Key Points
- Under leadership of new manager Erik ten Hag, strengthened
the men’s first team with the summer recruitment of Antony,
Casemiro, Christian Eriksen, Lisandro Martinez, Tyrell Malacia, and
Martin Dubravka on loan
- Strengthened the Women’s team with the addition of seven new
players
- Normal summer Tour activities resumed in July 2022 with over
350,000 fans in attendance
- Achieved record e-commerce revenues, memberships, and
digital engagements in FY22
- Launched three new principal partnerships, signed five new
global partners and eight global renewals in FY22
- For the full year fiscal 2023, the Company expects total
revenues to be in a range of £580 million to £600 million and
adjusted EBITDA to be in a range of £100 million to £110
million
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 2022 fiscal fourth
quarter and twelve months ended 30 June 2022.
Management Commentary
Richard Arnold, Chief Executive Officer, commented, “Our club’s
core mission is to win football matches and entertain our fans.
Since our last earnings report, we have strengthened our men’s
first team squad, completed a successful summer tour, and
established a foundation to build from in the early stages of the
2022/23 season under our new manager Erik ten Hag. We have also
continued to develop our women’s team with an aim of reinforcing
our position among the leading clubs in the Women’s Super
League.
“Ultimately, we know that the strength of Manchester United
rests on the passion and loyalty of our fans, which is why we have
made fan engagement a strategic priority. While there is a lot more
work to do, everyone at the club is aligned on a clear strategy to
deliver sustained success on the pitch and a sustainable economic
model off it, to the mutual benefit of fans, shareholders, and
other stakeholders.”
Cliff Baty, Chief Financial Officer, commented, “Our financial
results for fiscal 2022 reflect a recovery from the pandemic, a
full return of fans and new commercial partnerships offset by
increased investment in the playing squad. Our results have been
adversely affected by the absence of a summer tour in July 2021,
material exceptional and increased utility costs, and the impact of
the weakening of sterling on our non-cash finance costs. Looking
forward to fiscal 2023, the Club is guiding to revenues of £580
million to £600 million despite participation in the Europa League,
and adjusted EBITDA of £100 million to £110 million, reflecting the
continued playing squad investment.”
Football
We have achieved a series of milestones in the strengthening of
our football operations during fiscal 2022, including:
- Appointment of Erik ten Hag as manager in May 2022
- Recruitment of five regular starters for the Men’s first team
and seven new players for the Women’s team
- Manchester United Women finished fourth in the 2021/22 Women’s
Super League
- Three Manchester United players featured in the England team
which won the UEFA Women’s European Championship in July, and a
fourth joined the club after the tournament
- Men’s Academy Under-18s team won the FA Youth Cup at Old
Trafford for a record 11th time, in front of over 67,000 fans; the
women’s Under-21s won the FA WSL Academy League title and the WSL
Academy Cup
- August 2022 marked 90 years since the inception of Manchester
United’s Youth Development programme and we continue to extend our
record of having an Academy graduate in every first team squad
since 1937, spanning over 4,150 games
- Ongoing strengthening of our scouting and recruitment
operations, including the hiring of a new Director of Data Science,
and investment in ongoing upgrades of our Carrington training
ground
Fan Engagement
Strengthening engagement with fans is a key strategic priority,
and includes the following initiatives:
- Since its inception in January, the Club held two quarterly
meetings of our Fans’ Advisory Board, a new channel for board-level
dialogue between fan representatives and the club, with each
meeting attended by Chairman Joel Glazer
- The Premier League introduced a Fan Engagement Standard which
extends the current cap on away ticket prices and mandates the
introduction of Fan Advisory Boards by all clubs
- General Admission Season Ticket prices were kept frozen for an
11th season
- Reformed season ticket policies to give fans more choice and
