English soccer club Manchester United (MANU), Thursday reported a 61 percent decline in profit for the second quarter, hurt mainly by higher tax expenses. Nonetheless, pre-tax profit increased from last year, riding on rising revenues.
The Manchester, England based club's second-quarter profit dropped to 16.22 million pounds or 0.10 pound sterling from 42.07 million pounds 0.27 pound sterling last year.
The English football team recorded tax expense of 12.2 million pounds for the quarter, compared to a tax benefit of 22.9 million pounds last year.
Profit before tax increased to 28.36 million pounds from 19.20 million pounds last year.
Manchester United, who currently leads the English Premier League, said revenues for the quarter ended December 31 grew 8.7 percent to 110.06 million pounds from 101.28 million pounds last year, driven mainly by six new sponsorship deals.
Commercial revenues rose 29 percent to 35.6 million pounds, with sponsorship revenues up 48.6 percent. Manchester United signed six new deals with Kansai and Singha, Wahaha and Multistrada, and China Construction Bank and Denizbank.
Broadcasting revenues rose to 4.8 percent to 39.5 million pounds, while matchday revenues dropped 2.8 percent to 35 million pounds.
Staff costs for the second quarter rose 14.2 percent 44.2 million pounds, as the club signed new players like Robin Van Persie and Shinji Kagawa, and signed new contracts with existing players with wage improvements.
Looking forward to the fiscal year 2013, Manchester United continues to expect revenue between 350 million pounds and 360 million pounds.
The club's gross debt stands at 366.6 million pounds, down from 438.9 million pounds last year. The club's owner, the US-based Glazer family, were able to lower debt partially after holding an IPO in the New York Stock Exchange last year.
Glazer family raised $233 million last year by floating Manchester United in the NYSE at a price of $14 a share, below its expected market range. MANU is currently trading at $18.47, down $0.24 or 1.28%.
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