Manchester United PLC (NYSE:MANU), the champion British soccer league reported strong financial performance for the third quarter of fiscal 2013 as the company obtained more sponsorship transactions. The British soccer league also benefited from tax credits.
During the quarter, Manchester United PLC (NYSE:MANU) profit increased by 227 percent to 3.6 million pounds or 2 pence per share from 1.1 million pounds or one penny in the same period a year ago.
The 20-time British soccer league champion said its total revenue was 91.7 million pounds, an increase of 29.5 percent from its 70.8 million pounds total revenue during the same period in 2012.
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In a statement, Ed Woodward, executive vice chairman of Manchester United PLC (NYSE:MANU) said “Each of our three primary sectors — commercial, broadcasting and matchday — delivered strong top-line gains and helped us achieve a record third quarter for both revenue and adjusted EBITDA. In addition, we are delighted to be continuing and deepening our relationship with Aon, as our new Training Kit, Training Centre and Tour Partner, for an additional eight years.”
Manchester United PLC (NYSE:MANU)’s adjusted EBITDA for the quarter rose by 22.5 percent to 25 million pounds. According to the British soccer league, its sponsorship revenue increased by 52.2 percent to 21 million pounds and its retail, merchandising, apparel & product licensing generated 9.2 million pounds, an increase of 9.5 percent. Its new media and mobile revenue also climbed by 13.7 percent to 5.8 million pounds.
During the quarter, Manchester United PLC (NYSE:MANU) signed three new sponsorship agreements including gloops (Japan), Ekspres Bank (Denmark), and BIDV (Vietnam).
The British soccer league said its gross debt dropped by 13 percent to 367 million pounds. Its staffing expenditures climbed by 25 percent to 44.9 million pounds, which resulted to a 19 percent in operating expenses to 79 million pounds. According to the Manchester United, its net finance costs increased to 18.3 million pounds due to foreign exchange fluctuations.
Manchester United PLC (NYSE:MANU) ended the quarter with 36.2 million cash. It recorded 6.7 million pounds of non-cash tax credit.
For the fiscal 2013, the British soccer league champion expects to achieve revenue in the range of 350 million to 360 million pounds and adjusted EBITDA of around 107 million to 110 million pounds. Manchester United Plc (NYSE:MANU) summer tour this year include Australia, Japan, Hong Kong, and Thailand.
The stock price of Manchester United PLC (NYSE:MANU) is up by 2.69 percent to $18.91 a share on Thursday, 11:25 AM in New York trading.