Manchester United(US:MANU)2024-09-13 20:31Financial Performance - Total revenue for the fiscal year ended June 30, 2024, was £661.8 million, representing an increase from £648.4 million in 2023 and £583.2 million in 2022[182]. - Total revenue for the year ended June 30, 2024, was £302.9 million, with commercial revenue being a significant contributor[311]. - Total operating expenses increased by £87.4 million, or 12.8%, to £768.5 million, with employee benefit expenses rising by £33.3 million, or 10.0%[337][338]. - Net cash inflow from operating activities was £85.7 million for the year ended June 30, 2024, a decrease of £10.1 million compared to £95.8 million for the year ended June 30, 2023[363]. - Net cash outflow from investing activities for the year ended June 30, 2024, was £171.2 million, an increase of £31.0 million from £140.2 million for the year ended June 30, 2023[365]. - Net cash inflow from financing activities for the year ended June 30, 2024, was £87.5 million compared to a net cash outflow of £1.9 million for the year ended June 30, 2023[367]. - The company believes it has sufficient working capital for its present requirements for at least the next 12 months[358]. Revenue Breakdown - Sponsorship revenue for the year ended June 30, 2024, was £177.8 million, compared to £189.5 million in 2023 and £147.9 million in 2022, indicating a decrease in 2024[178]. - Retail, merchandising, apparel, and product licensing revenue reached £125.1 million for the year ended June 30, 2024, up from £113.4 million in 2023 and £109.9 million in 2022[179]. - Broadcasting revenue was £221.8 million for the year ended June 30, 2024, an increase from £209.1 million in 2023 and £214.9 million in 2022[181]. - Matchday revenue for the year ended June 30, 2024, was £137.1 million, slightly up from £136.4 million in 2023 and significantly higher than £110.5 million in 2022[182]. - Sponsorship revenue for the year ended June 30, 2024, reached £118.2 million from global, regional, and other sponsors, excluding revenue from the agreement with adidas[240]. Sponsorship and Partnerships - The partnership with adidas has been extended until June 30, 2035, focusing on global technical sponsorship and dual-branded licensing rights[190]. - The minimum guarantee from the extended adidas agreement totals £1.65 billion, with £750 million from the original term and an additional £900 million from the extension[246]. - The club's sponsorship strategy includes targeting potential sponsors with the financial resources to support integrated marketing relationships[231]. - Sponsorship agreements provide various rights, including exposure on the club's digital platforms and merchandise[230]. Digital and E-commerce Initiatives - A new e-commerce platform in partnership with SCAYLE is set to launch later this year, enhancing the direct-to-consumer experience for fans[191]. - The partnership with SCAYLE, announced in September 2024, aims to enhance the club's e-commerce capabilities and deliver a top-tier direct-to-consumer experience[252]. - The club's e-commerce sales saw record-breaking launches, with day one sales of the 2023/24 home kit hitting unprecedented numbers, and the highest sales recorded during Black Friday and the Christmas period[251]. Fan Engagement and Community - The CRM database holds approximately 63.3 million records as of June 30, 2024, providing insights into customer engagement[175]. - Total social connections increased to 261.1 million as of June 30, 2024, representing an 8.4% increase from 240.9 million in 2023[176]. - The club generated over 11 million engagements and 234 million impressions through various equality, diversity, and inclusion campaigns[292]. - Manchester United has a community of 1.1 billion fans and followers, positioning the club for continued growth in the global sports market[199]. Operational Developments - The management team has undergone significant changes in 2024, with new appointments aimed at enhancing football and commercial strategies[188]. - The club continues to invest in facilities and fan experience initiatives, including a stadium-wide Wi-Fi network launched ahead of the 2023/24 season[188]. - The men's first team building at Carrington is set to undergo refurbishment to create a world-class football facility, with work expected in fiscal year 2025[228]. - The club has invested in a new high-performance training base for the women's and academy teams, featuring advanced facilities[228]. Broadcasting and Media Rights - The international broadcasting rights for the Premier League saw a 28% uplift compared to the previous cycle, with international rights equaling domestic rights for the first time[196]. - The total value of the new domestic broadcasting rights deal for 2025/26 to 2028/29 is £6.7 billion, representing a 4% increase in live rights value[197]. - The UEFA club competitions' new media rights agreement for the 2024/25 season is worth €4.4 billion, a 26% increase from the previous agreement[197]. - The Premier League broadcasting revenue is shared among clubs based on league position and live television appearances, with international broadcasting rights fixed at the previous cycle's equal share adjusted for inflation[253]. Youth and Women's Teams - The women's team finished 5th in the 2023/24 season and won the Women's FA Cup, defeating Tottenham Hotspur 4-0 in the final[222]. - The youth academy has included a homegrown player in every matchday squad for the last 85 years, emphasizing the development of talent[225]. - The women's team aims to develop a competitive squad capable of excelling both domestically and in Europe, supported by high-quality recruits[222]. Environmental and Social Responsibility - Manchester United achieved the Carbon Trust Standard, recognizing its commitment to measuring and managing environmental impacts[295]. - The club's ED&I strategy aims to meet specific diversity goals for gender, race, disability, and LGBTQ+ representation, aligning with UEFA sustainability goals[290].