Manchester United Plc Reports Second Quarter Fiscal 2024 Results
- Record 2Q revenues of £225.8 million driven by UEFA Champions League participation and strong Matchday momentum.
- Appointment of Omar Berrada as CEO and completion of minority investment by Sir Jim Ratcliffe with $300 million primary investment.
- Men and Women's first teams advance to quarterfinals of FA Cup competitions, new partnership with SCAYLE for e-commerce experience.
- Creation of task force for stadium development at Old Trafford and return to the USA for Summer Tour 2024.
- Financial outlook for fiscal 2024: revenue guidance of £635 million to £665 million and adjusted EBITDA guidance of £125 million to £150 million.
- Commercial revenue decreased by 8.8%, broadcasting revenue increased by 81.0%, and matchday revenue increased by 59.2% compared to the prior year quarter.
- Operating expenses increased by 18.6%, employee benefit expenses increased by 23.0%, and other operating expenses decreased by 5.8% over the prior year quarter.
- Exceptional items for the quarter were £9.6 million, and net finance costs were £0.3 million.
- Overall cash and cash equivalents decreased by £18.0 million in the quarter, with net cash outflow from operating activities.
- USD non-current borrowings remained unchanged at $650 million, with cash and cash equivalents at £62.8 million as of 31 December 2023.
- None.
Insights
The recent financial results reported by Manchester United indicate a significant uptick in revenues, largely attributed to their participation in the UEFA Champions League and increased Matchday revenues. The team's performance in this high-profile tournament has a direct correlation with broadcasting revenues, which saw an 81% increase compared to the previous year. This showcases the immense financial impact that success in European competitions can have on football clubs. The adjusted EBITDA growth of 88.8% is particularly noteworthy, reflecting operational efficiency and potentially improving the company's cash flow position. Additionally, the reported operating profit represents a stark turnaround from the prior year's loss, signaling stronger financial health and management's effectiveness in controlling expenses relative to income.
Investors might view the consistent non-current borrowings level and the slight reduction in GBP terms due to exchange rate fluctuations as a stable debt position. However, the increase in current borrowings year-on-year could signal a reliance on short-term financing to manage cash flows, which warrants a closer examination of the club's liquidity and financial strategy. The capital expenditure on intangible assets, which includes player acquisitions, is also up from the previous year, suggesting an investment in the team that could lead to future on-pitch success and potentially further revenue growth.
Manchester United's strategic partnership with SCAYLE to enhance their e-commerce experience aligns with broader industry trends where sports entities are increasingly leveraging digital platforms to maximize revenue streams. This move, set to commence in Fiscal 2025, indicates a long-term vision to strengthen commercial revenue through direct-to-consumer sales. In the context of a slight decrease in commercial revenue this quarter, largely due to the absence of a one-off sponsorship credit, the club's proactive steps to bolster retail and merchandising performance demonstrate an understanding of diversifying income sources beyond traditional streams.
Furthermore, the club's announcement of a task force to explore stadium development and area regeneration could have substantial economic implications, potentially enhancing the matchday experience and increasing future Matchday revenues. The club's focus on infrastructure and community development is likely to resonate positively with stakeholders and could lead to increased brand value and fan engagement.
The financial results of Manchester United reflect the broader economic impact of participating in prestigious tournaments like the UEFA Champions League. The substantial increase in broadcasting and Matchday revenues underscores the economic principle of scarcity and exclusivity associated with top-tier European football. The club's ability to leverage its brand and on-field performance into financial success is a testament to the sports economy's unique dynamics, where success in competitions can lead to exponential increases in revenue streams.
However, the 8.8% decrease in commercial revenue, despite an increase in retail and merchandising, points to the volatility and unpredictability of sponsorship deals which can be influenced by numerous external factors, including team performance and global economic conditions. The club's forward-looking statements regarding expected record revenues for the full fiscal year suggest confidence in their financial trajectory, but also highlight the importance of maintaining competitive performance levels to sustain these revenue projections.
