We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Manchester United Plc | NYSE:MANU | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 15.87 | 2 | 09:04:18 |
Manchester United (NYSE: MANU; the “Company” and the “Group”) – one of the most popular and successful sports teams in the world - today announced financial results for the 2019 fiscal first quarter ended 30 September 2018.
Highlights
Commentary
Ed Woodward, Executive Vice Chairman, commented, "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."
Outlook
For fiscal 2019, Manchester United continues to expect:
Key Financials (unaudited)
£ million (except earnings per share) Three months ended30 September
2018
Restated(1)2017
Change Commercial revenue 75.9 80.5 (5.7%) Broadcasting revenue 42.8 40.8 4.9% Matchday revenue 16.3 22.4 (27.2%) Total revenue 135.0 143.7 (6.1%) Adjusted EBITDA(2) 29.4 39.3 (25.2%) Operating profit 13.9 17.9 (22.3%) Profit for the period (i.e. net income) 6.6 9.6 (31.3%) Basic earnings per share 4.04 5.83 (30.7%) Adjusted profit for the period (i.e. adjusted net income)(2) 7.0 7.9 (11.4%) Adjusted basic earnings per share (pence)(2) 4.27 4.82 (11.4%) Net Debt(2)/(3) 247.2 268.1 (7.8%) (1) Comparative amounts have been restated following implementation of IFRS 15. See supplemental note 5 for further details. (2) Adjusted EBITDA, adjusted profit for the period, adjusted basic earnings per share and net debt are non-IFRS measures. See “Non-IFRS Measures: Definitions and Use” on page 5 and the accompanying Supplemental Notes for the definitions and reconciliations for these non-IFRS measures and the reasons we believe these measures provide useful information to investors regarding the Group’s financial condition and results of operations. (3) The gross USD debt principal remains unchanged.Revenue Analysis
Commercial Commercial revenue for the quarter was £75.9 million, a decrease of £4.6 million, or 5.7%, over the prior year quarter.
Broadcasting Broadcasting revenue for the quarter was £42.8 million, an increase of £2.0 million, or 4.9%, over the prior year quarter.
Matchday Matchday revenue for the quarter was £16.3 million, a decrease of £6.1 million, or 27.2% over the prior year quarter, primarily due to playing two fewer home games across all competitions.
Other Financial Information
Operating expenses Total operating expenses for the quarter were £143.5 million, an increase of £0.4 million, or 0.3%, over the prior year quarter.
Employee benefit expenses Employee benefit expenses for the quarter were £77.0 million, an increase of £7.1 million, or 10.2%, over the prior year quarter primarily due to investment in the first team playing squad.
Other operating expenses Other operating expenses for the quarter were £28.6 million, a decrease of £5.9 million, or 17.1%, over the prior year quarter primarily due to a smaller summer tour.
Depreciation & amortization Depreciation for the quarter was £2.8 million, an increase of £0.2 million, or 7.7%, over the prior year quarter. Amortization for the quarter was £35.1 million, a decrease of £1.0 million, or 2.8%, over the prior year quarter. The unamortized balance of players’ registrations at 30 September 2018 was £336.9 million.
Profit on disposal of intangible assets Profit on disposal of intangible assets for the quarter was £22.4 million, compared to profit of £17.3 million in the prior year quarter.
Net finance costs Net finance costs for the quarter were £5.2 million, an increase of £4.4 million, or 550.0%, over the prior year quarter, due to unrealised foreign exchange losses on unhedged USD borrowings compared to gains in the prior year quarter.
Tax The tax expense for the quarter was £2.1 million, compared to £7.5 million in the prior year quarter. The decrease is due in part to a reduction in the US federal corporate income tax rate in December 2017 from 35% to 21%.
Cash flows Net cash generated from operating activities for the quarter was £114.8 million, an increase of £96.9 million over the prior year quarter, primarily due to the timing of sponsorship payments.
Net capital expenditure on property, plant and equipment and investment property for the quarter was £4.9 million, an increase of £0.5 million over the prior year quarter. Net capital expenditure on intangible assets for the quarter was £103.7 million, an increase of £18.8 million over the prior year quarter.
Overall cash and cash equivalents (including the effects of exchange rate changes) increased by £5.5 million in the quarter.
Net Debt Net Debt as of 30 September 2018 was £247.2 million, a decrease of £20.9 million over the year. The gross USD debt principal remains unchanged.
Dividend A semi-annual cash dividend of $0.09 per share will be paid on 4 January 2019, to shareholders of record on 30 November 2018. The stock will begin to trade ex-dividend on 29 November 2018.
