- Q3 REVENUES OF £152.1 MILLION
- Q3 ADJUSTED EBITDA OF £41.2 MILLION
- Q3 OPERATING PROFIT OF £14.2 MILLION
MANCHESTER, England–(BUSINESS WIRE)–Manchester United (NYSE: MANU; the “Company” and the “Group”) – one of
the most popular and successful sports teams in the world – today
announced financial results for the 2019 fiscal third quarter ended 31
March 2019.
Highlights
-
Ole Gunnar Solskjær appointed as permanent manager on a three year
contract -
Manchester United Women promoted to Women’s Super League, winning
the FA Women’s Championship title - Announced global partnership with Marriott
-
Announced global partnership and licensing agreement with Maui Jim
eyewear
Commentary
Ed Woodward, Executive Vice Chairman, commented, “After a turbulent
season, everyone at Manchester United is focussed on building towards
the success that this great club expects and our fans deserve.
Preparations for the new season are underway and the underlying strength
of our business will allow us to support the Manager and his team as we
look to the future.”
Outlook
For fiscal 2019, Manchester United continues to expect:
- Revenue to be £615m to £630m.
- Adjusted EBITDA to be £175m to £190m.
Key Financials (unaudited)
| £ million (except earnings/(loss) per share) |
Three months ended
31 March |
Nine months ended
31 March |
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|
2019 |
Restated(1)
2018 |
Change |
2019 |
Restated(1)
2018 |
Change |
||||||||||||||||||||||||||
| Commercial revenue | 66.6 | 66.6 | 0.0% | 208.4 | 212.4 | (1.9%) | |||||||||||||||||||||||||
| Broadcasting revenue | 53.8 | 49.4 | 8.9% | 200.3 | 165.4 | 21.1% | |||||||||||||||||||||||||
| Matchday revenue | 31.7 | 31.1 | 1.9% | 87.0 | 90.4 | (3.8%) | |||||||||||||||||||||||||
| Total revenue | 152.1 | 147.1 | 3.4% | 495.7 | 468.2 | 5.9% | |||||||||||||||||||||||||
| Adjusted EBITDA(2) | 41.2 | 45.7 | (9.9%) | 174.9 | 166.2 | 5.2% | |||||||||||||||||||||||||
| Operating profit | 14.2 | 7.3 | 94.5% | 72.1 | 67.4 | 7.0% | |||||||||||||||||||||||||
| Profit/(loss) for the period (i.e. net income/(loss))(3) | 7.7 | 6.9 | 11.6% | 41.1 | (3.2) | – | |||||||||||||||||||||||||
| Basic earnings/(loss) per share (pence) | 4.65 | 4.20 | 11.0% | 24.96 | (1.97) | – | |||||||||||||||||||||||||
| Adjusted profit for the period (i.e. adjusted net income)(2) | 7.8 | 1.5 | 420.0% | 61.1 | 36.7 | 66.5% | |||||||||||||||||||||||||
| Adjusted basic earnings per share (pence)(2) | 4.72 | 0.91 | 418.7% | 37.12 | 22.38 | 65.9% | |||||||||||||||||||||||||
| Net debt(2)/(4) | 301.7 | 301.3 | 0.1% | 301.7 | 301.3 | 0.1% | |||||||||||||||||||||||||
|
(1) |
Comparative amounts have been restated following the implementation of IFRS 15 – see supplemental note 5 for further details. |
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|
(2) |
Adjusted EBITDA, adjusted profit for the period, adjusted basic earnings per share and net debt are non-IFRS measures. See “Non-IFRS Measures: Definitions and Use” on page 5 and the accompanying Supplemental Notes for the definitions and reconciliations for these non-IFRS measures and the reasons we believe these measures provide useful information to investors regarding the Group’s financial condition and results of operations. |
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|
(3) |
The US federal corporate income tax rate reduced from 35% to 21% following the enactment of US tax reform on 22 December 2017. This necessitated a re-measurement of the then existing US deferred tax position in the period to 31 December 2017. As a result the loss for the nine months ended 31 March 2018 included a non-cash tax accounting write off of £49.0 million. |
||
|
(4) |
The gross USD debt principal remains unchanged. |
Revenue Analysis
Commercial
Commercial revenue for the quarter was £66.6 million, unchanged from the
prior year quarter.
