.1million, with the increase primarily due, United said, to the new Premier League broadcasting rights agreement.