Key Points
-
Club announced the completion of the minority investment by Sir Jim Ratcliffe which includes an additional
$300 million $200 million - Club announced the appointment of Omar Berrada as CEO
-
Club achieved record 2Q revenues of
£225.8 million driven primarily by UEFA Champions League participation benefit and continued strong Matchday momentum with record attendance for all teams - Both the Men and Women’s first teams advanced to the quarterfinals of the Men and Women’s FA Cup competitions with matches scheduled for mid-March
- The Men’s first team loaned out a total of 11 players in the January transfer window, while the Women’s team loaned out two players
- Club announced a new partnership with SCAYLE to provide a best-in-class e-commerce experience beginning Fiscal 2025
- On 8 March, the Club announced the creation of a task force to explore options for stadium development at Old Trafford and regeneration of the surrounding area
-
Club announced a return to the
USA for Summer Tour 2024 with matches scheduled forLos Angeles, California on 27 July andColumbia, South Carolina on 3 August with an additional US match to be announced
Cliff Baty, Chief Financial Officer, said: “We delivered strong revenues during the first half of the fiscal year and have reiterated our guidance for record revenues for the full fiscal year. This is an exciting time at Manchester United following the completion of Sir Jim Ratcliffe’s investment, and we are all focused on working together with our new co-owners to drive the club forward and deliver success on the pitch.”
Outlook
For fiscal 2024, the Company reiterates its previous revenue guidance of
Phasing of Premier League games |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Total |
2023/24 season |
7 |
13 |
9 | 9 |
38 |
2022/23 season |
6 |
10 |
10 |
12 |
38 |
2021/22 season |
6 |
12 |
11 |
9 |
38 |
Key Financials (unaudited)
£ million (except earnings/(loss) per share) |
Three months ended 31 December |
|
Six months ended 31 December |
|
||
|
2023 |
2022 |
Change |
2023 |
2022 |
Change |
Commercial revenue |
71.8 |
78.7 |
( |
162.2 |
166.1 |
( |
Broadcasting revenue |
106.4 |
58.7 |
|
145.7 |
93.7 |
|
Matchday revenue |
47.6 |
29.9 |
|
75.0 |
51.2 |
|
Total revenue |
225.8 |
167.3 |
|
382.9 |
311.0 |
|
Adjusted EBITDA(1) |
91.4 |
48.3 |
|
114.7 |
71.9 |
|
Operating profit/(loss) |
27.5 |
(2.9) |
1, |
29.4 |
(6.3) |
|
|
||||||
Profit/(loss) for the period (i.e. net income/(loss)) |
20.4 |
6.3 |
|
(5.3) |
(20.2) |
|
Basic earnings/(loss) per share (pence) |
12.49 |
3.87 |
|
(4.14) |
(12.39) |
|
Adjusted profit/(loss) for the period (i.e. adjusted net income/(loss)(1) |
19.3 |
(10.1) |
|
10.7 |
(20.0) |
|
Adjusted basic earnings/(loss) per share (pence)(1) |
11.83 |
(6.18) |
|
6.56 |
(12.26) |
|
|
||||||
Non-current borrowings in USD (contractual currency)(2) |
|
|
|
|
|
|
(1) Adjusted EBITDA, adjusted profit/(loss) for the period and adjusted basic earnings/(loss) per share are non-IFRS measures. See “Non-IFRS Measures: Definitions and Use” on page 6 and the accompanying Supplemental Notes for the definitions and reconciliations for these non-IFRS measures and the reasons we believe these measures provide useful information to investors regarding the Group’s financial condition and results of operations.
(2) In addition to non-current borrowings, the Group maintains a revolving credit facility which varies based on seasonal flow of funds. The outstanding balance of the revolving credit facility as of 31 December 2023 was
Revenue Analysis
Commercial
Commercial revenue for the quarter was
-
Sponsorship revenue was
£39.2 million , a decrease of£11.2 million , or22.2% , over the prior year quarter, primarily due to a one off sponsorship credit in the prior year quarter. -
Retail, Merchandising, Apparel & Product Licensing revenue was
£32.6 million , an increase of£4.3 million , or15.2% , over the prior year quarter, due to the extension of our contract with Adidas and strong megastore performance.
