Manchester United Plc Reports Third Quarter Fiscal 2024 Results
Manchester United Plc (NYSE: MANU) reported its third-quarter fiscal 2024 results. The club's men's first team won the FA Cup and finished eighth in the Premier League, while the women's team also won the FA Cup and finished fifth in the Women's Super League. The club achieved record-breaking attendance and Matchday revenues, with global memberships sold reaching 433,000 for the 2023/24 season. Their revenue for fiscal 2024 is expected to be approximately £660 million, with adjusted EBITDA around £140 million.
Key financials show a decline with total revenue dropping by 19.6% to £136.7 million and an adjusted EBITDA decrease of 65.5% to £13.7 million. Broadcasting and Matchday revenues dropped significantly by 26.0% and 40.7% respectively. Operating loss widened to £66.2 million, marking a significant increase. Net cash outflow from operating activities was £15.1 million due to reductions in broadcasting income. The club also maintains $650 million in non-current borrowings.
- Record-breaking attendance and Matchday revenues.
- Global memberships sold reached 433,000 for the 2023/24 season.
- Fiscal 2024 revenue expected to be approximately £660 million, an increase from prior guidance.
- Total revenue decreased by 19.6% to £136.7 million.
- Adjusted EBITDA decreased by 65.5% to £13.7 million.
- Broadcasting revenue declined by 26.0% due to fewer matches.
- Matchday revenue fell by 40.7% due to fewer home matches.
- Operating loss increased significantly to £66.2 million.
- Net cash outflow from operating activities was £15.1 million.
Insights
Manchester United's latest financial report presents a mixed bag of outcomes that investors need to parse carefully. The club projects record revenues of approximately
However, the analysis of their quarterly financials raises concerns. The club reports a staggering
For a retail investor, these mixed messages suggest caution. While the club’s long-term revenue potential appears robust, the near-term financial challenges and considerable operating losses might limit stock performance. Furthermore, the redundancy program, aimed at cutting approximately 250 jobs, reflects a strategic shift towards cost reduction, which might also have future financial implications.
In summary, although Manchester United demonstrates strong revenue generation capabilities, the escalating losses and operational expenditures are red flags that merit close monitoring.
Manchester United’s ability to maintain and grow its significant global fanbase is a major asset that underpins its revenue streams. The club's record-breaking attendance and matchday revenues, alongside robust global membership sales, underscore the brand's enduring appeal and commercial strength. This strong fan engagement provides a stable foundation for long-term revenue growth, especially as the club capitalizes on various revenue channels such as merchandising and sponsorship.
However, it is worth noting the potential risks associated with their current performance on the pitch. The men’s team finishing eighth and playing fewer matches has noticeably impacted broadcasting and matchday revenue. The club's performance in competitions directly correlates with its financial health, affecting not just immediate income but also long-term sponsorship and broadcasting deals.
For retail investors, understanding these dynamics is crucial. While the club’s brand and fanbase are strong, on-field performance and its associated revenue fluctuations need to be factored into investment decisions. The recent financial losses underline the volatility inherent in sports franchises, influenced by both team performance and broader economic conditions.
Overall, Manchester United remains a powerful brand with substantial revenue potential, but investors should remain cognizant of the financial volatility linked to its sporting success.
