Core Viewpoint - Manchester United (MANU) is highlighted as a strong investment opportunity due to its recent earnings beat and consistent performance in exceeding market expectations [1]. Company Overview - Manchester United PLC operates a professional sports team, managing the Manchester United Football Club and its associated activities, including media, foundation, fan engagement, and merchandise [2]. Earnings History - The company has achieved four consecutive earnings beats against the Zacks Consensus Estimate, with an average positive earnings surprise of 56% over the past year [4]. - The latest earnings report showed a loss of -$0.04, significantly better than the consensus estimate of -$0.33, resulting in a positive earnings surprise of 87.5% [4]. Earnings Estimates Revisions - Earnings estimates for Manchester United have been revised upward, with the full year 2025 estimate improving from -$0.74 to -$0.38 over the last 30 days [5]. - For 2026, estimates have also increased from -$0.82 to -$0.17 during the same period [5].

Core Viewpoint - Manchester United (MANU) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][3]. Earnings Estimates and Ratings - The Zacks rating system is solely based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Manchester United reflects an improvement in its earnings outlook, which is expected to positively impact its stock price [3][5]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. Specifics on Manchester United - For the fiscal year ending June 2025, Manchester United is expected to earn -$0.38 per share, unchanged from the previous year, but analysts have raised their estimates by 48.6% over the past three months [8]. - The upgrade to Zacks Rank 1 places Manchester United in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - Manchester United (MANU) closed at $17.01, with an 18% gain over the past four weeks, and a mean price target of $21.97 suggests a 29.2% upside potential [1] - The mean estimate includes three short-term price targets with a standard deviation of $4.64, indicating variability among analysts; the lowest estimate is $16.90 (0.7% decline), while the highest is $26 (52.9% increase) [2] - Analysts show strong agreement in revising earnings estimates higher, with a 48.7% increase in the Zacks Consensus Estimate for the current year, indicating potential upside for the stock [12][11] Group 2 - The Zacks Rank for MANU is 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential for near-term upside [13] - While price targets are often viewed as a metric for investment decisions, they can mislead investors; analysts may set overly optimistic targets due to business incentives [7][8] - A low standard deviation in price targets indicates a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9]

M a n c h e s t e r U n i t e d p l c I n t e r i m r e p o r t ( u n a u d i t e d ) fo r t h e t h r e e a n d n i n e m o n t h s e n d e d 3 1 M a r c h 2 0 2 5 E x h i b i t 9 9 . 1 Contents | Management's discussion and analysis of financial condition and results of operations | 2 | | --- | --- | | Interim consolidated statement of profit or loss for the three and nine months ended 31 March 2025 and 2024 - unaudited | 13 | | Interim consolidated statement of comprehensive income/(loss) for the three a ...

Financial Performance - Manchester United reported a quarterly loss of $0.04 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.33, and an improvement from a loss of $0.31 per share a year ago, resulting in an earnings surprise of 87.88% [1] - The company posted revenues of $202.17 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.15%, but showing an increase from year-ago revenues of $173.36 million [2] - Over the last four quarters, Manchester United has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Manchester United shares have declined approximately 20.4% since the beginning of the year, contrasting with the S&P 500's gain of 1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $210.02 million, and for the current fiscal year, it is -$0.74 on revenues of $842.59 million [7] Industry Context - The Leisure and Recreation Services industry, to which Manchester United belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Table of Contents Exhibit 99.1 Manchester United plc Interim report (unaudited) for the three and six months ended 31 December 2024 Table of Contents Contents | Management's discussion and analysis of financial condition and results of operations | 2 | | --- | --- | | Interim consolidated statement of profit or (loss) for the three and six months ended 31 December 2024 and | | | 2023 | 12 | | Interim consolidated statement of comprehensive income/(loss) for the three and six months ended 31 | | | December 2 ...

CORPORATE RELEASE 26 November 2024 Manchester United PLC Reports First Quarter Fiscal 2025 Results Key Points MANCHESTER, England – 26 November 2024 – Manchester United (NYSE: MANU; the "Company" and the "Group") today announced financial results for the 2025 fiscal first quarter ended 30 September 2024. Management Commentary Omar Berrada, Chief Executive Officer, commented, "The season is now well underway for both our men's and women's team, and we are keen to ensure both are as competitive as possible. W ...

