Manchester United Plc (NYSE:MANU)'s first-quarter results showed a sharp swing to profitability, driven by aggressive cost discipline, even as revenue faced headwinds from the absence of European competition.
Revenue for the quarter fell 1.9% year-on-year to £140.3 million, slightly above Jefferies’ £135 million forecast. Commercial revenue held broadly steady at £84.2 million, while matchday income was essentially flat at £26.2 million.
Retail and merchandising sales jumped 11% following a full quarter of the club’s new e-commerce partnership, offsetting softer sponsorship income.
Adjusted EBITDA rose 13.5% to £26.9 million, reflecting prior-year headcount reductions and ongoing operating expense control. Employee costs declined 8.2% to £73.6 million, contributing to a leaner organization and improved margins despite flat revenues.
“Total operating expenses fell roughly 7% year-on-year, underscoring the club’s focus on cost discipline,” Jefferies analysts said, noting that ongoing sponsorship renewals and controlled spending underpin confidence in long-term margin expansion.
On the pitch, Manchester United’s men’s team is currently sixth in the Premier League, while the women’s side sits third in the Women’s Super League and has qualified for the UEFA Women’s Champions League group stage for the first time. Jefferies highlighted that strong sporting performance could support future revenue growth through prize money, broadcasting, and merchandise.
Sponsorship revenue, however, fell 9.3% to £47 million, reflecting changes in the partner mix and the absence of a training kit sponsor. Jefferies noted that replacing and expanding sponsorship agreements will be key to boosting high-margin commercial income.
Despite these challenges, Jefferies said long-term value creation for shareholders appears strong, driven by cost efficiency, strategic leadership, and growth opportunities across commercial and sporting segments.
Manchester United’s NYSE-listed shares were up around 1.7% on Thursday afternoon.