-
Sponsorship revenue for the quarter was £41.6 million,
unchanged from the prior year quarter; -
Retail, Merchandising, Apparel & Product Licensing revenue
for the quarter was £25.0 million, unchanged from the prior year
quarter.
Broadcasting
Broadcasting revenue for the quarter was £53.8 million, an increase of
£4.4 million, or 8.9%, over the prior year quarter, primarily due to the
new UEFA Champions League broadcasting rights agreement and playing one
additional PL game.
Matchday
Matchday revenue for the quarter was £31.7 million, an increase of £0.6
million, or 1.9%, over the prior year quarter.
Other Financial Information
Operating expenses
Total operating expenses for the quarter were £144.2 million, an
increase of £7.8 million, or 5.7%, over the prior year quarter.
Employee benefit expenses
Employee benefit expenses for the quarter were £84.8 million, an
increase of £9.7 million, or 12.9%, over the prior year quarter,
primarily due to investment in the first team playing squad.
Other operating expenses
Other operating expenses for the quarter were £26.1 million, a decrease
of £0.2 million, or 0.8%, over the prior year quarter.
Depreciation & amortization
Depreciation for the quarter was £2.8 million, an increase of £0.2
million, or 7.7%, over the prior year quarter. Amortization for the
quarter was £30.5 million, a decrease of £1.9 million, or 5.9%, over the
prior year quarter. The unamortized balance of registrations at 31 March
2019 was £288.0 million.
Profit/(loss) on disposal of intangible assets
Profit on disposal of intangible assets for the quarter was £6.3 million
compared to a loss of £3.4 million in the prior year quarter.
Net finance (costs)/income
Net finance costs for the quarter were £3.1 million, compared to net
finance income of £1.0 million in the prior year quarter, due to a
reduction in unrealized, non-cash foreign exchange gains on unhedged USD
borrowings compared to the prior year quarter.
Tax
The tax expense for the quarter was £3.4 million, compared to £1.4
million in the prior year quarter.
Cash flows
Net cash generated from operating activities for the quarter was £22.2
million, an increase of £1.0 million over the prior year quarter.
Net capital expenditure on property, plant and equipment for the quarter
was £1.6 million, an increase of £0.6 million over the prior year
quarter.
Net capital expenditure on intangible assets for the quarter was £2.0
million, an increase of £3.3 million over the prior year quarter.
Overall cash and cash equivalents (including the effects of exchange
rate changes) increased by £3.5 million in the quarter compared to an
increase of £6.4 million in the prior year quarter.
Net debt
Net debt as of 31 March 2019 was £301.7 million, an increase of £0.4
million over the year. The gross USD debt principal remains unchanged.
Dividend
A semi-annual dividend of $0.09 per share was paid during the quarter. A
further semi-annual dividend of $0.09 per share will be paid on 5 June
2019, to shareholders of record on 26 April 2019. The stock began
trading ex-dividend on 25 April 2019.
Conference Call Information
The Company’s conference call to review third quarter fiscal 2019
results will be broadcast live over the internet today, 16 May 2019 at
8:00 a.m. Eastern Time and will be available on Manchester United’s
investor relations website at http://ir.manutd.com.
Thereafter, a replay of the webcast will be available for thirty days.
About Manchester United
Manchester United is one of the most popular and successful sports teams
in the world, playing one of the most popular spectator sports on Earth.
Through our 141-year heritage we have won 66 trophies, enabling us to
develop what we believe is one of the world’s leading sports brands and
a global community of 659 million followers. Our large, passionate
community provides Manchester United with a worldwide platform to
generate significant revenue from multiple sources, including
sponsorship, merchandising, product licensing, broadcasting and matchday.
