Manchester United Turns To Profit In Q3; Lifts FY16 Earnings View

(RTTNews) - English football giant Manchester United Plc. (MANU) reported Friday a profit in its third quarter, compared to prior year's loss, benefited by significantly higher revenues. For fiscal 2016, the company lifted forecast for adjusted EBITDA, a key earnings metric, while maintained sales view.

For the third quarter, net profit was 13.76 million pounds or 8.38 pence per share, compared to loss of 2.87 million pounds or 1.75 pence per share.

Adjusted profit was 11.75 million pounds or 7.15 pence per share, compared to loss of 7.13 million pounds or 4.35 pence per share a year ago.

Adjusted EBITDA for the quarter climbed 76.8 percent from last year to 44.9 million pounds.

Total revenue climbed 30 percent to 123.4 million pounds from last year's 95.0 million pounds.

Commercial revenues improved 37.7 percent to 65.8 million pounds, with higher Sponsorship revenue and significantly higher revenues from Retail, Merchandising, Apparel & Product Licensing.

Broadcasting revenue grew 28.1 percent primarily due to participation in UEFA competitions and one additional FAPL live broadcast game in the latest quarter. Matchday revenue also was up 16.9 percent mainly on playing two UEFA Europa League home games.

The company further said that, as announced earlier, a $0.045 per share quarterly cash dividend on outstanding Class A and Class B ordinary shares will be payable on June 10 to shareholders of record on May 26.

Looking ahead, for fiscal 2016, Manchester United now expects adjusted EBITDA to be between 178 million pounds and 188 million pounds, compared to previously expected 165 million pounds and 175 million pounds.

The company continues to expect annual revenues in the range 500 million pounds to 510 million pounds.

For 2015, adjusted EBITDA totaled 119.9 million pounds, and revenues amounted to 395.2 million pounds.

Ed Woodward, Executive Vice Chairman, said, "As we reflect on our season, we are delighted by the emergence of yet another crop of exciting young players that demonstrate once again our terrific track record of youth development. We are looking forward to the FA Cup final on May 21st and hopefully winning this special trophy for a record equaling twelve times."

On the NYSE, Manchester United shares gained 1.14 percent on Thursday and settled at $16.91.