Manchester United plc Q2 FY2022 earnings call

• Leadership Structure: New leadership structure introduced, with empowered leaders focused on evolving the club and supporting football teams. - Football Activity: Men's team finished top of Champions League group, women's team strong in WSL, men's academy progressing, and Director of Data Science appointed. - Club Operations: Operations normalized with full capacity crowds at Old Trafford, Megastore footfall normalized, VIP/hospitality back to pre-pandemic levels, season tickets sold out, and stadium WiFi upgrade planned. - Partnerships: New category partnerships in tech, blockchain, and environmental sectors; renewed global partnerships; won Brand Activation of the Year award. - Digital Initiatives: Partnership with Tezos for blockchain-enabled fan offerings; enhanced mobile app with MUTV integration; strong e-commerce and social media engagement.

Broadcasting Revenues: GBP84.6 million, a decrease of GBP22.3 million due to four fewer matches played across all competitions, including fewer Champions League games. Commercial Revenues: GBP64.4 million, with sponsorships at GBP35.2 million (GBP2.6 million lower than prior year due to absence of training kit partner, partially offset by global deals) and merchandising/licensing at GBP29.2 million (GBP4.4 million higher due to strong e-commerce royalties and Megastore reopening). Match Day Revenues: GBP34.6 million, an increase of GBP33.1 million due to all 8 games played in front of capacity crowds. Total revenues for the period were GBP185.4 million, GBP12.6 million higher than prior year.

• No forward revenue or EBITDA guidance for the current fiscal year due to potential COVID-related disruption. - Premier League negotiations expected to result in approximately 16% overall increase in gross Premier League revenues, with international broadcast rights growing near 30%. - Fiscal '22 player CapEx and net cash outflows expected to be approximately GBP80 million, with amortization of GBP150 million.

• Potential future COVID-related disruptions affecting revenues. - Impact of international travel on hospitality and fan engagement. - Risks related to sustainability of the football pyramid, including need for verifiable third-party partner revenue streams.

Q: Randy Konik asked about the enhanced leadership structure and commercial segment activity.

A: Richard Arnold discussed empowerment of leaders, focus on digitization including WiFi implementation and Tezos partnership, and commercial team's resilience during COVID with new partners and renewals.

Q: Xian Siew inquired about broadcasting rights timing and Ukraine/Russia disruptions.

A: Hemen Tseayo explained international broadcast rights now surpass domestic, with merit element in revenue distribution; Richard Arnold mentioned suspension of a Russian sponsor but no other major disruptions.

Q: Connor Murphy asked about digital monetization and Megastore foot traffic.

A: Richard Arnold talked about blockchain opportunities, micro payments, and e-commerce growth; noted reduced international footfall in Megastore but strong domestic and growing average basket.