Manchester United : 2Q25 Interim Report

Published: 2025-02-21 00:11:05 ET MANU

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February, 2025

Commission File Number: 001-35627

MANCHESTER UNITED PLC

(Translation of registrant's name into English)

Old Trafford

Manchester M16 0RA

United Kingdom

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7). ☐

THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE FOLLOWING REGISTRATION STATEMENTS OF THE REGISTRANT:

THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-282120) ORIGINALLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC") ON SEPTEMBER 13, 2024, AS AMENDED, AND THE REGISTRATION STATEMENT ON FORM S-8 (NO. 333- 183277) ORIGINALLY FILED WITH THE SEC ON AUGUST 13, 2012, AS AMENDED.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 20, 2025

MANCHESTER UNITED PLC

By:

/s/ Roger Bell

Name:

Roger Bell

Title:

Chief Financial Officer

EXHIBIT INDEX

Exhibit

Number

Description

99.1Manchester United plc Interim report (unaudited) for the three and six months ended 31 December 2024

Table of Contents

Manchester United plc

Interim report (unaudited) for the three and six months ended 31 December 2024

Exhibit 99.1

Table of Contents

Contents

Management's discussion and analysis of financial condition and results of operations

Interim consolidated statement of profit or (loss) for the three and six months ended 31 December 2024 and 2023

Interim consolidated statement of comprehensive income/(loss) for the three and six months ended 31 December 2024 and 2023

Interim consolidated balance sheet as of 31 December 2024, 30 June 2024 and 31 December 2023

Interim consolidated statement of changes in equity for the six months ended 31 December 2024, the six months ended 30 June 2024 and the six months

ended 31 December 2023

Interim consolidated statement of cash flows for the three and six months ended 31 December 2024 and 2023

Notes to the interim consolidated financial statements

Table of Contents

Manchester United plc

Management's discussion and analysis of financial condition and results of operations

GENERAL INFORMATION AND FORWARD-LOOKING STATEMENTS

The following Management's discussion and analysis of financial condition and results of operations should be read in conjunction with the interim consolidated financial statements and notes thereto included as part of this report. This report contains forward-looking statements. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to Manchester United plc's ("the Company") operations and business environment, all of which are difficult to predict and many are beyond the Company's control. Forward-looking statements include information concerning the Company's possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "seek," "believe," "estimate," "predict," "potential," "continue," "contemplate," "possible" or similar expressions. The forward-looking statements contained in this interim report are based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the "Risk Factors" section and elsewhere in the Company's Annual Report on Form 20-F for the year ended 30 June 2024, as filed with the Securities and Exchange Commission on 13 September 2024 (File No. 001-35627).

GENERAL

Manchester United is one of the most popular and successful sports teams in the world, playing one of the most popular spectator sports on Earth. Through our 147-year heritage we have won 69 trophies, including a record 20 English league titles, enabling us to develop what we believe is one of the world's leading sports brands and a global community of 1.1 billion fans and followers. Our large, passionate community provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, broadcasting and Matchday. We attract leading global companies such as adidas, Snapdragon and Tezos that want access and exposure to our community of followers and association with our brand.

Table of Contents

RESULTS OF OPERATIONS

Three months ended 31 December 2024 as compared to the three months ended 31 December 2023

Three months ended

31 December

(in £ millions)

% Change

2024 over

2024

2023

Revenue

198.7

225.8

(12.0)%

Commercial revenue

85.1

71.8

18.5 %

Broadcasting revenue

61.6

106.4

(42.1)%

Matchday revenue

52.0

47.6

9.2 %

Total operating expenses

(196.4)

(198.7)

1.2 %

Employee benefit expenses

(82.5)

(95.1)

13.2 %

Other operating expenses

(45.7)

(39.3)

(16.3)%

Depreciation

(4.3)

(4.2)

(2.4)%

Amortization

(49.4)

(50.5)

2.2 %

Exceptional items

(14.5)

(9.6)

(51.0)%

Profit on disposal of intangible assets

0.8

0.4

100.0 %

Net finance costs

(37.6)

(0.3)

(12,433.3)%

Income tax credit/(expense)

6.8

(6.8)

200.0 %

(Loss)/profit after tax

(27.7)

20.4

(235.8)%

Revenue

Total revenue for the three months ended 31 December 2024 was £198.7 million, a decrease of £27.1 million, or 12.0%, over the three months ended 31 December 2023, as a result of a decrease in revenue in our Broadcasting sector, partially offset by an increase in revenue in our Commercial and Matchday sectors, as described below.

Commercial revenue

Commercial revenue for the three months ended 31 December 2024 was £85.1 million, an increase of £13.3 million, or 18.5%, over the three months ended 31 December 2023.

Broadcasting revenue

Broadcasting revenue for the three months ended 31 December 2024 was £61.6 million, a decrease of £44.8 million, or 42.1%, over the three months ended 31 December 2023, primarily due to the men's first team participating in the UEFA Europa League compared to the UEFA Champions League in the prior year quarter.

Matchday revenue

Matchday revenue for the three months ended 31 December 2024 was £52.0 million, an increase of £4.4 million, or 9.2%, over the three months ended 31 December 2023, primarily due to strong demand for matchday hospitality packages. The three months ended 31 December 2024 saw the same number of home matches played as the three months ended 31 December 2023.

