Manchester United(MANU) - 2026 Q2 - Quarterly Report

Financial Performance - Generated operating profit of £32.6 million in the first six months of fiscal 2026, compared to an operating loss of £3.9 million in the same period of fiscal 2025, reflecting the positive impact of cost reduction programs [4] - Adjusted EBITDA for the second quarter was £76.0 million, a 7.8% increase from £70.5 million in the prior year quarter, despite total revenue decrease [4] - Total revenues for the second quarter were £190.3 million, down 4.2% from £198.7 million in the prior year quarter [4] - The company reiterates full year revenue guidance of £640 million to £660 million and adjusted EBITDA guidance of £180 million to £200 million for fiscal 2026 [5] - Operating profit for the three months ended December 31, 2025, was £19,552 thousand, compared to an operating profit of £3,046 thousand for the same period in 2024, indicating a significant improvement [35] - Adjusted EBITDA for the three months ended December 31, 2025, was £75,953 thousand, up from £70,460 thousand for the same period in 2024, reflecting a growth of 7.1% [44] - Basic earnings per share for the three months ended December 31, 2025, was 2.43 pence, compared to a loss of 16.35 pence for the same period in 2024 [35] - The company reported a profit of £4,183,000 for the three months ended 31 December 2025, compared to a loss of £27,745,000 in the same period of 2024 [45] - Adjusted profit for the period was £4,119,000 for the three months ended 31 December 2025, a significant improvement from a loss of £6,199,000 in the prior year [45] - Adjusted basic earnings per share increased to 2.39 pence for the three months ended 31 December 2025, compared to a loss of 3.65 pence in the same period of 2024 [45] Revenue Breakdown - Commercial revenue for the quarter was £78.5 million, a decrease of £6.6 million, or 7.8%, compared to the prior year quarter [8] - Broadcasting revenue increased by £0.7 million, or 1.1%, to £62.3 million, attributed to a higher estimated Premier League finishing position [9] - Matchday revenue decreased by £2.5 million, or 4.8%, to £49.5 million, primarily due to three fewer home cup matches [10] - Revenue from contracts with customers for the three months ended December 31, 2025, was £190,307 thousand, a decrease of 4.0% compared to £198,700 thousand for the same period in 2024 [35] Expenses and Costs - Total operating expenses for the quarter were £173.9 million, a decrease of £22.5 million, or 11.5%, compared to the prior year quarter [11] - Net finance costs for the quarter were £13.9 million, significantly lower than £37.6 million in the prior year quarter, due to reduced foreign exchange losses [18] - Finance costs for the three months ended December 31, 2025, were £14,693 thousand, a decrease from £42,480 thousand for the same period in 2024, reflecting reduced borrowing costs [35] - Employee benefit expenses as a percentage of revenue decreased to 39.5% for the three months ended December 31, 2025, from 41.5% for the same period in 2024 [32] Cash Flow and Assets - Cash and cash equivalents at the end of the period on December 31, 2025, were £44,406 thousand, down from £95,542 thousand at the end of the same period in 2024 [41] - Net cash outflow from operating activities for the three months ended December 31, 2025, was £11,428 thousand, compared to an outflow of £63,230 thousand for the same period in 2024, indicating improved cash flow management [41] - Cash generated from operations was £4,316,000 for the six months ended 31 December 2025, contrasting with a cash used of £32,599,000 in the same period of 2024 [46] - Total assets as of December 31, 2025, were £1,670,114 thousand, an increase from £1,600,448 thousand as of December 31, 2024 [39] Depreciation and Amortization - The company experienced a depreciation expense of £4,977,000 for the three months ended 31 December 2025, up from £4,293,000 in the previous year [46] - Amortization costs rose to £54,600,000 for the three months ended 31 December 2025, compared to £49,423,000 in the same period of 2024 [46] Other Financial Metrics - Profit on disposal of intangible assets for the three months ended December 31, 2025, was £3,176 thousand, compared to £839 thousand for the same period in 2024, showing a significant increase [35] - Trade receivables showed a significant change, with a decrease of £35,997,000 for the three months ended December 31, 2025, compared to a decrease of £35,013,000 in the same period of 2024 [46] - The company reported a foreign exchange loss of £740,000 on operating activities for the three months ended December 31, 2025, compared to a gain of £562,000 in the previous year [46] - Contract liabilities related to deferred revenue decreased by £54,806,000 for the three months ended December 31, 2025, compared to a decrease of £62,241,000 in the same period of 2024 [46]