flexibility in the purchase of Cup tickets
- Appointed the club’s first Head of Fan Engagement
Facilities - Venue and
Operations
In addition to record ticket sales for the 2022/23 season, Venue
and Operations further achieved:
- Record number of global memberships sold including sell-out of
a new Premium Membership tier
- Record number of Executive Club renewals with the fastest
sell-out ever at record revenue levels
- A 55% increase in Women’s season tickets sold for the upcoming
season
- A return to normal pre-season Tour operations which generated
record Tour revenues with over 350,000 fans in attendance across
three continents, four countries and five cities
- Old Trafford will also host the Rugby League World Cup final in
November 2022 and a third Women’s Super League fixture against
Aston Villa in December 2022
Partnerships
A strong year of new or renewed partnership deals included:
- Launched three new principal partnerships
- Signed five new global partnerships
- Renewed eight global and regional partnerships
- Club held its first in person #ILoveUnited event since the
onset of the pandemic in Miami in April 2022 with more than 2,000
fans in attendance featuring activations from 22 global
partners
Digital Products &
Experiences
Content-led digital fan engagement continues to connect our club
with our fans around the world and contributed to record e-commerce
sales. Other digital initiatives completed, or in progress,
include:
- Club achieved record e-commerce revenue for fiscal 2022 at
nearly double fiscal 2021 revenues
- Launch of an upgraded Club app, fully integrated with MUTV
content; achieved a record number of subscriptions, registrations,
and daily active users and was the number one downloaded sports app
in over 100 markets
- Over 2.5 million app users watched Tour match content via our
Club app across 220 markets contributing to record breaking
engagement and video views
- Club generated more than 2.8 billion digital interactions (up
72% vs. fiscal 2021) and 7.3 billion video views across all global
platforms earning the distinction of most engaging sports team for
the 2021/22 season
- Momentum continues into fiscal 2023 as club achieved record
first week e-commerce sales for the new 2022/23 home and away kit
launches
- Creation of new Digital Products & Experiences department
to drive innovation and new revenue streams in areas such as NFTs,
among other new initiatives
Industry Developments and
Governance
There have been several significant developments in football
governance, including reform of:
- UEFA Financial Sustainability rules, effective July 2022, which
will ultimately include a cap of 70% of operating revenue on men’s
squad
- FIFA’s Football Agent Regulations
- UEFA club competition format and access criteria post-2024,
which will increase the number of matches in the league phase of
the Champions League to eight matches and will provide an
additional two places in the expanded Champions League to the
country associations with the best collective performance by their
clubs in the previous season.
Key Financials
(unaudited)
£ million (except loss per share)
Twelve months ended
30 June
Three months ended
30 June
2022
2021
Change
2022
2021
Change
Commercial revenue
257.8
232.2
11.0%
63.4
51.8
22.4%
Broadcasting revenue
214.9
254.8
(15.7%)
33.7
39.9
(15.5%)
Matchday revenue
110.5
7.1
1456.3%
21.4
2.3
830.4%
Total revenue
583.2
494.1
18.0%
118.5
94.0
26.1%
Adjusted EBITDA(1)
81.1
95.1
(14.7%)
(8.4)
(10.5)
20.0%
Operating loss
(87.4)
(36.9)
136.9%
(60.7)
(36.7)
65.4%
Loss for the period (i.e. net loss)
(115.5)
(92.2)
25.3%
(70.7)
(107.7)
(34.4%)
Basic loss per share (pence)
(70.86)
(56.60)
25.2%
(43.46)
(66.08)
(34.2%)
Adjusted loss for the period (i.e.
adjusted net loss)(1)
(34.0)
(44.7)
(23.9%)
(20.2)
(33.7)
(40.1%)
Adjusted basic loss per share
(pence)(1)
(20.83)
(27.41)
(24.0%)
(12.38)
(20.67)
(40.1%)
Non-current and current borrowings
636.1
530.2
20.0%
636.1
530.2
20.0%
Cash and cash equivalents
121.2
110.7
9.5%
121.2
110.7
9.5%
Net debt(1)/(2)
514.9
419.5
22.7%
514.9
419.5
22.7%
(1) Adjusted EBITDA, adjusted loss for the period, adjusted
basic loss per share and net debt are non-IFRS measures. See
“Non-IFRS Measures: Definitions and Use” on page 8 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.