Conference Call Information
The Company’s conference call to review first quarter fiscal 2019 results will be broadcast live over the internet today, 15 November 2018 at 8:00 a.m. Eastern Time and will be available on Manchester United’s investor relations website at http://ir.manutd.com. Thereafter, a replay of the webcast will be available for thirty days.
About Manchester United
Manchester United is one of the most popular and successful sports teams in the world, playing one of the most popular spectator sports on Earth.
Through our 140-year heritage we have won 66 trophies, enabling us to develop what we believe is one of the world’s leading sports brands and a global community of 659 million followers. Our large, passionate community provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, broadcasting and matchday.
Cautionary Statement
This press release contains forward looking statements. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to the Company’s operations and business environment, all of which are difficult to predict and many are beyond the Company’s control. Forward-looking statements include information concerning the Company’s possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or similar expressions. The forward-looking statements contained in this press release are based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the “Risk Factors” section and elsewhere in the Company’s Registration Statement on Form F-1, as amended (File No. 333-182535) and the Company’s Annual Report on Form 20-F (File No. 001-35627).
Non-IFRS Measures: Definitions and Use
1. Adjusted EBITDA Adjusted EBITDA is defined as profit for the period before depreciation, amortization, profit on disposal of intangible assets, exceptional items, net finance costs, and tax.
Adjusted EBITDA is useful as a measure of comparative operating performance from period to period and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our asset base (primarily depreciation and amortization), capital structure (primarily finance costs), and items outside the control of our management (primarily taxes). Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for an analysis of our results as reported under IFRS as issued by the IASB. A reconciliation of profit for the period to Adjusted EBITDA is presented in supplemental note 2.
2. Adjusted profit for the period (i.e. adjusted net income) Adjusted profit for the period is calculated, where appropriate, by adjusting for charges/credits related to exceptional items, foreign exchange gains/losses on unhedged US dollar denominated borrowings, and fair value movements on embedded foreign exchange derivatives, adding/subtracting the actual tax expense/credit for the period, and subtracting the adjusted tax expense for the period (based on a normalized tax rate of 21%; September 2017: 35%). The normalized tax rate of 21% is the current US federal corporate income tax rate.
In assessing the comparative performance of the business, in order to get a clearer view of the underlying financial performance of the business, it is useful to strip out the distorting effects of the items referred to above and then to apply a ‘normalized’ tax rate (for both the current and prior periods) equivalent to the US federal corporate income tax rate of 21% (September 2017: 35%). A reconciliation of profit for the period to adjusted profit for the period is presented in supplemental note 3.
3. Adjusted basic and diluted earnings per share Adjusted basic and diluted earnings per share are calculated by dividing the adjusted profit for the period by the weighted average number of ordinary shares in issue during the period. Adjusted diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue during the period to assume conversion of all dilutive potential ordinary shares. There is one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the “Equity Plan”). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year. Adjusted basic and diluted earnings per share are presented in supplemental note 3.
4. Net debt Net debt is calculated as non-current and current borrowings minus cash and cash equivalents.
Key Performance Indicators
Three months ended 30 September 2018 2017(1) Commercial % of total revenue 56.2% 56.0% Broadcasting % of total revenue 31.7% 28.4% Matchday % of total revenue 12.1% 15.6% Home Matches Played PL 3 4 UEFA competitions - 1 Domestic Cups 1 1 Away Matches Played UEFA competitions(2) 1 2 Domestic Cups - - Other Employees at period end 915 914 Employee benefit expenses % of revenue 57.1% 48.6%(1) Comparative amounts have been restated. See supplemental note 5 for further details.
(2) Prior period includes Super Cup final following UEFA Europa League win in 2016/17.
Phasing of Premier League home games Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 2018/19 season* 3 7 6 3 19 2017/18 season 4 7 5 3 19*Subject to changes in broadcasting scheduling
CONSOLIDATED INCOME STATEMENT
(unaudited; in £ thousands, except per share and shares outstanding data)
Three months ended30 September
2018 Restated(1)
2017
Revenue 135,026 143,665 Operating expenses (143,580 ) (143,036 ) Profit on disposal of intangible assets 22,428 17,279 Operating profit 13,874 17,908 Finance costs (5,815 ) (1,001 ) Finance income 689 218 Net finance costs (5,126 ) (783 ) Profit before tax 8,748 17,125 Tax expense (2,102 ) (7,555 ) Profit for the period 6,646 9,570 Basic earnings per share: Basic earnings per share (pence) 4.04 5.83 Weighted average number of ordinary shares outstanding (thousands) 164,526 164,195 Diluted earnings per share: Diluted earnings per share (pence) 4.04 5.81 Weighted average number of ordinary shares outstanding (thousands) 164,698 164,585(1) Comparative amounts have been restated. See supplemental note 5 for further details.
