Manchester United Posts Loss In Q3 As Revenue Drops, Lifts Full Year EBITDA View

(RTTNews) - English football giant Manchester United Plc. (MANU) Thursday reported a loss for the third quarter, compared to a profit last year, as revenues decreased nearly 18 percent from last year. The company, however, raised its outlook for full-year Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA.

Loss for the quarter totaled 2.87 million pounds or 1.75 pence per share, compared to profit of 10.91 million pounds or 6.66 pence per share in the previous year.

The company recorded exceptional items of 1.2 million pounds for the just concluded quarter, related to the present value of the additional contributions the Club is expected to pay to remedy the revised deficit of the Football League pension scheme as per the latest triennial actuarial valuation.

Adjusted loss per share was 4.34 pence, compared to earnings of 7.93 pence per share last year.

Loss before tax was 11.43 million pounds, compared to profit of 20.43 million pounds last year.

Total revenue fell to 95 million pounds from 115.5 million pounds.

Commercial revenue increased 11.7 percent to 47.8 million pounds, supported by more than 22 percent increase in Sponsorship revenue.

Broadcasting revenue fell 39 percent to 21.7 million pounds, primarily due to five fewer FAPL live broadcast games and two fewer FAPL home games in the current quarter, and non-participation in the UEFA Champions League.

Matchday revenue was 31.3 percent lower at 25.5 million pounds, as a result of two fewer FAPL home games in the current quarter and non-participation in the UEFA Champions League.

Operating expenses increased 8.2 percent to 99 million pounds, despite a 6 percent drop in staff costs.

Ed Woodward, executive vice chairman, said, "Our commercial revenues were up year over year and we are raising EBITDA guidance for fiscal year 2015 from £90-£95 million to £103-£110 million. As the season approaches its conclusion, we are pleased with the team's performance in Louis van Gaal's first season as manager and are well positioned to achieve a top four finish in the Premier League and to return to European football next year."

For fiscal 2015, Manchester United expects revenue to be 385 million pounds to 395 million pounds.

MANU closed up 0.4 percent on Wednesday at $15.57.