(2) The gross USD debt principal remains unchanged. Non-current
and current borrowings and cash and cash equivalents as at 30 June
2022 reflect the impact of a £100.0 million drawdown on our
revolving facilities. The increase in net debt is primarily due to
£64.6 million of unrealized foreign exchange losses on
retranslation of USD borrowings plus a further £40.0 million
drawdown on our revolving facilities, partially offset by a £10.5
million increase in cash and cash equivalents.
Outlook
For fiscal 2023, the company expects total revenues to be in a
range of £580 million to £600 million, despite participation in the
Europa League, and adjusted EBITDA to be in a range of £100 million
to £110 million, reflecting the continued playing squad investment.
Further, quarterly results will be impacted by the postponement of
two matches which were delayed due to a period of mourning after
the Queen’s passing and have yet to be rescheduled, as well as the
timing of the 2022 FIFA World Cup, which will begin late-November
and continue through late December.
Phasing of Premier League games
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
2022/23 season
8*
10
10
10
38
2021/22 season
6
12
11
9
38
*Note: Two matches scheduled in September 2022 were
postponed
Revenue Analysis
Commercial Commercial revenue for the year was £257.8
million, an increase of £25.6 million, or 11.0%, over the prior
year.
- Sponsorship revenue was £147.9 million, an increase of £7.7
million, or 5.5%, over the prior year, primarily due to the impact
of new sponsorship agreements. The prior year was affected by
COVID-19 related variations; and
- Retail, Merchandising, Apparel & Product Licensing revenue
was £109.9 million, an increase of £17.9 million, or 19.5%, over
the prior year, primarily due to the closure of the Megastore in
the prior year and the return of fans in the current year.
For the quarter, commercial revenue was £63.4 million, an
increase of £11.6 million, or 22.4%, over the prior year
quarter.
- Sponsorship revenue was £37.2 million, an increase of £7.1
million, or 23.6% over the prior year quarter, primarily due to the
impact of new sponsorship agreements; and
- Retail, Merchandising, Apparel & Product Licensing revenue
was £26.2 million, an increase of £4.5 million, or 20.7%, over the
prior year quarter, primarily due to the return of fans and
increased marketing activity.
Broadcasting Broadcasting revenue for the year was £214.9
million, a decrease of £39.9 million, or 15.7%, over the prior
year, primarily due to playing twenty-two fewer home and away games
across all competitions compared to the prior year.
Broadcasting revenue for the quarter was £33.7 million, a
decrease of £6.2 million, or 15.5%, over the prior year quarter,
primarily due to playing five fewer home and away games across all
competitions and the impact of our men’s first team finishing 6th
in the Premier League compared to 2nd in the prior year.
Matchday Matchday revenue for the year was £110.5
million, an increase of £103.4 million, or 1456.3%, over the prior
year, due to the return of fans to Old Trafford. In the prior year,
all matches prior to the final home match of the season were played
behind closed doors due to COVID-19 restrictions.
Matchday revenue for the quarter was £21.4 million, an increase
of £19.1 million, or 830.4%, over the prior year quarter, due to
the return of fans to Old Trafford.
Other Financial
Information
Operating expenses Total operating expenses for the year
were £692.6 million, an increase of £154.2 million, or 28.6%, over
the prior year.
Employee benefit expenses Employee benefit expenses for
the year were £384.2 million, an increase of £61.6 million, or
19.1%, over the prior year, due to investment in the first team
playing squad.
Other operating expenses Other operating expenses for the
year were £117.9 million, an increase of £41.5 million, or 54.3%,
over the prior year. This includes the impact of all home games
being played in front of a full capacity crowd and costs related to
the increased activity at the Old Trafford Megastore. In the prior
year, all but one home game were played behind closed doors.
Depreciation, impairment and amortization Depreciation
and impairment for the year was £14.3 million, a decrease of £0.7
million, or 4.7%, over the prior year. Amortization for the year
was £151.5 million, an increase of £27.1 million, or 21.8%, over
the prior year. The unamortized balance of registrations at 30 June
2022 was £316.2 million.