Broadcasting
Broadcasting revenue for the quarter was
Matchday
Matchday revenue for the quarter was
Other Financial Information
Operating expenses
Total operating expenses for the quarter were
Employee benefit expenses
Employee benefit expenses for the quarter were
Other operating expenses
Other operating expenses for the quarter were
Depreciation and amortization
Depreciation for the quarter was
Exceptional items
Exceptional items for the quarter were a cost of
Profit on disposal of intangible assets
Profit on disposal of intangible assets for the quarter was
Net finance (costs)/income
Net finance costs for the quarter were
Income tax
The income tax expense for the quarter was
Cash flows
Overall cash and cash equivalents (including the effects of exchange rate movements) decreased by
Net cash outflow from operating activities for the quarter was
Net capital expenditure on property, plant and equipment for the quarter was
Net capital expenditure on intangible assets for the quarter was
Net cash inflow from financing activities for the quarter was
Balance sheet
Our USD non-current borrowings as of 31 December 2023 were
In addition to non-current borrowings, the Group maintains a revolving credit facility which varies based on seasonal flow of funds. Current borrowings at 31 December 2023 were
As of 31 December 2023, cash and cash equivalents were
About Manchester United
Manchester United is one of the most popular and successful sports teams in the world, playing one of the most popular spectator sports on Earth. Through our 146-year football heritage we have won 67 trophies, enabling us to develop what we believe is one of the world’s leading sports and entertainment brands with a global community of 1.1 billion fans and followers. Our large, passionate, and highly engaged fan base provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, broadcasting and matchday initiatives which in turn, directly fund our ability to continuously reinvest in the club.
Cautionary Statements
This press release contains forward‑looking statements. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to the Company’s operations and business environment, all of which are difficult to predict and many are beyond the Company’s control. These statements often include words such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or similar expressions. The forward-looking statements contained in this press release are based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the “Risk Factors” section and elsewhere in the Company’s Registration Statement on Form F-1, as amended (File No. 333-182535) and the Company’s Annual Report on Form 20-F (File No. 001-35627) as supplemented by the risk factors contained in the Company’s other filings with the Securities and Exchange Commission.
Non-IFRS Measures: Definitions and Use
1. Adjusted EBITDA
Adjusted EBITDA is defined as profit/(loss) for the period before depreciation, amortization, profit/(loss) on disposal of intangible assets, exceptional items, net finance (costs)/income, and tax.
Adjusted EBITDA is useful as a measure of comparative operating performance from period to period and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our asset base (primarily depreciation and amortization), material volatile items (primarily profit/(loss) on disposal of intangible assets and exceptional items), capital structure (primarily finance (costs)/income), and items outside the control of our management (primarily taxes). Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for an analysis of our results as reported under IFRS as issued by the IASB. A reconciliation of profit/(loss) for the period to adjusted EBITDA is presented in supplemental note 2.
2. Adjusted loss for the period (i.e. adjusted net loss)
Adjusted loss for the period is calculated, where appropriate, by adjusting for charges related to exceptional items, foreign exchange gains/(losses) on unhedged US dollar denominated borrowings and fair value movements on embedded foreign exchange derivatives, adding/subtracting the actual tax expense/credit for the period, and adding/subtracting the adjusted tax credit/expense for the period (based on an normalized tax rate of
In assessing the comparative performance of the business, in order to get a clearer view of the underlying financial performance of the business, it is useful to strip out the distorting effects of the items referred to above and then to apply a ‘normalized’ tax rate (for both the current and prior periods) of the weighted average US federal corporate income tax rate of
3. Adjusted basic and diluted earnings/(loss) per share
Adjusted basic and diluted earnings/(loss) per share are calculated by dividing the adjusted loss for the period by the weighted average number of ordinary shares in issue during the period. Adjusted diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue during the period to assume conversion of all dilutive potential ordinary shares. There is one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the “Equity Plan”). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year. Adjusted basic and diluted loss per share are presented in supplemental note 3.
