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Manchester United(MANU) - 2022 Q3 - Quarterly Report
2022-02-28 16:00
[Overview and Highlights](index=1&type=section&id=Overview%20and%20Highlights) This section details key management changes, new commercial partnerships, and significant expected growth in international Premier League rights revenue [Key Highlights](index=1&type=section&id=Key%20Highlights) The company announced a new CEO, Richard Arnold, and is actively searching for a permanent manager, while securing a new training kit partnership and anticipating a 30% growth in international Premier League rights revenue - Richard Arnold was appointed as the new Chief Executive Officer, effective February 1, 2022, with Ralf Rangnick serving as Interim Manager for the remainder of the season[1](index=1&type=chunk) - A new principal training kit partnership was announced with blockchain partner, Tezos[1](index=1&type=chunk) - The new Premier League rights cycle, commencing in 2022/23, is expected to grow international revenues by **30%**, with total international rights anticipated to exceed UK domestic rights for the first time[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Richard Arnold outlined a clear vision for winning and strengthening fan engagement, while CFO Cliff Baty highlighted robust Q2 revenue growth despite COVID-related match postponements - CEO Richard Arnold emphasized a clear vision and strategy to win, fostering a culture of excellence and strengthening the role of fans[2](index=2&type=chunk) - CFO Cliff Baty noted robust revenue growth of **7.3%** for the second fiscal quarter, despite the postponement of two matches due to COVID-19[2](index=2&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) This section provides a comprehensive overview of the company's Q2 fiscal 2022 financial results, including revenue, EBITDA, net loss, and net debt analysis [Key Financials Summary](index=2&type=section&id=Key%20Financials%20Summary) For the second quarter of fiscal 2022, total revenue increased by 7.3% YoY to £185.4 million, primarily driven by a massive recovery in Matchday revenue, while Adjusted EBITDA decreased by 17.6% to £57.9 million, and net debt rose by 8.6% to £494.8 million Q2 & Six Months Fiscal 2022 Financials (£ million) | Metric | Three months ended 31 Dec 2021 | Three months ended 31 Dec 2020 | Change | Six months ended 31 Dec 2021 | Six months ended 31 Dec 2020 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total revenue | 185.4 | 172.8 | 7.3% | 311.9 | 281.8 | 10.7% | | Adjusted EBITDA | 57.9 | 70.3 | (17.6)% | 69.1 | 91.1 | (24.1)% | | (Loss)/profit for the period | (1.4) | 63.9 | - | (16.9) | 33.6 | - | | Basic (loss)/earnings per share (pence) | (0.86) | 39.17 | - | (10.39) | 20.60 | - | | Net debt | 494.8 | 455.5 | 8.6% | 494.8 | 455.5 | 8.6% | [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis) Total revenue for Q2 was £185.4 million, with Matchday revenue surging by 2,206.7% due to the return of fans, Commercial revenue growing 2.9% from retail, and Broadcasting revenue falling 20.5% due to fewer games played Revenue Breakdown for Q2 FY2022 vs Q2 FY2021 (£ million) | Revenue Stream | Q2 2022 | Q2 2021 | Change (%) | | :--- | :--- | :--- | :--- | | Commercial | 64.4 | 62.6 | 2.9% | | Broadcasting | 86.4 | 108.7 | (20.5)% | | Matchday | 34.6 | 1.5 | 2,206.7% | - Commercial revenue growth was driven by a **17.7% increase** in Retail, Merchandising, Apparel & Product Licensing, while Sponsorship revenue decreased by **6.9%** due to the expiry of a training kit deal[10](index=10&type=chunk) - The surge in the Omicron variant in December 2021 resulted in the postponement of two Premier League matches (one home, one away)[5](index=5&type=chunk) [Operating Expenses and Other Financial Items](index=4&type=section&id=Operating%20Expenses%20and%20Other%20Financial%20Items) Total operating expenses for the quarter increased by 29.7% YoY to £179.7 million, driven by higher employee benefit expenses and other operating costs related to full-capacity matches, alongside £10.0 million in exceptional compensation costs - Total operating expenses rose **29.7% YoY** to **£179.7 million**[11](index=11&type=chunk) - Employee benefit expenses increased **19.6%** to **£97.7 million** due to investment in the first team playing squad[12](index=12&type=chunk) - Exceptional items of **£10.0 million** were recorded, which includes compensation to the former men's first team manager and certain coaching staff for loss of office[15](index=15&type=chunk) - Net finance costs were **£7.5 million**, compared to net finance income of **£19.7 million** in the prior year quarter, due to unfavorable foreign exchange movements[17](index=17&type=chunk) [Cash Flow and Net Debt](index=5&type=section&id=Cash%20Flow%20and%20Net%20Debt) In Q2, the company experienced a net cash outflow from operating activities of £31.5 