Exceptional items Exceptional items for the year were a
cost of £24.7 million. This cost includes compensation due to
former men’s first team managers, certain members of the playing,
coaching and scouting staff, and certain non-playing staff. The
cost also includes additional contributions we expect to pay
towards the Football League pension scheme deficit based upon the
latest actuarial valuation. Exceptional items for the prior year
were £nil.
Profit on disposal of intangible assets Profit on
disposal of intangible assets for the year was £21.9 million,
compared to £7.4 million for the prior year.
Net finance (costs)/income Net finance costs for the year
were £62.2 million, compared to net finance income of £12.9 million
for the prior year, an unfavorable movement of £75.1 million,
primarily due to an unfavorable swing in foreign exchange rates
resulting in unrealized foreign exchange losses on unhedged USD
borrowings in the current year compared to unrealized foreign
exchange gains in the prior year.
Income tax The income tax credit for the year was £34.1
million, compared to an expense of £68.2 million in the prior year.
The credit in the year is primarily a result of deferred tax assets
recognised in respect of losses arising in the year. The prior year
expense arose from the write off of US deferred tax assets.
Cash flows Overall cash and cash equivalents (including
the effects of exchange rate movements) increased by £10.6 million
in the year, compared to an increase of £59.2 million in the prior
year.
Net cash inflow from operating activities for the year was £96.4
million, a decrease of £16.7 million compared to a net cash inflow
of £113.1 million for the prior year. This is primarily due to
reduced broadcasting revenues as a result of fewer games played in
the year, partially offset by the return of fans to Old
Trafford.
Net capital expenditure on property, plant and equipment for the
year was £8.3 million, an increase of £2.1 million over the prior
year.
Net capital expenditure on intangible assets for the year was
£85.1 million, a decrease of £7.1 million over the prior year.
Net cash inflow from financing activities for the year was £5.0
million, compared to net cash inflow of £47.6 million in the prior
year. Current year cash inflow includes a drawdown of £40.0 million
on our revolving facilities, net of dividends paid of £33.6
million.
Net debt Net Debt as of 30 June 2022 was £514.9 million,
compared to £419.5 million as of 30 June 2021, an increase of £95.4
million primarily due to £64.6 million of unrealized foreign
exchange losses on retranslation of USD borrowings in addition to a
further drawdown on our revolving facilities of £40.0 million,
partially offset by a £10.5 million increase in cash and cash
equivalents.
Conference Call Details
The Company’s conference call to review fiscal 2022 and fourth
quarter results will be broadcast live over the internet today, 22
September 2022 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 144-year football heritage
we have won 66 trophies, enabling us to develop what we believe is
one of the world’s leading sports and entertainment brands with a
global community of 1.1 billion fans and followers. Our large,
passionate and highly engaged fan base provides Manchester United
with a worldwide platform to generate significant revenue from
multiple sources, including sponsorship, merchandising, product
licensing, broadcasting and matchday initiatives which in turn,
directly fund our ability to continuously reinvest in the club.
Cautionary Statements
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 certain
expectations and uncertainties related to the COVID-19 pandemic and
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) as supplemented by the risk factors contained in the
Company’s other filings with the Securities and Exchange
Commission.
Statement Regarding Unaudited Financial Information The
unaudited financial information set forth is preliminary and
subject to adjustments. The audit of the financial statements and
related notes to be included in our annual report on Form 20-F for
the year ended 30 June 2022 is still in progress. Adjustments to
the financial statements may be identified when audit work is
completed, which could result in significant differences from this
preliminary unaudited financial information.
Non-IFRS Measures: Definitions and
Use
1. Adjusted EBITDA Adjusted
EBITDA is defined as profit/(loss) for the period before
depreciation and impairment, amortization, profit on disposal of
intangible assets, net finance costs/income, exceptional items 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, impairment and
amortization), material volatile items (primarily profit on
disposal of intangible assets), capital structure (primarily
finance income/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 loss/profit for the
period to adjusted EBITDA is presented in supplemental note 2.
