Spanish LaLiga club Real Madrid have announced a net profit of €31.2 million for the 2017-18 financial year, which is a 45.9% jump over the last fiscal. The club has also reported that the total net worth has risen to €494.5 and the cash balance stands at € 190.1 million. However, the net debt continues to be in negative at €-107 million.
Real Madrid will submit the financial results for the 2017-2018 season for approval at an ordinary general assembly on September 23.
The 2017-18 campaign has seen the football first team clinch the Champions League title for a third consecutive year, the fourth time in five years. They also won the Club World Cup and the European and Spanish Super Cups. The basketball team won the Euroleague and the ACB League. The result of all of this has been increased revenues, but also greater expenses, particularly in terms of bonuses to sports personnel.
Operating revenues for the 2017-18 financial year, without taking into account gains obtained through player transfers, have reached €750.9 million, some 11.3% higher than the previous year. The figure represents an increase of €76.3 million, the largest rise the club has enjoyed in a financial year since 2000, the club has stated in a report on its website.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €147.2 million, 6.8% better than last year. Without the effects of the trophy successes, EBITDA for 2017-18 would have been €170 million.
Profits before tax have hit €43.0 million and with tax considered, net profits sit at €31.2 million, 45.9% up on the last financial year, and as a result, net worth rises to €494.5 million, €31.0 million higher than last year.
Cash balance is €190.1 million, €12.1 million up on last year.
The club still has no debt, with the net figure being negative for the third consecutive year. It sits at €-107.0 million euros as on June 30, 2018, representing what is in reality, rather than debt, a position of net liquidity. The increase in net liquidity on last year is €96.7m, the greatest reduction to debt achieved by the club in the last 15 years. With that, the debt over EBITDA and over net worth ratios have remained at zero, reflecting a position of maximum solvency.
Real Madrid’s contribution to tax revenues and Social Security rises to €285.4 million. Revenue forecasts for the 2018-2019 season sit at €752.0 million prior to the sale of assets, as well as pre-tax profits of some €43.2 million.
Furthermore, there will be an Extraordinary Assembly called in which authorisation to contract debt in order to fund the Santiago Bernabéu renovation works will be submitted for approval by the Board of Directors.