Key Points
- The Men’s first team won the FA Cup final on 25 May and finished the 2023/24 season in eighth position; for the 2024/25 season the club has qualified for the UEFA Europa League
- The Women’s team won the FA Cup final on 12 May and finished the 2023/24 Women’s Super League season in fifth position
- The Under 18 Men’s team won the Premier League North title and the U18 Premier League Cup, while the Academy celebrated its 250th graduate to debut in the men’s first team
- On 1 July, Dan Ashworth joined the club as Sporting Director and on 4 July, the club extended Erik ten Hag’s contract through June 2026
- Club continues to achieve record-breaking attendance and Matchday revenues, as well as record global memberships with 433K memberships sold for the 2023/24 season
-
For the upcoming 2024/25 season, the Club has raised general admission season ticket prices by
5% ; season ticket and Executive Club memberships sold out in record time and with the second-lowest ever churn rate of less than4% - Club achieved record-breaking sales of the Adidas Stone Roses range, with the biggest ever launch day for non-kit product; new e-commerce platform launch with SCAYLE remains on plan for September; the new 2024/25 Home kit featuring new front-of-shirt sponsor, Snapdragon, launched on 1 July
- On 3 July, the Club announced it would be commencing a proposed redundancy program, which will involve a formal legal consultation process and may reduce headcount by approximately 250 jobs
- Planned summer maintenance projects include the expansion of rail seating, catering kiosk refurbishments, and hospitality suite upgrades, in addition to major improvements to the main building at the Carrington Training Complex
-
For fiscal 2024, the Company now expects approximate full year revenues of a record
£660 million , in line with the previous guidance range of£635 million to£665 million ; adjusted EBITDA for the full fiscal year 2024 is expected to be approximately£140 million , in line with previously provided guidance range of£125 million to£150 million
Outlook
For fiscal 2024, the Company is revising its previously provided revenue guidance to an expected record of approximately
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 loss per share) |
Three months ended
|
|
Nine months ended
|
|
||||||||||||
2024 |
2023 |
Change |
2024 |
2023 |
Change |
|||||||||||
Commercial revenue |
|
69.6 |
|
|
69.4 |
|
0.3 |
% |
|
231.7 |
|
|
235.5 |
|
(1.6 |
%) |
Broadcasting revenue |
|
37.5 |
|
|
50.7 |
|
(26.0 |
%) |
|
183.3 |
|
|
144.5 |
|
26.9 |
% |
Matchday revenue |
|
29.6 |
|
|
49.9 |
|
(40.7 |
%) |
|
104.5 |
|
|
101.1 |
|
3.4 |
% |
Total revenue |
|
136.7 |
|
|
170.0 |
|
(19.6 |
%) |
|
519.5 |
|
|
481.1 |
|
8.0 |
% |
Adjusted EBITDA(1) |
|
13.7 |
|
|
39.7 |
|
(65.5 |
%) |
|
128.3 |
|
|
111.7 |
|
14.9 |
% |
Operating loss |
|
(66.2 |
) |
|
(4.7 |
) |
(1,308.5 |
%) |
|
(36.9 |
) |
|
(10.9 |
) |
(238.5 |
%) |
|
||||||||||||||||
Loss for the period (i.e. net loss) |
|
(71.4 |
) |
|
(5.6 |
) |
(1,175.0 |
%) |
|
(76.9 |
) |
|
(25.8 |
) |
(198.1 |
%) |
Basic loss per share (pence) |
|
(43.12 |
) |
|
(3.40 |
) |
(1,151.5 |
%) |
|
(46.87 |
) |
|
(15.80 |
) |
(196.6 |
%) |
Adjusted loss for the period (i.e. adjusted net loss)(1) |
|
(40.6 |
) |
|
(12.1 |
) |
(235.5 |
%) |
|
(29.9 |
) |
|
(32.1 |
) |
6.9 |
% |
Adjusted basic loss per share (pence)(1) |
|
(24.47 |
) |
|
(7.41 |
) |
(230.2 |
%) |
|
(18.22 |
) |
|
(19.66 |
) |
7.3 |
% |
|
||||||||||||||||
Non-current borrowings in USD (contractual currency)(2) |
$ |
650.0 |
|
$ |
650.0 |
|
0.0 |
% |
$ |
650.0 |
|
$ |
650.0 |
|
0.0 |
% |
(1) Adjusted EBITDA, adjusted loss for the period and adjusted basic 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 March 2024 was |
||||||||||||||||
Revenue Analysis
Commercial
Commercial revenue for the quarter was
-
Sponsorship revenue was
£40.7 million , a decrease of£0.3 million , or0.7% , over the prior year quarter. -
Retail, Merchandising, Apparel & Product Licensing revenue was
£28.9 million , an increase of£0.5 million , or1.8% , over the prior year quarter, due to the extension of our agreement with adidas, partially offset by lower Megastore sales resulting from fewer matches being played at Old Trafford in the quarter.
