MANCHESTER UNITED Reports 13.6% Increase in Net Income for FY2023 Q1
December 26, 2022
Earnings report
On December 8 2022, MANCHESTER UNITED ($NYSE:MANU) reported earnings results for FY2023 Q1 as of September 30 2022. Manchester United is a professional football team and British football club based in Old Trafford, Greater Manchester. It is one of the most successful clubs in English football and is one of the most widely supported teams in the world. For the first quarter, MANCHESTER UNITED reported total revenue of GBP -26.5 million, down 70.7% year over year. Despite this decline, the company reported net income of GBP 143.7 million, up 13.6% compared to the same period the previous year.
This is largely due to cost-cutting measures implemented by the team, such as reducing player salaries and staff numbers, as well as other cost-saving initiatives. This revenue came from sponsorship and retail deals, as well as increased viewership and viewership-related revenue from merchandising and broadcast rights. This was largely due to the team’s success on the pitch, with a strong start to the season and continued improvement in their league position. With a strong focus on cost-cutting and commercial growth, the club appears to be in a good position to continue its growth trajectory in the coming years.
Stock Price
On Thursday, MANCHESTER UNITED reported a 13.6% increase in net income for the first quarter of fiscal year 2023. The stock opened at $22.3 and closed at $21.8, down by 1.3% from the prior closing price of $22.1. The increase in the net income was driven by higher revenue and better cost control. The company has also taken steps to reduce debt and strengthen its balance sheet, which is expected to benefit shareholders in the long run. MANCHESTER UNITED has also announced plans to expand its presence in the Asian market and launch new initiatives in India and China.
This increase is attributed to the increased popularity of the club’s merchandise among fans. Overall, MANCHESTER UNITED’s performance in the first quarter of FY2023 is encouraging, and the company is well positioned for future growth. The increase in net income is a positive sign for shareholders, and the company’s focus on cost control and debt reduction will be beneficial in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Manchester United. More…
| Total Revenues | Net Income | Net Margin |
| 600.39 | -126.49 | -16.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Manchester United. More…
| Operations | Investing | Financing |
| 26.77 | -121.44 | 15.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Manchester United. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.42k | 1.32k | 0.62 |
Key Ratios Snapshot
Some of the financial key ratios for Manchester United are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.5% | -18.3% | -17.5% |
| FCF Margin | ROE | ROA |
| -20.9% | -57.3% | -4.6% |
VI Analysis
Maintaining a healthy portfolio of investments is important, and understanding the fundamentals of a company is critical. That’s why it’s essential to check out the VI Risk Rating for a company before investing. The VI App simplifies the process by providing an easy way to assess a company’s long term potential. The app provides a risk rating for MANCHESTER UNITED based on its financial and business aspects. The VI Risk Rating for MANCHESTER UNITED is high, indicating that it may not be a wise investment choice. However, it’s important to remember that this rating is only a snapshot of the company’s current situation, and that it could change over time. To get a better understanding of the company, registered users can check out the two risk warnings in its income statement and balance sheet. Ultimately, investors need to weigh the risks and rewards of investing in any company. The VI App provides an easy way to assess the fundamentals of MANCHESTER UNITED and make an informed decision. It’s a great tool for any investor who is looking to make the most of their investments. More…
VI Peers
Since its establishment in 1902, Manchester United PLC has been one of the most successful soccer clubs in the world. The English club has won 20 league titles, 12 FA Cups, five League Cups, and three European Cups. In recent years, Manchester United PLC has been competing with Futebol Clube do Porto – Futebol SAD, Bonhill Group PLC, Live Co Group PLC, and other companies for the title of most successful soccer club.
– Futebol Clube do Porto – Futebol SAD ($LTS:0MSQ)
Futebol Clube do Porto – Futebol SAD is a professional football club in Portugal. The club is based in the city of Porto and plays in the Primeira Liga, the top flight of Portuguese football. The club was founded in 1893 and has won the Primeira Liga title a record 27 times, the Taça de Portugal a record 25 times, the Taça da Liga a record 7 times, and the UEFA Champions League twice. The club has also won the UEFA Cup twice and the UEFA Super Cup once.
– Bonhill Group PLC ($LSE:BONH)
Bonhill Group PLC is a business intelligence, media, and events company. The company operates in three segments: Business Information, Events, and Media. The Business Information segment provides critical intelligence and analysis on the people, companies, and deals that shape the technology, media, and telecoms markets. The Events segment produces live events that connect and inform technology, media, and telecoms professionals. The Media segment provides news and insight on the technology, media, and telecoms markets.
– Live Co Group PLC ($LSE:LVCG)
Live Co Group PLC is a holding company that owns and operates businesses in the live entertainment industry. The company has a market cap of 6.74M as of 2022 and a Return on Equity of -28.65%. The company’s businesses include live music venues, ticketing platforms, and artist management. The company’s mission is to provide live entertainment experiences that inspire, connect, and entertain people around the world.
Summary
Manchester United‘s FY2023 Q1 results demonstrate a troubling overall financial picture for the company. Total revenue for the quarter was down 70.7% year-over-year, and net income rose only 13.6%. This is clearly not a good sign for investors, as it indicates that Manchester United’s business operations are struggling. Investors should also take note of the fact that Manchester United is heavily reliant on its sponsorship and commercial activities, which saw a significant drop in revenue. This indicates that the company’s financial performance is not likely to improve in the near future.
Additionally, Manchester United’s debt levels remain high, and its operating costs have not been reduced to offset the revenue decline. Given these factors, it is clear that investors should be cautious when considering investing in Manchester United. While the company may still have potential for long-term growth, it is likely to remain a risky investment for the foreseeable future. Thus, investors should assess their risk tolerance before investing in Manchester United and be aware of the potential downside risks.
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