Manchester United Q1 Pre-tax Loss Narrows; Backs FY Revenue Outlook

(RTTNews) - English football club Manchester United Plc. (MANU) reported that its first quarter ended 30 September 2013 loss before tax narrowed to 470 thousand pounds from 6.06 million pounds last year.

Tax credit for the latest-quarter was 177 thousand pounds, compared to a credit of 26.53 million pounds in the prior year, which predominantly related to the recognition of a deferred tax asset for the US tax basis inherited from Red Football LP. There have been no changes to the estimates and judgements in relation to the valuation of deferred tax assets since the June 2013 year end.

Loss attributable to owners of the parent was 293 thousand pounds, compared to net income of 20.39 million pounds in the same quarter last year. Loss per share was 0.18 pence, compared to net income of 12.73 pence in the previous year.

Adjusted profit for the quarter was 2.24 million pounds, compared to a loss of 630 thousand pounds in the prior year. Adjusted profit per share was 1.37 pence versus a loss of 0.39 pence per share.

Commercial revenue grew 39.3% to 59.9 million pounds from 43.0 million pounds last year.

Broadcasting revenue was 19.3 million pounds up 40.9% from 13.7 million pounds, due to increased revenue from the Premier League domestic and international rights agreements, one additional live Premier League game compared to the prior year quarter, and increases in share of UEFA Champions League fixed pool distributions as we finished 1st in the Premier League in season 2012/13 compared to 2nd in the 2011/12 season.

Revenue for the quarter increased to 98.52 million pounds from last year's 76.32 million pounds.

Ed Woodward, Executive Vice Chairman said, "We are pleased to have achieved another record first quarter, driven by the strength of our commercial business and increased broadcasting revenues. Our unique approach to the commercial business will continue to drive future growth. We are also excited by the continuing rise in the value of sports content, evidenced, amongst other things, by the recently announced BT deal for the UK rights to broadcast the Champions League and Europa League matches for three seasons from 2015/16. This deal represents a meaningful increase over the current arrangement, which should translate into higher broadcasting revenues for the participating clubs."

For fiscal 2014, Manchester United continues to expect revenue to be 420 million pounds to 430 million pounds, and adjusted EBITDA of 128 million pounds to 133 million pounds.