Away games hurt Manchester United top line, but outlook remains unchanged

A six per cent drop in revenues after the team played fewer home games was not enough to knock Manchester United which reiterated its outlook for the financial year.

The figures

Revenues at the club dropped 6.1 per cent to £135m in the first quarter of the financial year, driven largely by a 27.2 per cent decrease in matchday revenue, and a 6.8 per cent fall in income from sponsorships.

Profit before tax lay at £8.7m, a 49 per cent drop from 2017, while net debt declined 7.8 per cent to £247.2m.

The club generated £114.8m of cash flow during the quarter, an increase of £96m compared to last year.

Basic earnings per share lay at 4.04p, a 31 per cent drop, while the company will pay out a $0.09 (7p) dividend.

Why it’s interesting

One of the most popular sports teams on the planet, Manchester United is struggling to perform on the pitch and sits at eighth in the Premier League, having conceded more goals than it has scored this season.

Sales of merchandise fell 3.7 per cent as the team only played five home games in the quarter, ending September, a decline from eight in the same period last year. Meanwhile, matchday takings fell £6.1m to £16.3m.

However, as it catches up on Premier League home games in the third quarter, the team still expects revenue to end up between £615m and £630m. Projections for adjusted Ebitda remains at between £175m to £190m.

What Manchester United said

Executive vice chairman Ed Woodward said: “Our financial strength enables us to continue to attract and retain top players and to invest in our academy, as we look to drive the success on the pitch that the club and our fans expect.

“We remain on track to deliver our record full-year revenue guidance, underpinning our long-term, strategic plan to create sustainable growth across all areas of the club.”