Man Utd returns to first quarter profit, despite fall in revenues
Manchester United has returned to profit in its first quarter period, it announced today.
The Old Trafford club posted a pre-tax profit of £1.628m in the three month period to September 30, revealing a £35m turnaround when compared with a pre-tax loss of £33.804m the previous year.
The return to first quarter profit was despite a fall in revenues. In the same period last year Utd reported turnover of £157.096m, which has declined to £143.065m during this period.
The club, which last week welcomed its latest men’s first team manager, Rúben Amorim, replacing Erik ten Hag, also reiterates its full year 2025 revenue guidance of £650m to £670m and adjusted EBITDA guidance of £145m to £160m.
The club said it remains committed to, and in compliance with, both the Premier League’s Profit and Sustainability Rules and UEFA’s Financial Fair Play Regulations.
During the year, and following the arrival of part-owner, Sr Jim Ratcliffe, the club has embarked on a £50m upgrade of its Carrington training facilities, progressed with plans to redevelop, or rebuild Old Trafford, and has axed around 250 support staff as part of a cost-cutting exercise.
Chief executive, Omar Berrada, said: “The season is now well under way for both our men’s and women’s team, and we are keen to ensure both are as competitive as possible.
“We are delighted to have appointed Ruben Amorim as head coach of our men’s team and remain committed to returning Manchester United to the top of domestic and European football.
“Our cost and headcount reductions remain on track, and we are pleased to have seen further commercial traction, and welcome new partner, Heineken, through their Tiger brand.”
He added: “Our renovation of the Carrington Training Centre is progressing well, while the Old Trafford Regeneration Task Force continues its work.
“Once it has delivered its recommendations, we will then take some time to digest them and evaluate all our options in the upcoming year.”
The breakdown of the first quarter figures reveals falls in commercial revenues, from £90.4m to £85.3m, broadcasting revenues, from £39.3m to £31.3m and matchday revenues, from £27.4m to £26.5m.
Sponsorship revenue was £51.8m, a decrease of £4.4m over the prior year quarter due to changes in sponsorship agreements and the men’s first team playing three fewer matches on its pre-season tour compared to the prior year quarter.
The decline in broadcast revenues was explained by the men’s first team participating in the UEFA Europa League compared with the UEFA Champions League in the prior year quarter.
However, employee benefit expenses, mainly players’ wages and bonuses, for the quarter were £80.2m, a decrease of £10.1m, primarily due to changes in the make-up of the first team playing squad.
Exceptional items for the quarter were a cost of £8.6m. This comprises costs in relation to the restructuring of the group’s operations, including the redundancy scheme implemented in the first quarter. Exceptional items in the prior year quarter were £nil.
Net finance income for the quarter was £8.6m, compared with net finance costs of £34.7m in the prior year quarter.
This was due to a favourable swing in foreign exchange rates resulting in unrealised foreign exchange gains on unhedged US Dollar borrowings.
The club’s US Dollar non-current borrowings, as of September 30, 2024, were $650m, which was unchanged from a year ago.
As a result of the year-on-year change in the USD/GBP exchange rate from 1.2208 at September 30, 2023, to 1.3412 at September 30, 2024, the non-current borrowings, when converted to Pounds Sterling, were £481.7m, compared with £528.8m at the prior year quarter.
In addition to non-current borrowings, the group maintains a revolving credit facility which varies based on seasonal flow of funds.
Current borrowings at September 30, 2024, were £232.3m compared with £204.4m at September 30, 2023.
At the end of the 2025 first quarter, cash and cash equivalents stood at £149.6m,against £80.8m the previous year.
