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United income flat

Manchester United have reported fiscal first quarter results. Commercial revenue of £80.4m, up 5.9% versus the prior year. Sponsorship revenue was £53.6m, up 8.1%. Broadcasting revenue for the quarter was £32.9m, down 23.1%. Matchday revenue for the quarter was £22.1m, up 35.6%. The operating profit for the quarter was £11m. The fiscal year 2020 is expected to see profits of £560m to £580m.

Income was flat at £135m due to lack of Champions League revenue. The majority of the full year revenue impact of non-participation in the UEFA Champions League will occur in Q2. The failure to qualify for the Champions League has seen a drop in wages which are down 8.8 per cent to £70.2m.

A £12million profit declared on player sales, mainly Romelu Lukaku's £59million move to Inter Milan in August, steered Manchester United to a £2.5 million pre-tax profit in the quarter. Without the benefit of offloading players, Manchester United would have posted a loss for the three months ended 30 September 2019.

Net debt is up £137m to £384m. This was because of cash being used to buy players. Gross debt is unchanged. £158m net cash was spent on players in the quarter.

Manchester United's profit was also weakened during the quarter by a rise in finance costs to £8.5million, on the back of foreign exchange losses linked to the club's sizeable debt pile.

Members of the Glazer family will receive half of their annual £15m dividend in January.

Ed Woodward claimed, 'We have a clear vision in terms of football philosophy and recruitment. The significant investments that we have made in recent years in areas such as transfers, recruitment infrastructure, analytics and our Academy are already beginning to bear fruit.'

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