Manchester United Plc (NYSE:MANU) shares slumped overnight after telling investors that revenue for the 2026 financial year will be below previous expectations.
The Manchester football club last night reported on the New York Stock Exchange, a record revenue tally of £666.5 million for the year ended 30 June, which was only 0.7% higher than last year, as fourth quarter revenue came in at £164.1 million.
At the same time, earnings (EBITDA) landed near the bottom of the expected range, at £182.8 million.
However, pitching 2026 revenue guidance at £640 million to £660 million, the forecast falls below the consensus expected by Wall Street analysts and underwhelmed investors.
In New York, Manchester United shares were down around 6% priced at $15.38.
"We view that as an overreaction, given that in-line FY25 results and guidance demonstrate strong commercial and operational momentum. But with guidance below consensus, some weakness is to be expected," said Ivar Billfalk-Kelly, analyst at UBS.
The UBS analyst, meanwhile, in a note, repeated a 'buy' recommendation and said the club is expected to remain in compliance with the Premier League’s Profit and Sustainability Rules and UEFA’s Financial Fair Play Regulations.
In the results statement, Manchester United reported a 10% improvement in commercial revenue, to £333.3 million and noted that commercial income totalled £88.2 million in the fourth quarter. It also highlighted new sponsorship signings, including deals with Coca-Cola, Sokin, and Parimatch, plus the renewal of relationships with STATSports, Canon, and Sportsbreaks.
Matchday revenue was up 16.9% in the year to £160.3 million, but broadcasting revenue was down 22% to £172.9 million.
However, a lighter match schedule due to United's absence from European competition entirely in the 2025/26 season will see the matchday tally reduce significantly in the current financial year.
Chief executive Omar Berrada, meanwhile, told investors that the club's cost-reduction programme has created potential for an improved financial performance. Berrada described the club's commercial business as strong.
"We are working hard to improve the club in all areas," Berrada said.
"On the field, we are pleased with the additions we have made to our men’s and women’s first team squads over the summer, as we build for the long term.
"Off the field, we are emerging from a period of structural and leadership change with a refreshed, streamlined organisation equipped to deliver on our sporting and commercial objectives."
UBS accompanies its 'buy' rating with a 12-month price target of $27.50, suggesting nearly 80% upside to the current share price of $15.38.