Cautionary Statement
This press release contains forward-looking statements. You should not
place undue reliance on such statements because they are subject to
numerous risks and uncertainties relating to the Company’s operations
and business environment, all of which are difficult to predict and many
are beyond the Company’s control. Forward-looking statements include
information concerning the Company’s possible or assumed future results
of operations, including descriptions of its business strategy. These
statements often include words such as “may,” “might,” “will,” “could,”
“would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,”
“believe,” “estimate,” “predict,” “potential,” “continue,”
“contemplate,” “possible” or similar expressions. The forward-looking
statements contained in this press release are based on our current
expectations and estimates of future events and trends, which affect or
may affect our businesses and operations. You should understand that
these statements are not guarantees of performance or results. They
involve known and unknown risks, uncertainties and assumptions. Although
the Company believes that these forward-looking statements are based on
reasonable assumptions, you should be aware that many factors could
affect its actual financial results or results of operations and could
cause actual results to differ materially from those in these
forward-looking statements. These factors are more fully discussed in
the “Risk Factors” section and elsewhere in the Company’s Registration
Statement on Form F-1, as amended (File No. 333-182535) and the
Company’s Annual Report on Form 20-F (File No. 001-35627).
Non-IFRS Measures: Definitions and Use
1. Adjusted EBITDA
Adjusted EBITDA is defined as profit/(loss) for the period before
depreciation, amortization, profit/(loss) on disposal of intangible
assets, exceptional items, net finance (costs)/income, and tax.
Adjusted EBITDA is useful as a measure of comparative operating
performance from period to period and among companies as it is
reflective of changes in pricing decisions, cost controls and other
factors that affect operating performance, and it removes the effect of
our asset base (primarily depreciation and amortization), material
volatile items (primarily profit on disposal of intangible assets and
exceptional items), capital structure (primarily finance costs), and
items outside the control of our management (primarily taxes). Adjusted
EBITDA has limitations as an analytical tool, and you should not
consider it in isolation, or as a substitute for an analysis of our
results as reported under IFRS as issued by the IASB. A reconciliation
of profit for the period to Adjusted EBITDA is presented in supplemental
note 2.
2. Adjusted profit for the period (i.e. adjusted
net income)
Adjusted profit for the period is calculated, where appropriate, by
adjusting for charges/credits related to exceptional items, foreign
exchange gains/losses on unhedged US dollar denominated borrowings, and
fair value movements on embedded foreign exchange derivatives,
adding/subtracting the actual tax expense/credit for the period, and
subtracting/adding the adjusted tax expense/credit for the period (based
on a normalized tax rate of 21%; 2018: 28%). The normalized tax rate of
21% is the current US federal corporate income tax rate.
In assessing the comparative performance of the business, in order to
get a clearer view of the underlying financial performance of the
business, it is useful to strip out the distorting effects of the items
referred to above and then to apply a ‘normalized’ tax rate (for both
the current and prior periods) of the weighted average US federal
corporate income tax rate of 21% (2018: 28%) applicable during the
financial year. A reconciliation of profit/(loss) for the period to
adjusted profit for the period is presented in supplemental note 3.
3. Adjusted basic and diluted earnings per share
Adjusted basic and diluted earnings per share are calculated by dividing
the adjusted profit for the period by the weighted average number of
ordinary shares in issue during the period. Adjusted diluted earnings
per share is calculated by adjusting the weighted average number of
ordinary shares in issue during the period to assume conversion of all
dilutive potential ordinary shares. There is one category of dilutive
potential ordinary shares: share awards pursuant to the 2012 Equity
Incentive Plan (the “Equity Plan”). Share awards pursuant to the Equity
Plan are assumed to have been converted into ordinary shares at the
beginning of the financial year. Adjusted basic and diluted earnings per
share are presented in supplemental note 3.
4. Net debt
Net debt is calculated as non-current and current borrowings minus cash
and cash equivalents.
