Despite a reduction of 11.3% in Champions League broadcasting revenue to £104m, mainly due to the club's early elimination from the competition, profits at Manchester United increased by 79.2% to £23.3m in the year to 30 June.
The Reds debt decreased during the year from £459m to £437m despite a 3.3% fall in revenue to £320m. United also said in a statement that since the flotation, which raised about £150m for the club, borrowings had been reduced further.
Commercial income which includes sponsorship, hit a record £117.6m, up 13.7% reflecting the strength of the brand.
Executive vice chairman Ed Woodward added
"Fiscal 2012 was the best year ever for Manchester United's commercial business."