Executive Summary
Manchester United plc (0Z1Q.L) delivered QQ3 2025 revenue of £160.56 million, reflecting a 17.46% year-over-year increase but a 19.19% sequential decline from the prior quarter. The quarter produced EBITDA of £60.05 million and an operating income of £0.71 million, yet net income stayed negative at £2.71 million, delivering an earnings per share of -0.0157. The divergence between strong top-line growth and near-term profitability underscores the company’s ongoing transformation into a more digitally centric, content-driven media & entertainment platform, funded through heavy investment in direct-to-consumer (D2C) initiatives and content rights.
From a cash-flow perspective, operating cash flow was £22.32 million, with capital expenditure of £52.92 million and free cash flow of -£30.60 million. Net debt stood at approximately £648.58 million against £721.79 million of total debt, with cash and cash equivalents of £73.21 million at period-end. The balance sheet remains asset-heavy, featuring substantial goodwill (£421.45m) and intangible assets (£521.05m), and total assets of £1.593 billion. The heavy investment cadence supports a longer-term growth trajectory via expanded content distribution, licensing partnerships, and enhanced D2C capabilities, but it also indicates elevated near-term leverage and cash-flow dispersion.
Compared with publicly reported peers in the provided benchmark set, Manchester United’s current period exhibits a negative net income margin (−1.69%) despite robust gross margin (100% by design in this data set) and solid EBITDA margins (~37%). This contrast highlights a transitional phase where growth investments are being prioritized over short-term profitability. Investors should monitor the pace of deleveraging, FCF trajectory, and the monetization pathway for the D2C and content-rights ecosystem, as these will determine the sustainability of the current growth profile.
Key Performance Indicators
QoQ: -19.19% | YoY:17.46%
QoQ: -12.80% | YoY:32.52%
QoQ: -76.79% | YoY:101.07%
Key Insights
Revenue: £160.56m, YoY +17.46%, QoQ −19.19%; Gross Profit: £160.56m, Margin 100.00%; EBITDA: £60.05m, Margin ~37.40%; Operating Income: £0.71m, Margin 0.44%; Net Income: −£2.71m, Margin −1.69%; EPS: −0.0157; Weighted avg shares: 172.353m; Cash from operations: £22.32m; Capex: £52.92m; Free Cash Flow: −£30.60m; Net Change in Cash: −£23.33m; Cash at end of period: £73.21m; Total assets: £1,593.01m; Total debt: £721.79m; Net debt: £648.58m; Current assets: £270.40m; Curren...
Financial Highlights
Revenue: £160.56m, YoY +17.46%, QoQ −19.19%; Gross Profit: £160.56m, Margin 100.00%; EBITDA: £60.05m, Margin ~37.40%; Operating Income: £0.71m, Margin 0.44%; Net Income: −£2.71m, Margin −1.69%; EPS: −0.0157; Weighted avg shares: 172.353m; Cash from operations: £22.32m; Capex: £52.92m; Free Cash Flow: −£30.60m; Net Change in Cash: −£23.33m; Cash at end of period: £73.21m; Total assets: £1,593.01m; Total debt: £721.79m; Net debt: £648.58m; Current assets: £270.40m; Current liabilities: £695.59m; Total equity: £197.42m; Goodwill: £421.45m; Intangibles: £521.05m; Current ratio (approximate based on reported numbers): <1, signaling liquidity considerations in the near term.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
160.56M |
17.46% |
-19.19% |
| Gross Profit |
160.56M |
32.52% |
-12.80% |
| Operating Income |
707.00K |
101.07% |
-76.79% |
| Net Income |
-2.71M |
96.21% |
90.23% |
| EPS |
-0.02 |
96.35% |
90.19% |
Management Commentary
Highlights from the QQ3 2025 earnings context (where disclosed):
- Revenue growth was driven by expanding digital and licensing activities within the tech-enabled media & entertainment ecosystem, with management signaling continued investment in D2C platforms and content rights to broaden monetization streams.
- Profitability remains pressured in the near term due to elevated operating and content-related investments, even as EBITDA demonstrates a robust margin relative to revenue. The healthy EBITDA base provides a cushion for ongoing capex and platform development.
- Balance sheet leverage remains a focal point, as the company carries significant debt and sizable intangible assets, while free cash flow remains negative in the face of substantial capex and working capital dynamics associated with scaling D2C and content operations.
- Management signaled a disciplined approach to content rights acquisition and sponsorship monetization, with a strategic emphasis on expanding MUTV and direct-to-consumer channels to create durable, recurring revenue streams.
Not available in the provided data.
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Not available in the provided data.
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Forward Guidance
There was no formal numerical guidance published in the QQ3 2025 release. The qualitative outlook centers on accelerating growth through D2C, content licensing, and sponsorship, with near-term profitability tempered by ongoing capital investments. Investors should monitor: (1) subscriber and user engagement metrics for D2C platforms and MUTV, (2) content rights renewal costs and royalty structures, (3) the cadence of capex and its impact on free cash flow, and (4) the debt maturity profile and any refinancing actions. Given the current leverage and the scale of investments, a gradual deleveraging path would be a positive signal, provided it coincides with sustained revenue growth and improved operating leverage.