Key Performance Indicators
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|
2019 |
Restated(1)
2018 |
2019 |
Restated(1)
2018 |
||||||||||||||||
| Commercial % of total revenue | 43.8% | 45.3% | 42.0% | 45.4% | |||||||||||||||
| Broadcasting % of total revenue | 35.4% | 33.6% | 40.4% | 35.3% | |||||||||||||||
| Matchday % of total revenue | 20.8% | 21.1% | 17.6% | 19.3% | |||||||||||||||
| Home Matches Played | |||||||||||||||||||
| PL | 5 | 5 | 15 | 16 | |||||||||||||||
| UEFA competitions | 1 | 1 | 4 | 4 | |||||||||||||||
| Domestic Cups | 1 | 2 | 2 | 3 | |||||||||||||||
| Away Matches Played | |||||||||||||||||||
| PL | 6 | 5 | 16 | 15 | |||||||||||||||
| UEFA competitions | 1 | 1 | 4 | 5(2) | |||||||||||||||
| Domestic Cups | 3 | 2 | 3 | 4 | |||||||||||||||
| Other | |||||||||||||||||||
| Employees at period end | 950 | 930 | 950 | 930 | |||||||||||||||
| Employee benefit expenses % of revenue | 55.8% | 51.1% | 48.4% | 45.9% | |||||||||||||||
|
(1)Comparative amounts have been restated – see
(2) Includes UEFA Super Cup final following UEFA Europa
|
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| Phasing of Premier League games | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | ||||||||||||||
| 2018/19 season | 7 | 13 | 11 | 7 | 38 | ||||||||||||||
| 2017/18 season | 7 | 14 | 10 | 7 | 38 | ||||||||||||||
|
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(unaudited; in £ thousands, except per share and shares |
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|
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31 March |
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| 2019 |
Restated(1)
2018 |
2019 |
Restated(1)
2018 |
||||||
| Revenue | 152,068 | 147,059 | 495,706 | 468,139 | |||||
| Operating expenses | (144,181) | (136,411) | (448,030) | (415,699) | |||||
| Profit/(loss) on disposal of intangible assets | 6,378 | (3,446) | 24,457 | 14,846 | |||||
| Operating profit | 14,265 | 7,202 | 72,133 | 67,286 | |||||
| Finance costs | (5,361) | (5,935) | (16,877) | (18,293) | |||||
| Finance income | 2,213 | 7,027 | 2,257 | 14,239 | |||||
| Net finance (costs)/income | (3,148) | 1,092 | (14,620) | (4,054) | |||||
| Profit before tax | 11,117 | 8,294 | 57,513 | 63,232 | |||||
| Tax expense (2) | (3,464) | (1,401) | (16,444) | (66,466) | |||||
| Profit/(loss) for the period | 7,653 | 6,893 | 41,069 | (3,234) | |||||
| Basic earnings/(loss) per share: | |||||||||
| Basic earnings/(loss) per share (pence) | 4.65 | 4.20 | 24.96 | (1.97) | |||||
| Weighted average number of ordinary shares outstanding (thousands) | 164,526 | 164,195 | 164,526 | 164,195 | |||||
| Diluted earnings/(loss) per share: | |||||||||
| Diluted earnings/(loss) per share (pence)(3) | 4.65 | 4.19 | 24.94 | (1.97) | |||||
| Weighted average number of ordinary shares outstanding (thousands) | 164,664 | 164,591 | 164,664 | 164,591 | |||||
| (1) |
Comparative amounts have been restated – see supplemental note 5 for further details. |
||
| (2) |
The US federal corporate income tax rate reduced from 35% to 21% following the enactment of US tax reform on 22 December 2017. This necessitated a re-measurement of the then existing US deferred tax position in the period to 31 December 2017. As a result the tax expense for the nine months ended 31 March 2018 included a non-cash tax accounting write off of £49.0 million. |
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| (3) |
For the nine months ended 31 March 2018 potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. |
|
CONSOLIDATED BALANCE SHEET
(unaudited; in £ thousands) |
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|
31 March 2019 |
Restated(1)
30 June 2018 |
Restated(1)
