Manchester United kick on as commercial revenue expands

 
Julian Harris
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MANCHESTER United’s growing commercial operations boosted its revenues and pre-tax profits in the final quarter of last year, the club announced yesterday.

The New York-listed football giant said that commercial sales reached £35.6m in the three months to 31 December 2013, allowing revenue to edge up to £110.1m – 8.7 per cent higher than the same period a year earlier.

Earnings before interest, tax, depreciation and amortisation (Ebitda) was £50.2m, up 11.8 per cent on the year-earlier period.

A tax charge, contrasting with an earlier tax credit, was blamed for net income sinking 61.5 per cent to £16.2m.

The club, taken over by the Glazer family in 2005 through a leveraged buyout, has a debt pile of £366.6m.

Shares closed down 0.91 per cent at $18.54, yet remain higher than the $14 price at which they floated last August.

The morning after a 1-1 draw away at Real Madrid in the Champions League, the club also said it has signed a new sponsor for its training kit for the next eight years. However, United refused to reveal the identity of the new sponsor.