Nov. 14 (Bloomberg) -- Manchester United, the defending champion in English soccer’s Premier League, said it had a first-quarter profit as broadcasting and commercial revenue increased.
Adjusted profit for the three months ended Sept. 30 was 2.2 million pounds ($3.5 million) compared with a loss of 600,000 pounds in the year-earlier period. The profit figure was adjusted for charges related to the club’s initial public offering, the repurchase of senior secured notes and other items, the company said today in an e-mailed statement.
United won its 20th league title last season and coach Alex Ferguson retired after 26 years in charge, being replaced by fellow Scot David Moyes. Revenue rose 29 percent to 98.5 million pounds in the period, driven by increases of about 40 percent in commercial and broadcasting revenue.
“Our unique approach to the commercial business will continue to drive future growth,” Ed Woodward, executive vice chairman, said in the statement.
Matchday revenue declined 1.5 percent because United’s Old Trafford stadium hosted Olympic soccer matches in the year-earlier quarter.
The company had an unadjusted net loss of 293,000 pounds in the quarter, compared with net income of 20.5 million pounds in the 2012 period, which benefited from a tax credit of 26.5 million pounds.
Manchester United Plc entered into a floating to fixed interest rate swap on its $315.7 million secured term loan to create a minimum and maximum interest rate of 2.8 percent to 4.1 percent for the life of the facility, it said. The team also started hedging foreign exchange risk of some revenue in dollars by using its borrowings in the currency as the hedging instrument.
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