Manchester United Superthread 2014 mod warning #8081

Pretty obvious it's gonna be announced next Thursday.


(Note for the serious heads: Only obvious if u are a member at 2p2 and have browsed the bonus forums over the years otherwise this seems dumb!!)

Highlights

• Commercial revenues of £42.8 million
  • Sponsorship revenue increased 43.5%.
• Two new sponsorship deals announced in the third quarter – Aperol (global) and EuroFood (regional - Cambodia, Laos, Myanmar, Thailand and Vietnam).
• Broadcasting revenues increased 64.1% for the quarter and 35.7% for the year to date, due to the new FAPL domestic and international TV rights agreements, two additional Premier League home games and five more games were broadcast live during the quarter compared to the same period last year.

Commentary
Ed Woodward, Executive Vice Chairman commented, “We once again generated record revenues and EBITDA as all of our businesses delivered impressive year over year growth. This puts us in a healthy financial position to continue to invest in the squad. Everyone at the Club is working hard to ensure the team is back challenging for the title and trophies next season.

Outlook
For fiscal 2014, Manchester United continues to expect:

• Revenue to be £420m to £430m.
• Adjusted EBITDA to be £128m to £133m.

Key Financials (unaudited)

* Adjusted EBITDA, adjusted profit for the period and adjusted basic and diluted earnings per share are non-IFRS measures. See “Non-IFRS Measures: Definitions and Use” below and the accompanying Supplemental Notes for the definitions and reconciliations for these non-IFRS measures and the reasons we believe these measures provide useful information to investors regarding the Group’s financial condition and results of operations.
Revenue Analysis


Commercial
Commercial revenue for the third quarter was £42.8 million, an increase of £6.8 million, or 18.9%, over the prior year quarter.

• Sponsorship revenue for the third quarter was £30.7 million, an increase of £9.3 million, or 43.5%, primarily due to higher renewals and the activation of new global and regional sponsorships.
• Retail, Merchandising, Apparel & Product Licensing revenue for the third quarter was £8.4 million, a decrease of £0.8 million. For the year to date, revenue was £28.2 million, an increase of £0.1 million, or 0.4%.
• New Media & Mobile revenue for the third quarter was £3.7 million, a decrease of £1.7 million, due to the expiration of a few of our mobile partnerships.

Broadcasting
Broadcasting revenue for the third quarter was £35.6 million, an increase of £13.9 million, or 64.1%, over the prior year quarter, due to increased revenue from the Premier League domestic and international rights agreements, two additional home Premier League games, and having five additional Premier League games broadcast live .
Matchday
Matchday revenue for the third quarter was £37.1 million, an increase of £3.1 million, or 9.1%, over the prior year quarter, primarily due to playing two additional home Premier League games and one additional home Capital One Cup game, partly offset by playing three fewer home FA Cup games.
Other Financial Information


Operating expenses
Total operating expenses for the third quarter were £91.5 million, an increase of £12.5 million, or 15.8%, over the prior year quarter.
Staff costs
Staff costs for the third quarter were £53.4 million, an increase of £8.5 million, or 18.9%, primarily due to the impact of player acquisitions and renegotiated player contracts.
Other operating expenses
Other operating expenses for the third quarter were £22.1 million, an increase of £0.3 million, or 1.4% due primarily to the increases in fixed costs from foreign exchange losses and higher sponsorship servicing being largely offset by lower variable costs from three fewer FA Cup matches.
Depreciation & amortization of players’ registrations
Depreciation for the third quarter was £2.2 million, an increase of £0.3 million, or 15.8%, over the prior year quarter. Amortization of players’ registrations was £13.8 million, an increase of £3.4 million, or 32.7%, over the prior year quarter. The unamortized balance of players’ registrations at 31 March 2014 was £161.8 million.
Net finance costs
Net finance costs for the third quarter were £5.9 million, a decrease of £12.4 million, or 67.8%, over the prior year quarter. The decrease was primarily due to a £2.8 million reduction in interest payable on our secured borrowings following the refinancing in June 2013 and a £9.5 million net foreign exchange loss on the re-translation of our US dollar net borrowings in the prior year quarter.
On 1 July 2013, the Group started hedging the foreign exchange risk, in our income statement, on a portion of our future US dollar revenues using our US dollar borrowings as the hedging instrument. As a result, FX gains or losses arising on re-translation of our US dollar borrowings are now initially recognized in other comprehensive income, rather than recognized in the income statement immediately. Amounts previously recognized in other comprehensive income and accumulated in a hedging reserve are subsequently reclassified into the income statement in the same accounting period and within the same income statement line (i.e. commercial revenue) as the underlying future US dollar revenues. This will reduce foreign exchange volatility in our income statement.
Tax
The tax expense for the third quarter was £9.5 million reflecting an effective full-year tax rate of 40.1% and a charge of £0.5 million relating to the adjustment of deductions in respect of previous years, in line with the most recently filed US tax return. The prior year adjustment includes the finalisation of the deductible element of the ‘step-up’, previously based on management’s best estimate at the 30 June 2013 year-end. This compares to a credit of £6.7 million in the prior year quarter.
Cash flows
Net cash used in operating activities for the third quarter was £12.6 million, a decrease of £11.0 million from £23.6 million net cash used in the prior year quarter, primarily due to a reduction in interest paid.
Capital expenditure on property, plant and equipment for the third quarter was £1.7 million, an increase of £0.4 million from the prior year quarter.
Net player capital expenditure for the third quarter was £23.3 million, an increase of £21.9 million from the prior year quarter.