Financial 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].

Revenue Performance - Total revenue for the three months ended 31 December 2023 was £225.8 million, a 34.9% increase compared to the same period in 2022[7] - Broadcasting revenue for the three months ended 31 December 2023 was £106.4 million, an 81.0% increase compared to the same period in 2022[10] - Matchday revenue for the three months ended 31 December 2023 was £47.6 million, a 59.2% increase compared to the same period in 2022[11] - Total revenue for the six months ended 31 December 2023 was £382.9 million, a 23.1% increase compared to the same period in 2022[19] - Broadcasting revenue for the six months ended 31 December 2023 was £145.7 million, a 55.5% increase compared to the same period in 2022[22] - Matchday revenue for the six months ended 31 December 2023 was £75.0 million, a 46.5% increase compared to the same period in 2022[23] - Revenue from contracts with customers for the six months ended 31 December 2023 was £382.852 million, compared to £311.022 million for the same period in 2022[65] - Broadcasting revenue for the six months ended 31 December 2023 was £145.8 million, a significant increase from £93.8 million in the same period in 2022[99] - Matchday revenue for the six months ended 31 December 2023 was £74.9 million, up from £51.2 million in the same period in 2022[99] - Commercial revenue for the six months ended 31 December 2023 was £162.1 million, slightly down from £166.1 million in the same period in 2022[99] Operating Expenses - Total operating expenses for the three months ended 31 December 2023 were £198.7 million, an 18.6% increase compared to the same period in 2022[12] - Employee benefit expenses for the three months ended 31 December 2023 were £95.1 million, a 23.0% increase compared to the same period in 2022[12] - Total operating expenses for the six months ended 31 December 2023 were £383.4 million, a 15.7% increase compared to the same period in 2022[24] - Employee benefit expenses increased to £185.4 million for the six months ended 31 December 2023, compared to £159.6 million in the same period in 2022[105] Financial Performance - Operating profit for the six months ended 31 December 2023 was £29.309 million, compared to an operating loss of £6.242 million for the same period in 2022[65] - The company reported a loss of £5.383 million for the six months ended 31 December 2023, compared to a loss of £20.210 million in the same period in 2022[117] - Basic loss per share for the six months ended 31 December 2023 was 3.30 pence, compared to 12.39 pence in the same period in 2022[117] - The Group's profit before income tax for the three months ended 31 December 2023 was £27,219,000, compared to a loss of £5,585,000 for the six months ended 31 December 2023[175] Cash Flow and Liquidity - As of 31 December 2023, the company had cash resources of £62.8 million and access to an undrawn revolving facility of £40 million[30] - Net cash outflow from operating activities for the six months ended 31 December 2023 was £25.1 million, compared to £67.5 million in 2022[39] - Net cash outflow from investing activities for the six months ended 31 December 2023 was £146.2 million, an increase of £23.0 million from 2022[42] - Net cash inflow from financing activities for the six months ended 31 December 2023 was £159.5 million, driven by a £160.0 million drawdown on revolving facilities[43] - Net cash outflow from operating activities was £25.1 million for the six months ended 31 December 2023, compared to £67.6 million in the same period in 2022[77] - Net cash outflow from investing activities increased to £146.2 million for the six months ended 31 December 2023, primarily due to higher payments for intangible assets related to player registrations[77] - Cash and cash equivalents stood at £62.8 million as of 31 December 2023, with access to undrawn revolving facilities of £40 million[82] - The company received a cash injection of $200 million related to a minority investment by Sir Jim Ratcliffe, with an additional $100 million expected by 31 December 2024[83] - The Group repaid £120 million of revolving facilities in February 2024, reducing total drawdown to £140 million from available facilities of £300 million[199] Debt and Borrowings - The company's senior secured notes outstanding as of 31 December 2023 were £331.6 million, with a principal amount of $425.0 million[45] - The secured term loan facility outstanding as of 31 December 2023 was £174.9 million, with a principal