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
Net finance costs for the quarter were
Income tax
The income tax credit for the quarter was
Cash flows
Overall cash and cash equivalents (including the effects of exchange rate movements) increased 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 March 2024 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 March 2024 were
As of 31 March 2024, 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 69 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 loss for the period before depreciation, amortization, exceptional items, profit on disposal of intangible assets, net finance costs 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 on disposal of intangible assets and exceptional items), capital structure (primarily finance costs), 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 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/credits related to exceptional items, foreign exchange gains/losses on unhedged US dollar denominated borrowings (including foreign exchange losses immediately reclassified from the hedging reserve following change in contract currency denomination of future revenues), and fair value movements on embedded foreign exchange derivatives and foreign currency options, adding/subtracting the actual tax expense/credit for the period, and subtracting/adding the adjusted tax expense/credit for the period (based on a 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 loss per share
Adjusted basic and diluted 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 |
Nine months ended |
||||||
|
31 March |
31 March |
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
|
|
|
|
||||
Revenue |
|
|
|
|
||||
Commercial % of total revenue |
50.9 |
% |
40.8 |
% |
44.6 |
% |
49.0 |
% |
Broadcasting % of total revenue |
27.4 |
% |
29.8 |
% |
35.3 |
% |
30.0 |
% |
Matchday % of total revenue |
21.7 |
% |
29.4 |
% |
20.1 |
% |
21.0 |
% |
|
|
|
|
|||||
|
2023/24
|
2022/23
|
2023/24
|
2022/23
|
||||
Home Matches Played |
|
|
|
|
||||
PL |
4 |
|
6 |
|
14 |
|
13 |
|
UEFA competitions |
- |
|
2 |
|
3 |
|
5 |
|
Domestic Cups |
1 |
|
6 |
|
3 |
|
8 |
|
Away Matches Played |
|
|
|
|
||||
PL |
5 |
|
4 |
|
15 |
|
13 |
|
UEFA competitions |
- |
|
2 |
|
3 |
|
5 |
|
Domestic Cups |
3 |
|
2 |
|
3 |
|
2 |
|
Other |
|
|
|
|
||||
Employees at period end |
1,144 |
|
1,243 |
|
1,144 |
|
1,243 |
|
Employee benefit expenses % of revenue |
66.7 |
% |
50.0 |
% |
53.2 |
% |
50.8 |
% |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS |
||||||||
(unaudited; in £ thousands, except per share and shares outstanding data) |
||||||||
|
|
|
||||||
|
Three months ended
|
Nine months ended
|
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
Revenue from contracts with customers |
136,693 |
|
170,048 |
|
519,545 |
|
481,070 |
|
Operating expenses |
(203,732 |
) |
(176,675 |
) |
(587,155 |
) |
(507,959 |
) |
Profit on disposal of intangible assets |
790 |
|
1,949 |
|
30,670 |
|
15,969 |
|
Operating loss |
(66,249 |
) |
(4,678 |
) |
(36,940 |
) |
(10,920 |
) |
Finance costs |
(18,377 |
) |
(14,657 |
) |
(53,720 |
) |
(30,777 |
) |
Finance income |
1,057 |
|
13,656 |
|
1,506 |
|
10,903 |
|
Net finance costs |
(17,320 |
) |
