Manchester United has reported a 54 per cent fall in pretax profit due to rising player wages and a decline in media revenue from TV deals and European football.
For the six months to January 31st, 2005, the club made a pretax profit of £12.4 million, down from £26.8 million last time.
Operating profit before depreciation and player amortisation was £28.4 million, down from £39.7 million last time.
Man Utd noted that strong match day and commercial revenues largely offset the fall in media revenues - giving group turnover of £91.6 million, down from £92.4 million.
Despite the profits shortfall the interim dividend was increased to 1.325 pence from 1.25 pence last time, payable from earnings per share of 3.4 pence, down from 7.2 pence. The club also ended the half with a cash balance of £32.2 million.
"A challenging first half to the year was made even more difficult by the continued speculation surrounding a possible offer for the company," said chief executive Mr David Gill.
On February 11th, Man Utd's board rejected US tycoon Malcolm Glazer's latest proposal despite describing the mooted price of 300 pence a share or £800 million as fair.
It said the structure of the bid, involving some £300 million of debt and preference shares, "would put pressure on the business of Man Utd, particularly if Glazer's business plan was not met".
However, the board agreed to open its books to the tycoon as it felt it had a duty to shareholders to do so.
Glazer has built up a 28.1 per cent stake in the club; his bid is dependent on him getting control of at least 75 per cent of Man Utd's equity. To do this he must secure the support of JP McManus and John Magnier, the Irish horse racing millionaires, who own 29 per cent.
Shares in Manchester United closed Monday at 269 pence, valuing the business at £709 million.