2. Adjusted loss for the period (i.e.
adjusted net loss) Adjusted loss 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 (including foreign
exchange losses immediately reclassified from the hedging reserve
following change in contract currency denomination of future
revenues), and fair value movements on embedded foreign exchange
derivatives and foreign currency options, adding/subtracting the
actual tax expense/credit for the period, and subtracting/adding
the adjusted tax expense/credit for the period (based on a
normalized tax rate of 21%; 2021: 21%). 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) of the weighted
average US federal corporate income tax rate of 21% (2021: 21%)
applicable during the financial year. A reconciliation of loss for
the period to adjusted loss for the period is presented in
supplemental note 3.
3. Adjusted basic and diluted loss per
share Adjusted basic and diluted loss per share are
calculated by dividing the adjusted loss for the period by the
weighted average number of ordinary shares in issue during the
period. Adjusted diluted loss 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 loss
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
Twelve months ended
30 June
Three months ended
30 June
2022
2021
2022
2021
Revenue
Commercial % of total revenue
44.2%
47.0%
53.5%
55.1%
Broadcasting % of total revenue
36.8%
51.6%
28.4%
42.5%
Matchday % of total revenue
19.0%
1.4%
18.1%
2.4%
2021/22
Season
2020/21
Season
Carryover
2019/20
Season
2021/22
Season
2020/21
Season
Home Matches Played
PL
19
19
3
4
5
UEFA competitions
4
7
1
-
2
Domestic Cups
3
4
-
-
-
Away Matches Played
PL
19
19
3
5
4
UEFA competitions
4
8
2
-
3
Domestic Cups
-
4
1
-
-
Other
Employees at period end
1,068
971
1,068
971
Employee benefit expenses % of revenue
65.9%
65.3%
81.1%
89.1%
CONSOLIDATED STATEMENT OF
PROFIT OR LOSS
(unaudited; in £ thousands,
except per share and shares outstanding data)
Twelve months ended
30 June
Three months ended
30 June
2022
2021
2022
2021
Revenue from contracts with
customers
583,201
494,117
118,452
94,009
Operating expenses
(692,520
)
(538,424
)
(183,330
)
(137,848
)
Profit on disposal of intangible
assets
21,935
7,381
4,056
7,122
Operating loss
(87,384
)
(36,926
)
(60,822
)
(36,717
)
Finance costs
(85,915
)
(36,411
)
(46,053
)
(6,619
)
Finance income
23,676
49,310
15,048
1,235
Net finance (costs)/income
(62,239
)
12,899
(31,005
)
(5,384
)
Loss before tax
(149,623
)
(24,027
)
(91,827
)
(42,101
)
Income tax credit/(expense)
34,113
(68,189
)
20,985
(65,562
)
Loss for the period
(115,510
)
(92,216
)
(70,842
)
(107,663
)
Basic and diluted loss per
share:
Basic and diluted loss per share (pence)
(1)
(70.86
)
(56.60
)
(43.46
)
(66.08
)
Weighted average number of ordinary shares
used as the denominator in calculating basic and diluted loss per
share (thousands) (1)
163,001
162,939
163,003
162,939
(1) For the twelve and three months ended 30 June 2022 and the
twelve and three months ended 30 June 2021, potential ordinary
shares are anti-dilutive, as their inclusion in the diluted loss
per share calculation would reduce the loss per share, and hence
have been excluded.