(1,001 |
) |
(52,214 |
) |
(19,874 |
) |
Loss before income tax |
(83,569 |
) |
(5,679 |
) |
(89,154 |
) |
(30,794 |
) |
Income tax credit |
12,069 |
|
132 |
|
12,271 |
|
5,037 |
|
Loss for the period |
(71,500 |
) |
(5,547 |
) |
(76,883 |
) |
(25,757 |
) |
|
|
|
|
|
||||
Basic earnings per share: |
|
|
|
|
||||
Basic loss per share (pence) |
(43.12 |
) |
(3.40 |
) |
(46.87 |
) |
(15.80 |
) |
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share (thousands) |
165,823 |
|
163,062 |
|
164,040 |
|
163,062 |
|
Diluted earnings per share: |
|
|
|
|
||||
Diluted loss per share (pence) (1) |
(43.12 |
) |
(3.40 |
) |
(46.87 |
) |
(15.80 |
) |
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted loss per share (thousands) (1) |
165,823 |
|
163,062 |
|
164,040 |
|
163,062 |
|
(1) For the three and nine months ended 31 March 2024 and the three months and nine months ended 31 March 2023, 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 March
|
30 June
|
31 March
|
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
254,908 |
253,282 |
242,730 |
Right-of-use assets |
7,913 |
8,760 |
2,952 |
Investment properties |
19,783 |
19,993 |
20,063 |
Intangible assets |
877,283 |
812,382 |
843,307 |
Deferred tax assets |
11,010 |
- |
- |
Trade receivables |
24,694 |
22,303 |
21,485 |
Derivative financial instruments |
667 |
7,492 |
15,102 |
|
1,196,258 |
1,124,212 |
1,145,639 |
Current assets |
|
|
|
Inventories |
3,757 |
3,165 |
2,645 |
Prepayments |
17,235 |
16,487 |
16,595 |
Contract assets – accrued revenue |
53,887 |
43,332 |
62,873 |
Trade receivables |
37,673 |
31,167 |
60,321 |
Other receivables |
1,835 |
9,928 |
2,031 |
Income tax receivable |
- |
5,317 |
4,410 |
Derivative financial instruments |
1,539 |
8,317 |
5,894 |
Cash and cash equivalents |
66,994 |
76,019 |
73,733 |
|
182,920 |
193,732 |
228,502 |
Total assets |
1,379,178 |
1,317,944 |
1,374,141 |
CONSOLIDATED BALANCE SHEET (continued) |
||||||
(unaudited; in £ thousands) |
||||||
|
As of |
|||||
|
31 March
|
30 June
|
31 March
|
|||
EQUITY AND LIABILITIES |
|
|
|
|||
Equity |
|
|
|
|||
Share capital |
55 |
|
53 |
|
53 |
|
Share premium |
227,361 |
|
68,822 |
|
68,822 |
|
Treasury shares |
(21,305 |
) |
(21,305 |
) |
(21,305 |
) |
Merger reserve |
249,030 |
|
249,030 |
|
249,030 |
|
Hedging reserve |
(308 |
) |
4,002 |
|
1,993 |
|
Accumulated losses |
(271,628 |
) |
(196,652 |
) |
(194,085 |
) |
|
183,205 |
|
103,950 |
|
104,508 |
|
Non-current liabilities |
|
|
|
|||
Deferred tax liabilities |
- |
|
3,304 |
|
1,939 |
|
Contract liabilities - deferred revenue |
6,834 |
|
6,659 |
|
3,842 |
|
Trade and other payables |
188,581 |
|
161,141 |
|
155,903 |
|
Borrowings |
511,296 |
|
507,335 |
|
521,482 |
|
Lease liabilities |
7,603 |
|
7,844 |
|
2,367 |
|
Derivative financial instruments |
3,648 |
|
748 |
|
1,303 |
|
Provisions |
- |
|
93 |
|
91 |
|
|
717,962 |
|
687,124 |
|
686,927 |
|
Current liabilities |
|
|
|
|||
Contract liabilities - deferred revenue |
102,643 |
|
169,624 |
|
130,081 |
|
Trade and other payables |
218,042 |
|
236,472 |
|
235,508 |
|
Income tax liabilities |
851 |
|
- |
|
- |
|
Borrowings |
142,960 |
|
105,961 |
|
203,665 |
|
Lease liabilities |
730 |
|
1,036 |
|
792 |
|
Derivative financial instruments |