Key Performance Indicators
|
Three months ended |
Six months ended |
||
|
31 December |
31 December |
||
|
2023 |
2022 |
2023 |
2022 |
|
|
|
|
|
Revenue |
|
|
|
|
Commercial % of total revenue |
|
|
|
|
Broadcasting % of total revenue |
|
|
|
|
Matchday % of total revenue |
|
|
|
|
|
|
|
|
|
|
2023/24 Season |
2022/23 Season |
2023/24 Season |
2022/23 Season |
Home Matches Played |
|
|
|
|
PL |
6 |
4 |
10 |
7 |
UEFA competitions |
3 |
2 |
3 |
3 |
Domestic Cups |
1 |
2 |
2 |
2 |
Away Matches Played |
|
|
|
|
PL |
7 |
6 |
10 |
9 |
UEFA competitions |
2 |
2 |
3 |
3 |
Domestic Cups |
- |
- |
- |
- |
Other |
|
|
|
|
Employees at period end |
1,146 |
1,233 |
1,146 |
1,233 |
Employee benefit expenses % of revenue |
|
|
|
|
CONSOLIDATED STATEMENT OF PROFIT OR LOSS (unaudited; in £ thousands, except per share and shares outstanding data) |
||||||||
|
Three months ended 31 December |
Six months ended 31 December |
||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Revenue from contracts with customers |
225,756 |
|
167,368 |
|
382,852 |
|
311,022 |
|
Operating expenses |
(198,661 |
) |
(167,640 |
) |
(383,423 |
) |
(331,284 |
) |
Profit/(loss) on disposal of intangible assets |
399 |
|
(2,588 |
) |
29,880 |
|
14,020 |
|
Operating profit/(loss) |
27,494 |
|
(2,860 |
) |
29,309 |
|
(6,242 |
) |
Finance costs |
(16,593 |
) |
(26,277 |
) |
(37,842 |
) |
(21,956 |
) |
Finance income (1) |
16,318 |
|
38,392 |
|
2,948 |
|
3,083 |
|
Net finance (costs)/income |
(275 |
) |
12,115 |
|
(34,894 |
) |
(18,873 |
) |
Profit/(loss) before income tax |
27,219 |
|
9,255 |
|
(5,585 |
) |
(25,115 |
) |
Income tax (expense)/credit |
(6,845 |
) |
(2,949 |
) |
202 |
|
4,905 |
|
Profit/(loss) for the period |
20,374 |
|
6,306 |
|
(5,383 |
) |
(20,210 |
) |
|
|
|
|
|
||||
Basic earnings/(loss) per share: |
|
|
|
|
||||
Basic earnings/(loss) per share (pence) |
12.49 |
|
3.87 |
|
(3.30 |
) |
(12.39 |
) |
Weighted average number of ordinary shares used as the denominator in calculating basic earnings/(loss) per share (thousands) |
163,159 |
|
163,062 |
|
163,159 |
|
163,062 |
|
Diluted earnings/(loss) per share: |
|
|
|
|
||||
Diluted earnings/(loss) per share (pence) (2) |
12.44 |
|
3.85 |
|
(3.30 |
) |
(12.39 |
) |
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings/(loss) per share (thousands) (2) |
163,723 |
|
163,605 |
|
163,159 |
|
163,062 |
|
(1) Each element of finance income is split based on its position in both the 3 months ended 31 December 2023 and the 6 months ended 31 December 2023. In the current year, exchange rate fluctuations have resulted in income for the 3 months ended 31 December 2023 that is greater than the total net position across the 6 months ended 31 December 2023.
(2) For the six months ended 31 December 2023 and 31 December 2022, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded.
