Arsenal report H1 profit

The Premier League club Arsenal has announced pre-tax profits of £2.7m for the six-month period to November 2004. The turnover for the period reported £49.3m compared to £53.3m for the corresponding period the previous year. Total operating costs for the period reported £46.7m, compared to £59.6m for the comparative period last year. The club announced three reasons for this reduction, firstly, that there were no new development property sales in the period and therefore no related costs of property sales to report – the comparative period last year realized £4.5m. Secondly, player registration amortization reduced by £2m and thirdly the club has a reduction in its wage bill for the half year. Operating profit, before accounting for player trading was significantly higher at £10.2m than the comparative period in 2003, which stood at £3.2m. When player trading is accounted for, the figure for the half year was £2.6m, compared to a loss of £6.4m in the previous period. Profit after taxation stood at £2.2m, compared to a loss of £4.9m at November 2003. Growth in commercial revenues (£8.8m compared to £6.3m) can be attributed to the beginning of the club’s long-term sponsorship deal with US sportswear manufacturer Nike, while new home and away kits increased income from retail operations to £5.2m compared to £3.9m. Gate and match revenue also increased to £14.3m compared to £12.4m at November 2003.

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