Conference Call Information


The Company’s conference call to review the third quarter fiscal 2014 results will be broadcast live over the internet today, 15 May 2014 at 8:00 a.m. Eastern Time and will be available on Manchester United’s investor relations website at http://ir.manutd.com. Thereafter, a replay of the webcast will be available for thirty days.

About Manchester United


Manchester United is one of the most popular and successful sports team in the world, playing one of the most popular spectator sports on Earth.
Through our 136-year heritage we have won 62 trophies, enabling us to develop the world’s leading sports brand and a global community of 659 million followers. Our large, passionate community provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, new media & mobile, broadcasting and matchday.

The Guardian says he will be named after the weekend.

http://www.theguardian.com/football/2014/may/15/manchester-united-delay-louis-van-gaal-manager

David Ornstein

✔ @bbcsport_david
Follow

Understand Van Gaal has agreed 3yr deal to become #mufc manager, with Giggs assistant. Club refusing to confirm/deny: http://bbc.in/1jx5LLz

Headshot wrote: »

hmm a 3 yr deal. What's that about I wonder. You would expect 5 years with an terms etc

Costs less to sack...

Buddy Holly wrote: »

This delay in naming the new manager is doing no one any favours.
LVG seems to be a done deal and he looks a good fit for the club so it's baffling why no announcement has been named. It's reminding me of last summer with the "we'll see what happens approach.

Will be interesting to see what Woodward has to say later but right now I've zero faith in the man.

Badly missing David Gill, would love if he returned.

How can you have zero faith in Ed Woodward?

The man is doing a superb job, despite the large debt £351 million which is down from £367 million a year ago. The club is generating more money that ever, it is in profit and he said "This puts us in a healthy financial position to continue to invest in the squad."

If United was making a loss and in trouble with the debt then yes I would have zero faith in the man, but if I was a shareholder and I was earlier in the year, then I would be saying "more of the same please Mr Woodward".

Headshot wrote: »

hmm a 3 yr deal. What's that about I wonder. You would expect 5 years with an terms etc

isnt van Gaal 65 in 3 years time?

Ryan Giggs will be our manger when he retires, thats been clear from a few sources in the last 3 weeks.

The_Kew_Tour wrote: »

Are they similar?

Just wondering.

Cost of non CL qualification put at mid- £30 millions by Woodward.

irishfeen wrote: »

Cost of non CL qualification put at mid- £30 millions by Woodward.

He seemed to be generous with the estimation too as the other analyst stated his models had expected a slightly lower outcome.

The main thing I took from the call was the forecast of increased wage bill (I think he mentioned high teens growth). But with Vidic, Rio, Giggs? Evra? Macheda etc all going to be off the wage bill it's clear they are expecting a number of high salaried players to be coming in.

He also tried to explain the growth (when questioned) as increased bonuses and appearance fee's (common for young players and old players) but with much less games next season you would imagine these would actually go down. It could also be the case that some large contract's (possibly Rooney) now have lower base salaries and higher appearance fee's than previously.

#mufc Ed Woodward expects "an announcement [re new manager] in due course. In the meantime we continue to be active in the transfer market"

Oliver Kay on Twitter. Genuinely think it's just a matter of showing respect to the Dutch FA now not appointing him publicly before their weekend friendly.

Hopefully plenty of things happening in the background.

Securing a starting LB with world class potential for the next 15 odd years, would be a fantastic start. And circa £30m sounds about right considering his nationality and he MU added tax.

Hands up who new we had a mobile app?