CONSOLIDATED BALANCE SHEET (unaudited; in £ thousands) |
|||
|
As of |
||
|
31 December 2023 |
30 June 2023 |
31 December 2022 |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
255,246 |
253,282 |
243,434 |
Right-of-use assets |
8,199 |
8,760 |
3,353 |
Investment properties |
19,853 |
19,993 |
20,133 |
Intangible assets |
922,527 |
812,382 |
871,529 |
Trade receivables |
24,498 |
22,303 |
21,224 |
Derivative financial instruments |
200 |
7,492 |
22,189 |
|
1,230,523 |
1,124,212 |
1,181,862 |
Current assets |
|
|
|
Inventories |
4,024 |
3,165 |
3,272 |
Prepayments |
26,945 |
16,487 |
26,087 |
Contract assets – accrued revenue |
61,819 |
43,332 |
53,505 |
Trade receivables |
81,388 |
31,167 |
116,409 |
Other receivables |
2,065 |
9,928 |
2,426 |
Income tax receivable |
- |
5,317 |
4,479 |
Derivative financial instruments |
2,439 |
8,317 |
7,876 |
Cash and cash equivalents |
62,809 |
76,019 |
31,045 |
|
241,489 |
193,732 |
245,099 |
Total assets |
1,472,012 |
1,317,944 |
1,426,961 |
CONSOLIDATED BALANCE SHEET (continued) (unaudited; in £ thousands) |
||||||
|
As of |
|||||
|
31 December 2023 |
30 June 2023 |
31 December 2022 |
|||
EQUITY AND LIABILITIES |
|
|
|
|||
Equity |
|
|
|
|||
Share capital |
53 |
|
53 |
|
53 |
|
Share premium |
68,822 |
|
68,822 |
|
68,822 |
|
Treasury shares |
(21,305 |
) |
(21,305 |
) |
(21,305 |
) |
Merger reserve |
249,030 |
|
249,030 |
|
249,030 |
|
Hedging reserve |
(25 |
) |
4,002 |
|
2,249 |
|
Retained deficit |
(200,558 |
) |
(196,652 |
) |
(189,097 |
) |
|
96,017 |
|
103,950 |
|
109,752 |
|
Non-current liabilities |
|
|
|
|||
Deferred tax liabilities |
924 |
|
3,304 |
|
2,413 |
|
Contract liabilities - deferred revenue |
8,059 |
|
6,659 |
|
7,274 |
|
Trade and other payables |
189,891 |
|
161,141 |
|
160,495 |
|
Borrowings |
506,509 |
|
507,335 |
|
535,654 |
|
Lease liabilities |
7,704 |
|
7,844 |
|
2,475 |
|
Derivative financial instruments |
1,482 |
|
748 |
|
519 |
|
Provisions |
- |
|
93 |
|
89 |
|
|
714,569 |
|
687,124 |
|
708,919 |
|
Current liabilities |
|
|
|
|||
Contract liabilities - deferred revenue |
149,643 |
|
169,624 |
|
160,554 |
|
Trade and other payables |
231,701 |
|
236,472 |
|
227,772 |
|
Income tax liabilities |
775 |
|
- |
|
- |
|
Borrowings |
266,792 |
|
105,961 |
|
206,246 |
|
Lease liabilities |
861 |
|
1,036 |
|
804 |
|
Derivative financial instruments |
591 |
|
931 |
|
- |
|
Provisions |
11,063 |
|
12,846 |
|
12,914 |
|
|
661,426 |
|
526,870 |
|
608,290 |
|
Total equity and liabilities |
1,472,012 |
|
1,317,944 |
|
1,426,961
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited; in £ thousands) |
||||||||
|
Three months ended
|
Six months ended
|
||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Cash flows from operating activities |
|
|
|
|
||||
Cash used in operations (see supplemental note 4) |
(38,012 |
) |
(56,633 |
) |
(12,141 |
) |
(53,014 |
) |
Interest paid |
(8,182 |
) |
(4,595 |
) |
(18,756 |
) |
(14,223 |
) |
Interest received |
223 |
|
59 |
|
572 |
|
77 |
|
Tax (paid)/refunded
|
(561 |
) |
(340 |
) |
5,256 |
|
(392 |
) |
Net cash outflow from operating activities |
(46,532 |
) |
(61,509 |
) |
(25,069 |
) |
(67,552 |
) |
Cash flows from investing activities |
|
|
|
|
||||
Payments for property, plant and equipment |
(2,811 |
) |
(2,706 |
) |
(11,840 |
) |
(7,099 |
) |
Payments for intangible assets |
(35,729 |
) |
(29,868 |
) |
(167,942 |
) |
(129,892 |
) |
Proceeds from sale of intangible assets |
7,913 |
|
2,071 |
|
33,582 |
|
13,733 |
|
Net cash outflow from investing activities |
(30,627 |
) |
(30,503 |
) |
(146,200 |
