Bloomberg News

Manchester United Has 6.9 Million-Pound First-Quarter Loss

November 15, 2011

(Updates with Ebitda figure in fourth paragraph)

Nov. 15 (Bloomberg) -- Manchester United had a fiscal first-quarter loss of 6.9 million pounds ($11 million) as financing costs rose for the record 19-time English soccer champion.

The loss in the three months ended Sept. 30 compares to net income of 2.7 million pounds in the year-earlier period, the Premier League club said today in a statement on its website.

Sales increased 17 percent to 73.8 million pounds as the English title holder boosted its commercial, media and matchday income. Debt fell to 433.2 million pounds in the three months ended Sept. 30, from 516.7 million pounds a year earlier. It had 6.3 million pounds in unrealized foreign exchange losses on dollar denominated senior secure notes, the team said.

United’s cash reserves declined to 65 million pounds from 151.7 million pounds. The club said it spent 47.1 million pounds on players during the period, almost six times the amount it spent during the previous season. Earnings before interest, tax, depreciation and amortization grew to 19.3 million pounds from 14.9 million pounds.

United, which has won four of the last five league titles, is second in the Premier League after 11 games, five points behind cross-town rival Manchester City.

Commercial revenue, which covers sponsorship and retail, climbed 22 percent to 29.6 million pounds. Media revenue rose 17 percent and matchday sales 9.4 percent.

--Editors: James Cone, Christopher Elser.

To contact the reporter on this story: Tariq Panja in London at tpanja@bloomberg.net

To contact the editor responsible for this story: Chris Elser at celser@bloomberg.net


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