Manchester United announced on Wednesday that it anticipates full-year revenue to reach the higher end of its previous guidance, despite experiencing double-digit declines in two of its three reportable segments in the fiscal third quarter. The iconic British soccer club forecasts a record revenue of £660 million ($847.1 million) for fiscal 2024, compared to the earlier projection range of £635 million to £665 million. This outlook aligns closely with the expectations of three analysts surveyed by Capital IQ, who estimated revenue to be £652.3 million for the ongoing year.
The company also projects its full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be £140 million. This figure is towards the higher end of their earlier guidance range of £125 million to £150 million. Following the announcement, shares of Manchester United saw a 3.2% increase in Wednesday trading.
However, Manchester United reported that its revenue for the fiscal third quarter had dropped 20% year-over-year to £136.7 million. The adjusted loss per share surged 230% to £0.24 for the three months ending March 31, reflecting the financial challenges the club faced during the period.
The club’s broadcasting revenue fell 26% to £37.5 million, mainly due to the men’s first team participating in fewer matches. Matchday revenue saw a staggering 41% decline to £29.6 million, attributed to nine fewer home games compared to the same period last year. On a brighter note, commercial revenue showed marginal growth, ticking up 0.3% to £69.6 million, driven by gains in retail, merchandise, apparel, and product licensing.
Despite these setbacks, Manchester United’s operating expenses increased by 15% year-over-year to £203.7 million, reflecting the broader financial pressures the club contends with as it navigates the current fiscal landscape.
