Key Takeaways
- Manchester United shares fell Wednesday morning after the soccer giant reported a larger loss than expected for its fiscal 2024 fourth quarter.
- The team said it expects its restructuring efforts to create at least 40 million pounds ($52 million) in savings by the end of fiscal 2026.
- Broadcasting revenue is also expected to be take a 30-million-pound ($39 million) hit in fiscal 2025, as the club missed out on this season’s lucrative UEFA Champions League competition.
Manchester United (MANU) shares fell sharply Wednesday morning as the soccer giant reported a larger-than-expected net loss for its fiscal 2024 fourth quarter, and said it expects broadcast revenue to take a hit in fiscal 2025 after it missed out on this season’s lucrative UEFA Champions League competition.
One of the world’s few publicly traded sports teams and one of the most valuable, Manchester United reported 142.2 million pounds ($185 million) in total revenue, roughly 3 million pounds better than the consensus estimate of analysts compiled by Visible Alpha. But the team’s net loss widened from last year and came in worse than expected at 36.3 million pounds.
Man U Sees Lower Broadcasting Revenue in Fiscal 2025
The club expects 650 million pounds to 670 million pounds in fiscal 2025 revenue after producing 661.8 million pounds in fiscal 2024. It sees broadcasting generating about 30 million pounds less in revenue after it finished eighth in last season’s Premier League, meaning it misses out on this campaign’s high-profile UEFA Champions League competition.
Manchester United said that it expects the restructuring program it started in the third quarter will pay off over fiscal 2025 and 2026. Once the program is complete, the team expects annual cost savings of about 40 million pounds to 45 million pounds, with about 10 million pounds in one-time expenses expected as it implements the changes.
Shares of the British soccer giant fell 5.5% to $15.50 late Wednesday morning. They have lost nearly a quarter of their value since the start of the year.