Arsenal Holdings plc: Financial results

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• Group turnover increased to £313.3 million (2008 - £223.0 million)
reflecting income generated from cup competitions and property sales.
•
Match day revenue was increased to £100.1 million (2008 - £94.6
million), mainly as a result of progress to the UEFA Champions League
and FA Cup semi-finals.
• Operating profits (before depreciation and player trading) in the football business were £62.7 million (2008 - £59.6 million).
•
The completion of sale of 208 (2007 – Nil) private apartments at
Highbury Square contributed £88.0 million of revenue (2008 - £15.2
million) and boosted the operating profit from property activities to
£7.8 million (2008 – Nil).
• Profit after tax of £35.2 million (2008 - £25.7 million) was a record for the Group.
•
Since the end of the financial year there have been a number of further
positive developments in relation to the Group’s Highbury Square
project:
• Of the 655 private apartments in the development, sales
have now completed on 445 units with a cumulative sales revenue value
of £172.4 million.
• The balance on the bank loan used to fund the
project has been substantially reduced to £47 million and agreement has
been reached to refinance the loan and extend its term to December 2010.

Commenting on the results for the year, Peter Hill-Wood, non-executive Chairman, said:

“The
Group’s profits have now risen in each of the three years in which
Emirates Stadium has been our home. This is excellent news although I
should perhaps stress that making and reporting profits is not in
itself the primary objective for the directors. First and foremost we
are supporters of this great football club and, as such, our main goal
will always be the achievement of success for Arsenal on the field. The
Group’s profitability is important because it is a by-product of
running the Club as a solvent and successful business, which in turn
allows us to maximise the level of investment in the playing staff and
in the future development of the Club.”

Ivan Gazidis, Chief Executive, said:

“Clearly,
the Club already has a first class stadium, an excellent world-wide
reputation and outstanding core support. Football is a hugely
competitive and fast moving business and we must ensure that Arsenal is
not just keeping pace but setting the pace, both on and off the field.
The Club is superbly positioned for the future and I am tremendously
excited about the opportunities we have ahead of us.”
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