Manchester United Q3 Profit Surges - Update

(RTTNews) - English football club Manchester United Plc (MANU) Thursday reported a pre-tax profit for the third quarter compared to a loss last year, while net profit surged on 26 percent growth in revenues and a sharp fall in finance costs.

For the third quarter, the company posted profit before tax of 20.43 million pounds, compared to a loss of 3.15 million pounds in the previous year.

Profit attributable to owners of the parent increased to 10.91 million pounds or 6.66 pence per share from 3.63 million pounds or 2.22 pence per share a year ago.

Adjusted earnings per share were 7.93 pence, while the firm posted 2.52 pence per share last year.

Adjusted Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA increased to 40 million pounds from 25 million pounds in the prior fiscal. Operating profit was 26.36 million pounds, up from 15.17 million pounds reported last year.

Total revenues for the quarter climbed 26 percent to 115.50 million pounds from 91.72 million pounds in the same quarter a year ago.

Commercial revenue increased 18.9 percent, with 43.5 percent rise in Sponsorship revenue. Broadcasting revenues surged 64.1 percent from the prior year.

The company noted that the growth in Broadcasting revenues was due to new FAPL domestic and international TV rights agreements, two additional Premier League home games and five more games were broadcast live during the quarter compared to the same period last year.

Matchday revenue was up 9.1 percent in the quarter.

Net finance costs totaled 5.92 million pounds, significantly down from 18.32 million pounds in the same quarter last year.

For fiscal 2014, Manchester United continues to expect revenue to be between 420 million pounds and 430 million pounds, and adjusted EBITDA to be 128 million pounds to 133 million pounds.

MANU closed Wednesday's regular trading at $16.61 on the NYSE.