Strong half year figures
Return to Europe puts Rangers back into healthy profit
Rangers have something to shout about (pic: SNS Group)
Rangers performances in Europe under new manager Steven Gerrard helped boost the club’s financial position.
A first half pre-tax profit of £5.1 million compares to a loss last time of £991,000, with operating profit coming in at £3.8m against a £1.1m loss last time. Operating profit before player amortisation increased from £0.7m to £6.7m.
The figures for the six months to December 2018 reflect the importance of a strong run in European football, which has impacted on prize monies earned and commercial opportunities, as well as increasing the number of home games in the period from 14 to 21 compared to last year.
Rangers played in the group stages of European football for the first time since 2010/11. Revenue for the period was £35.3m, up by £15.8m from this stage last year.
As well as the club’s Europa League run, the results take into account last summer’s season ticket sales and “the impact of the football management team on commercial opportunities.”
Operating expenses excluding amortisation of players’ registrations increased by £10.0m compared to the comparative period.
Given that the bulk of the Club’s income falls into the first six months of any season, the board is forecasting to be close to break-even for EBITDA for the year.
During the period the club posted a gain on the sale of player registrations amounting to £2.8m. Amortisation of the playing squad increased in line with the investment, from £1.8m to £3m.
Chairman Dave King said: “The results for the six months to 31 December 2018 represent a significantly improved financial performance.
“This period also includes an issue of £12.6m of ordinary shares, which raised £1.5m in cash and converted £11.1m of interest-free loans to equity.”
“The main reasons for this were the increased investment in the football department – both in management and the playing squad, as well as the operational costs of hosting the additional seven matches so far this year.”