Manchester United shares slide after soccer club posts lower revenue, wider loss in Q4

By James Rogers

The English Premier League club gave an update on its restructuring efforts when reporting its results early Wednesday

Manchester United Ltd. shares slid after the English soccer giant reported lower revenue and widening losses in its fourth-quarter results early Wednesday.

Shares of Manchester United (MANU) were down 5.7%, putting the stock on pace for its largest percent decrease since June 6 when it fell 5.52%, Dow Jones Market Data show. Manchester United shares, which were trading around $15.47, were also on pace for their lowest close since May 8, when they closed at $15.48.

Fourth-quarter revenue was 142.2 million pounds, or $185 million, down from 167.3 million pounds, or $217.7 million, in the same period last year. Analysts surveyed by FactSet were looking for sales of $182.8 million.

Manchester United reported a net loss of 36.3 million pounds ($47.2 million), or a loss of 21.4 pence (28 cents) per share, after a loss of 2.9 million pounds ($3.8 million), or a loss of 1.8 pence (2.3 cents) per share, in the same period last year. On an adjusted basis, Manchester United reported a loss of 15.8 pence (21 cents) a share; analysts surveyed by FactSet were looking for an adjusted loss of 22 cents a share.

Related: Manchester United's stock rises after Jim Ratcliffe clinches 25% stake and vows to return club to soccer's pinnacle

Late last year, British billionaire Sir Jim Ratcliffe clinched a 25% minority stake in Manchester United following a protracted tussle. The club is majority owned by the U.S.-based Glazer family.

The Glazers have come under intense pressure to sell Manchester United amid ongoing fan frustration over the team's underperformance on the field. The club, one of the biggest names in world soccer, last won the Premier League in 2013, and Ratcliffe has vowed to return Manchester United to the sport's pinnacle.

The club gave an update on its recent restructuring and cost-saving initiatives Wednesday, citing the business transformation plan it started in the fiscal third quarter. Manchester United announced an employee redundancy program in July 2024, which was concluded at the end of August. This resulted in the "rationalization of the club's employee base by approximately 250 roles across all departments," Manchester United said, in the statement. "In total, the club expects to realize annualized cost savings of approximately GBP40 million to GBP45 million, before implementation costs of GBP10 million," the club added. Citing timing and other contractual obligations, Manchester United said it expects to realize these savings over fiscal years 2025 and 2026.

During the quarter, investments were also made in the club's famous Old Trafford stadium, which included new hospitality facilities, expansion of rail seating and kiosk refurbishments, the club said, in the statement.

Related: Manchester United's losses jump and revenue falls with fewer games played

Manchester United also provided new outlook Wednesday. "Today, we announce new guidance for fiscal 2025 which reflects a partial year impact of the transformative cost-savings and organizational changes that we have been busy implementing over the summer," Manchester United CEO Omar Berrada, who joined the club in January, in the statement.

For fiscal 2025, Manchester United gave full year revenue guidance of 650 million pounds ($846.4 million) to 670 million pounds ($872.5). Analysts surveyed by FactSet are looking for revenue of $953.5 million.

Manchester United was defeated 3-0 at Old Trafford by Liverpool in its last game, and is sitting in 14th in the Premier League. Manchester United travels to face Southampton in its next game on Saturday.

-James Rogers

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09-11-24 1320ET

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