Why Manchester United Shares Are Taking A Hit Today

Manchester United Ltd. MANU shares are trading lower after the company reported its first-quarter results and reduced its fiscal 2024 guidance.

Manchester United reported first-quarter adjusted EPS of $(0.067) loss, missing the analyst consensus of $(0.06) loss.

The company reported quarterly sales of $198.879 million, beating the consensus of $194.85 million.

The company attributed its higher revenue to Matchday and Commercial revenue. Broadcasting revenue surged 12.3% over the prior-year quarter, primarily due to men’s first team participating in the UEFA Champions League compared to the UEFA Europa League in the prior year quarter, as well as increased income from the Premier League.

Matchday revenue jumped 28.6% primarily due to playing one more home game compared to the prior year quarter. Total operating expenses for the quarter grew 12.8% over the prior year quarter.

As of 30 September 2023, cash and cash equivalents were £80.8 million compared to £24.3 million in the prior-year quarter.

Outlook: For fiscal 2024, the company is forecasting revenue guidance to be within a range of £635 million to £665 million (prior guidance: £650 million to £680 million).

The company projects adjusted EBITDA guidance of £125 million to £150 million (prior guidance of £140 million to £165 million), owing to the early Champions League exit and related reduction in Broadcasting revenues.

The cutback will come as a setback for British billionaire Jim Ratcliffe, who clinched a much-anticipated agreement last month to acquire a 25% share in the club in an effort to rejuvenate its prospects, Reuters reported.

Read Next: Billionaire Jim Ratcliffe Secures Minority Stake In Manchester United, Boosting Club’s Valuation To $6.3B

Price Action: MANU shares are trading lower by 5.64% to $20.00 on the last check Wednesday.

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