Manchester United Plc (NYSE:MANU) shares jumped after it said it revenues and profits would be towards the top end of its previous guidance, after selling out season tickets in record time and enjoying record-breaking sales of the Adidas Stone Roses merchandise range (pictured).
The football club reported results for the third quarter of its financial year, ending 31 March, showing a £66.2 million quarterly operating loss as revenue fell 20% to £136.7 million, with broadcasting and matchday revenue down 26% and 41%.
For the first nine-months of the year revenues rose 8% to £519.5 million, with EBITDA up 15% to £128.3 million and net loss near-tripled to £76.9 million,
Debt was unchanged at US$650 million, which in sterling terms fell to £511.3 million from £521.5 million a year earlier due to the strengthening of the pound.
But most of the big news was in the months following the end of the third quarter, including winning the men’s and women’s FA Cup, with the men finishing in eighth position in the English Premier League.
Since the June year-end, the club has also appointed Dan Ashworth as sporting director in early July, with head coach Erik ten Hag’s contract extended to 2026 alongside a wider round of redundancies that are expected to see 250 jobs axed.
Having achieved its best-ever membership of 433,000 sold for the 2023/24 season, for the upcoming 2024/25 season the club hiked season ticket prices 5%, but still saw season ticket and ‘executive club’ memberships in record time, with a churn rate of just below 4%, which it said was its second lowest.
For the full 2024 fiscal year to end-June, Man Utd said it now expects approximate record revenues of £660 million, having previously guided to between £635 million and £665 million. This would be up from £648 million in the 2023 fiscal year.
Underlying profit (EBITDA) for the year is expected to come in at roughly £140 million, down from £154.9 million a year earlier, versus earlier guidance of £125 million to £150 million.