31 March 2018 |
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| ASSETS | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | 246,396 | 245,401 | 245,186 | ||||
| Investment property | 13,739 | 13,836 | 13,869 | ||||
| Intangible assets | 718,551 | 799,640 | 752,016 | ||||
| Derivative financial instruments | 777 | 4,807 | 3,404 | ||||
| Trade and other receivables | 9,964 | 4,724 | 5,618 | ||||
| Tax receivable | 547 | 547 | 1,033 | ||||
| Deferred tax asset | 57,057 | 63,332 | 77,064 | ||||
| 1,047,031 | 1,132,287 | 1,098,190 | |||||
| Current assets | |||||||
| Inventories | 2,083 | 1,416 | 1,398 | ||||
| Derivative financial instruments | 511 | 1,159 | 2,799 | ||||
| Trade and other receivables | 185,499 | 168,060 | 117,497 | ||||
| Tax receivable | 598 | 800 | 258 | ||||
| Cash and cash equivalents | 193,855 | 242,022 | 161,717 | ||||
| 382,546 | 413,457 | 283,669 | |||||
| Total assets | 1,429,577 | 1,545,744 | 1,381,859 | ||||
|
(1) Comparative amounts have been restated – see |
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CONSOLIDATED BALANCE SHEET (continued)
(unaudited; in £ thousands) |
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|
31 March 2019 |
Restated(1)
30 June 2018 |
Restated(1)
31 March 2018 |
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| EQUITY AND LIABILITIES | |||||||
| Equity | |||||||
| Share capital | 53 | 53 | 53 | ||||
| Share premium | 68,822 | 68,822 | 68,822 | ||||
| Merger reserve | 249,030 | 249,030 | 249,030 | ||||
| Hedging reserve | (30,848) | (27,558) | (12,511) | ||||
| Retained earnings | 166,751 | 136,757 | 181,110 | ||||
| 453,808 | 427,104 | 486,504 | |||||
| Non-current liabilities | |||||||
| Derivative financial instruments | 21 | – | – | ||||
| Trade and other payables | 45,559 | 104,271 | 74,998 | ||||
| Borrowings | 493,336 | 486,694 | 457,011 | ||||
| Deferred revenue | 51,079 | 37,085 | 32,208 | ||||
| Deferred tax liabilities | 33,678 | 29,134 | 39,684 | ||||
| 623,673 | 657,184 | 603,901 | |||||
| Current liabilities | |||||||
| Derivative financial instruments | 130 | – | – | ||||
| Tax liabilities | 7,898 | 3,874 | 2,166 | ||||
| Trade and other payables | 185,733 | 267,996 | 208,840 | ||||
| Borrowings | 2,197 | 9,074 | 5,960 | ||||
| Deferred revenue | 156,138 | 180,512 | 74,488 | ||||
| 352,096 | 461,456 | 291,454 | |||||
| Total equity and liabilities | 1,429,577 | 1,545,744 | 1,381,859 | ||||
|
(1) Comparative amounts have been restated – see supplemental note 5 for further details. |
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| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||
| (unaudited; in £ thousands) | |||||||||||||
|
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| 2019 | 2018 | 2019 | 2018 | ||||||||||
| Cash flows from operating activities | |||||||||||||
| Cash generated from operations (see supplemental note 4) | 29,803 | 28,743 | 112,140 | 17,254 | |||||||||
| Interest paid | (7,679 | ) | (7,210 | ) | (17,186 | ) | (16,849 | ) | |||||
| Interest received | 697 | 266 | 2,052 | 654 | |||||||||
| Tax paid | (578 | ) | (620 | ) | (2,388 | ) | (6,388 | ) | |||||
| Net cash generated from/(used in) operating activities | 22,243 | 21,179 | 94,618 | (5,329 | ) | ||||||||
| Cash flows from investing activities | |||||||||||||
| Payments for property, plant and equipment | (1,559 | ) | (998 | ) | (8,877 | ) | (9,585 | ) | |||||
| Proceeds from sale of property, plant and equipment | – | – | – | 75 | |||||||||
| Payments for intangible assets | (14,809 | ) | (6,812 | ) | (159,865 | ) | (135,933 | ) | |||||
| Proceeds from sale of intangible assets | 12,709 | 8,203 | 37,892 | 40,645 | |||||||||
