Manchester United Q3 Revenue Tops $200M as Potential Sale Lingers
Manchester United revenue grew 11% in its third quarter, reaching £170 ($206 million) on the back of record attendance and improved in-stadium sales.
The results for the period, which ended March 31, by and large beat investor expectations, but the most hotly anticipated disclosure, about progress on a potential sale of the team, was left unaddressed. Management didn’t mention the sale process in its earnings release or during a call with analysts Tuesday morning. Instead, executives focused on the long-term potential of current efforts to boost fan engagement, potential redevelopment of its stadium and media rights trends even as inflation crimps domestic U.K. consumer spending.
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“Despite global economic headwinds, we see strong tailwinds to the value of global TV rights of the Premier League and UEFA competition, and a competitive sponsorship market with many new market entrants looking to build and strengthen their brand through association with leading global sports brands such as ours,” CEO Richard Arnold said in prepared remarks on the earnings call.
Third quarter financials were helped by the Red Devils playing five more home matches in the period than it did the prior year, contributing to record attendance and a leap of matchday revenue of nearly 40%. Strong performances by the senior women’s team and the under-19 men also were cited as positives. The business posted per-share net income of about £0.03 ($0.04), though after stripping out one-time gains, the club posted a loss of £0.07 ($0.08) for the period.
With release of the quarterly results, the team also boosted its revenue guidance for fiscal 2023 to about £635 million, which would be a record level of sales and ahead earlier Wall Street expectations, as well as a 9% increase over 2022.
An increase in sales projections should help Manchester United’s stock, which is traded on the New York Stock Exchange. However, the status of the controlling Glazer family’s consideration of “strategic alternatives” for the team has had far more impact on shares after that was announced in November. United shares have been on a rollercoaster ride ever since, as rumors and news of bidders seeking to buy or make an investment in the club dribbles out. Shares have traded as high as $26.84 and as low as $17.26 during the process. They opened Tuesday’s trading at $22.26, slightly softer than Monday.
The last major development in the sales process was a report two weeks ago that the Glazers were exclusively negotiating with a consortium led by Sheikh Jassim bin Hamad Al Thani.
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