Man United in the red as match-day and sponsorship revenues fall

Manchester United PLC (NYSE:MANU) slipped to a loss and net debt increased in the past three months as the impact of the coronavirus pandemic reduced match-day revenue and sponsorship revenue. The Red Devils reported a £30.3mln loss for the first quarter of the new financial year to September 30, compared to a £1.1mln profit a year ago. Match-day revenue fell 92% to £1.7mln as three home and three away Premier League matches played in the period, plus an FA Cup semi-final away match and three UEFA Europa League matches in the previous season, all behind closed doors. Furthermore, sponsorship revenue fell 32% to £36.5mln, primarily because of the first team’s pre-season tour in this summer was cancelled due to travel restrictions. Retail, merchandising, apparel and product licensing revenue fell 13% to £23.2mln, as far fewer fans were able to shop in the Old Trafford Megastore. On the upside, broadcasting revenue was up 45% to £47.6mln thanks to the delay of the 2019/20 domestic and UEFA competitions. As a result, total revenue fell 19.5% to £109mln, while a large decrease in cash due to much lower season ticket advance receipts meant net debt was up 15% to £440.6mln. Executive vice chairman Ed Woodward said: “While the COVID-19 pandemic continues to cause significant disruption, we are optimistic that the recovery and normalisation phase is gradually coming into view. “The club’s resilience and our strong commercial business continue to provide a solid foundation and gives us confidence in our long-term outlook beyond the pandemic, both on and off the pitch.”