Manchester United(US:MANU)2020-10-21 15:41Financial 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]