Manchester United Q1 Earnings: Revenue Falls 8.9% As Broadcasting Takes A Hit, Cost Cuts Stay On Track, Reaffirms 2025 Guidance

Manchester United PLC MANU reported a fiscal first-quarter 2025 sales decline of 8.9% year-on-year to 143.1 million British pounds or $186.07 million, missing the analyst consensus estimate of $194.49 million.

Broadcasting revenue plummeted 20.4%, Commercial revenue fell 5.6%, and Matchday revenue declined 3.3%.

The operating loss for the quarter was (6.9) million pounds compared to 1.9 million pounds profit last year.

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Adjusted EBITDA was 23.7 million pounds versus 23.3 million pounds last year.

The adjusted loss per share for the period was (0.21) pence versus (5.27) last year. Adjusted EPS loss of $(0.27) beat the analyst consensus loss estimate of $(0.29).

As of September 30, 2024, the company held 149.6 million pounds in cash and equivalents. The quarter’s net cash inflow from operating activities was 13.32 million pounds.

As of September 30, 2024, the company’s USD non-current borrowings were $650 million, unchanged from last year.

CEO Omar Berrada said the men’s and women’s seasons are well underway. He acknowledged tapping Ruben Amorim as head coach of the men’s team. The cost and headcount reductions remain on track. He flagged further commercial traction and welcomed a new partner, Heineken, through their Tiger brand. He added that the renovation of the Carrington Training Centre is progressing well while the Old Trafford Regeneration Task Force continues its work.

Outlook: Manchester United reiterated fiscal 2025 revenue of 650 million pounds-670 million pounds versus analyst consensus of 666.33 million pounds.

It maintained a fiscal 2025 adjusted EBITDA of 145 million pounds-160 million pounds.

Manchester United stock dropped 15% year-to-date amid reports of a potential full-team sale. In the third quarter of fiscal 2024, the club launched a business transformation plan, appointing new executive leaders, restructuring its organization, and initiating a major cost-cutting program.

Price Action: MANU stock traded lower by 1.98% at $16.87 at last check Tuesday.

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