ManU "may be struggling on the pitch" but its financial performance in the last quarter "was right on target," according to Lewin & Noble of the FINANCIAL TIMES. Revenue rose 26.6% year-on-year to £133.8M ($193.6M) in the three months to December, slightly topping analyst forecasts of £125.9M ($182.2M). The increase was "driven primarily by a jump in commercial revenue," which rose 42.5% to £66.1M ($95.6M), after the club signed a new 10-year kit deal with adidas. ManU's commercial arm has signed "a string of new tie-ups, including a partnership with 20th Century Fox to help promote upcoming superhero film Deadpool and a content deal with Chinese internet platform Sina." The club said that it expected to make revenue of £500M ($723M)-£510M ($738M) this year, "matching its existing forecasts." It slightly raised its expectations for adjusted earnings before interest, tax, depreciation and amortization to £178M ($258M)-£188M ($272M), from £168M ($243M) previously (FT, 2/11). In N.Y., Joshua Jamerson reported ManU's matchday revenue edged down 1.6% to £30.4M ($44M) due to playing two fewer Premier League home games in the quarter and having hosted a friendly int'l game in the year-prior quarter. The club said that two Champions League home games and one domestic cup home game in the most recently ended quarter "largely offset those declines" (WALL STREET JOURNAL, 2/11). REUTERS' Aastha Agnihotri wrote despite a "tricky transition period" since the retirement of former Manager Alex Ferguson in '13, ManU's ability to grow revenues off the pitch has increased. The club's "global appeal, which it says stretches to 659 million followers, continues to prove lucrative, with two sponsorship deals signed in the quarter." ManU is to pay a quarterly dividend of $.045 per share (REUTERS, 2/11).
SPENDING MONEY: The PA reported the results show that the club is sitting on a war chest of £121.6M ($176M), up from £37M a year ago, "which could come in useful in offsetting the loss of income" from Champions League football should it fail to make the top four this season. ManU is currently fifth in the Premier League, six points off the Champions League spots (PA, 2/11).
WOODWARD ESCAPES GRILLING: In London, Andy Hunter reported not one investor in ManU questioned Exec Vice-Chair Ed Woodward on Manager Louis van Gaal’s position as manager or the team’s performances during a conference call with him on Thursday. Woodward "had been expected to face a grilling from shareholders" with the club having exited the Champions League at the group stage, Van Gaal's job "frequently linked with José Mourinho and the team six points adrift" of fourth-placed Man City. Instead, "he was given the tamest of rides from representatives of JP Morgan and Credit Suisse, among others," with questions ranging from the impact of the Chinese Super League on future transfer fees, ticket prices, the youth academy, apparel opportunities and the expansion of the Old Trafford retail store. The most pointed football question related to ManU’s return in the transfer market, with over £250M ($362M) spent under Van Gaal compared to the £22.25M Leicester City team that "convincingly beat" Man City on Saturday to extend its lead at the top of the EPL (GUARDIAN, 2/11).