1,830 |
|
931 |
|
48 |
|
Provisions |
10,955 |
|
12,846 |
|
12,612 |
|
|
478,011 |
|
526,870 |
|
582,706 |
|
Total equity and liabilities |
1,379,178 |
|
1,317,944 |
|
1,374,141 |
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
||||||||
(unaudited; in £ thousands) |
||||||||
|
Three months ended
|
Nine months ended
|
||||||
|
2024
|
2023
|
2024
|
2023
|
||||
Cash flows from operating activities |
|
|
|
|
||||
Cash (used in)/generated from operations (see supplemental Note 4) |
(2,584 |
) |
65,208 |
|
(14,725 |
) |
12,194 |
|
Interest paid |
(13,082 |
) |
(11,054 |
) |
(31,838 |
) |
(25,277 |
) |
Interest received |
281 |
|
130 |
|
853 |
|
207 |
|
Tax refunded/(paid) |
268 |
|
(220 |
) |
5,524 |
|
(612 |
) |
Net cash (outflow)/inflow from operating activities |
(15,117 |
) |
54,064 |
|
(40,186 |
) |
(13,488 |
) |
Cash flows from investing activities |
|
|
|
|
||||
Payments for property, plant and equipment |
(3,109 |
) |
(2,717 |
) |
(14,949 |
) |
(9,816 |
) |
Payments for intangible assets |
(18,453 |
) |
(14,824 |
) |
(186,395 |
) |
(144,716 |
) |
Proceeds from sale of intangible assets |
2,684 |
|
6,098 |
|
36,266 |
|
19,831 |
|
Net cash outflow from investing activities |
(18,878 |
) |
(11,443 |
) |
(165,078 |
) |
(134,701 |
) |
Cash flows from financing activities |
|
|
|
|
||||
Proceeds from issue of shares |
158,542 |
|
- |
|
158,542 |
|
- |
|
Proceeds from borrowings |
- |
|
- |
|
160,000 |
|
100,000 |
|
Repayment of borrowings |
(120,000 |
) |
- |
|
(120,000 |
) |
- |
|
Principal elements of lease payments |
(180 |
) |
(153 |
) |
(680 |
) |
(1,602 |
) |
Net cash inflow/(outflow) from financing activities |
38,362 |
|
(153 |
) |
197,862 |
|
98,398 |
|
Effects of exchange rate movements on cash and cash equivalents |
(182 |
) |
220 |
|
(1,623 |
) |
2,301 |
|
Net increase/(decrease) in cash and cash equivalents |
4,185 |
|
42,688 |
|
(9,025 |
) |
(47,490 |
) |
Cash and cash equivalents at beginning of period |
62,809 |
|
31,045 |
|
76,019 |
|
121,223 |
|
Cash and cash equivalents at end of period |
66,994 |
|
73,733 |
|
66,994 |
|
73,733 |
|
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 loss for the period to adjusted EBITDA
|
Three months ended
|
Nine months ended
|
||||||
|
2024
|
2023
|
2024
|
2023
|
||||
Loss for the period |
(71,500 |
) |
(5,547 |
) |
(76,883 |
) |
(25,757 |
) |
Adjustments: |
|
|
|
|
||||
Income tax credit |
(12,069 |
) |
(132 |
) |
(12,271 |
) |
(5,037 |
) |
Net finance costs |
17,320 |
|
1,001 |
|
52,214 |
|
19,874 |
|
Profit on disposal of intangible assets |
(790 |
) |
(1,949 |
) |
(30,670 |
) |
(15,969 |
) |
Exceptional items |
30,340 |
|
- |
|
39,935 |
|
- |
|
Amortization |
46,262 |
|
42,922 |
|
143,602 |
|
128,032 |
|
Depreciation |
4,144 |
|
3,467 |
|
12,399 |
|
10,554 |
|
Adjusted EBITDA |
13,707 |
|
39,762 |
|
128,326 |
|
111,697 |
|
3 Reconciliation of loss for the period to adjusted loss for the period and adjusted basic and diluted loss per share
|
Three months ended
|
Nine months ended
|
||||||
|
2024
|
2023
|
2024
|
2023
|
||||
Loss for the period |
(71,500 |
) |
(5,547 |
) |
(76,883 |
) |
(25,757 |
) |
Exceptional items |
30,340 |
|
- |
|
39,935 |
|
- |
|
Foreign exchange losses/(gains) on unhedged US dollar denominated borrowings |
