English soccer club Manchester United plc (MANU: Quote) on Tuesday reported a loss for the fourth quarter that widened from last year on lower revenues, reflecting the club's early elimination in the Champions League as well as the F.A. Cup. The financial results are the company's first since it went public on the New York Stock Exchange in August.
Commercial revenue for the quarter grew 5 percent to 28.1 million pounds due to the addition of new global and regional sponsorships.
However, broadcasting revenue declined 37 percent to 27.5 million pounds primarily due to the club's elimination at the group stages of the Champions League.
In addition, the club earned minimal revenues from the F.A. Cup following its fourth-round exit, compared with reaching the semi-final in the previous year.
Matchday revenue for the quarter decreased 35 percent to 18.9 million pounds as a result of Manchester United playing two fewer home games compared with the prior year period when the club also received a share of the gate receipts from the Champions League final and F.A. Cup semi-final, both of which were held at Wembley Stadium.
Manchester United's net loss for the fourth quarter was 15.00 million pounds, wider than loss of 0.50 million pounds in the prior-year period. On a per share basis, loss was 0.10 pounds compared to breakeven in the year-ago quarter.
Revenue for the quarter declined 25 percent to 74.49 million pounds from 99.80 million pounds in the same period last year.
For fiscal 2012, Manchester United's net income rose to 23 million pounds or 0.15 pounds per share from 12.65 million pounds or 0.08 pounds per share in the prior year. The latest year's results reflect a tax credit of 27.98 million pounds.
Total revenue for the year decreased 3 percent to 320.32 million pounds from 331.44 million pounds last year.
Ed Woodward, Executive Vice Chairman of Manchester United said, "We are delighted to announce our first results as a NYSE listed company; fiscal 2012 was the best year ever for Manchester United's commercial business."
Woodward added, "Our world-record $559m shirt sponsorship deal with Chevrolet and the Premier League's new £1bn a year UK television rights deal (a 70% increase) highlight the outstanding growth prospects for the future. We also expect a substantial increase in the value of the Premier League's international television contracts scheduled to be announced later this year."
Looking ahead to fiscal 2013, Manchester United expects revenue between 350 million pounds and 360 million pounds and adjusted EBITDA or earnings before interest, taxes, depreciation and amortization of 107 million to 110 million pounds.
The outlook assumes that the 19-time English champions will reach the quarter-finals of the UEFA Champions League and the domestic cups.
Manchester United noted that the IPO completed in August raised net primary proceeds of $110.3 million that was used to reduce its senior secured notes.
In Tuesday's regular session, MANU is trading at $12.65, down $0.31 or 2.39 percent on a volume of 163,236 shares.
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by RTT Staff Writer
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