Manchester United (MANU 22.04, +0.24) is
higher after reporting mixed results for the first quarter.
The soccer franchise reported above-consensus first quarter earnings of GBP0.04 per share on a 6.1% yr/yr decline in revenue to GBP135 mln, which was shy of expectations.
The overall revenue decline was due to decreases in Matchday revenue and Commercial revenue while Broadcasting revenue increased.
Matchday revenue fell 27.2% yr/yr to GBP16.30 mln due to two fewer home games played. Commercial revenue decreased 5.7% yr/yr to GBP75.90 mln. A smaller summer tour reduced Sponsorship revenue by 6.8% yr/yr to GBP3.60 mln. Retail, Merchandising, Apparel & Product Licensing revenue fell 3.7% yr/yr to GBP26.30 mln. The franchise blamed fewer home games across all competitions for the decline.
Broadcast revenue grew 4.9% yr/yr to GBP42.80 mln.
Manchester United reaffirmed its revenue guidance for the fiscal year, expecting sales between GBP615 mln and GBP630 mln. Adjusted EBITDA is expected between GBP175 mln and GBP190 mln. The team's revenue guidance encompasses current market expectations.
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