CONSOLIDATED BALANCE SHEET
(unaudited; in £ thousands)
30 September
2018
Restated(1)30 June
2018
Restated(1)30 September
2017
ASSETS Non-current assets Property, plant and equipment 247,542 245,401 246,831 Investment property 13,804 13,836 13,934 Intangible assets 767,435 799,640 805,694 Derivative financial instruments 5,576 4,807 479 Trade and other receivables 10,146 4,724 9,991 Tax receivable 547 547 - Deferred tax asset 61,386 63,332 135,619 1,106,436 1,132,287 1,212,548 Current assets Inventories 2,666 1,416 2,074 Derivative financial instruments 518 1,159 2,433 Trade and other receivables 91,861 168,06085,243
Tax receivable 800 800 - Cash and cash equivalents 247,505 242,022 216,236 343,350 413,457305,986
Total assets 1,449,786 1,545,7441,518,534
(1) Comparative amounts have been restated. See supplemental note 5 for further details.
CONSOLIDATED BALANCE SHEET (continued)
(unaudited; in £ thousands)
30 September
2018
Restated(1)30 June
2018
Restated(1)30 September
2017
EQUITY AND LIABILITIES Equity Share capital 53 53 53 Share premium 68,822 68,822 68,822 Merger reserve 249,030 249,030 249,030 Hedging reserve (29,065 ) (27,558 ) (23,890 ) Retained earnings 143,613 136,757 203,608 432,453 427,104 497,623 Non-current liabilities Derivative financial instruments - - 523 Trade and other payables 45,460 104,271 69,898 Borrowings 492,438 486,694 478,065 Deferred revenue 35,248 37,085 35,060 Deferred tax liabilities 29,673 29,134 27,058 602,819 657,184 610,604 Current liabilities Tax liabilities 2,675 3,874 8,675 Trade and other payables 185,028 267,996 202,534 Borrowings 2,264 9,074 6,236 Deferred revenue 224,547 180,512192,862
414,514 461,456410,307
Total equity and liabilities 1,449,786 1,545,7441,518,534
(1) Comparative amounts have been restated. See supplemental note 5 for further details.
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited; in £ thousands)
Three months ended30 September
2018 2017 Cash flows from operating activities Cash generated from operations (see supplemental note 4) 123,356 26,951 Interest paid (7,773 ) (8,018 ) Interest received 633 218 Tax paid (1,434 ) (1,238 ) Net cash generated from operating activities 114,782 17,913 Cash flows from investing activities Payments for property, plant and equipment (4,904 ) (4,344 ) Payments for intangible assets (128,638 ) (117,121 ) Proceeds from sale of intangible assets 24,928 32,186 Net cash used in investing activities (108,614 ) (89,279 ) Cash flows from financing activities Repayment of borrowings (3,750 ) (100 ) Net cash used in financing activities (3,750 ) (100 ) Net increase/(decrease) in cash and cash equivalents 2,418 (71,466 ) Cash and cash equivalents at beginning of period 242,022 290,267 Effects of exchange rate changes on cash and cash equivalents 3,065 (2,565 ) Cash and cash equivalents at end of period 247,505 216,236SUPPLEMENTAL NOTES
1 General information
Manchester United plc (the “Company”) and its subsidiaries (together the “Group”) is a professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (2011 Revision) of the Cayman Islands, as amended and restated from time to time.
2 Reconciliation of profit for the period to Adjusted EBITDA
Three months ended30 September
2018
£’000
Restated(1)2017
£’000
Profit for the period 6,646 9,570 Adjustments: Tax expense 2,102 7,555 Net finance costs 5,126 783 Profit on disposal of intangible assets (22,428 ) (17,279 ) Amortization 35,131 36,054 Depreciation 2,809 2,574 Adjusted EBITDA 29,386 39,257(1) Comparative amounts have been restated. See supplemental note 5 for further details.
3 Reconciliation of profit for the period to adjusted profit for the period and adjusted basic and diluted earnings per share
Three months ended30 September
2018
£’000
Restated(1)2017
£’000
Profit for the period 6,646 9,570 Foreign exchange losses/(gains) on unhedged US dollar borrowings 219 (5,496 ) Fair value movement on embedded foreign exchange derivatives (81 ) 554 Tax expense 2,102 7,555 Adjusted profit before tax 8,886 12,183 Adjusted tax expense (using a normalized US federal corporate income tax rate of 21% (2017: 35%)) (1,866 ) (4,264 ) Adjusted profit for the period (i.e. adjusted net income) 7,020 7,919 Adjusted basic earnings per share: Adjusted basic earnings per share (pence) 4.27 4.82 Weighted average number of ordinary shares outstanding (thousands) 164,526 164,195 Adjusted diluted earnings per share: Adjusted diluted earnings per share (pence) 4.26 4.81 Weighted average number of ordinary shares outstanding (thousands) 164,698 164,585(1) Comparative amounts have been restated. See supplemental note 5 for further details.
