London: English Premier League soccer champions Manchester United reported record full-year profit and revenue, strengthening their hand ahead of a planned $1 billion flotation in Singapore later this year.
The club, which intends to start pre-marketing for the initial public offering (IPO) later this month, said earnings before interest, tax, depreciation and operation (EBITDA) rose to 110.9 million pounds ($180.6 million) in the year to end June from 101.2 million the year before.
JP Morgan, which has been appointed as a global co-ordinator for the IPO, had forecast the club would make EBITDA of 114 million pounds this year.
Sources have told Reuters that England's most successful club hopes to raise as much as $1 billion from the IPO through the sale of around 25-30 per cent of the club. However, that valuation has been met with scepticism from some commentators.
The club said total revenue increased to 331.4 million pounds, up 45 million on the year incorporating a 27 per cent rise in commercial revenue boosted by the club's 80 million pound shirt sponsorship deal with 'Aon Corp', which took effect last year.
Net debt fell to 308.3 million pounds from 376.9 million a year earlier. Sources have told Reuters the Glazer family, who bought the club in 2005, are planning to use some of the proceeds from the IPO to reduce the club's debt, a burden that has made the American owners deeply unpopular with some fans.
The Glazers are targeting an IPO by the end of October, sources said. ($1 = 0.614 British Pounds) (Reporting by Matt Scuffham; Editing by Rhys Jones and Jon Loades-Carter)
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