Arsenal Holdings plc has announced its financial results for the year ended May 31, 2017.

· Turnover from football increased to £422.8 million (2016 – £350.6 million) with strong growth in broadcasting supported by commercial activity. First time Club’s football revenues have exceeded £400 million.

· Additional £58.0 million from broadcasting as a consequence of the increased value of Premier League rights (first year of the latest three year cycle) and UEFA Champions League distributions.

· Overall Commercial revenue growth for the year of 10% led by an additional £5.9 million from secondary partnerships.

· A third successive year of increased cash investment in the squad is reflected in higher amortisation charges and higher wage costs.

· Wage costs rose to £199.4 million (2016 – £195.4 million) and represented 47.2% (2016 – 55.7%) of football revenues. Year on year comparison is distorted by there being no players’ Champions League qualification bonus in the 2016/17 figures.

· Amortisation charge on player registrations rose to £77.1 million (2016 – £59.2 million).

· Limited transfers out activity - the profit on sale of player registrations amounted to £6.8 million (2016 – £2.0 million).

· Quiet year for the Group’s property business with a contribution to pre-tax profits of £0.2 million (2016 – £2.0 million).

· Group profit before tax was £44.6 million (2016 – £2.9 million).

· Tax charge for the year of £9.3 million (2016 - £1.2 million) reflecting a balance of higher taxable profits and lower rates of UK corporation tax.

· The Group has no short-term debt and its cash balances, excluding the accounts designated as debt service reserves, amounted to £144.3 million (2016 - £191.1 million). The reduction follows a Club record net cash outflow on player transfers of £102.5 million (2016 - £54.2 million).

· The liabilities for player acquisitions are, in part, payable in instalments and the outstanding net amount due to vendor clubs was £42.7 million (2016 – £42.5 million).

Commenting on the results for the year, the club’s chairman, Sir Chips Keswick, said: “The club’s 13th FA Cup win was some compensation for the disappointment of dropping out of the Premier League’s top four for the first time in 20 years. This summer we have again moved to strengthen the squad and we are optimistic about the season ahead.”

The club's chief executive officer, Ivan Gazidis, said: “Our ambition is clear - to win major trophies. In order to compete at the top, we need to strive to be better than our competitors in everything we do. That is why during the past season we have continued to make substantial investments to drive the club forward.

"At the top of the pyramid, we have scaled up our investment in our first-team squad significantly in recent years, spending a net £203 million in transfer fees in the last three seasons. We have transformed our training ground and completed a total rebuild of our Academy. We are focused on ensuring that the structures, in terms of people, expertise and facilities, in place around the manager and the players are the best that they can be. By getting that environment right, down to fine tuning the detail, we optimise our chances of achieving the results we want on the pitch.”

Arsenal Holdings plc - Statement of Accounts and Annual Report 2016/2017

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