amount of $225.0 million[49] - Manchester United has £135 million in outstanding loans and £15 million in borrowing capacity under its initial revolving facility as of 31 December 2023[54] - The new revolving facility has £62.5 million in outstanding loans and £12.5 million in borrowing capacity as of 31 December 2023, with a maturity date of 25 June 2027[56] - The bilateral revolving facility also has £62.5 million in outstanding loans and £12.5 million in borrowing capacity as of 31 December 2023, with a maturity date of 25 June 2027[57] - The company has outstanding loans of £260 million under revolving facilities, with secured notes and term loans maturing in 2027 and 2029 respectively[82] - Total borrowings as of 31 December 2023 were £773,301,000, up from £613,296,000 in June 2023 but down from £741,900,000 in December 2022[162] - Senior secured notes as of 31 December 2023 were £331,572,000, slightly down from £332,112,000 in June 2023 and £350,626,000 in December 2022[162] - Secured term loan facility as of 31 December 2023 was £174,937,000, slightly down from £175,223,000 in June 2023 and £185,028,000 in December 2022[166] - The Group has £260,000,000 in outstanding loans and £40,000,000 in borrowing capacity under revolving facilities, with £150,000,000 of the facilities terminating on 4 April 2025 and the remainder on 25 June 2027[167] Assets and Liabilities - Total assets as of 31 December 2023 were £1.472 billion, compared to £1.427 billion as of 31 December 2022[70] - Total equity as of 31 December 2023 was £96.017 million, compared to £109.752 million as of 31 December 2022[73] - Current liabilities as of 31 December 2023 were £661.426 million, compared to £608.290 million as of 31 December 2022[73] - Total equity decreased from £127.5 million at 30 June 2022 to £96.0 million at 31 December 2023, reflecting a comprehensive loss over the period[75] - The net book amount of property, plant, and equipment as of 31 December 2023 was £255.246 million, up from £243.434 million in the same period in 2022[124] - Investment properties had a fair value of £32,970,000 as of 30 June 2023, with no impairment indicators noted as of 31 December 2023[137] - Goodwill remained unchanged at £421,453,000 as of 31 December 2023, with no impairment indicators identified[140] - Additions to registrations (intangible assets) were £215,086,000 in the six months ended 31 December 2023, contributing to a net book amount of £494,157,000[141] - Deferred tax liability decreased to £924,000 as of 31 December 2023 from £3,304,000 as of 30 June 2023[147] - Inventories as of 31 December 2023 increased to £4,024,000 from £3,165,000 in June 2023 and £3,272,000 in December 2022[149] - Net trade receivables as of 31 December 2023 were £105,886,000, up from £53,470,000 in June 2023 but down from £137,633,000 in December 2022[150] - Gross contractual trade receivables as of 31 December 2023 were £108,900,000, compared to £54,393,000 in June 2023 and £139,199,000 in December 2022[151] - Cash and cash equivalents as of 31 December 2023 were £62,809,000, down from £76,019,000 in June 2023 but up from £31,045,000 in December 2022[156] - Trade payables as of 31 December 2023 increased to £348,707,000 from £302,708,000 in June 2023 and £290,239,000 in December 2022[160] - Gross contractual trade payables as of 31 December 2023 were £378,560,000, compared to £317,809,000 in June 2023 and £307,913,000 in December 2022[161] - The Group's total provisions decreased from £12,939,000 at 30 June 2023 to £11,063,000 at 31 December 2023, with a significant reassessment of provisions leading to a £1,876,000 credit[168] - The Group's pension scheme deficit was £27.5 million as of 31 August 2020, with current annual contributions of £573,000 increasing by 5% annually from September 2024[173] - The Group's hedging reserve decreased from £4,002,000 at 30 June 2023 to a negative £25,000 at 31 December 2023, primarily due to changes in the cash flow hedge reserve[187] - Capital commitments for property, plant, and equipment were £2,166,000 as of 31 December 2023, down from £5,152,000 in June 2023[193] Player Transfers and Contingent Liabilities - The maximum additional amount payable for contingent consideration related to player transfers is £158.0 million as of 31 December 2023[61] - The maximum additional amount payable for contingent consideration related to player registrations could impact the net book value of registrations[143] - The Group's contingent liabilities for potential additional transfer fees