Manchester United MANU shares fell on Wednesday after the English football club posted fourth-quarter results that missed market expectations.
The club reported quarterly net sales of 164.1 million pounds ($219.04 million), up from 142.2 million pounds a year earlier but below the Street’s estimate of $225.80 million. Total revenue rose 15.4%, lifted by stronger commercial and matchday income, though broadcasting revenue declined.
Commercial revenue advanced 10% year-on-year, while matchday revenue surged 16.9%. The increase was attributed to five additional home matches compared with the prior year and robust demand for hospitality services.
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Broadcasting revenue fell 22%, reflecting the men’s first team competing in the UEFA Europa League instead of the more lucrative UEFA Champions League.
Operating loss narrowed to 15.2 million pounds from 32.4 million pounds in the same period last year. Adjusted EBITDA nearly doubled, reaching 37.5 million pounds, a 94.3% increase. The company reported a quarterly net loss of 4 cents per share, narrower than analysts’ projected loss of 6 cents.
As the 2025/26 season begins, CEO Omar Berrada said the club strengthened the men’s and women’s first-team squads over the summer to build for the long term.
The club also invested in infrastructure, completing the 50 million pounds redevelopment of the men’s first-team building at Carrington on time and within budget, following earlier investments in women’s team facilities to create a world-class environment for players and staff, he said. Berrada added that planning is ongoing to achieve the ambition of developing a new stadium at Old Trafford.
“To have generated record revenues during such a challenging year for the club demonstrates the resilience which is a hallmark of Manchester United. Our commercial business remains strong as we continue to deliver appealing products and experiences for our fans, and best-in-class value to our partners. As we start to feel the benefits of our cost-reduction programme, there is significant potential for improved financial performance, which will, in turn, support our overriding priority: success on the pitch,” Berrada added.
Outlook
For fiscal 2026, Manchester United forecast revenue between 640 million pounds and 660 million pounds, falling short of analysts’ expectations of 681.9 million pounds. Adjusted EBITDA is projected in the range of 180 million pounds to 200 million pounds.
The revenue outlook factors in higher contributions from retail, merchandising, and licensing, supported by the first full year of the club’s in-house e-commerce platform. Broadcasting revenues are also expected to see a modest uplift, driven by increased Premier League income, though this will be partially offset by the absence of UEFA competition in the period.
The adjusted EBITDA forecast reflects anticipated savings from reduced non-playing staff and other operating expenses, as the club continues to implement headcount reductions and cost-efficiency initiatives.
Management emphasized that the club remains both committed to and fully compliant with the Premier League’s Profit and Sustainability Rules as well as UEFA’s Financial Fair Play regulations.
Price Action: MANU shares are trading lower by 5.00% to $15.59 premarket at last check Wednesday.
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