Newcastle United swings back to profit

Loyal fans and strong television revenues helped English soccer club Newcastle United return to profit, as it announced it was…

Loyal fans and strong television revenues helped English soccer club Newcastle United return to profit, as it announced it was looking beyond Europe to boost its fortunes further.

The north-east England club, nicknamed the Magpies, said it planned to build the Newcastle United brand in Far Eastern countries where it participated in the FA Premier League Asia Cup this summer.

The premier league club has had a rough time nearer home - in late August it failed at the last stage of qualification for the lucrative UEFA Champions League and is currently third from bottom of the premier league table.

But that did not hold back its shares from jumping eight per cent to 34 pence in morning trade, as the market cheered its swing back to profit.

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Newcastle United reported a profit after tax of £4.29 million for the year to July 31 against a £3.07 million loss last year.

It said revenues jumped 36 per cent to a record £96.4 million, led by television revenues which were up 40 per cent at £41.7 million. Newcastle said match revenues rose 20 per cent, driven by record season ticket sales, while sales of products sporting the club's brand rose 43 per cent.

Rival Manchester United reported a 22 per cent rise in annual profits last month to £39.3 million, on turnover up 18 per cent at £173 million.

Newcastle United said wages and salaries rose 41 per cent to £45.2 million last year, as it signed new contracts with several existing players. The club said its wages-to-turnover ratio increased to 47 per cent from 45 per cent.