Arsenal Holdings plc has announced its financial results for the year ended May 31, 2016.

Group profit before tax was £2.9 million (2015 - £18.2 million).

Turnover from football increased to £350.6 million (2015 - £329.3 million) with strong growth in broadcasting supported by commercial activity.

Additional £15.8 million from broadcasting driven by Uefa Champions League, record level of Premier League live coverage and second place prize money.

Commercial growth led by an additional £5.0 million from secondary partnerships showing 40 per cent year-on-year growth.

Continued significant investment in the squad is reflected in higher amortisation charges and higher wage costs.

Wage costs rose to £195.4 million (2015 – £192.3 million) and represented 55.7 per cent (2015 – 58.4 per cent) of football revenues. Year-on-year comparison is distorted by double charge for Champions league qualification bonuses in the prior year.

Amortisation charge on player registrations rose to £59.3 million (2015 – £54.4 million).

Profit on sale of player registrations amounted to £2.0 million which was significantly lower than the prior period comparative (2015 – £28.9 million).

Quiet year for the Group’s property business with a contribution to pre-tax profits of £2.0 million (2015 – £13.4 million).

The Group has no short-term debt and its cash balances, excluding the accounts designated as debt service reserves, amounted to £191.1 million (2015 - £193.1 million).

The liabilities for player acquisitions are in part payable in instalments and net transfer creditors amounted to £42.5 million (2015 – £65.6 million). Since the financial year end the club has invested in the acquisition of new players at a total transfer in cost of more than £90 million.

Increased Premier League broadcasting revenues will apply from the start of the new season 2016/17.

First full year of reporting under FRS 102 and comparative figures have been restated.

Click here for the full results for the year ending May 31, 2016

Commenting on the results for the year, the club’s chairman, Sir Chips Keswick, said

“We enjoyed a season of progress both on and off the pitch. Looking ahead, the new broadcast revenue has provided a further competitive stimulus to the Premier League, which was already the best and most closely contested league in world football.

"We know that the competition will be even tougher this season. Accordingly, we have made further significant investment into what was already a very competitive squad. As a result, we can and do look forward to the 2016/17 season with optimism and confidence.”

The club’s chief executive officer, Ivan Gazidis, said:

“We are in a strong position to continue moving forward at every level of the club. On the pitch we have an outstanding squad. Off the pitch we have developed our infrastructure across all aspects of our operations to ensure we have the right assets and skills to progress.

"I am confident this progress, coupled with strong underlying values, will bring the success we all seek. Our ultimate ambition is clear: to win major trophies and make Arsenal fans at home and around the world proud of this great club. Proud of our values, proud of the way we act and proud of our team.”

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