Executive Summary
Chicago-style executive overview of Manchester United’s QQ3 2024 results by GBP terms. Revenue stood at £136.7 million, delivering a robust gross margin of 88.6%, underscoring the strength of the brand and licensing ecosystem. However, the quarter reported a material operating loss of £66.25 million and a net loss of £71.5 million as elevated operating expenses (incl. selling, general and administrative costs) and substantial depreciation weighed on profitability. Free cash flow remained negative at £36.68 million, and net debt stood at £595.6 million with a debt-to-equity of 3.62x, highlighting leverage and liquidity pressures despite a healthy gross margin. The balance sheet shows £66.99 million in cash and £662.59 million of gross debt, suggesting the business requires ongoing liquidity management and potential deleveraging to restore earnings resilience. Management commentary, which is not captured in the provided transcript dataset, is expected to emphasize brand monetization, sponsorship growth, and cost discipline as levers to drive future profitability.
Key Performance Indicators
QoQ: -39.45% | YoY:-18.33%
QoQ: -40.61% | YoY:-19.34%
QoQ: -340.96% | YoY:-2 216.40%
QoQ: -450.94% | YoY:-1 233.84%
QoQ: -458.33% | YoY:-1 211.11%
Key Insights
Revenue: £136.693m; YoY -18.33%, QoQ -39.45% | Gross Profit: £121.164m, Gross Margin 88.64%, YoY -19.34%, QoQ -40.61% | Operating Income: -£66.249m, Margin -48.47%, YoY -2216.40%, QoQ -340.96% | Net Income: -£71.500m, Margin -52.30%, YoY -1233.84%, QoQ -450.94% | EBITDA: -£19.523m, EBITDA Margin -14.28% | EPS: -£0.43, YoY -1211.11%, QoQ -458.33% | Cash Flow: Operating Cash Flow -£15.117m, Free Cash Flow -£36.679m, Net Change in Cash £4.185m | Balance Sheet: Total Assets £1,379.178m; To...
Financial Highlights
Revenue: £136.693m; YoY -18.33%, QoQ -39.45% | Gross Profit: £121.164m, Gross Margin 88.64%, YoY -19.34%, QoQ -40.61% | Operating Income: -£66.249m, Margin -48.47%, YoY -2216.40%, QoQ -340.96% | Net Income: -£71.500m, Margin -52.30%, YoY -1233.84%, QoQ -450.94% | EBITDA: -£19.523m, EBITDA Margin -14.28% | EPS: -£0.43, YoY -1211.11%, QoQ -458.33% | Cash Flow: Operating Cash Flow -£15.117m, Free Cash Flow -£36.679m, Net Change in Cash £4.185m | Balance Sheet: Total Assets £1,379.178m; Total Liabilities £1,195.973m; Equity £183.205m | Liquidity/Leverage: Cash £66.994m; Total Debt £662.589m; Net Debt £595.595m; Current Ratio 0.383x; Quick Ratio 0.375x; Interest Coverage negative; Debt/Equity 3.62x; P/BV 10.00x; P/S 13.40x; P/E negative.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
136.69M |
-18.33% |
-39.45% |
| Gross Profit |
121.16M |
-19.34% |
-40.61% |
| Operating Income |
-66.25M |
-2 216.40% |
-340.96% |
| Net Income |
-71.50M |
-1 233.84% |
-450.94% |
| EPS |
-0.43 |
-1 211.11% |
-458.33% |
Key Financial Ratios
operatingProfitMargin
-48.5%
operatingCashFlowPerShare
$-0.09
freeCashFlowPerShare
$-0.22
Management Commentary
Note: Earnings transcripts for QQ3 2024 were not provided in the data set. The following highlights are based on the available financials and typical management themes for a brand-led sports entertainment business: (1) Strategy emphasizes monetization of global fan base through licensing, merchandise, and direct-to-consumer platforms; (2) Cost discipline and efficiency programs are expected to be a priority to improve EBITDA and cash flow; (3) Capital structure remains leveraged, with discussions likely to center on deleveraging and potential refinancing or asset-light monetization strategies; (4) Growth initiatives in sponsorship and digital subscriptions anticipated to offset some matchday revenue volatility. Management quotes were not supplied in the data set to attribute precise wording.
Forward Guidance
No explicit forward guidance was disclosed in the QQ3 2024 filing. Given the historically brand-driven revenue mix and the current profitability and liquidity challenges, investors should monitor: (a) progress on cost containment and SG&A optimization; (b) monetization initiatives across licensing, merchandising, and MUTV/digital platforms; (c) changes in stadium-related revenue streams and sponsorship deals; (d) leverage trajectory and refinancing options given the elevated debt burden. Based on industry dynamics, a scenario where EBITDA improves through cost discipline and revenue growth from partnerships could support deleveraging over 2–3 years if capital expenditure and working capital remain disciplined. Key factors to watch: sponsorship pipeline, global merchandise demand, broadcast rights developments, and any strategic moves to de-leverage the balance sheet.