million, a significant shift from the prior year, leading to a decrease in cash and cash equivalents and an increase in net debt to £494.8 million - Net cash outflow from operating activities was **£31.5 million** for the quarter, compared to a **£1.0 million** outflow in the prior year quarter[19](index=19&type=chunk) - Net Debt increased to **£494.8 million** as of Dec 31, 2021, up from **£455.5 million** a year earlier[21](index=21&type=chunk) - The company drew down **£40.0 million** on its revolving credit facilities during the quarter[20](index=20&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated profit or loss, balance sheet, and cash flow statements for the period, highlighting key financial positions and movements [Consolidated Statement of Profit or Loss](index=9&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the three months ended December 31, 2021, the company reported an operating profit of £5.4 million, significantly down from £48.5 million in the prior year, resulting in a net loss of £1.4 million compared to a £63.8 million profit previously Consolidated Statement of Profit or Loss (Three Months Ended Dec 31, 2021; in £ thousands) | Item | Three months ended 31 Dec 2021 | Three months ended 31 Dec 2020 | | :--- | :--- | :--- | | Revenue | 185,440 | 172,850 | | Operating profit/(loss) | 5,405 | 48,469 | | Net finance (costs)/income | (7,472) | 19,702 | | (Loss)/profit before income tax | (2,067) | 68,171 | | (Loss)/profit for the period | (1,402) | 63,828 | [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of December 31, 2021, total assets were £1.366 billion, slightly down from the prior year, while total equity decreased significantly to £246.7 million, and total liabilities increased to £1.119 billion Consolidated Balance Sheet Summary (in £ thousands) | Item | As of 31 Dec 2021 | As of 31 Dec 2020 | | :--- | :--- | :--- | | Total Assets | 1,365,858 | 1,381,600 | | Total Equity | 246,745 | 405,579 | | Total Liabilities | 1,119,113 | 976,021 | | Non-current borrowings | 477,052 | 471,026 | | Current borrowings | 105,185 | 65,114 | [Consolidated Statement of Cash Flows](index=12&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the three months ended December 31, 2021, the company reported a net cash outflow from operating activities of £31.5 million, an outflow from investing activities of £18.7 million, and an inflow from financing activities of £39.6 million, resulting in a net decrease in cash and cash equivalents of £10.6 million Consolidated Statement of Cash Flows (Three Months Ended Dec 31, 2021; in £ thousands) | Item | Three months ended 31 Dec 2021 | Three months ended 31 Dec 2020 | | :--- | :--- | :--- | | Net cash (outflow)/inflow from operating activities | (31,493) | (1,039) | | Net cash outflow from investing activities | (18,657) | (37,255) | | Net cash inflow from financing activities | 39,568 | 59,588 | | Net (decrease)/increase in cash and cash equivalents | (10,582) | 21,294 | [Supplemental Information](index=7&type=section&id=Supplemental%20Information) This section explains the company's use of non-IFRS financial measures, such as Adjusted EBITDA and Adjusted profit, and provides their reconciliations to IFRS equivalents [Non-IFRS Measures and Reconciliations](index=7&type=section&id=Non-IFRS%20Measures%20and%20Reconciliations) The company utilizes non-IFRS measures like Adjusted EBITDA and Adjusted profit to offer a clearer perspective on underlying performance, with Q2 Adjusted EBITDA at £57.9 million and Adjusted profit at £7.4 million - The company uses non-IFRS measures such as Adjusted EBITDA, Adjusted profit/(loss), and Net debt to provide insight into its operating performance and financial condition[25](index=25&type=chunk)[27](index=27&type=chunk)[30](index=30&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Q2 FY2022; in £ thousands) | Description | Amount | | :--- | :--- | | (Loss)/profit for the period | (1,402) | | Adjustments (Tax, Finance, Amortization, etc.) | 59,349 | | **Adjusted EBITDA** | **57,947** | Reconciliation of Net Loss to Adjusted Profit (Q2 FY2022; in £ thousands) | Description | Amount | | :--- | :--- | | (Loss)/profit for the period | (1,402) | | Adjustments (Exceptional items, FX, etc.) | 10,739 | | Adjusted income tax expense | (1,966) | | **Adjusted profit for the period** | **7,396** |
Manchester United(MANU) - 2021 Q4 - Earnings Call Transcript
2021-09-17 15:50
Manchester United plc (NYSE:MANU) Q4 2021 Results Conference Call September 17, 2021 8:00 AM ET Company Participants Corinna Freedman - Head, IR Ed Woodward - Executive Vice Chairman Richard Arnold - Group Managing Director Cliff Baty - CFO Conference Call Participants Xian Siew - Exane BNP Paribas Randy Konik - Jefferies Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Manchester United Fourth Quarter Earnings Conference Call. At this time, all participants are in list ...
