Manchester United executive vice chairman Ed Woodward spoke with club investors this afternoon following the release of the club’s latest financial figures.
The 47-year-old explained the financial results which were released at midday on Thursday and provided context behind the latest figures. Ahead of the conference call Woodward also sent a message to supporters.
In a statement issued ahead of the call, Woodward said: “After a turbulent season, everyone at Manchester United is focused on building towards the success that this great club expects and our fans deserve.
“Preparations for the new season are underway and the underlying strength of our business will allow us to support the manager and his team as we look to the future.”
Scroll down to see how all the conference call unfolded.
Woodward targeting on-field success
The United chief is adamant that football comes first.
Well, that’s it for now. A rather dull and abrupt ending to the conference call.
Proposed changes to Champions League
First of all, I think this is partly driven by domestic leagues not necessarily thriving and there being a desire form the clubs that are towards the top of those leagues to play more European games. There is a drive from Uefa to try to give greater access to more teams.
There is a lot of work to do with stakeholders to access it, along with our colleagues in the Premier League.
Time scale, I expect more progress through 2019 and maybe clarity in six to nine months from now.
Asked about growing MUTV subscribers
“We are slightly less than a year in, having started in Aug with app. We are very happy with rate we acquired users, less than a season and the scale of the operation at the moment is still small relative to the social media footprint we have. We have been really pleased, but quite cautious about the numbers.
“We continue to be excited by the prospect of growing the app. In terms of it’s use, it is primarily an engagement tool and ensuring we can communicate directly with fans in managed and controlled way.”
Fellaini to thank
6.3 million transfer profit, primarily down to the transfer of Marouane Fellaini.
Season ticket update
Old Trafford continues to be the place to be.
Arnold on new kits
“Strong grow out of Asia Pacific region, specifically China.” Early release of all kits expected.
Arnold talks marketing success
“The App continues to grow above expectations,” says Arnold. Also praises the new initiatives within the app.
On club competition changes
Woodward says he is on board with revised Club World Cup and says club is involved in discussion over new Uefa changes to Champions League and Europa League.
Woodward message to fans
“It clearly didn’t end the season we hoped, and with a disruptive managerial change midway through. The last few weeks were disappointing, but we are delighted to appointed Ole, Mike, Michael and Mark.
“We look to continuing improve staff both on and off the pitch.”
Richard Arnold joins Ed Woodward here.
Woodward speaking shortly
The conference call is about to begin.
Cash flow breakdown
Net cash generated from operating activities for the quarter was £22.2 million, an increase of £1.0 million over the prior year quarter.
Net capital expenditure on property, plant and equipment for the quarter was £1.6 million, an increase of £0.6 million over the prior year quarter.
Net capital expenditure on intangible assets for the quarter was £2.0 million, an increase of £3.3 million over the prior year quarter.
Overall cash and cash equivalents (including the effects of exchange rate changes) increased by £3.5 million in the quarter compared to an increase of £6.4 million in the prior year quarter.
Ed Woodward breaks silence with message to fans
Ed Woodward has admitted Manchester United suffered a ‘turbulent season’ but reassured supporters preparations have already begun for the 2019-20 campaign.
United finished sixth in the Premier League and were ejected from the Champions League and FA Cup at the quarter-final stage after they ended the summer transfer window without two of their priority targets.
Net debt suffers slight increase
Net debt as of 31 March 2019 was £301.7 million, an increase of £0.4 million over the year. The gross USD debt principal remains unchanged.
Breakdown of debts
Here is a look at the figures.
Broadcasting revenue increase
Broadcasting revenue for the quarter was £53.8 million, an increase of £4.4 million, or 8.9%, over the prior year quarter, primarily due to the new UEFA Champions League broadcasting rights agreement and playing one additional PL game.
Commercial revenue for the quarter was £66.6 million, unchanged from the prior year quarter.
- Sponsorship revenue for the quarter was £41.6 million, unchanged from the prior year quarter;
- Retail, Merchandising, Apparel & Product Licensing revenue for the quarter was £25.0 million, unchanged from the prior year quarter.
Breakdown of results
Here is a look at the financial results.
Ed Woodward has highlighted four highlights of the financial quarter.
- Ole Gunnar Solskjær appointed as permanent manager on a three year contract
- Manchester United Women promoted to Women’s Super League, winning the FA Women’s Championship title
- Announced global partnership with Marriott
- Announced global partnership and licensing agreement with Maui Jim eyewear
Key financial details
Here is a look at the key financial details.
For fiscal 2019, Manchester United continues to expect:
- Revenue to be £615m to £630m.
- Adjusted EBITDA to be £175m to £190m.
Preparation ‘under way’ for next season
“After a turbulent season, everyone at Manchester United is focused on building towards the success that this great club expects and our fans deserve. Preparations for the new season are underway.”
What to expect?
The latest financial figures will be released at midday, so just six minutes or so, but other than that we should get updates on pre-season and the transfer window.
Hello, and welcome to today’s coverage of the quarterly conference call.
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