2,641 |
|
(12,997 |
) |
3,062 |
|
(10,294 |
) |
Fair value movement on embedded foreign exchange derivatives |
(777 |
) |
3,390 |
|
8,332 |
|
498 |
|
Income tax credit |
(12,069 |
) |
(132 |
) |
(12,271 |
) |
(5,037 |
) |
Adjusted loss before income tax |
(51,365 |
) |
(15,286 |
) |
(37,825 |
) |
(40,590 |
) |
Adjusted income tax credit (using a normalized tax rate of |
10,787 |
|
3,210 |
|
7,943 |
|
8,524 |
|
Adjusted loss for the period (i.e. adjusted net loss) |
(40,578 |
) |
(12,076 |
) |
(29,882 |
) |
(32,066 |
) |
|
|
|
|
|
||||
Adjusted basic loss per share: |
|
|
|
|
||||
Adjusted loss per share (pence) |
(24.47 |
) |
(7.41 |
) |
(18.22 |
) |
(19.66 |
) |
Weighted average number of ordinary shares used as the denominator in calculating adjusted basic loss per share (thousands) |
165,823 |
|
163,062 |
|
164,040 |
|
163,062 |
|
Adjusted diluted loss per share: |
|
|
|
|
||||
Adjusted diluted loss per share (pence) (1) |
(24.47 |
) |
(7.41 |
) |
(18.22 |
) |
(19.66 |
) |
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating adjusted diluted loss per share (thousands) (1) |
165,823 |
|
163,062 |
|
164,040 |
|
163,062 |
|
(1) For the three and nine months ended 31 March 2024 and the three and nine months ended 31 March 2023, potential ordinary shares are anti-dilutive, as their inclusion in the adjusted diluted loss per share calculation would reduce the loss per share, and hence have been excluded. |
||||||||
4 Cash generated from operations
|
Three months ended
|
Nine months ended
|
||||||
|
2024
|
2023
|
2024
|
2023
|
||||
Loss for the period |
(71,500 |
) |
(5,547 |
) |
(76,883 |
) |
(25,757 |
) |
Income tax credit |
(12,069 |
) |
(132 |
) |
(12,271 |
) |
(5,037 |
) |
Loss before income tax |
(83,569 |
) |
(5,679 |
) |
(89,154 |
) |
(30,794 |
) |
Adjustments for: |
|
|
|
|
||||
Depreciation |
4,144 |
|
3,467 |
|
12,399 |
|
10,554 |
|
Amortization |
46,262 |
|
42,922 |
|
143,602 |
|
128,032 |
|
Profit on disposal of intangible assets |
(790 |
) |
(1,949 |
) |
(30,670 |
) |
(15,969 |
) |
Net finance costs |
17,320 |
|
1,001 |
|
52,214 |
|
19,874 |
|
Non-cash employee benefit expense – equity-settled share-based payments |
431 |
|
559 |
|
1,907 |
|
1,714 |
|
Foreign exchange losses on operating activities |
411 |
|
980 |
|
888 |
|
4,947 |
|
Reclassified from hedging reserve |
2 |
|
284 |
|
- |
|
(246 |
) |
Changes in working capital: |
|
|
|
|
||||
Inventories |
267 |
|
627 |
|
(592 |
) |
(445 |
) |
Prepayments |
9,522 |
|
9,304 |
|
(1,311 |
) |
(1,624 |
) |
Contract assets – accrued revenue |
7,932 |
|
(9,368 |
) |
(10,555 |
) |
(26,634 |
) |
Trade receivables |
41,849 |
|
51,766 |
|
(2,506 |
) |
3,679 |
|
Other receivables |
230 |
|
395 |
|
8,093 |
|
(462 |
) |
Contract liabilities – deferred revenue |
(48,225 |
) |
(33,905 |
) |
(66,806 |
) |
(48,621 |
) |
Trade and other payables |
1,980 |
|
5,104 |
|
(29,859 |
) |
(31,870 |
) |
Provisions |
(350 |
) |
(300 |
) |
(2,375 |
) |
59 |
|
Cash (used in)/generated from operations |
(2,584 |
) |
65,208 |
|
(14,725 |
) |
12,194 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240708325561/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 Plc
FAQ
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