CONSOLIDATED BALANCE
SHEET
(unaudited; in £
thousands)
As of 30 June
2022
2021
ASSETS
Non-current assets
Property, plant and equipment
242,661
247,059
Right-of-use assets
4,072
4,383
Investment properties
20,273
20,553
Intangible assets
743,278
754,467
Trade receivables
29,757
20,404
Derivative financial instruments
16,462
499
1,056,503
1,047,365
Current assets
Inventories
2,200
2,080
Prepayments
15,534
7,407
Contract assets – accrued revenue
36,239
40,544
Trade receivables
49,210
50,370
Other receivables
1,569
460
Income tax receivable
4,590
1,108
Derivative financial instruments
6,597
318
Cash and cash equivalents
121,223
110,658
237,162
212,945
Total assets
1,293,665
1,260,310
CONSOLIDATED BALANCE SHEET
(continued)
(unaudited; in £
thousands)
As of 30 June
2022
2021
EQUITY AND LIABILITIES
Equity
Share capital
53
53
Share premium
68,822
68,822
Treasury shares
(21,305
)
(21,305
)
Merger reserve
249,030
249,030
Hedging reserve
950
(10,436
)
Retained (deficit)/earnings
(170,042
)
(13,652
)
127,508
272,512
Non-current liabilities
Deferred tax liabilities
7,402
35,546
Contract liabilities - deferred
revenue
16,697
22,942
Trade and other payables
102,347
67,517
Borrowings
530,365
465,049
Lease liabilities
2,869
3,083
Derivative financial instruments
49
5,472
Provisions
11,586
4,157
671,315
603,766
Current liabilities
Contract liabilities - deferred
revenue
165,847
117,984
Trade and other payables
220,587
192,661
Income tax liabilities
-
6,036
Borrowings
105,757
65,187
Lease liabilities
1,561
1,257
Derivative financial instruments
32
262
Provisions
1,058
645
494,842
384,032
Total equity and liabilities
1,293,665
1,260,310
CONSOLIDATED STATEMENT OF CASH
FLOWS
(unaudited; in £
thousands)
Twelve months ended
30 June
Three months ended
30 June
2022
2021
2022
2021
Cash flows from operating
activities
Cash generated from operations (see
supplemental note 4)
121,704
137,778
43,876
27,614
Interest paid
(20,642
)
(20,542
)
(2,405
)
(1,680
)
Interest received
145
3
140
1
Tax paid
(4,836
)
(4,156
)
(489
)
(1,128
)
Net cash inflow from operating
activities
96,371
113,083
41,122
24,807
Cash flows from investing
activities
Payments for property, plant and
equipment
(8,323
)
(6,241
)
(2,100
)
(1,301
)
Payments for intangible assets
(115,415
)
(138,189
)
(14,081
)
(11,629
)
Proceeds from sale of intangible
assets
30,307
45,996
10,066
13,916
Payments for derivative financial
assets
-
(939
)
-
-
Net cash (outflow)/inflow from
investing activities
(93,431
)
(99,373
)
(6,115
)
986
Cash flows from financing
activities
Proceeds from borrowings
40,000
60,000
-
-
Principal elements of lease payments
(1,407
)
(1,641
)
(123
)
(410
)
Dividends paid
(33,553
)
(10,718
)
(11,992
)
-
Net cash inflow/(outflow) from
financing activities
5,040
47,641
(12,115
)
(410
)
Net increase in cash and cash
equivalents
7,980
61,351
22,892
25,383
Cash and cash equivalents at beginning of
period
110,658
51,539
95,791
84,715
Effects of exchange rate changes on cash
and cash equivalents
2,585
(2,232
)
2,540
560
Cash and cash equivalents at end of
period
121,223
110,658
121,223
110,658
SUPPLEMENTAL NOTES
1 General information
Manchester United plc (the “Company”) and its subsidiaries
(together the “Group”) is a men’s and women’s professional football
club together with related and ancillary activities. The Company
incorporated under the Companies Law (as amended) of the Cayman
Islands.
