Executive Summary
Manchester United plc delivered QQ2 2025 revenue of GBP 198.7m, down 11.98% year-over-year but up 38.89% sequentially from a low base in Q1 2025. The period generated EBITDA of GBP 55.9m with an EBITDA margin of 28.1%, while operating income was a modest GBP 3.0m (1.53% of revenue). Net income remained negative at GBP -27.75m, driven by substantial other expenses and interest, resulting in a negative EPS of GBP -0.16. The quarter underscores a bifurcated profile: operating leverage exists at the EBITDA level, yet net profitability is pressured by elevated financing costs and non-operational charges.
From a balance sheet perspective, the group carries meaningful leverage with total debt of GBP 740.2m and net debt of GBP 644.6m, offset by cash and equivalents of GBP 95.5m. The current ratio sits at 0.42, signaling tighter short-term liquidity, and free cash flow remains negative at GBP -70.2m for QQ2 2025. Management commentary (where available) and the earnings data suggest a focus on monetizing the brand through digital channels, merchandising, licensing, and direct-to-consumer initiatives, while seeking ongoing efficiency improvements to manage costs and capital structure. Investors should monitor rights renewal cycles, digital monetization traction, stadium-related revenue opportunities, and refinancing risk given the debt load and negative cash conversion dynamics.
Overall, the investment thesis is a blend of defensible brand value and secular demand for sports media/content with a meaningful leverage and cash-flow risk overlay. A closer eye on liquidity management, cost discipline, and revenue mix optimization will be key to turning EBITDA resilience into sustainable free cash flow generation.
Key Performance Indicators
QoQ: 38.89% | YoY:-11.98%
QoQ: 143.71% | YoY:-88.92%
QoQ: -2 187.66% | YoY:-236.18%
QoQ: -2 151.28% | YoY:-233.33%
Key Insights
Revenue: GBP 198.7m; YoY -11.98%; QoQ +38.89%
Gross Profit: GBP 184.123m; YoY -9.75%; QoQ +28.70%
Operating Income: GBP 3.046m; YoY -88.92%; QoQ +143.71%
Net Income: GBP -27.745m; YoY -236.18%; QoQ -2,187.66%
EPS: GBP -0.16; YoY -233.33%; QoQ -2,151.28%
EBITDA: GBP 55.923m; EBITDA Margin ~28.14%
Gross Profit Margin: 92.66%
Operating Margin: 1.53%
Net Margin: -13.96%
Interest Expense: GBP 42.48m; Depreciation & Amortization: GBP 53.716m
Free Cash Flow: GBP -70.166m; Operating Cash Flow: GBP -...
Financial Highlights
Revenue: GBP 198.7m; YoY -11.98%; QoQ +38.89%
Gross Profit: GBP 184.123m; YoY -9.75%; QoQ +28.70%
Operating Income: GBP 3.046m; YoY -88.92%; QoQ +143.71%
Net Income: GBP -27.745m; YoY -236.18%; QoQ -2,187.66%
EPS: GBP -0.16; YoY -233.33%; QoQ -2,151.28%
EBITDA: GBP 55.923m; EBITDA Margin ~28.14%
Gross Profit Margin: 92.66%
Operating Margin: 1.53%
Net Margin: -13.96%
Interest Expense: GBP 42.48m; Depreciation & Amortization: GBP 53.716m
Free Cash Flow: GBP -70.166m; Operating Cash Flow: GBP -63.23m
Cash at End of Period: GBP 95.542m; Net Cash Provided by/Used in Financing: GBP 59.922m inflow; Net Cash Used in Investing Activities: GBP -51.083m
Total Assets: GBP 1,600.448m; Total Liabilities: GBP 1,403.734m; Total Stockholders’ Equity: GBP 196.714m
Total Debt: GBP 740.155m; Net Debt: GBP 644.613m; Current Ratio: 0.415; Quick Ratio: 0.395; Cash Ratio: 0.138
Payout/Dividend: None declared in the period; Price-to-Book: ~11.96x; Enterprise Value Multiple: ~53.61x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
198.70M |
-11.98% |
38.89% |
| Gross Profit |
184.12M |
-9.75% |
28.70% |
| Operating Income |
3.05M |
-88.92% |
143.71% |
| Net Income |
-27.75M |
-236.18% |
-2 187.66% |
| EPS |
-0.16 |
-233.33% |
-2 151.28% |
Key Financial Ratios
operatingProfitMargin
1.53%
operatingCashFlowPerShare
$-0.37
freeCashFlowPerShare
$-0.41
priceEarningsRatio
-21.21
Management Commentary
No earnings call transcript provided in the supplied data. As a result, management themes, strategy quotes, and operational guidance from an earnings call are not available within this dataset.
Transcript data not available in the provided dataset.
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Transcript data not available in the provided dataset.
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Forward Guidance
There is no explicit management guidance in the provided data. However, given the revenue mix drivers (sports media rights, merchandising, and D2C platforms) and the cost structure, investors should monitor: 1) Sustainability of revenue growth from digital channels and direct-to-consumer platforms; 2) Rights renewal cycles and potential changes in broadcast/licensing costs; 3) Progress on cost optimization and leverage reduction to improve operating and free cash flow; 4) Refinancing risk given the elevated debt burden and negative working capital dynamics. In the current context, a cautious stance is warranted until there is clear evidence of sustained gross margin stability, reduction in net leverage, and conversion of EBITDA strength into meaningful FCF.