Mobile money service provider, Y’ello Digital Financial Services has announced the expansion of its MoMo Agent cardless cash withdrawal service to over 40 banks and other financial institutions nationwide, providing seamless financial solutions to more people.
Initially exclusive to Access Bank, the service has now been extended to include First Bank of Nigeria, Zenith Bank, GTBank Plc, United Bank of Africa and other tier-one commercial banks.
Using the service, customers can visit MoMo Agents nationwide to access funds in their bank accounts without requiring an Automated Teller Machine (ATM) or ATM card. The service utilises a secure gateway that protects customers against fraudulent transactions and requires transaction validation using their bank PIN.
“We all must play our part in the Federal Government’s financial inclusion drive, which we know is essential for every Nigerian. With this, more MoMo users can walk up to the nearest MoMo Agent to withdraw cash from their bank account without visiting a bank or an ATM.”
With the cardless cash withdrawal service, MoMo Agents’ sustained innovation aligns with the Central Bank of Nigeria’s (CBN) financial inclusion target of 95% by 2024.
Launched in 2019, MoMo Agent expanded its financial services in 2020 for underbanked and unbanked communities to include bill payment, cash deposit and withdrawal, data and airtime purchase and bulk disbursement services. Customers on the MTN network can dial *223# to locate the nearest MoMo Agent.
Nestlé S.A, has acquired 2,166,647 additional shares in its Nigerian subsidiary, Nestlé Nigeria Plc worth N2,922,806,803.00.
Brand Spur Nigeriagathered that the acquisitions were undertaken in two different transactions on 2nd March the company purchased 1,980,370 units while 3rd March 186277 units at the price of N1348.84 and N1349.00 respectively.
Previously, the consumer giant acquired more shares in the last one year. You can check more detail of shareholding transactions here.
A look at Nestle Nigeria Financials in 2020
The directors of Nestle Nigeria Plc in the published Full Year financial report for 2020 have proposed a final dividend of N35.50 to its shareholders, subject to approval at the Annual General Meeting.
This in addition to the interim dividend of N25 that has been already paid to shareholders in the first half of the year 2020.
Nestle Nigeria reported a turnover of N287.084 billion for the 12 months period in 2020, up by 1.07% from N284.035 billion.
Profit after tax of N39.21 billion was achieved by the firm, down by 14.17% from the post-tax profit of N45.68 billion reported the previous year.
Earnings per share of Nestle for the period under review dropped by 14.17% to N49.47 from the EPS of N57.63 achieved in 2019.
At the share price of N1, 450, the P.E ratio of Nestle Nigeria Plc stands at 29.31x with an earnings yield of 3.41%.
The telecommunication industry (the Industry) is an important growth driver of the Nigerian economy. According to the National Bureau of Statistics (NBS), the telecommunications and information services sector accounts for about NGN15.4trillion, which is 10.7% of the 2019 gross domestic product (GDP), approximated at NGN144.2trillion.
The Industry comprises several segments along the value chain and the major players include operators, infrastructure and platform providers, device vendors, retailers and distributors. Different roles are performed at each of the segments, culminating in the variety of services enjoyed by the consumers.
Photo by Tomas Sobek
Today, many businesses in Nigeria leverage the output of the telecommunications industry to meet the needs of their customers. For instance, numerous innovative products in the financial services industry, such as internet banking, mobile banking etc., rely heavily on internet access, which is an output of the Industry. Many online retail platforms have also emerged as a result of the impact of the Industry.
Businesses operating in the Nigerian telecommunication industry are required to pay VAT on taxable goods and services consumed. They also have an obligation to collect and account for VAT on taxable supplies to their customers.
The foregoing is based on the Value Added Tax Act, 2007 (VATA or the Act), as amended by Finance Act 2020, which requires VAT to be charged and paid on supply of all goods and services (except those specifically exempted by the Act (Section 2 VATA)). The applicable rate is 7.5% and 0% for standard-rated and zero-rated supplies, respectively.
VAT is multi-layered as it is imposed at every stage of value addition in the transaction value chain, from production to ultimate consumption. Every supplier of any good and/or service liable to VAT is expected to include VAT on its invoice and collect the VAT, except the supplier makes taxable supplies less than NGN25 million in any calendar year. The VAT is regarded as ‘output VAT’.
VAT incurred by a purchaser on goods qualifies as ‘Input VAT’. Section 17 of VATA stipulates the mechanism for a claim of input VAT incurred. Specifically, input VAT is to be offset against output VAT in the following circumstances:
where the goods are purchased or imported directly for resale
where the goods form the stock-in-trade used for the direct production of any new product on which the output tax is charged.
