United’s latest financial results recorded a 22% increase in commercial revenues, but matchday revenues and broadcasting deals were down.
Manchester United report a Q2 net profit of £6.3m.
Commercial revenue is up 22% (£78.7m, an increase of £14.3m), but overall revenue is down 10%.
Debt up to £535.7m, compared to £477.1m.
Glazers have not taken any dividends this quarter.🧮 pic.twitter.com/KbAP0EdPet
— Ben Jacobs (@JacobsBen) March 30, 2023
The 22% increase in commercial revenue is primarily due to the training kit agreement with Tezos. This brought in £78.7 million during the three months. Despite this, matchday revenues at Old Trafford fell by 13% because two games were cancelled during the World Cup. The lack of Champions League football resulted in a 32% decline in broadcast revenues.
This report covers the three months ending December 31, 2022. In addition to the World Cup break, the club failed to qualify for the Champions League this season. In addition, the club’s accounts indicate that long-term debt has increased to £535.7 million, up from £477.1 million in the previous year, due to the exchange rate and the dollar’s strength against the pound. US debt remains at $650 million.
United’s cash reserves decreased to £31 million from a year ago. In addition, the club has taken out another hundred thousand pounds from the revolving credit facility in the past three months. This is due to the investment made in the squad last summer. By June of this year, United expects to have repaid the balance of its credit facility.