Manchester United post operating profit but debt approaches US$1.76 billion

LONDON - Manchester United chief executive Omar Berrada said the club is reaping the "positive financial impact of our off-pitch transformation” as profits rise, but their latest figures show debt is approaching £1.3 billion (US$1.76 billion), reported PA Media/dpa.

Although United’s men’s team are without European football this season, they generated an operating profit of £32.6 million (US$44.1 million) in the first six months of the fiscal year, compared with a £3.9 million (US$5.3 million) loss for the same period last year.

The operating profit for the most recent quarter was £19.6 million (US$26.5 million), compared to £3.1 million (US$4.2 million) in the same period last year.

Those numbers come after minority owner Jim Ratcliffe oversaw a wide-scale redundancy programme and restructuring of the club, and in announcing their latest figures, United said they were seeing "the positive impact of operating cost and headcount reduction programmes implemented in the prior year.”

However, the club also drew down a further £25 million (US$33.8 million) on their revolving credit facility, with that debt now standing at £295.7 million (US$400 million).

In addition to the outstanding debt linked to the Glazer family’s leveraged takeover in 2005, and more than £500 million (US$676 million) worth of other listed liabilities, the club’s debts stood at £1.29 billion (US$1.74 billion) at the end of last year.

United paid £13.9 million (US$18.8 million) to service those debts in the last quarter, down from £37.6 million (US$50.9 million) for the same period the previous year.

Those debts indicate the pressing need to return to elite European competition next season - with Michael Carrick having guided the men’s team back into the top four of the Premier League since Ruben Amorim’s sacking.

The women’s team under Marc Skinner sit second in the Women’s Super League and has reached the quarter-finals of the Champions League.

"We are now seeing the positive financial impact of our off-pitch transformation materialise both in our costs and profitability,” Berrada said.

"We continue to take a football-first approach and invest in both our men’s and women’s first teams.

"On the pitch, our men’s team sits fourth in the Premier League, and our women’s team are second in the Women’s Super League, as well as reaching the League Cup final and the quarter-final of the UEFA Women’s Champions League.

"Today’s results demonstrate the underlying strength of our business as we continue to push for the best football results possible for our men’s and women’s teams.”

United’s total revenues for the second quarter of the financial year were £190.3 million (US$257.4 million), down from £198.7 million (US$268.8 milion) for the equivalent period the previous year, with commercial revenue dropping from £85.1 million (US$115.1 million) to £78.5 million (US$106.2 million) and matchday revenues down from £52 million (US$70.3 million) to £49.5 million (US$67 million).

United say they remain on track to record revenues of between £640 million (US$866 million) and £660 million (US$893 million) for the full fiscal year. - BERNAMA-PA MEDIA/dpa