While qualifying input VAT incurred are claimable from output VAT where they meet the above conditions, input VAT incurred on expenses that do not meet such conditions and not recoverable against output VAT are to be expensed through the income statement if incurred on overheads, services and general administration or capitalised as part of the cost of the asset if incurred on fixed assets (property, plant and equipment).
In other words, only trading or manufacturing activities in relation to goods would qualify for input VAT claim from output VAT.
The net output VAT over the claimable input VAT is required to be paid to the Federal Inland Revenue Service (FIRS) within 21 days of the month following that in which the purchase or supply was made.
However, where the claimable input VAT exceeds the output VAT, the taxpayer is entitled to a refund from FIRS (Subject to providing such documents, FIRS may require to substantiate the refund).
Challenges facing the application of VAT in the Industry
There are several challenges operators in the telecommunication industry face regarding the application of VAT on their purchases and supplies. Some of the major challenges are as follows:
Non-recoverability of input VAT from output VAT
The non-recoverability of VAT incurred via the input-output mechanism is a major issue affecting profitability and cashflow in the telecommunication sector. According to NBS, the service industry, including the telecommunication industry, accounts for over 50% of Nigeria’s GDP.
Given the strict conditions for offsetting input VAT against output VAT, companies in the service industry are not able to recover the whole input VAT incurred on their purchases. This is regardless of the fact that VAT is incurred on the cost of service that forms part of the direct cost of the companies.
This impacts cash flow as more cash is parted with on a monthly basis while annual profits are eroded due to the expenditure of input VAT to the income statement. Although the current system as it is creates a compensating effect with income tax being lowered, the effect is more excruciating from a working capital perspective.
Recognition of VAT on interconnect charges
Some operators in the telecommunication industry usually pay to interconnect charges for using other operators’ networks to complete calls that originate from their networks but terminate in such other networks.
The operators on whose networks the calls originate charge the customers and pay the operators on whose networks the calls terminate their share of the amounts charged. These charges are usually inclusive of VAT. In practice, the operators prefer to offset the VAT incurred on interconnect charges from output VAT charged to their customers for services provided.
FIRS, in contrast, usually frowns at this practice and demands the full VAT on revenue earned from the customers, while insisting that the VAT incurred on interconnect charges be charged/expensed to/in the statement of comprehensive income.
Recommendations/conclusion
The issues identified above are proof that there is still a wide gap between current business realities and the provisions of VATA. While businesses have continued to evolve, the tax laws have not been sufficiently amended to address new business exigencies and realities, notwithstanding amendments introduced by the Finance Acts 2019 and 2020.
In order to address the challenges that are currently being faced in the telecommunication industry, the following steps, among others, may be taken:
Review of VAT system – Despite a low VAT rate of 7.5%, and year on year amendments since 2019, the VAT system and VATA still do not reflect business realities. The VATA, in its current form, is unable to capture the evolution in the operations and business models of companies, including operators in the telecommunications industry.
Fair and equitable tax system – One of the principles of a good tax system is fairness and equity. It was on this backdrop, amongst others, that the National Tax Policy was developed and subsequently revised by the Federal Government of Nigeria in 2017. The discriminatory provision in VATA as it affects the claim of input VAT in service industries has created a lot of controversies. The service industries must be given the opportunity to claim input VAT in the same manner as companies operating in the trading and manufacturing sectors. Several countries of the world, such as the United Kingdom, South Africa and even Ghana, do not have provisions restricting recoverability of input VAT from output VAT.
The telecommunication industry has been and remains one of the symbols of successful policy implementation stories of the Federal Government of Nigeria in the last two decades.
Therefore, to the extent that the Industry continues to be at the frontier of major economic initiatives of the government at various levels, friendlier tax practices can only help to enhance productivity and investment in the industry and the Nigerian economy at large.
Contributor:
Abdul-Hafiz Ibrahim, ACTI (Member, CITN Tax Policy and Administration Faculty)
Paga Tech Limited, Nigeria’s leading mobile money operator, reported 700 per cent quarter-on-quarter growth in user sign-ups as a result of an increase in digital payments owing to recent lockdowns.
This disclosure was made by the Co-Founder, Head, Sales and Distribution, Paga, Jay Alabara, while he discussed key financial and operational metrics of Paga’s Q4 2020 results in a virtual forum on Tuesday.
