By Melodie Warner
Manchester United Ltd.'s (MANU) fiscal fourth-quarter loss
widened as the English soccer club saw a sharp decline in
broadcasting and matchday revenue.
The 134-year-old club is owned by the Glazer family, headed by
American businessman Malcolm Glazer. The role of the Glazers, which
took on debt to purchase the team for $1.47 billion in 2005,
stirred the ire of some among its fan base. In an effort to reduce
its debt load, Manchester United went public on Aug. 10.
In promoting its roughly $234 million debut, Manchester United
emphasized it is a globally recognized brand. Analysts have said
the club's future earnings growth will most likely stem from
sponsorships and merchandise sales. Manchester United signed a
multimillion-dollar sponsorship deal with General Motors Co. (GM)
to have the Chevrolet brand adorn its jerseys starting in 2014.
For the quarter ended June 30, Manchester United reported a loss
of 14.9 million pounds ($24.2 million), or 10 pence a share,
compared with a loss of GBP351,000, or less than a pence a share, a
year earlier. The most-recent quarter included a tax credit of
GBP5.43 million, while the year-earlier quarter included impairment
charges of GBP2.01 million.
Revenue dropped 25% to GBP74.5 million ($45.9 million).
Analysts polled by Thomson Reuters had most recently forecast a
loss of one cent a share on revenue of $117 million.
Commercial revenue rose 5.2% as new mobile partnerships and
increased payments from existing partnerships helped to offset a
decline in retail, merchandising, apparel and product
licensing.
Broadcasting revenue dropped 37% as its elimination at the group
stages of the Champions League resulted in no participation fees
this year. Matchday revenue fell 35%, reflecting two fewer home
games than in the prior year.
The company had total debt of GBP436.9 million as of June 30,
down 4.8% from a year earlier.
The company also estimated fiscal 2013 revenue at GBP350 million
to GBP360 million, while analysts surveyed by Thomson Reuters were
expecting $576 million (GBP354.5 million).
Write to Melodie Warner at melodie.warner@dowjones.com
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