MANCHESTER - Manchester United plc (NYSE:MANU) reported lower fourth quarter revenue and a wider loss compared to last year, sending shares down 2.2% in trading on Tuesday.
The English football club posted revenue of £142.2 million for the quarter ended June 30, down 15% from £167.3 million in the same period last year and below analyst estimates. The company reported a loss of £36.3 million or 21.44 pence per share, compared to a loss of £2.9 million or 1.79 pence per share in the prior year quarter.
Manchester United said the revenue decline was primarily due to the men's first team finishing 8th in the Premier League compared to 3rd in the prior year, as well as playing 5 fewer matches in the current quarter. Broadcasting revenue fell 40.5% to £38.4 million.
For the full fiscal year 2024, total revenue rose 2.1% to a record £661.8 million, driven by strong commercial and matchday performance. However, the company reported a net loss of £113.2 million for the year, widening from a £28.7 million loss in fiscal 2023.
Looking ahead, Manchester United introduced fiscal 2025 revenue guidance of £650-670 million, which includes an expected £30 million boost from bringing e-commerce operations in-house. The company also expects adjusted EBITDA of £145-160 million for fiscal 2025.
"We are working towards greater financial sustainability and making changes to our operations to make them more efficient, to ensure we are directing our resources to enhancing on-pitch performance," said CEO Omar Berrada.
The club said it has implemented cost-saving measures, including reducing headcount by approximately 250 roles, which are expected to result in £40-45 million in annual savings over the next two fiscal years.
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