Paga has reported 70% month-over-month retention of active self-transacting individuals. With 200% increase in monthly volumes for self-transacting individuals, the Fintech Company witnessed 354% increase in monthly Net Revenue for self-transacting individuals during the quarter under review.
The company recorded 27, 273 agents’ accounts, which was up 11% from 2019.
Vehicle Assembly Plant Becomes Operational In 24 Months
Lagos State Governor, Mr. Babajide Sanwo-Olu, has unveiled a new e-hailing taxi scheme to redefine road transportation in the State. The Governor, on Thursday, signed a partnership agreement with CIG Motors Company Limited for the take-off of the “Lagos Ride” scheme with a pilot fleet of 1,000 units of brand new Sport Utility Vehicles (SUVs).
Also at the ceremony held at the State House in Marina, Sanwo-Olu formally sealed a Joint Venture Agreement with the automobile company for the establishment of a Vehicle Assembly Plant in the State. In the next 24 months, Lagos will have a jointly-run factory for the production of different classes of brand new cars.
The establishment of the Vehicle Assembly Plant in Lagos was part of the bilateral agreements reached by the State Government and Chinese Investors’ Community when the Governor visited the Asian country in November 2019.
IBILE Holdings Limited, a State-owned corporation, will be driving the two investment agreements on behalf of the Lagos State Government.
Sanwo-Olu said the new ride-hailing taxi was a social intervention programme initiated with an objective to create jobs and economic opportunities for residents of the State.
He said the “Lagos Ride” scheme was in fulfilment of his administration’s desire to give residents a better choice in road transportation by offering a safe, efficient and modern cab model in line with the policy thrust of his Government’s T.H.E.M.E.S agenda.
The Governor said the taxi scheme, which is expected to fully take-off in the next 6 months, had been structured along with a profitability model and designed to be self-sustaining for expansion and growth.
He said: “I am elated to unveil the Lagos State Taxi Scheme, which is another innovative policy of this administration targeted at making life easier for Lagosians, improving mobility and creating a seamless multi-modal transportation system.
The scheme, which is to be known as “Lagos Ride”, is in fulfilment of our desire to give Lagos residents better transportation choices. The modern ride-hailing service is one of the State Government’s socio-economic intervention programmes, which will be professionally managed in line with global best practices
“Our social intervention programmes are tailored towards the eradication of poverty, provision of jobs and other employment opportunities as well as the provision of basic necessities, that make good governance our people’s reality. A major attribute of a modern megacity is a world-class transportation system with inter-connected services and mobility choices for the citizens.
The task of bequeathing a safe, efficient, quick, and modern public transportation system is a key thrust of our administration’s development agenda. We are guided by the need for an equitable transportation system with mobility choices for our people.”
Under the taxi scheme, Sanwo-Olu said the Cooperative Society in the Ministry of Wealth Creation and Employment would give operators brand new SUVs for a period of four years, during which they would pay a monthly instalment. At the end of the credit tenure, the operators will have the opportunity to fully own the cars.
The Governor said the scheme would offer operators a flexible repayment plan and affordable savings for vehicles’ maintenance.
Sanwo-Olu said the establishment of the Vehicle Assembly Plant was in furtherance of his administration’s economic growth blueprint, stressing that the Joint Venture Agreement would revive industrialisation, drive up skilled youth employment and create wealth, boost tourism, and encourage technology sharing, adaptation, and advancement.
He said: “As we formally sign the Joint Venture Agreement for the establishment of Motor Assembly Plant, Lagosians should expect a roll-out of vehicles from this plant within the next 18 months. I urge other stakeholders and private investors to collaborate with us to sustain the scheme. We have the political and administrative will to ensure the business survives in Lagos.”
Commissioner for Transportation, Dr. Frederic Oladehinde, said the e-hailing taxi scheme was initiated, following the approval of IBILE Holding Limited’s proposal in the August 31, 2020 State’s Executive Council meeting.
He said the Assembly Plant and the taxi scheme would boost socio-economic activities and support the development of ancillary enterprises in the transportation sector.
Chairman of CIG Motors Company Limited, Diana Chen, pledged the full commitment of the automobile firm to the agreement.
Ms Chen, who is also the Vice-Chairman of China-Africa Business Council (CABC), disclosed that the automobile firm would sponsor 50 students for a two-year engineering training in a vocational school in China to strengthen its partnership with the Lagos Government.