Table of Contents

Total operating expenses

Total operating expenses (defined as employee benefit expenses, other operating expenses, depreciation, amortization and exceptional items) for the three months ended 31 December 2024 were £196.4 million, a decrease of £2.3 million, or 1.2%, over the three months ended 31 December 2023.

Employee benefit expenses

Employee benefit expenses for the three months ended 31 December 2024 were £82.5 million, a decrease of £12.6 million, or 13.2%, over the three months ended 31 December 2023 as a result of the men's first team participating in the UEFA Europa League in the current year, compared to the UEFA Champions League in the prior year, resulting in a reduction in salaries.

Other operating expenses

Other operating expenses for the three months ended 31 December 2024 were £45.7 million, an increase of £6.4 million, or 16.3%, over the three months ended 31 December 2023. This is primarily due to increased costs associated with our new e-commerce model, partially offset by a reduction in fixed costs as a result of the Company's focus on improving operating efficiency.

Depreciation

Depreciation for the three months ended 31 December 2024 was £4.3 million, compared to £4.2 million for the three months ended 31 December 2023.

Amortization

Amortization, primarily of players' registrations, for the three months ended 31 December 2024 was £49.4 million, a decrease of £1.1 million, or 2.2%, over the three months ended 31 December 2023. The unamortized balance of registrations as of 31 December 2024 was £517.6 million.

Exceptional items

Exceptional items for the three months ended 31 December 2024 were a cost of £14.5 million. This relates to costs associated with the departure of former men's first team manager Erik ten Hag and various members of football staff. Exceptional items for the three months ended 31 December 2023 were £9.6 million. This comprised costs incurred in relation to the Group's strategic review and agreed sale of 25% of Class B shares and up to 25% of Class A shares to Trawlers Limited, a company wholly owned by Sir Jim Ratcliffe.

Profit on disposal of intangible assets

Profit on disposal of intangible assets for the three months ended 31 December 2024 was £0.8 million, compared to a profit of £0.4 million for the three months ended 31 December 2023.

Net finance costs

Net finance costs for the three months ended 31 December 2024 were £37.6 million, compared to net finance costs of £0.3 million for the three months ended 31 December 2023, primarily due to an unfavorable swing in foreign exchange rates resulting in unrealized foreign exchange losses on unhedged USD borrowings in the current year quarter, compared to a favorable swing in the prior year quarter.

Income tax

The income tax credit for the three months ended 31 December 2024 was £6.8 million, compared to an income tax expense of £6.8 million for the three months ended 31 December 2023, due to the company making a loss before tax in the current year quarter compared to a profit before tax in the prior year quarter.

Table of Contents

Six months ended 31 December 2024 as compared to the six months ended 31 December 2023

Six months ended

31 December

(in £ millions)

% Change

2024 over

2024

2023

Revenue

341.8

382.9

(10.7)%

Commercial revenue

170.4

162.2

5.1 %

Broadcasting revenue

92.9

145.7

(36.2)%

Matchday revenue

78.5

75.0

4.7 %

Total operating expenses

(382.0)

(383.4)

0.4 %

Employee benefit expenses

(162.7)

(185.4)

12.2 %

Other operating expenses

(84.9)

(82.8)

(2.5)%

Depreciation

(8.6)

(8.3)

(3.6)%

Amortization

(102.7)

(97.3)

(5.5)%

Exceptional items

(23.1)

(9.6)

(140.6)%

Profit on disposal of intangible assets

36.4

29.9

21.7 %

Net finance costs

(29.0)

(34.9)

16.9 %

Income tax credit

6.5

0.2

3,150.0 %

Loss after tax

(26.3)

(5.3)

(396.2)%

Revenue

Total revenue for the six months ended 31 December 2024 was £341.8 million, a decrease of £41.1 million, or 10.7%, over the six months ended 31 December 2023, as a result of a decrease in revenue in our Broadcasting sector, partially offset by an increase in revenue in our Commercial and Matchday sectors, as described below.

Commercial revenue

Commercial revenue for the six months ended 31 December 2024 was £170.4 million, an increase of £8.2 million, or 5.1%, over the six months ended 31 December 2023.

Broadcasting revenue

Broadcasting revenue for the six months ended 31 December 2024 was £92.9 million, a decrease of £52.8 million, or 36.2%, over the six months ended 31 December 2023, primarily due to the men's first team participating in the UEFA Europa League in current year compared to the UEFA Champions League in the prior year.

Matchday revenue

Matchday revenue for the six months ended 31 December 2024 was £78.5 million, an increase of £3.5 million, or 4.7%, over the six months ended 31 December 2023, primarily due to strong demand for matchday hospitality packages. The six months ended 31 December 2024 saw the same number of home matches played as the six months ended 31 December 2023.

Total operating expenses

Total operating expenses (defined as employee benefit expenses, other operating expenses, depreciation, amortization and exceptional items) for the six months ended 31 December 2024 were £382.0 million, a decrease of £1.4 million, or 0.4%, over the six months ended 31 December 2023.

Disclaimer

Manchester United plc published this content on February 21, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 21, 2025 at 05:10:00.876.