increased to £158,040,000 at 31 December 2023, up from £133,142,000 at 30 June 2023[190] - The Group has probable contingent assets of £250,000 from player transfer performance conditions as of 31 December 2023, compared to £nil in previous periods[192] - Total performance-related conditions for players amount to £158,040,000, including £112,368,000 for first team squad appearances and success[194] - Post-31 December 2023, player registration disposals generated net proceeds of £989,000 and additional receivables of £207,000[196] Strategic Investments and Shareholder Changes - Sir Jim Ratcliffe acquired 27.7% of Manchester United's voting rights through a $200 million investment, with an additional $100 million to be invested by 31 December 2024[197] - Post-transaction, the Glazer family controls 69.1% of voting power, while Sir Jim Ratcliffe holds 27.7%[200] Accounting and Financial Policies - Revenue recognition is subject to seasonality, with the highest revenue typically recognized in the second and third fiscal quarters due to match scheduling[89] - Commercial revenue includes sponsorship agreements, retail sales, and licensing, with revenue recognized over the term of sponsorship agreements based on performance obligations[90] - The company's financial statements are prepared on a going concern basis, with management confident in meeting obligations for at least 12 months from the report date[83] - The adoption of new accounting standards, such as amendments to IAS 1 regarding deferred tax, has not materially affected the financial statements[84] - The Group signed a 10-year extension with adidas, with a total minimum guarantee of £1,650 million (£750 million original term + £900 million extension), subject to adjustments based on team performance[93] - Payments may increase by up to £4.4 million annually if the men's or women's teams win major competitions, or decrease by £10 million per year if the men's team fails to participate in the UEFA Champions League starting from the 2025/26 season[93] - The estimated weighted average annual tax rate for the year to 30 June 2024 is 15.72%, down from 20.99% in the previous year[114] - The US federal corporate income tax rate of 21% is lower than the UK corporation tax rate of 25%, potentially sheltering future US cash tax with UK tax credits[145] Miscellaneous - Amortization for the three months ended 31 December 2023 was £50.5 million, a 12.2% increase compared to the same period in 2022[14] - Exceptional items for the six months ended 31 December 2023 were a cost of £9.6 million, primarily related to the strategic review and sale of shares to Sir Jim Ratcliffe[26] - Profit on disposal of intangible assets for the six months ended 31 December 2023 was £29.9 million, compared to £14.0 million in the same period in 2022[27] - Net finance costs for the six months ended 31 December 2023 increased to £34.9 million from £18.9 million in 2022, driven by higher interest costs and derivative valuation changes[28] - Income tax credit for the six months ended 31 December 2023 was £0.2 million, down from £4.9 million in 2022[29] - Exceptional items for the three and six months ended 31 December 2023 were £9.6 million, related to strategic review and share sale agreement with Sir Jim Ratcliffe[107] - Profit on disposal of registrations for the six months ended 31 December 2023 was £29.9 million, compared to £14.0 million in the same period in 2022[108] - Net finance costs for the six months ended 31 December 2023 were £34.894 million, compared to £18.873 million in the same period in 2022[109] - Total finance costs for the six months ended 31 December 2023 were £37.842 million, up from £21.956 million in the same period in 2022[109] - Total finance income for the six months ended 31 December 2023 was £2.948 million, down from £3.083 million in the same period in 2022[109] - No dividends were paid in the six months ended 31 December 2023, consistent with the same period in 2022[121] - Additions to right-of-use assets for the six months ended 31 December 2023 amounted to £113,000, down from £301,000 in the same period in 2022[126] - Total lease liabilities decreased to £8,565,000 as of 31 December 2023 from £8,880,000 as of 30 June 2023[129] - Additions to lease liabilities were £6,084,000 in the first half of 2023, significantly increasing from £300,000 in the second half of 2022[130] - Depreciation charge for right-of-use assets totaled £639,000 for the six months ended 31 December 2023, compared to £1,020,000 for the same period in 2022[131] - The cost of inventories recognized as an expense for the six months ended 31 December 2023 was £8,614,000, compared to £12,307,000 for the year ended 30 June 2023 and £7,042,000 for the six months ended 31 December 2022[149]

