Manchester United PLC (NYSE:MANU) reported 14.9 million pounds or $24.2 million in losses during the fourth quarter of the current fiscal year, ending in June 30. The soccer club’s losses widened compared with its 351,000 pounds or $570,000 losses during the same period a year ago.
The company’s full year revenue declined by 3.3 percent 320.3 million pounds or $520 million. During the fourth quarter, its revenue dropped by 25 percent. The company received a tax credit of 28 million pounds 0r $45 million, which help improve Manchester United PLC (NYSE:MANU)’s bottom line.
In terms of its business segments, the world’s most valuable sports team’s full year commercial revenue increased by 13.7 percent to 117.6 million pounds, as the company signed several new global and general sponsorship agreements, including a training deal kit with DHL, a higher profit share deal with Nike , Inc. (NYSE:NKE), new mobile partnerships, and increased payments from its existing partnerships.
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Manchester United’s revenue from its broadcasting segment in 2012 dropped by 11.3 percent to 104 million pounds, due to its early knock out from the group stages of the Champions League. Its broadcasting revenue dropped by 37.4 percent to 27.5 million pounds during the three month period. Popularly known as the Dare Devil, it was the first time for Manchester United PLC (NYSE:MANU) not to win a major championship trophy since 2005.
The soccer team’s full year Matchday revenue was 98.7 million pounds, 10.9 percent lower than the previous year. The Manchester United had four games less than the previous season.
Manchester United’s operating expenses surged by 4.6 percent to 285.1 million pounds. The sports team increased the wages of its football players and staff.
As of June 30, 2012, its total debt was 436.9 million pounds, lower compared to its 458.9 billion borrowings in 2011. The company paid some of its debts using the net primary proceeds from its IPO. Manchester United went public at the New York Stock Exchange in August, with an IPO price offering of $14 per share.
In a statement, Ed Woodward, executive vice chairman of the soccer team said, “We are delighted to announce our first results as a NYSE listed company; fiscal 2012 was the best year ever for Manchester United’s commercial business.”
The stock value of the company was down by almost 3 percent to $12.58 per share in after hours trading on Tuesday.