Manchester United(MANU) - 2021 Q2 - Earnings Call Transcript
2021-03-05 02:17
Manchester United plc (NYSE:MANU) Q2 2021 Earnings Conference Call March 4, 2021 4:30 PM ET Company Participants Corinna Freedman - Head-Investor Relations Ed Woodward - Executive Vice Chairman Richard Arnold - Group Managing Director Cliff Baty - Chief Financial Officer Conference Call Participants Xian Siew - Exane BNP Paribas Randy Konik - Jefferies Operator Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Manchester United Earnings Conference Call. At this time, all pa ...
Manchester United(MANU) - 2021 Q3 - Quarterly Report
2021-03-03 16:00
[Report Highlights](index=1&type=section&id=Report%20Highlights) Manchester United reported strong Q2 FY2021 financial results, driven by operational and strategic developments including squad strengthening, digital engagement growth, and anticipated fan return Key Financial Indicators | Indicator | Value | | :--- | :--- | | **2Q Fiscal 2021 Revenues** | £172.8 million | | **2Q Fiscal 2021 Adjusted EBITDA** | £70.3 million | | **2Q Fiscal 2021 Operating Profit** | £48.5 million | - The club anticipates a staggered return of fans from May as UK lockdown measures ease[1](index=1&type=chunk) - Squads were strengthened with the addition of **Amad Diallo** (men's) and **Maria Thorisdottir** (women's)[1](index=1&type=chunk) - **Mason Greenwood** signed a new contract until **2025**[1](index=1&type=chunk) - Digital engagement growth led to **record e-commerce sales** for all three 2020/21 Men's kits[1](index=1&type=chunk) - The club's **TikTok launch** in November achieved the **fastest growing following** of any football club on the platform[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Executive Vice Chairman Ed Woodward expressed confidence in a return to normality, highlighting the club's resilience and on-pitch progress across all teams despite pandemic challenges - Management is confident in a path towards normality, including the return of fans, due to the rapid rollout of vaccines in the UK[2](index=2&type=chunk) - The club has demonstrated 'tremendous resilience' through the pandemic, supported by its strong commercial business[2](index=2&type=chunk) - Management is optimistic about the future, citing the progress made by the men's team under **Ole Gunnar Solskjær**, as well as the thriving Academy and Women's team[2](index=2&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Q2 FY2021 total revenue increased by 2.6% to £172.8 million, driven by broadcasting revenue offsetting declines in matchday and commercial revenue, leading to a 32.9% rise in operating profit [Key Financials Summary](index=2&type=section&id=Key%20Financials%20Summary) A summary of Manchester United's key financial metrics for Q2 and H1 FY2021 shows changes in total revenue, adjusted EBITDA, operating profit, and earnings per share Key Financials Summary Table | £ million (except per share) | Three months ended 31 Dec 2020 | Three months ended 31 Dec 2019 | Change | Six months ended 31 Dec 2020 | Six months ended 31 Dec 2019 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | 172.8 | 168.4 | 2.6% | 281.8 | 303.8 | (7.2%) | | **Adjusted EBITDA** | 70.3 | 72.1 | (2.5%) | 91.1 | 106.9 | (14.8%) | | **Operating profit** | 48.5 | 36.5 | 32.9% | 21.4 | 47.5 | (54.9%) | | **Profit for the period** | 63.9 | 35.0 | 82.6% | 33.6 | 36.1 | (6.9%) | | **Basic earnings per share (p)** | 39.17 | 21.27 | 84.2% | 20.60 | 21.96 | (6.2%) | [Revenue Analysis](index=4&type=section&id=Revenue%20Analysis) An analysis of revenue streams reveals significant growth in broadcasting revenue due to UEFA Champions League participation, offsetting declines in commercial and matchday revenues Revenue Stream Performance | Revenue Stream | Q2 FY2021 (£M) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | | **Broadcasting** | 108.7 | +68.0% | Participation in UEFA Champions League | | **Commercial** | 62.6 | -11.3% | One-off sponsorship credit in prior year and shirt sponsorship extension impact | | **Matchday** | 1.5 | -95.5% | All matches played behind closed doors due to COVID-19 | [Operating Expenses and Other Financial Items](index=4&type=section&id=Operating%20Expenses%20and%20Other%20Financial%20Items) Total operating expenses increased due to higher employee benefits, while other operating expenses decreased, and net finance income improved due to foreign exchange gains - Total operating expenses for the quarter increased by **5.6%** YoY to **£138.6 million**[12](index=12&type=chunk) - Employee benefit expenses rose **15.2%** to **£81.7 million**, due to contracted player salary increases from UEFA Champions League participation and investment in the first team squad[12](index=12&type=chunk) - Other operating expenses decreased by **18.1%** to **£20.8 million**, primarily due to reduced business activity and matches being played behind closed doors[13](index=13&type=chunk) - Net finance income was **£19.7 million**, up from **£15.3 million** in the prior year quarter, driven by foreign exchange gains on unhedged USD borrowings[16](index=16&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of December 31, 2020, the company maintained £80.6 million in cash and access to £140.0 million in credit facilities, despite a £64.2 million increase in net debt primarily due to lost matchday receipts [Liquidity and Net Debt](index=2&type=section&id=Liquidity%20and%20Net%20Debt) The company's liquidity position includes £80.6 million in cash and £140.0 million in credit facilities, while net debt increased by £64.2 million due to operational impacts - As of **31 December 2020**, the company had **£80.6 million** in cash and cash equivalents and access to an additional **£140.0 million** under its revolving credit facilities[8](index=8&type=chunk) Net Debt Overview | Metric | As of 31 Dec 2020 | As of 31 Dec 2019 | Change | | :--- | :--- | :--- | :--- | | **Net Debt** | £455.5 million | £391.3 million | +£64.2 million (+16.4%) | - The increase in net debt was primarily driven by the loss of 2020/21 season Matchday cash receipts and deferred sponsorship payments, partially offset by increased broadcasting receipts, with a **£60.0 million** drawdown on the revolving credit facility also contributing to borrowings[4](index=4&type=chunk)[20](index=20&type=chunk) [Cash Flow Statement Analysis](index=5&type=section&id=Cash%20Flow%20Statement%20Analysis) Cash flow analysis for Q2 FY2021 shows a net cash outflow from operations and investing activities, offset by a significant inflow from financing activities, leading to an overall increase in cash Cash Flow Summary | Cash Flow Activity (Q2 FY2021) | Value (£M) | Key Driver | | :--- | :--- | :--- | | **Net cash outflow from operating activities** | (1.0) | Lower working capital movements related to Matchday revenue | | **Net cash outflow from investing activities** | (37.3) | Net capital expenditure on intangible assets (player registrations) | | **Net cash inflow from financing activities** | 59.6 | £60.0 million drawdown on revolving credit facilities | - Overall cash and cash equivalents increased by **£21.7 million** in the quarter, a significant improvement from the **£39.4 million** decrease in the prior year quarter[18](index=18&type=chunk) [COVID-19 Impact](index=3&type=section&id=COVID-19%20Impact) The COVID-19 pandemic significantly impacted operations, leading to closed facilities and lost matchday revenue, though partially offset by increased broadcasting income, with no financial guidance provided due to uncertainty - Operations at Old Trafford, including the Stadium, Museum, and Megastore, remain closed to visitors[5](index=5&type=chunk) - A total of **ten home matches** were played behind closed doors in Q2, compared to nine with fans in the prior year quarter, causing a significant Matchday revenue shortfall[6](index=6&type=chunk) - The