| Net cash (used in)/generated from investing activities | (3,659 | ) | 393 | (130,850 | ) | (104,798 | ) | ||||||
| Cash flows from financing activities | |||||||||||||
| Repayment of borrowings | – | (106 | ) | (3,750 | ) | (312 | ) | ||||||
| Dividends paid | (11,610 | ) | (10,929 | ) | (11,610 | ) | (10,929 | ) | |||||
| Net cash used in financing activities | (11,610 | ) | (11,035 | ) | (15,360 | ) | (11,241 | ) | |||||
| Net increase/(decrease) in cash and cash equivalents | 6,974 | 10,537 | (51,592 | ) | (121,368 | ) | |||||||
| Cash and cash equivalents at beginning of period | 190,395 | 155,312 | 242,022 | 290,267 | |||||||||
| Effects of exchange rate changes on cash and cash equivalents | (3,514 | ) | (4,132 | ) | 3,425 | (7,182 | ) | ||||||
| Cash and cash equivalents at end of period | 193,855 | 161,717 | 193,855 | 161,717 | |||||||||
SUPPLEMENTAL NOTES
1 General information
Manchester United plc (the “Company”) and its subsidiaries (together the
“Group”) is a professional football club together with related and
ancillary activities. The Company incorporated under the Companies Law
(2011 Revision) of the Cayman Islands, as amended and restated from time
to time.
2 Reconciliation of profit/(loss) for the period to Adjusted
EBITDA
|
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|
2019
£’000 |
Restated(1)
2018 £’000 |
2019
£’000 |
Restated(1)
2018 £’000 |
|||||||||||
| Profit/(loss) for the period | 7,653 | 6,893 | 41,069 | (3,234 | ) | |||||||||
| Adjustments: | ||||||||||||||
| Tax expense | 3,464 | 1,401 | 16,444 | 66,466 | ||||||||||
| Net finance costs/(income) | 3,148 | (1,092 | ) | 14,620 | 4,054 | |||||||||
| (Profit)/loss on disposal of intangible assets | (6,378 | ) | 3,446 | (24,457 | ) | (14,846 | ) | |||||||
| Exceptional items | – | – | 19,599 | – | ||||||||||
| Amortization | 30,434 | 32,400 | 99,005 | 105,789 | ||||||||||
| Depreciation | 2,852 | 2,622 | 8,631 | 7,951 | ||||||||||
| Adjusted EBITDA | 41,173 | 45,670 | 174,911 | 166,180 | ||||||||||
(1) Comparative amounts have been restated – see supplemental
note 5 for further details.
3 Reconciliation of profit/(loss) for the period to adjusted
profit for the period and adjusted basic and diluted earnings per share
|
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|
2019
£’000 |
Restated(1)
2018 £’000 |
2019
£’000 |
Restated(1)
2018 £’000 |
|||||||||
| Profit/(loss) for the period | 7,653 | 6,893 | 41,069 | (3,234 | ) | ||||||||
| Exceptional items | – | – | 19,599 | – | |||||||||
| Foreign exchange (gains)/losses on unhedged US dollar borrowings | (1,430 | ) | (6,761 | ) | 105 | (13,585 | ) | ||||||
| Fair value movement on embedded foreign exchange derivatives | 138 | 539 | 82 | 1,384 | |||||||||
| Tax expense | 3,464 | 1,401 | 16,444 | 66,466 | |||||||||
| Adjusted profit before tax | 9,825 | 2,072 | 77,299 | 51,031 | |||||||||
|
Adjusted tax expense (using a normalized tax rate of 21% (2018: |
(2,063 | ) | (580 | ) | (16,233 | ) | (14,289 | ) | |||||
| Adjusted profit for the period (i.e. adjusted net income) | 7,762 | 1,492 | 61,066 | 36,742 | |||||||||
| Adjusted basic earnings per share: | |||||||||||||
| Adjusted basic earnings per share (pence) | 4.72 | 0.91 | 37.12 | 22.38 | |||||||||
| Weighted average number of ordinary shares outstanding (thousands) | 164,526 | 164,195 | 164,526 | 164,195 | |||||||||
| Adjusted diluted earnings per share: | |||||||||||||
| Adjusted diluted earnings per share (pence)1 | 4.71 | 0.91 | 37.09 | 22.32 | |||||||||
| Weighted average number of ordinary shares outstanding (thousands) | 164,664 | 164,591 | 164,664 | 164,591 | |||||||||
(1) Comparative amounts have been restated – see supplemental
note 5 for further details.
