Manchester United: 2013 Fourth Quarter And Full Year Results

Manchester United (NYSE: MANU; “the Company”, “the parent” and “the Group”) – one of the most popular and successful sports teams in the world - today announced financial results for the quarter and year ended 30 June 2013.
Annual Highlights
  • FAPL Champions in 2012/13: a record 20 English League titles.
  • Adjusted net income for fiscal 2013 increased 282.2% to £17.2m and adjusted earnings per share was up 266.7% to £0.11.
  • Commercial revenues grew 29.7% for the year 2013 to a record £152.5m - 42.0% of total revenue. During the fiscal year, we announced:
    • 7 global sponsorship partnerships including a world record shirt deal with Chevrolet
    • 4 regional sponsorship partnerships, and
    • 9 financial services and telecom agreements.
  • Opened our first regional sales office in Hong Kong in August 2012 which has made an excellent contribution, concluding multiple deals.
  • Acquired the remaining one-third stake in MUTV – securing full control of all our content generation and distribution capabilities .
  • Reached 34 million Facebook followers and 32 million unique records on our CRM database compared to 26 million and 15 million respectively a year ago.
  • Refinanced all our outstanding £177.8m GBP bonds and $22.1m of the US dollar bonds with a new term loan, resulting in interest saving of around £10m per year.
Commentary

Ed Woodward, Executive Vice Chairman commented, “We are very proud of our results for fiscal 2013. It has been a little over a year since our IPO and in that time we have delivered on our targets and objectives. Our commercial business continues to be a very powerful engine of growth enabling the team to continue to be successful. We won our 20 th English League title last season and are delighted to have David Moyes lead our football team into a new and exciting chapter. We look forward to a successful 2013/14, both on and off the pitch.”
Outlook

For fiscal 2014, Manchester United expects:
  • Revenue to be £420m to £430m.
  • Adjusted EBITDA to be £128m to £133m.

This assumes the team finishes third in the FA Premier League and reaches the quarter-finals of the UEFA Champions League and the domestic cups.
Key Financials (unaudited)

£ million (except adjusted earnings per share)
  Twelve months ended

30 June
      Three months ended

30 June
   
  2013   2012 Change 2013   2012 Change
Commercial revenue 152.5 117.6 29.7% 37.9 28.1 34.9%
Broadcasting revenue 101.6 104.0 (2.3)% 26.6 27.5 (3.3)%
Matchday revenue 109.1 98.7 10.5% 20.6 18.9 9.0%
Total revenue 363.2 320.3 13.4% 85.1 74.5 14.2%
Adjusted EBITDA* 108.6 91.6 18.6% 17.0 7.0 142.9%
 
Profit/(loss) for the period (i.e. Net Income) 146.4 23.3 528.3% 106.1 (14.9) -
Adjusted profit/(loss) for the period (i.e. Adjusted Net Income)* 17.2 4.5 282.2 % (2.7) (10.6) (74.5)%
Adjusted basic and diluted earnings/(loss) per share* 0.11 0.03 266.7% (0.02) (0.07) (71.4)%
 
Gross debt 389.2 436.9 (10.9)% 389.2 436.9 (10.9)%
Cash and cash equivalents 94.4 70.6 33.7% 94.4 70.6 33.7%

* Adjusted EBITDA, adjusted profit/(loss) for the period and adjusted basic and diluted earnings/(loss) per share are non-IFRS measures. See Non-IFRS Measures: Definitions and Use below 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.
Revenue Analysis

Commercial

Commercial revenue for the year increased 29.7% to £152.5 million driven by several new sponsorship partners, an increase in profit share from Nike, new mobile and financial services agreements, and higher renewals from existing partners.

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