Matchday revenue shortfall was more than offset by Broadcasting revenues from participation in the **UEFA Champions League**[6](index=6&type=chunk) - Due to ongoing uncertainty from the pandemic, the Company is not providing revenue or adjusted EBITDA guidance for fiscal 2021[6](index=6&type=chunk) [Financial Statements and Supplemental Notes](index=9&type=section&id=Financial%20Statements%20and%20Supplemental%20Notes) This section presents the unaudited consolidated financial statements, including the Statement of Profit or Loss, Balance Sheet, and Cash Flows, along with reconciliations of non-IFRS measures [Consolidated Statement of Profit or Loss](index=9&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The consolidated statement details the company's revenue, operating profit, net finance income, and profit for the period for the three and six months ended December 31, 2020 Consolidated Statement of Profit or Loss | £ thousands | Three months ended 31 Dec 2020 | Six months ended 31 Dec 2020 | | :--- | :--- | :--- | | **Revenue** | 172,850 | 281,822 | | **Operating profit** | 48,469 | 21,373 | | **Net finance income** | 19,702 | 19,723 | | **Profit before income tax** | 68,171 | 41,096 | | **Profit for the period** | 63,828 | 33,558 | [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) The consolidated balance sheet provides a snapshot of the company's assets, equity, and liabilities as of December 31, 2020, and June 30, 2020 Consolidated Balance Sheet | £ thousands | As of 31 Dec 2020 | As of 30 June 2020 | | :--- | :--- | :--- | | **Total assets** | 1,381,600 | 1,383,466 | | *Non-current assets* | 1,149,933 | 1,158,660 | | *Current assets* | 231,667 | 224,806 | | **Total equity and liabilities** | 1,381,600 | 1,383,466 | | *Total equity* | 405,579 | 351,232 | | *Total liabilities* | 976,021 | 1,032,234 | [Consolidated Statement of Cash Flows](index=12&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The consolidated statement of cash flows outlines the net cash movements from operating, investing, and financing activities for the three and six months ended December 31, 2020 Consolidated Statement of Cash Flows | £ thousands | Three months ended 31 Dec 2020 | Six months ended 31 Dec 2020 | | :--- | :--- | :--- | | **Net cash (outflow)/inflow from operating activities** | (1,039) | 61,271 | | **Net cash outflow from investing activities** | (37,255) | (90,690) | | **Net cash inflow from financing activities** | 59,588 | 59,180 | | **Net increase in cash and cash equivalents** | 21,294 | 29,761 | | **Cash and cash equivalents at end of period** | 80,620 | 80,620 | [Reconciliation of Non-IFRS Measures](index=13&type=section&id=Reconciliation%20of%20Non-IFRS%20Measures) This section reconciles IFRS profit for the period to non-IFRS measures such as Adjusted EBITDA and Adjusted Profit, providing clarity on underlying financial performance Adjusted EBITDA Reconciliation | £ thousands | Three months ended 31 Dec 2020 | Six months ended 31 Dec 2020 | | :--- | :--- | :--- | | **Profit for the period** | 63,828 | 33,558 | | Adjustments: | | | | Income tax expense | 4,343 | 7,538 | | Net finance income | (19,702) | (19,723) | | (Profit)/loss on disposal of intangible assets | (14,278) | (1,683) | | Amortization | 32,459 | 64,002 | | Depreciation | 3,663 | 7,449 | | **Adjusted EBITDA** | **70,313** | **91,141** | Adjusted Profit Reconciliation | £ thousands | Three months ended 31 Dec 2020 | Six months ended 31 Dec 2020 | | :--- | :--- | :--- | | **Profit for the period** | 63,828 | 33,558 | | Adjustments (net) | (19,094) | (20,014) | | **Adjusted profit for the period** | **35,341** | **10,700** |
Manchester United(MANU) - 2020 Q4 - Annual Report
2020-10-23 20:19
TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ ☒ ☐ ☐ (Mark One) REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended 30 June 2020 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHA ...