4 Cash generated from operations
|
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Nine months ended
31 March |
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|
2019
£’000 |
Restated(1)
2018 £’000 |
2019
£’000 |
Restated(1)
2018 £’000 |
||||||||||
| Profit/(loss) for the period | 7,653 | 6,893 | 41,069 | (3,234 | ) | ||||||||
| Tax expense | 3,464 | 1,401 | 16,444 | 66,466 | |||||||||
| Profit before tax | 11,117 | 8,294 | 57,513 | 63,232 | |||||||||
| Depreciation | 2,852 | 2,622 | 8,631 | 7,951 | |||||||||
| Amortization | 30,434 | 32,400 | 99,005 | 105,789 | |||||||||
| (Profit)/loss on disposal of intangible assets | (6,378 | ) | 3,446 | (24,457 | ) | (14,846 | ) | ||||||
| Net finance costs/(income) | 3,148 | (1,092 | ) | 14,620 | 4,054 | ||||||||
| Profit on disposal of property, plant and equipment | – | – | – | (75 | ) | ||||||||
| Equity-settled share-based payments | 164 | 617 | 535 | 1,820 | |||||||||
| Foreign exchange (gains)/losses on operating activities | (94 | ) | 200 | 88 | 1,200 | ||||||||
| Reclassified from hedging reserve | 1,167 | 3,652 | 4,011 | 11,119 | |||||||||
| Changes in working capital: | |||||||||||||
| Inventories | 527 | 520 | (667 | ) | 239 | ||||||||
| Trade and other receivables | (66,386 | ) | 5,775 | (27,093 | ) | (19,662 | ) | ||||||
| Trade and other payables and deferred revenue | 53,252 | (27,691 | ) | (20,046 | ) | (143,567 | ) | ||||||
| Cash generated from operations | 29,803 | 28,743 | 112,140 | 17,254 | |||||||||
(1) Comparative amounts have been restated – see supplemental
note 5 for further details.
5 Restatement of prior periods following implementation of
IFRS 15
The Group adopted IFRS 15 ‘Revenue from contracts with customers’ with
effect from 1 July 2018. The implementation of IFRS 15 had an impact on
the Group’s financial statements as at 1 July 2018 and consequently
prior year amounts have been restated. The table below shows the
retrospective impact on revenue for the four quarters ended 30 June
2018. Note 34 to the interim consolidated financial statements for the
three and nine months ended 31 March 2019 contains tables and notes
which explain how the restatement affected the consolidated statement of
profit or loss, consolidated statement of comprehensive income,
consolidated balance sheet, and consolidated statement of cash flows.
Commercial revenue
IFRS 15 focuses on the identification and satisfaction of performance
obligations and includes specific guidance on the methods for measuring
progress towards complete satisfaction of a performance obligation
therefore revenue on certain commercial contracts is recognized earlier
under IFRS 15. The effect of the retrospective application is an
increase in cumulative revenue recognized over the financial years up to
and including the year ended 30 June 2018 including a reduction to the
amount of revenue recognized during the financial year ended 30 June
2018 only.
Broadcasting revenue
Following adoption of IFRS 15, certain performance obligations are
satisfied over time as each Premier League match (home and away) is
played – accordingly revenue is recognized evenly as each Premier League
match (home and away) is played.
Contacts
Manchester United plc
Investor Relations:
Cliff Baty
Chief
Financial Officer
+44 161 868 8650
[email protected]
Manchester
United plc
Media:
Charlie Brooks
Director of
Communications
+44 161 868 8148
[email protected]
Sard
Verbinnen & Co
Jim Barron / Devin Broda
+ 1 212 687 8080
[email protected]
[email protected]