) |
(123,258 |
) |
Cash flows from financing activities |
|
|
|
|
||||
Proceeds from borrowings |
60,000 |
|
100,000 |
|
160,000 |
|
100,000 |
|
Principal elements of lease payments |
(300 |
) |
(571 |
) |
(500 |
) |
(1,449 |
) |
Net cash inflow from financing activities |
59,700 |
|
99,429 |
|
159,500 |
|
98,551 |
|
Effects of exchange rate changes on cash and cash equivalents |
(561 |
) |
(649 |
) |
(1,441 |
) |
2,081 |
|
Net (decrease)/increase in cash and cash equivalents |
(18,020 |
) |
6,768 |
|
(13,210 |
) |
(90,178 |
) |
Cash and cash equivalents at beginning of period |
80,829 |
|
24,277 |
|
76,019 |
|
121,223 |
|
Cash and cash equivalents at end of period |
62,809 |
|
31,045 |
|
62,809 |
|
31,045 |
|
SUPPLEMENTAL NOTES
1 General information
Manchester United plc (the “Company”) and its subsidiaries (together the “Group”) is a men’s and women’s professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (as amended) of the
2 Reconciliation of profit/(loss) for the period to adjusted EBITDA
|
Three months ended 31 December |
Six months ended 31 December |
||||||
|
2023 £’000 |
2022 £’000 |
2023 £’000 |
2022 £’000 |
||||
Profit/(loss) for the period |
20,374 |
|
6,306 |
|
(5,383 |
) |
(20,210 |
) |
Adjustments: |
|
|
|
|
||||
Income tax expense/(credit) |
6,845 |
|
2,949 |
|
(202 |
) |
(4,905 |
) |
Net finance costs/(income) |
275 |
|
(12,115 |
) |
34,894 |
|
18,873 |
|
(Profit)/loss on disposal of intangible assets |
(399 |
) |
2,588 |
|
(29,880 |
) |
(14,020 |
) |
Exceptional items |
9,595 |
|
- |
|
9,595 |
|
- |
|
Amortization |
50,495 |
|
44,971 |
|
97,340 |
|
85,110 |
|
Depreciation |
4,153 |
|
3,609 |
|
8,255 |
|
7,087 |
|
Adjusted EBITDA |
91,338 |
|
48,308 |
|
114,619 |
|
71,935 |
|
3 Reconciliation of profit for the period to adjusted profit/(loss) for the period and adjusted basic and diluted earnings/(loss) per share
|
Three months ended 31 December |
Six months ended 31 December |
||||||
|
2023 £’000 |
2022 £’000 |
2023 £’000 |
2022 £’000 |
||||
Profit/(loss) for the period |
20,374 |
|
6,306 |
|
(5,383 |
) |
(20,210 |
) |
Exceptional items |
9,595 |
|
- |
|
9,595 |
|
- |
|
Foreign exchange (gains)/losses on unhedged US dollar denominated borrowings |
(13,332 |
) |
(37,737 |
) |
421 |
|
2,703 |
|
Fair value loss/(gain) on embedded foreign exchange derivatives |
946 |
|
15,720 |
|
9,109 |
|
(2,892 |
) |
Income tax expense/(credit) |
6,845 |
|
2,949 |
|
(202 |
) |
(4,905 |
) |
Adjusted profit/loss before income tax |
24,428 |
|
(12,762 |
) |
13,540 |
|
(25,304 |
) |
Adjusted income tax (expense)/credit (using a normalized tax rate of |
(5,130 |
) |
2,680 |
|
(2,843 |
) |
5,314 |
|
Adjusted profit/(loss) for the period (i.e. adjusted net income/(loss)) |
19,298 |
|
(10,082 |
) |
10,697 |
|
(19,990 |
) |
|
|
|
|
|
||||
Adjusted basic earnings/(loss) per share: |
|
|
|
|
||||
Adjusted basic earnings/(loss) per share (pence) |
11.83 |
|
(6.18 |
) |
6.56 |
|
(12.26 |
) |
Weighted average number of ordinary shares used as the denominator in calculating adjusted basic earnings/(loss) per share (thousands) |
163,159 |
|
163,062 |
|
163,159 |
|
163,062 |
|
Adjusted diluted earnings/(loss per share: |
|
|
|
|
||||
Adjusted diluted earnings/(loss) per share (pence)(1) |
11.79 |
|
(6.18 |
) |
6.53 |
|
(12.26 |
) |
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating adjusted diluted earnings/(loss) per share (thousands) (1) |
163,723 |
|
163,062 |
|
163,723 |
|
163,062 |
|
(1) For the three and six months ended 31 December 2022 potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded.