Manchester United(MANU) - 2020 Q4 - Earnings Call Transcript
2020-10-21 15:41
Financial Data and Key Metrics Changes - Total revenues for the period were £509 million, down £118.1 million compared to the previous year due to the impact of COVID-19, particularly on broadcasting and matchday revenues [25] - Adjusted EBITDA was £132.1 million, down £53.7 million from the prior year [25] - The estimated impact of COVID-19 on total FY '20 revenues was £70 million, with £40 million lost from matchday closures and £30 million from broadcasting revenues [26] Business Line Data and Key Metrics Changes - Total commercial revenues were £279 million, with sponsorship revenues of £182.7 million, reflecting a 5.6% increase from the prior year [27] - Merchandising and licensing revenues decreased by £5.8 million to £96.3 million due to the closure of the Megastore [27] - Broadcasting revenues decreased by £101 million to £140.2 million, impacted by lower Europa League revenues and rebates to broadcasters totaling £14 million [27][28] Market Data and Key Metrics Changes - The gross transfer spend across the big five European leagues was down about 40%, with a significant increase in free transfers and loans [9][10] - The club's net investment over the last three transfer windows compares favorably with peers, despite the overall market contraction [10] Company Strategy and Development Direction - The club aims to build a successful team with a blend of homegrown talent and high-quality recruits, emphasizing fast, attacking football [6] - Continued investment in the Academy, with a focus on integrating young talent into the first team [7] - The club is committed to supporting the English football pyramid and engaging in discussions to improve financial sustainability [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing challenges posed by the COVID-19 pandemic but remains optimistic about medium to long-term demand for live football [14] - The club is preparing for the return of fans to stadiums and has implemented hygiene and social distancing protocols [22] - The management emphasizes the importance of digital engagement and e-commerce initiatives during the pandemic [19][20] Other Important Information - The club has made significant contributions to community support during the pandemic, raising over £1 million for local initiatives [17] - The club's commitment to diversity and inclusion is highlighted through ongoing initiatives [18] - The club has established a strategic partnership with Alibaba to enhance engagement with fans in China [22][23] Q&A Session Summary Question: Changes in Commercial and Sponsorship Segment - The club has worked with partners to build commercial strategies leveraging digital engagement techniques, providing effective returns on partnership investments [34][35] Question: Anticipation of Fans Returning - The return of fans is subject to government regulations, with initial expectations for partial stadium fills being revised due to rising infection rates [40][41] Question: Premier League Contract in China - The club plans to secure a longer-term contract with Tencent following the termination of the previous deal, aiming for higher pricing and engagement [48][49]
Manchester United(MANU) - 2020 Q3 - Earnings Call Transcript
2020-05-21 16:19
Financial Data and Key Metrics Changes - Total revenues for Q3 2020 were £123.7 million, down £28.4 million compared to the prior year, primarily due to COVID-19 disruptions affecting broadcast and matchday revenues [21] - Adjusted EBITDA for the quarter was £27.9 million, a decrease of £13.3 million year-over-year [21] - Net finance costs increased to £25.3 million from £3.1 million in the prior year, attributed to foreign exchange movements on U.S. dollar debt [22] Business Line Data and Key Metrics Changes - Commercial revenues experienced growth driven by sponsorship, despite declines in broadcast and matchday revenues [21] - The club estimated a £15 million reduction in broadcasting revenues for the 29 games played to date due to COVID-19 [23] Market Data and Key Metrics Changes - The pandemic led to an estimated £23 million negative impact on revenues for Q3, including missed match revenues and the closure of retail operations [23] - The club anticipates a £20 million reduction in broadcasting revenues for the full season of 38 games [23] Company Strategy and Development Direction - The company emphasized resilience and adaptability, drawing on its history of overcoming past crises [15] - There is a focus on innovation and creativity in operations, particularly in digital content and fan engagement during the pandemic [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant operational impacts due to COVID-19, including match postponements and facility closures [11] - The club remains optimistic about long-term prospects and aims to return to play while maintaining strong fan engagement [14][20] Other Important Information - The club has a cash balance of £90.3 million and access to a £150 million revolving credit facility to support working capital during the crisis [24] - The previous full-year revenue and adjusted EBITDA guidance has been withdrawn due to uncertainty surrounding the pandemic's impact [25] Q&A Session Summary Question: Impact on revenues for the third quarter - The estimated impact on revenues was £23 million, with £15 million attributed to broadcasting rebates and additional losses from missed matches and closures [29][30] Question: Managing commercial partnerships during COVID-19 - The club has received strong support from partners and has maintained high levels of digital engagement, which continues to drive exposure for sponsors [32][33] Question: Operational procedures for player safety during training - The club is following detailed protocols approved by the Premier League, including pre-testing, regular testing, and social distancing measures [37][38] Question: Frequency of testing for players - The club is confident in the availability of test kits and does not foresee testing frequency as a barrier to returning to play [41]