Manchester United Plc (NYSE:MANU) achieved a record revenue of £677.6 million for fiscal year 2026, alongside an adjusted EBITDA of £216.4 million. Both figures surpassed Jefferies' estimates of £665 million for revenue and £210 million for EBITDA, allowing the club to report an operating profit of £22.6 million, a notable turnaround from an £18.4 million loss the previous year.

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The fourth quarter generated £157.5 million in revenue and an adjusted EBITDA of £28.9 million, exceeding Jefferies' projections of £145 million and £22 million, despite showing year-over-year declines of 4.0% and 22.9%, respectively. This decrease is attributed to changes in Premier League match scheduling and the absence of last year’s post-season tour and Europa League final.

Broadcasting revenue rose by 28.4% to £49.7 million thanks to the club's improved performance, finishing in third place in the Premier League compared to 15th the prior season. However, sponsorship revenue fell by 26.2% in the quarter and 14.8% for the entire year, primarily due to the end of the Tezos partnership. New agreements with SumUp and Betway are expected to offset this decline, potentially making sponsorship a positive contributor in the future.

Overall commercial revenue declined by 18.1% to £72.2 million in the quarter, with retail and merchandise sales dropping 7.0% to £34.4 million. Operating expenses for the year decreased by £31.8 million, or 4.3%, to £701.9 million, with employee expenses down 3.6% to £302.0 million, representing 44.6% of revenue compared to 47.0% the previous year. The adjusted EBITDA margin increased by approximately 450 basis points to 31.9%. Despite these gains, fourth-quarter employee expenses accounted for 52.3% of revenue, up from 48.3% a year earlier, suggesting that next year’s costs related to Champions League bonuses and squad expenses will likely impact future profits.

Management has acquired land for a proposed 100,000-seat stadium, contributing to £63.5 million of this year's £85.9 million in property, plant, and equipment investments. Jefferies described this as a significant step toward risk reduction but acknowledged that the design, construction, financing, and matchday enhancements are still years away from realization.

Looking ahead to fiscal year 2027, management has projected a revenue range of £740-760 million, reflecting a growth of 9-12% from the record base, along with an adjusted EBITDA of £205-225 million. Jefferies indicated that this revenue forecast assumes Champions League qualification, while the EBITDA expectations suggest that costs associated with European competition and player wages will consume much of the increased revenue. The firm considers this guidance to be conservative given this year's disciplined cost management.