4 Cash used in operations
|
Three months ended
|
Six months ended
|
||||||
|
2023 £’000 |
2022 £’000 |
2023 £’000 |
2022 £’000 |
||||
Profit/(loss) for the period |
20,374 |
|
6,306 |
|
(5,383 |
) |
(20,210 |
) |
Income tax expense/(credit) |
6,845 |
|
2,949 |
|
(202 |
) |
(4,905 |
) |
Profit/(loss) before income tax |
27,219 |
|
9,255 |
|
(5,585 |
) |
(25,115 |
) |
Adjustments for: |
|
|
|
|
||||
Depreciation |
4,153 |
|
3,609 |
|
8,255 |
|
7,087 |
|
Amortization |
50,495 |
|
44,971 |
|
97,340 |
|
85,110 |
|
(Profit)/loss on disposal of intangible assets |
(399 |
) |
2,588 |
|
(29,880 |
) |
(14,020 |
) |
Net finance costs/(income) |
275 |
|
(12,115 |
) |
34,894 |
|
18,873 |
|
Non-cash employee benefit expense – equity-settled share-based payments |
736 |
|
626 |
|
1,476 |
|
1,155 |
|
Foreign exchange losses/(gains) on operating activities |
619 |
|
5,140 |
|
477 |
|
3,967 |
|
Reclassified from hedging reserve |
250 |
|
(367 |
) |
(2 |
) |
(530 |
) |
Changes in working capital: |
|
|
|
|
||||
Inventories |
1,022 |
|
480 |
|
(859 |
) |
(1,072 |
) |
Prepayments |
9,286 |
|
4,638 |
|
(10,833 |
) |
(10,928 |
) |
Contract assets – accrued revenue |
(14,476 |
) |
(7,366 |
) |
(18,487 |
) |
(17,266 |
) |
Trade receivables |
(39,110 |
) |
(64,070 |
) |
(44,355 |
) |
(48,087 |
) |
Other receivables |
9,612 |
|
(497 |
) |
7,863 |
|
(857 |
) |
Contract liabilities – deferred revenue |
(64,780 |
) |
(23,898 |
) |
(18,581 |
) |
(14,716 |
) |
Trade and other payables |
(23,602 |
) |
(19,821 |
) |
(31,839 |
) |
(36,974 |
) |
Provisions |
688 |
|
194 |
|
(2,025 |
) |
359 |
|
Cash used in operations |
(38,012 |
) |
(56,633 |
) |
(12,141 |
) |
(53,014 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240312107878/en/
Investor Relations:
Corinna Freedman
Head of Investor Relations
+44 738 491 0828
Corinna.Freedman@manutd.co.uk
Media Relations:
Andrew Ward
Director of Media Relations & Public Affairs
+44 161 676 7770
Andrew.Ward@manutd.co.uk
Source: Manchester United
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