Manchester United plc (MANU) Q1 2025 Earnings Report

Manchester United plc delivered a mixed QQ1 2025 performance characterized by a GBP143.1 million revenue line and a gross profit that equals revenue, implying a 100% gross margin in the period. The company posted an EBITDA of GBP23.366 million but recorded an operating loss of GBP 6.968 million as operating expenses totaled GBP 150.033 million. Net income stood at GBP 1.329 million with EPS of GBP 0.0078, aided by GBP 8.596 million of net other income. YoY revenue declined 8.93% while QoQ revenue grew 0.6%. The quarter reflected heavy investment activity and a capital expenditure program that drove negative free cash flow (GBP -150.722 million), despite a positive operating cash flow of GBP 13.317 million and a net cash inflow from financing activities of GBP 199.872 million. The balance sheet shows a highly leveraged profile: total debt GBP 722.704 million and net debt GBP 573.146 million, with current liquidity metrics weak (current ratio 0.37, quick 0.35, cash ratio 0.19) and negative working capital. Management commentary was not available in the provided transcript, so forward-looking signaling hinges on strategy around monetizing digital platforms, sponsorships, licensing, and debt optimization. In sum, the quarter underscores Manchester United’s brand strength and direct-to-consumer opportunities, but highlights near-term profitability pressures and elevated leverage that warrants close monitoring by investors.