2 Reconciliation of loss for the period to adjusted
EBITDA
Twelve months ended
30 June
Three months ended
30 June
2022
£’000
2021
£’000
2022
£’000
2021
£’000
Loss for the period
(115,510
)
(92,216
)
(70,842
)
(107,663
)
Adjustments:
Income tax (credit)/expense
(34,113
)
68,189
(20,985
)
65,562
Net finance costs/(income)
62,239
(12,899
)
31,005
5,384
Profit on disposal of intangible
assets
(21,935
)
(7,381
)
(4,056
)
(7,122
)
Exceptional items
24,692
-
14,700
-
Amortization
151,462
124,398
38,231
29,668
Depreciation and impairment
14,314
14,959
3,523
3,715
Adjusted EBITDA
81,149
95,050
(8,424
)
(10,456
)
3 Reconciliation of loss for the period to adjusted loss for
the period and adjusted basic and diluted loss per share
Twelve months ended
30 June
Three months ended
30 June
2022
£’000
2021
£’000
2022
£’000
2021
£’000
Loss for the period
(115,510
)
(92,216
)
(70,842
)
(107,663
)
Exceptional items
24,692
-
14,700
-
Foreign exchange losses/(gains) on
unhedged US dollar denominated borrowings
58,738
(48,015
)
37,076
(1,060
)
Foreign exchange losses immediately
reclassified from the hedging reserve following change in contract
currency denomination of future revenues
-
14,631
-
-
Fair value movement on embedded foreign
exchange derivatives
23,205
881
14,503
520
Income tax (credit)/expense
(34,113
)
68,189
(20,985
)
65,562
Adjusted loss before tax
(42,988
)
(56,530
)
(25,548
)
(42,641
)
Adjusted income tax credit (using a
normalized tax rate of 21% (2021: 21%))
9,027
11,871
5,365
8,955
Adjusted loss for the period (i.e.
adjusted net loss)
(33,961
)
(44,659
)
(20,183
)
(33,686
)
Adjusted basic and diluted loss per
share:
Adjusted basic and diluted loss per share
(pence)(1)
(20.83
)
(27.41
)
(12.38
)
(20.67
)
Weighted average number of ordinary shares
used as the denominator in calculating adjusted basic and diluted
loss per share (thousands) (1)
163,001
162,939
163,003
162,939
(1) For the twelve and three months ended 30 June 2022 and the
twelve and three months ended 30 June 2021 potential ordinary
shares are anti-dilutive, as their inclusion in the diluted loss
per share calculation would reduce the loss per share, and hence
have been excluded.
4 Cash generated from operations
Twelve months ended
30 June
Three months ended
30 June
2022
£’000
2021
£’000
2022
£’000
2021
£’000
Loss for the period
(115,510
)
(92,216
)
(70,842
)
(107,663
)
Income tax (credit)/expense
(34,113
)
68,189
(20,985
)
65,562
Loss before income tax
(149,623
)
(24,027
)
(91,827
)
(42,101
)
Adjustments for:
Depreciation and impairment
14,314
14,959
3,523
3,715
Amortization
151,462
124,398
38,231
29,668
Profit on disposal of intangible
assets
(21,935
)
(7,381
)
(4,056
)
(7,122
)
Net finance costs/(income)
62,239
(12,899
)
31,005
5,384
Non-cash employee benefit expense -
equity-settled share-based payments
198
2,085
(1,291
)
(159
)
Foreign exchange losses on operating
activities
50
874
356
105
Reclassified from hedging reserve
(672
)
2,239
(481
)
2,063
Changes in working capital:
Inventories
(120
)
106
492
283
Prepayments
(8,825
)
(282
)
(3,983
)
5,026
Contract assets – accrued revenue
4,305
5,422
16,882
9,735
Trade receivables
(520
)
71,695
8,120
(18,121
)
Other receivables
(1,109
)
(221
)
(537
)
1,023
Contract liabilities – deferred
revenue
41,618
(49,407
)
23,440
20,881
Trade and other payables
22,480
5,415
17,170
12,432
Provisions
7,842
4,802
6,832
4,802
Cash generated from operations
121,704
137,778
43,876
27,614
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220919005630/en/
Investor Relations: Corinna Freedman Head of Investor
Relations +44 738 491 0828 Corinna.Freedman@manutd.co.uk
Media Relations: Andrew Ward Head of Media Relations
& Public Affairs +44 161 676 7770 andrew.ward@manutd.co.uk
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