Manchester United have revised their forecasted revenues for this season after stronger growth than anticipated and expect turnover to have increased to record levels of up to £570 million.
United originally forecast revenues of between £530 million and £540 million for 2016/17 when they posted their last full year accounts in September.
But Ed Woodward, United’s executive vice-chairman, said those figures had been revised after “better full year financial performance than expected” and that turnover was expected to reach between £560 million and £570 million for the year ended June 30, 2017.
United’s turnover for 2015/16 was £515.3 million, which was a considerable jump on the 2014/15 figures of £395.2 million. EBITDA forecast has also been adjusted from between £170 million and £180 million to £185 million and £195 million.
Nonetheless, the club’s finances will be hit if United fail to beat Ajax in the Europa League final next Wednesday to guarantee Champions League qualification having already missed out on the top four. United have already won the League Cup and Community Shield this term.
“As we near the end of the season, I am delighted we have picked up two trophies so far, and look forward to competing for a third in the Europa League final, the only trophy we have never won,” Woodward said.
“We are forecasting better full year financial performance than expected and as such have raised our revenue and profit guidance for the year. We look forward to a strong finish to 2016-17, both on and off the pitch.”
United’s accounts for the third quarter ending March 31 this year, which were released on Tuesday, show a near 13 per cent rise in broadcasting revenues to £31.4 million owing to the impact of the new Premier League TV deal. Commercial revenues increased 1.1 per cent to £66.5 million for the quarter. Matchday revenue dropped 1.7 per cent to £29.3 million while total operating expenses soared 27 per cent to £129.8 million for the three months.
Net debt as of March 31, 2017 stood at £366.3 million, an increase of £17.6 million over the year due to the strengthening of the dollar. A dividend of $0.09 per share was paid during the quarter and a further semi-annual cash dividend of $0.09 per share will be paid on June 8.
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