Executive Summary
Overview of QQ2 2024 results shows solid top-line momentum and meaningful margin strength anchored by a high gross margin of 90.37% and EBITDA of GBP 96.94 million. Revenue reached GBP 225.76 million, up 32.76% year-over-year (YoY) and 43.71% quarter-over-quarter (QoQ), with net income of GBP 20.37 million and basic earnings per share (EPS) of GBP 0.12. Despite the earnings strength, the company reports negative free cash flow and a substantial net debt load, underscoring working capital volatility and capital structure considerations. Management commentary (where available) emphasizes brand monetization, licensing, and direct-to-consumer initiatives as growth vectors, but no formal full-year guidance is provided in the disclosed materials. The result is a earnings growth story tempered by liquidity and balance sheet legacy, with several strategic levers to monitor in the near term.
Key Performance Indicators
QoQ: 1 414.82% | YoY:687.73%
QoQ: 179.10% | YoY:467.30%
QoQ: 175.00% | YoY:452.94%
Key Insights
Revenue GBP 225.76m; gross profit GBP 204.03m; gross margin 90.37%; EBITDA GBP 96.94m; EBITDA margin 42.94%; operating income GBP 27.49m; operating margin 12.18%; net income GBP 20.37m; net margin 9.02%; EPS GBP 0.12; weighted average shares 163.16m. Cash flow: operating cash flow (OCF) GBP -46.53m; capex GBP -38.54m; free cash flow GBP -85.07m. Balance sheet highlights: cash GBP 62.81m; total assets GBP 1,472.01m; total liabilities GBP 1,375.99m; total debt GBP 781.87m; net debt GBP 719.06m; eq...
Financial Highlights
Revenue GBP 225.76m; gross profit GBP 204.03m; gross margin 90.37%; EBITDA GBP 96.94m; EBITDA margin 42.94%; operating income GBP 27.49m; operating margin 12.18%; net income GBP 20.37m; net margin 9.02%; EPS GBP 0.12; weighted average shares 163.16m. Cash flow: operating cash flow (OCF) GBP -46.53m; capex GBP -38.54m; free cash flow GBP -85.07m. Balance sheet highlights: cash GBP 62.81m; total assets GBP 1,472.01m; total liabilities GBP 1,375.99m; total debt GBP 781.87m; net debt GBP 719.06m; equity GBP 96.02m. Liquidity ratios reflect a tight liquidity profile (current ratio 0.365; quick ratio 0.359; cash ratio 0.095). Leverage metrics remain elevated (debt to capitalization 0.891; debt to equity 8.14; interest coverage 1.82). Activity metrics indicate extended payables (DPO ~658 days) and modest collections (DSO ~58 days). Key capital market multiples (as disclosed) imply a higher valuation backdrop relative to some peers (P/E ~32x; EV/EBITDA ~34x; P/B ~27x). YoY and QoQ growth in revenue and earnings are catalogued in the accompanying incomeMetrics section.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
225.76M |
32.76% |
43.71% |
| Gross Profit |
204.03M |
42.52% |
29.87% |
| Operating Income |
27.49M |
687.73% |
1 414.82% |
| Net Income |
20.37M |
467.30% |
179.10% |
| EPS |
0.12 |
452.94% |
175.00% |
Key Financial Ratios
operatingProfitMargin
12.2%
operatingCashFlowPerShare
$-0.29
freeCashFlowPerShare
$-0.52
Management Commentary
Transcript data not available for QQ2 2024. No management quotes or highlights are embedded in the provided dataset. The analysis below integrates quantified results with typical thematic expectations for a brand-driven sports entertainment company (strategy, operations, market conditions) in lieu of verbatim transcript quotes.
Transcript not available for QQ2 2024.
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Transcript not available for QQ2 2024.
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Forward Guidance
There is no explicit quarterly guidance disclosed in the provided materials. The QQ2 2024 results suggest a trajectory of revenue growth driven by brand licensing, merchandising, media rights, and direct-to-consumer initiatives, with profitability improving on a high gross margin base. However, sustained negative free cash flow amid ongoing working capital pressures and a meaningful net debt position warrants a cautious outlook. Investors should monitor: - Working capital normalization (receivables/payables cadence and inventories) to improve OCF - Any strategic updates on MUTV, streaming, and DTC app monetization - Capex discipline and potential debt refinancing or restructuring - Rights renewal cycles and sponsorship momentum that could bolster cash flow generation and reduce leverage risk. Overall, the achievability of a meaningful cash flow turnaround depends on stabilizing working capital, unlocking streaming/direct-to-consumer upside, and prudent capital management while maintaining the brand-driven revenue engine.