Manchester United(MANU) - 2020 Q3 - Earnings Call Transcript

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support working capital during the crisis [24] - The previous full-year revenue and adjusted EBITDA guidance has been withdrawn due to uncertainty surrounding the pandemic's impact [25] Q&A Session Summary Question: Impact on revenues for the third quarter - The estimated impact on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]