Premier League - Newcastle United announce profit

Newcastle have recorded a profit for the second successive year.

PA Sport
Premier League - Newcastle United announce profit

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Newcastle chairman Mike Ashley

The Magpies today released financial figures for the year ending June 2012 which show that the club made a profit after player amortisation of £1.4 million.

That is significantly down on the previous year's level of £32.6m, although that was due largely to the £35m sale of striker Andy Carroll to Liverpool.

Newcastle have also re-entered the list of the world's top 20 revenue-generating clubs after increasing turnover by 5.4 per cent to £93.3m.

That figure includes a rise of 14.6 per cent in television income as a result of their fifth-placed Premier League finish, a figure which is set to be boosted further by the bumper new broadcasting deal.

However, while operating costs have remained steady at £21.6m, operating profit fell from £13.3m to £7.5m, and the club's wage bill rose by 20 per cent to £64.1m as a result of the addition of the likes of Yohan Cabaye, Sylvain Marveaux, Davide Santon, Papiss Cisse and the now departed Demba Ba to Alan Pardew's squad.

That represents an increase in the wages-to-turnover ratio of 8.1 per cent to 68.7 per cent.

Although attendances at St James' Park rose to an average of 49,936 during the period - an increase of 2,190 on the previous year - ticket revenue dropped by seven per cent because of a series of pricing initiatives.

Commercial revenue too was down by 12.7 per cent, although the figures do not include the Magpies' new partnership with Wonga, which they say "represents a significant increase on the club's previous commercial agreements".

Newcastle finished fifth in the Premier League last season, qualifying for a place in the Europa League. They will play Portugal's Benfica next month in the last eight of the competition.

The club is owned by Mike Ashley, a British businessman who founded the Sports Direct retail chain.

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