Britain's richest soccer club Manchester United backed its new billionaire status with a rise in first-half profits on Tuesday despite bulging wage costs after a raft of new signings.
Manchester United, which soared through the billion-pound mark on the stock market this month, said new TV deals boosted its coffers and the club was on the brink of unveiling a juicy deal for its Internet arm which could eventually be spun off.
Television and merchandising income helped lift profit before tax for the six months to end January to £12.2 million sterling (€20 million) from £11 million a year earlier, beating analysts forecasts of around £11 million.
But operating costs soared 30 per cent to £33.8 million as players' wages jumped £3 million, due largely to four new signings last summer. This bloated player amortisation charges by 28 per cent to £6.5 million. With its shares trading at current levels Manchester United is valued at £1.05 billion sterling.
Manchester United - whose website manutd.com draws eight million hits a month - said it may consider spinning off its online arm so long as it could keep control of the brand. The board will recommend an interim dividend of 0.58 pence sterling, up from 0.55 pence last time.
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