[Report Overview and Key Developments](index=1&type=section&id=Report%20Overview%20and%20Key%20Developments) This section provides an overview of the club's record Q2 revenues, strategic investments, new leadership, and stadium development plans [Key Highlights](index=1&type=section&id=Key%20Highlights) The club reported record second-quarter revenues of £225.8 million, driven by UEFA Champions League participation, alongside key corporate developments including a new CEO and Sir Jim Ratcliffe's minority investment - Key Corporate and Strategic Developments[2](index=2&type=chunk) - **Investment**: Completed a minority investment by Sir Jim Ratcliffe, including an additional **$300 million** primary investment[2](index=2&type=chunk) - **Leadership**: Appointed Omar Berrada as the new CEO[2](index=2&type=chunk) - **Stadium Development**: Created a task force to explore options for Old Trafford's development and regeneration of the surrounding area[2](index=2&type=chunk) - **Commercial**: Announced a new e-commerce partnership with SCAYLE and a return to the USA for the Summer Tour 2024[2](index=2&type=chunk) - On-pitch and Operational Updates[2](index=2&type=chunk) - **Financial Performance**: Achieved record Q2 revenues of **£225.8 million**, primarily due to Champions League participation and strong Matchday results[2](index=2&type=chunk) - **Team Progress**: Both Men's and Women's first teams advanced to the FA Cup quarterfinals[2](index=2&type=chunk) - **Player Transfers**: The Men's team loaned out 11 players and the Women's team loaned out two players in the January transfer window[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) The Chief Financial Officer, Cliff Baty, highlighted the strong revenue performance in the first half of the fiscal year and reiterated the full-year guidance for record revenues - The CFO expressed confidence in achieving record revenues for the full fiscal year, building on strong first-half performance[3](index=3&type=chunk) - Emphasis is placed on working with new co-owner Sir Jim Ratcliffe to drive the club forward and achieve on-pitch success[3](index=3&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) The company has reiterated its previously stated financial guidance for the full fiscal year 2024, projecting record revenues and a strong adjusted EBITDA Fiscal 2024 Guidance | Metric | Guidance Range (£ million) | | :--- | :--- | | **Revenue** | £635 to £665 | | **Adjusted EBITDA** | £125 to £150 | [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section analyzes the club's financial results for Q2 and H1 FY2024, highlighting revenue growth, profitability, and expense trends [Key Financials Summary (Q2 & H1 FY2024)](index=2&type=section&id=Key%20Financials%20Summary%20%28Q2%20%26%20H1%20FY2024%29) For the second quarter of fiscal 2024, Manchester United reported a significant 34.9% increase in total revenue to £225.8 million, driven by strong growth in Broadcasting and Matchday segments Q2 FY2024 Financial Highlights (£ million) | Metric | Q2 FY2024 | Q2 FY2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | 225.8 | 167.3 | 34.9% | | Commercial Revenue | 71.8 | 78.7 | (8.8)% | | Broadcasting Revenue | 106.4 | 58.7 | 81.0% | | Matchday Revenue | 47.6 | 29.9 | 59.2% | | **Adjusted EBITDA** | 91.4 | 48.3 | 88.8% | | **Profit for the period** | 20.4 | 6.3 | 223.8% | | **Basic EPS (pence)** | 12.49 | 3.87 | 222.7% | H1 FY2024 Financial Highlights (£ million) | Metric | H1 FY2024 | H1 FY2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | 382.9 | 311.0 | 23.1% | | **Adjusted EBITDA** | 114.7 | 71.9 | 59.5% | | **Loss for the period** | (5.3) | (20.2) | 73.8% (improvement) | [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis) Total revenue for Q2 FY2024 grew significantly, primarily due to a substantial increase in Broadcasting and Matchday revenues from participation in the UEFA Champions League [Commercial Revenue](index=3&type=section&id=Commercial%20Revenue) Commercial revenue decreased by 8.8% to £71.8 million in Q2, primarily due to a 22.2% drop in sponsorship revenue from a prior-year one-off credit, partially offset by retail and merchandising growth Q2 Commercial Revenue Breakdown (£ million) | Category | Q2 FY2024 | YoY Change (%) | Reason | | :--- | :--- | :--- | :--- | | **Total Commercial** | **71.8** | **(8.8)%** | - | | Sponsorship | 39.2 | (22.2)% | One-off sponsorship credit in prior year quarter | | Retail, Merchandising, etc. | 32.6 | 15.2% | Adidas contract extension and strong megastore performance | [Broadcasting Revenue](index=3&type=section&id=Broadcasting%20Revenue) Broadcasting revenue for the quarter surged by 81.0% to £106.4 million, a direct result of the men's first team participating in the more lucrative UEFA Champions League - Broadcasting revenue increased by **£47.6 million (81.0%)** to **£106.4 million**[10](index=10&type=chunk) - The primary driver for this growth was the men's first team's participation in the UEFA Champions League versus the UEFA Europa League in the prior year[10](index=10&type=chunk) [Matchday Revenue](index=3&type=section&id=Matchday%20Revenue) Matchday revenue saw strong growth of 59.2%, reaching £47.6 million for the quarter, driven by playing two more home games and higher revenue from UEFA Champions League matches - Matchday revenue increased by **£17.7 million (59.2%)** to **£47.6 million**[11](index=11&type=chunk) - Key drivers for the increase were: - Playing two more home games in Q2 FY2024 compared to Q2 FY2023[11](index=11&type=chunk) - Participation in the UEFA Champions League instead of the UEFA Europa League[11](index=11&type=chunk) [Operating Expenses and Profitability](index=3&type=section&id=Operating%20Expenses%20and%20Profitability) Total operating expenses rose by 18.6% to £198.7 million, largely due to a 23.0% increase in employee benefit expenses linked to Champions League participation [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Operating expenses for the quarter increased by 18.6% to £198.7 million, primarily driven by a 23.0% rise in employee benefit expenses to £95.1 million due to Champions League participation Q2 Operating Expenses Breakdown (£ million) | Expense Category | Q2 FY2024 | YoY Change (%) | Reason | | :--- | :--- | :--- | :--- | | **Total Operating Expenses** | **198.7** | **18.6%** | - | | Employee benefit expenses | 95.1 | 23.0% | Champions League participation[12](index=12&type=chunk) | | Amortization | 50.5 | 12.2% | Investment in the first team playing squad[13](index=13&type=chunk) | | Other operating expenses | 39.3 | (5.8)% | -[14](index=14&type=chunk) | | Depreciation | 4.2 | 16.7% | -[15](index=15&type=chunk) | [Exceptional Items, Finance Costs & Tax](index=4&type=section&id=Exceptional%20Items%2C%20Finance%20Costs%20%26%20Tax) The company recorded exceptional costs of £9.6 million related to its strategic review and the partial sale to Sir Jim Ratcliffe, alongside a shift to net finance costs and increased income tax expense - **Exceptional Items**: A cost of **£9.6 million** was incurred related to the strategic review and the sale of shares to Sir Jim Ratcliffe[16](index=16&type=chunk) - **Net Finance Costs**: Net finance costs were **£0.3 million**, a significant change from net finance income of £12.1 million in the prior-year quarter, mainly due to smaller foreign exchange gains on USD borrowings[17](index=17&type=chunk) - **Income Tax**: The income tax expense for the quarter was **£6.8 million**, up from £2.9 million in the prior-year quarter[18](index=18&type=chunk) [Cash Flow and Balance Sheet](index=4&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) The company's cash and cash equivalents decreased by £18.0 million during the quarter, ending at £62.8 million, with total non-current borrowings of $650 million [Cash Flow Summary](index=4&type=section&id=Cash%20Flow%20Summary) During the quarter, there was a net cash outflow from operating activities of £46.6 million and an outflow from investing activities of £35.7 million, partially offset by a net cash inflow from financing activities of £59.7 million Q2 Cash Flow Summary (£ million) | Cash Flow Activity | Q2 FY2024 | Q2 FY2023 | | :--- | :--- | :--- | | Net cash outflow from operating activities | (46.6) | (61.5)[18](index=18&type=chunk) | | Net capital expenditure on intangible assets | (35.7) | (29.9)[19](index=19&type=chunk) | | Net cash inflow from financing activities | 59.7 | 99.4[19](index=19&type=chunk) | | **Net decrease/(increase) in cash** | **(18.0)** | **6.7** | [Balance Sheet Summary](index=4&type=section&id=Balance%20Sheet%20Summary) As of December 31, 2023, non-current borrowings remained at $650 million, with an outstanding balance on the revolving credit facility of £260.0 million, and cash and cash equivalents at £62.8 million - Non-current borrowings were unchanged at **$650.0 million**[20](index=20&type=chunk) - The outstanding balance on the revolving credit facility was **£260.0 million** as of 31 December 2023[8](index=8&type=chunk) - Cash and cash equivalents were **£62.8 million** at the end of the quarter, compared to £31.0 million at the end of the prior year quarter[21](index=21&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated financial statements, including the statement of profit or loss, balance sheet, and cash flows [Consolidated Statement of Profit or Loss](index=8&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement details the Group's revenues, expenses, finance costs/income, and tax to arrive at the profit or loss for the three and six-month periods ended December 31, 2023, and 2022 Q2 FY2024 Profit or Loss Highlights (£ thousands) | Item | Three months ended 31 Dec 2023 | Three months ended 31 Dec 2022 | | :--- | :--- | :--- | | Revenue | 225,756 | 167,368 | | Operating profit/(loss) | 27,494 | (2,860) | | Profit/(loss) before income tax | 27,219 | 9,255 | | **Profit/(loss) for the period** | **20,374** | **6,306** | [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) This statement presents a snapshot of the Group's financial position, detailing its assets, liabilities, and equity as of December 31, 2023, compared to June 30, 2023, and December 31, 2022 Balance Sheet Summary (£ thousands) | Item | 31 December 2023 | 31 December 2022 | | :--- | :--- | :--- | | Total Assets | 1,472,012 | 1,426,961[37](index=37&type=chunk) | | Total Equity | 96,017 | 109,752[38](index=38&type=chunk) | | Total Liabilities | 1,375,995 | 1,317,209[38](index=38&type=chunk) | [Consolidated Statement of Cash Flows](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement shows the movement of cash and cash equivalents during the period, categorized into operating, investing, and financing activities Q2 FY2024 Cash Flow Highlights (£ thousands) | Item | Three months ended 31 Dec 2023 | Three months ended 31 Dec 2022 | | :--- | :--- | :--- | | Net cash outflow from operating activities | (46,532) | (61,509) | | Net cash outflow from investing activities | (30,627) | (30,503) | | Net cash inflow from financing activities | 59,700 | 99,429 | | **Net (decrease)/increase in cash** | **(18,020)** | **6,768** | [Supplemental Information](index=6&type=section&id=Supplemental%20Information) This section includes definitions and reconciliations of non-IFRS financial measures and key performance indicators [Non-IFRS Measures and Reconciliations](index=6&type=section&id=Non-IFRS%20Measures%20and%20Reconciliations) This section provides definitions for non-IFRS financial measures used in the report, such as Adjusted EBITDA and Adjusted profit/(loss), along with detailed reconciliation tables - Adjusted EBITDA is defined as profit/(loss) for the period before depreciation, amortization, profit/(loss) on disposal of intangible assets, exceptional items, net finance (costs)/income, and tax[25](index=25&type=chunk) Reconciliation to Adjusted EBITDA (Q2, £ thousands) | Metric | Q2 FY2024 | Q2 FY2023 | | :--- | :--- | :--- | | Profit for the period | 20,374 | 6,306 | | Adjustments (Tax, Finance, Amort, etc.) | 70,964 | 41,002 | | **Adjusted EBITDA** | **91,338** | **48,308** | Reconciliation to Adjusted Profit/(Loss) (Q2, £ thousands) | Metric | Q2 FY2024 | Q2 FY2023 | | :--- | :--- | :--- | | Profit/(loss) for the period | 20,374 | 6,306 | | Adjustments (Exceptional items, FX, etc.) | 4,054 | (19,068) | | Adjusted income tax (expense)/credit | (5,130) | 2,680 | | **Adjusted profit/(loss) for the period** | **19,298** | **(10,082)** | [Key Performance Indicators (KPIs)](index=7&type=section&id=Key%20Performance%20Indicators%20%28KPIs%29) For the second quarter, Broadcasting was the largest contributor to revenue at 47.1%, a significant shift from 35.1% in the prior year, reflecting the impact of Champions League participation Revenue Mix (%) - Three Months Ended 31 December | Revenue Stream | 2023 | 2022 | | :--- | :--- | :--- | | Commercial | 31.8% | 47.0% | | Broadcasting | 47.1% | 35.1% | | Matchday | 21.1% | 17.9% | Home Matches Played - First Half of Season | Competition | 2023/24 Season | 2022/23 Season | | :--- | :--- | :--- | | Premier League | 10 | 7 | | UEFA competitions | 3 | 3 | | Domestic Cups | 2 | 2 | - Employee benefit expenses as a percentage of revenue decreased to **42.1%** for the quarter, compared to 46.2% in the prior year quarter[32](index=32&type=chunk)