She said: “My teams are ready to work with 100 percent effort to build GAC MOTORS in Nigeria in the highest level of a brand. This international Joint Venture Project will soon bloom up in the Chinese business communities both in Nigeria and China. I assure you that, we will use this partnership as the best example to introduce and promote a Greater Lagos where greater opportunities abound.”
The highpoint of the event was the signing of the partnership agreements by the Managing Director of IBILE Holding Limited, Mr. Abiodun Amokomowo, and the Vice Chairman of CIG Motors Company Limited, Mr. Linus Idahosa in the presence of the Governor, Deputy Governor, Dr. Obafemi Hamzat, and Lagos Attorney General, Mr. Moyosore Onigbanjo, SAN.
…designed for families who are spending more time at home together
Trusted, secure and built to last: introducing quality at an amazing price point of NGN44,300 – the Nokia 1.4 provides fun and functionality for the whole family
The 6.51-inch HD+ edge-to-edge screen is as big as a 50 Eur note and the largest-ever on a Nokia 1 series device, offering families entertainment and immersive experiences amid growth in ‘home-schooling’
The powerful combination of the Camera Go app and the Nokia 1.4’s dual rear and front-facing cameras will capture treasured family memories in stunning bokeh portraits and beautiful low-light shots
Brilliant design and robust construction enabling your phone to survive falls from household surfaces all day long
Keeping your family safe from cybercrime, and giving you peace of mind, thanks to a three-year security updates package
Featuring Nokia phones’ legendary two-day battery life, so no one will ever miss an online lesson or a scheduled video catch-up with the grandparents
HMD Global, the home of Nokia phones, today announces the launch of its latest smartphone … the Nokia 1.4.
Boasting an impressive screen real estate, which stretches to 6.51 inches edge-to-edge, it is almost a full inch bigger than its predecessor, and the largest ever to feature on a 1 series Nokia.
Joseph Umunakwe, General Manager, HMD Global: West, East and Central Africa says
“More families are at home needing ways to stay entertained and productive. At the same time, for those separated by distance, there is the desire to stay safe yet connected. We built the Nokia 1.4 to meet those needs and give family members a reliable device that offers an enjoyable experience.
The Nokia 1.4 comes with an increased screen size to offer maximum viewing capacity. Families can stay connected and productive, without worrying about the kids using the phone. We improved the experience with our signature two-day battery life, built-in parental controls and a mishap-proof body. Google’s AI on the Camera Go app and a macro camera also help to capture those epic family moments”
The new expanded HD+ screen comes into its own with video calling apps, helping families to stay connected amid the current climate, and showcases Nokia 1.4’s camera capabilities.
The dual-camera setup coupled with the Camera Go app by Google helps you take high-quality photos at any time, even under low light conditions. Capture precious family moments with Portrait Mode that lets you achieve professional-looking photos with blurred backgrounds.
Use Night Mode to take colour-rich and crisp low-light shots without the need for flash. Helpful storage indicators will take away any worries about space so you can carry on snapping.
The built-in macro lens will entertain the whole family, as kids get up close and personal with nature while exploring the great outdoors. It comes in handy at home when you need to zoom in on the fine print on those important documents.
Nokia phones have a well-deserved reputation for being sturdy, durable devices and the Nokia 1.4 is no exception. This is an affordable phone which you can happily hand over to children to borrow without worrying about the condition it will come back in. Design-wise it is crafted to sit securely in any hand and contains a Qualcomm® chipset and fingerprint sensor.
Staying true to Nokia smartphone values, the Nokia 1.4 is ready for AndroidTM 11 (Go edition) and beyond. It offers a faster, more secure way of doing things with our unique Android promise and at least three years of security updates, you can rest assured your phone will stand the test of time on the inside as much as on the outside.
Built-in parental controls allow users to manage content downloaded from the Google Play store and will give grown-ups the peace of mind to allow children to listen, learn or play until their hearts are content.
There is no need to worry about battery life either. The Nokia 1.4 will keep you entertained and connected at the same time thanks to the improved two-day capacity of the phone’s impressive powerpack. So, whether it’s long video calls, streaming or playing games, there’s more than enough power to keep the whole family occupied.
Pricing and availability
The Nokia 1.4 is available globally starting 1st of March and comes in Fjord, Charcoal and Dusk with 1GB/16GB, 1GB/32GB and 3GB/64GB RAM/ROM configurations priced at an average global retail price of NGN44,300.
In his address at the event, the Attorney-General and Commissioner for Justice, Mr. Moyosore Onigbanjo (SAN), said the commissioning of the library is a demonstration of the commitment of the State Government, in collaboration with the Nigerian Police, to the Rule of Law in Lagos.
He added that the library would serve to educate Police Prosecutors on Legal issues in order to enable them to attend more efficiently to legal matters in court and to further deepen their knowledge.
Representing the Lagos State Governor, Mr. Babajide Sanwo-Olu, at the event, Onigbanjo disclosed the request for the renovation of the library was made by the State Commissioner of Police at a meeting held with the Governor, resulting in the directive to the Ministry of Justice to facilitate the refurbishment, renovation and equipping of the library.
Thee Attorney-General revealed that the library has been equipped with Computers, Photocopiers, Printers, Electronic research tools of the Law Pavilion and relevant books on the Laws of Lagos State, noting that more books would be supplied to the library on a yearly basis.
In his remarks, the State Commissioner of Police, CP. Hakeem Odumosu appreciated the laudable project executed by the State Government, reiterating that the Police are Law enforcement Officers who have good understanding of the Laws of the State.
He gave an assurance that the provision of the new library would help the Police keep abreast of Legal information to carry out their duties more efficiently both in and outside the Courts.
The Director of Public Prosecution, State Ministry of Justice, Mrs. Olayinka Adeyemi, stated that, if the library is well utilised by the Police Lawyers, it would ease the work of her office.
She, therefore, enjoined the Police Prosecutors to make adequate use of the library, adding that her Directorate is always prepared to organise training for Police Investigators and Prosecutors.
The Nigerian equities market dips further as the ASI compressed by 1.09% to 39,522.06. At the close of trading today, market capitalization lost N82.35bn to settle at N20.60tn moderating the year-to-date performance to -2.25%.
Across sectors, the Insurance index led the losers’ chart following selloffs in NEM (-9.95%) and LINKASSURE (-9.80%). Similarly, the Banking, Consumer Goods and Oil & Gas indices tapered by 1.54%, 1.47% and 0.65% respectively as a result of sell pressures in ETI (-3.85%), NNFM (-9.97%) and ARDOVA (-9.85%).
The Industrial index however went up by 0.19% due to gains recorded in WAPCO (+3.59%).
Investor sentiment as measured by the market breadth closed negative at 0.26x arising from 12 advancers and 47 decliners. The activity level improves as both the volume and value of transactions advanced by 101.84% and 14.40% respectively.
Notably, the most traded stocks by volume were UNIVERSE (83.26mn units), ZENITH BANK (38.65mn units) and FBNH (31.25mn units) while PRESCO (N1.05tn), ZENITH BANK (N983.25bn) and DANGCEM (N233.50bn) topped the value table.
Fixed Income Market
The yields on shorter maturities compressed marginally at the bond market today. Particularly, the yield on the FGN-APR-2023 and MAR-2024 bonds declined by 14bps and 1bps to close at 6.96% and 6.81% respectively.
The Treasury bills market traded on a quiet note as yields remain stable across the 91-day and 364-day tenors. The yield on the 184-day maturities however compressed by 15bps to settle at 1.87%.
Market Snapshot
The Bears Maintain a Grip on the Local Equities Market…ASI Down by 1.09%
The Bond Market Closed on a Quiet Note as Yields Stay Put on Longer Tenors
US Stocks Decline Further amid Continuous Spike in Treasury Yields
Oil Rallies After Saudi Oil Minister Urges OPEC+ Supply Caution
Naira Remains Stable Against the USD at the Parallel Market to Close at N480/$
In support of World Wildlife Day, TikTok is offering its global communities a fresh, immersive and edu-taining 24-hour wildlife safari sightings experience via TikTok Live, allowing users to express their creativity while increasing knowledge on wildlife protection.
World Wildlife Day is observed annually on 3 March, celebrating and raising awareness of the world’s wild animals and plants. It reminds us of the urgent need to step up the fight against wildlife crime and human-induced reduction of species, which have wide-ranging economic, environmental and social impacts.
Since the outbreak of the global Covid-19 pandemic, international tourism has severely diminished in Africa, effectively drying up a critical source of income for conservation. Across Africa, conservation areas of all kinds, from private reserves to national parks to community-managed areas are critical for saving wild species.
Photo by redcharlie
#TikTokWildlifeDay was launched to drive awareness around the diverse and beautiful wildlife in Africa as well as to encourage people to visit and support wildlife areas when they can.
TikTok users are encouraged to show their support by posting their videos using the official sticker to discover their “wild animal match”. In addition to the sticker, users can tune in to watch various online safaris through TikTok Live via the Latest Sightings account on 3 and 4 March.
In these live virtual safaris, viewers will be taken on a special tour of four South African Reserves: MalaMala Game Reserve, Mjejane Private Game Reserve, Care for Wild Rhino Sanctuary and Black Rhino Private Game Reserve, where viewers can watch a variety of incredible animals such as Africa’s famous “Big Five” (leopard, lion, elephant, rhino and buffalo).
Boniswa Sidwaba, TikTok content operations manager, Africa, says that TikTok has always been committed to being a platform that inspires creativity and brings joy, which is why this initiative is such a special one.
“TikTok is not only for entertainment – it is a space where the community can come to learn about things too. With its vast global reach, TikTok is the perfect platform to share useful information, to teach and learn and inspire others in a way that is creative, fun and engaging.
We want to use this opportunity to inspire a new generation to have a positive impact on the planet and those around them as well as shine a light on important conservation areas, many of which are currently open for visitors.”
“As we slowly return to pre-Covid tourism levels on the African continent, we must ensure that conservation of wildlife is a priority,” said Juliette Biao Koudenoukpo, UNEP’s Regional Representative for Africa. “UNEP supports TikTok’s efforts to boost awareness of the importance of conserving Africa’s biodiversity in their natural habitats for the health of people and planet.”
“We are incredibly excited about this campaign and we want to ask the whole TikTok community to join us in supporting this significant cause. Just look for #TikTokWildlifeDay to join the fun and don’t forget to also add #WorldWildlifeDay #WWD2021 to your captions,” Sidwaba concludes.
2020 proved to be a difficult year for most industries, and the sporting world was one of the most visibly hit. Sporting leagues across the globe was essentially halted as the pandemic spread to even the most developed countries. Eventually, major sporting leagues were able to restart in “new normal” conditions in order to mitigate the financial impacts of the pandemic.
Manchester Utd Highest Revenue of 2019-2020 Despite 20% Decrease from 2019
Manchester United registered the highest revenue from the 2019-2020 season out of Premier League (PL) Clubs and the fourth overall in world football.
The Red Devils earned €580.4M in revenue for 2020 which is a 19% drop from 2019’s €711.5M recorded revenue. Liverpool’s success on the pitch led them to the second-highest revenue out of PL clubs with €558.6M – an 8% drop from 2019.
The blue half of Manchester also earned over half a billion Euros in revenue despite registering an 11% drop from the previous season. Their €549.2M recorded revenue for 2019-2020 is the third highest out of PL teams. The three London clubs make up the bottom half of the list, with Chelsea, Tottenham and Arsenal earning €469.7M, €445.7M, €388M respectively.
Broadcast Revenue Total Loss from Top 6 Almost Half A Billion Euros
The effects of the pandemic on broadcast revenue differed from league to league depending on which approach was taken in terms of restarting their respective leagues. The PL decided to suspend its season with the aim of restarting it while others chose to end their seasons prematurely with the last registered league table considered the final outcome.
The PL also reached favourable agreements with different broadcasters, as the Deloitte Sports Business Group notes;
“The Premier League appeared to very successfully and quickly agree on amicable arrangements regarding scheduling, match allocation and broadcast rights rebates with its domestic broadcast partners throughout the pandemic to date.” Because of this they add: “the Premier League seems to have avoided any disruption to its broadcast arrangements.”
Nevertheless, the PL still experienced an overall decrease in broadcasting revenue from the ‘Top Six’ that amounted to €466M. Tottenham experienced the highest drop in broadcast revenue with an estimated total decrease of €122M for the 2019-2020 season.
This is largely due to Tottenham being eliminated in the Round of 16 stage of the UEFA champions league compared to reaching the final the season prior.
Tottenham Only Club in Top Six to Experience Increase in Matchday Revenue
Tottenham’s first full season in their new stadium allowed them to see an increase in matchday revenue of an estimated €15M – the largest matchday revenue recorded by any PL club. This is even made more significant considering that the five other clubs from the ‘Top Six’ registered a combined €81M loss in matchday revenue.
Commercial Revenue Source of Growth for Some Clubs
Commercial Revenue was a silver lining for many clubs in Europe, with several big clubs able to pivot their resources and still record positive growth in 2020. Five of the top six clubs experienced growth in commercial revenue of a total of €81M with Arsenal experiencing the highest growth of €36M. Chelsea meanwhile experienced an €11M decrease in commercial revenue as the club invested in its future commercial growth.
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