English Premier League football club Arsenal has announced a £2m (€2.5m/$3.2m) reduction in group profit, but a £21.5m increase in total turnover in its yearly financial results.

The figures for the year ending May 31, 2014 detail that the group’s total turnover amounted to £301.9m versus the 2013 figure of £280.4m. Turnover from football-related activities increased to £298.7m from £242.8m, with the club citing the Premier League broadcasting deal, the FA Cup run, in which Arsenal defeated Hull City 3-2 to end its nine-year wait for a major trophy, and commercial activity – including a full year of its extended partnership with Emirates.

Arsenal in November 2012 agreed a new long-term agreement with the airline to extend its shirt sponsorship until 2019 and its stadium naming rights through to 2028. The contract is worth £150m.

Arsenal said group profit before tax for the year stood at £4.7m versus the 2013 figure of £6.7m. This compares to 2012’s figure of £36.6m, which was preceded by profits of £14.8m and £56m. However, these figures were inflated by the sale of key players, which Arsenal did not do last season – a strategy the club repeated this summer, instead choosing to invest heavily in the likes of Chile forward Alexis Sanchez, France defender Mathieu Debuchy and England forward Danny Welbeck from Manchester United.

With Arsenal’s £390m move to its new 60,000-seat stadium in 2006 being funded by a long-term fixed-rate bond repayment, the group reported cash balances up to £173.3m, from £119.6m last year.

Commenting on the results, Arsenal chairman Sir Chips Keswick said: “Our revenues have exceeded £300m, underpinned by television and the significant progress made on our commercial agenda, and our improved financial position has allowed us to supplement the squad with important new signings. Our ambition is to put Arsenal Football Club at the pinnacle of the game here and in Europe. We all want to savour a repeat of the (FA Cup) joys of last May.”

Chief executive Ivan Gazidis added: “The club is in excellent shape, both on and off the pitch. There is always more to do and, whether investing in the team or in training facilities which will provide long-term benefit to the club, our guiding principles are the same and our focus is clear, on delivering more on field success. This remains the shared ambition of our majority shareholder, Stan Kroenke, the board and everyone connected with the club. We are well placed to deliver against those ambitions.”

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