4 Cash generated from operations
Three months ended30 September
2018£’000
Restated(1)2017
£’000
Profit for the period 6,646 9,570 Tax expense 2,102 7,555 Profit before tax 8,748 17,125 Depreciation 2,809 2,574 Amortization 35,131 36,054 Profit on disposal of intangible assets (22,428 ) (17,279 ) Net finance costs 5,126 783 Equity-settled share-based payments 210 585 Foreign exchange losses on operating activities 277 991 Reclassified from hedging reserve 1,308 3,881 Changes in working capital: Inventories (1,250 ) (437 ) Trade and other receivables 69,596 13,922 Trade and other payables and deferred revenue 23,829 (31,248 ) Cash generated from operations 123,356 26,951(1) Comparative amounts have been restated. See supplemental note 5 for further details.
5 Restatement of prior periods following implementation of IFRS 15
The Group adopted IFRS 15 ‘Revenue from contracts with customers’ with effect from 1 July 2018. The implementation of IFRS 15 had an impact on the Group’s financial statements as at 1 July 2018 and consequently prior year amounts have been restated. The table below shows the retrospective impact on revenue for the four quarters ended 30 June 2018. Note 32 to the interim consolidated financial statements for the three months ended 30 September 2018 contains tables and notes which explain how the restatement affected the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, and consolidated statement of cash flows.
Commercial revenue IFRS 15 focuses on the identification and satisfaction of performance obligations and includes specific guidance on the methods for measuring progress towards complete satisfaction of a performance obligation therefore revenue on certain commercial contracts is recognized earlier under IFRS 15. The effect of the retrospective application is an increase in cumulative revenue recognized over the financial years up to and including the year ended 30 June 2018 including a reduction to the amount of revenue recognized during the financial year ended 30 June 2018 only.
Broadcasting revenue Following adoption of IFRS 15, certain performance obligations are satisfied over time as each Premier League match (home and away) is played – accordingly revenue is recognized evenly as each Premier League match (home and away) is played. Broadcasting merit awards were previously recognized one share in the first quarter with the remainder being recognized when they were known at the end of each football season. Merit awards represent variable consideration and therefore, following adoption of IFRS 15, are estimated using the most likely amount method based on management’s estimate of where the Club’s finishing position will be at the end of each season. Broadcasting equal share payments were previously recognized evenly as each Premier League home match was played. Note, these changes only affect the amount of broadcasting revenue recognized in each quarter, they do not affect the amount of broadcasting revenue recognized for the financial year as a whole.
Matchday revenue Adoption of IFRS 15 has no impact on the recognition of matchday revenue.
£’000 Three months Three months Three months Three months Twelve months ended ended ended ended ended 30 September 31 December 31 March 30 June 30 June 2017 2017 2018 2018 2018 Commercial revenue Reported 80,544 65,366 66,673 63,516 276,099 Adjustment (66 ) (66 ) (66 ) (66 ) (264 ) Restated 80,478 65,300 66,607 63,450 275,835 Broadcasting revenue Reported 38,082 61,628 39,674 64,753 204,137 Adjustment 2,751 13,519 9,656 (25,926 ) - Restated 40,833 75,147 49,330 38,827 204,137 Matchday revenue Reported 22,354 36,968 31,122 19,342 109,786 Adjustment - - - - - Restated 22,354 36,968 31,122 19,342 109,786 Total revenue Reported 140,980 163,962 137,469 147,611 590,022 Adjustment 2,685 13,453 9,590 (25,992 ) (264 ) Restated 143,665 177,415 147,059 121,619 589,758
View source version on businesswire.com: https://www.businesswire.com/news/home/20181115005411/en/
Manchester United plcInvestor Relations:Cliff BatyChief Financial Officer+44 161 868 8650ir@manutd.co.ukorManchester United plcMedia:Charlie BrooksDirector of Communications+44 161 868 8148charlie.brooks@manutd.co.ukorSard Verbinnen & CoJim Barron / Devin Broda+ 1 212 687 8080JBarron@SARDVERB.comdbroda@SARDVERB.com
1 Year Manchester United Chart |
1 Month Manchester United Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions