Manchester United plc Q4 FY2022 earnings call

• On-pitch: Made changes like new men's team leadership under Erik ten Hag, strengthened men's and women's squads, youth pipeline strong with Academy trophy wins.
• Fan engagement: Launched fans Advisory Board, increased fan initiatives, paid membership program at record levels, ticket demand for women's matches up 55%.
• Digital: Record e-commerce revenues, 2.8 billion digital interactions, 8.5 billion video views, app at number one in sports category globally.
• Partnerships: Launched record principal partnerships, renewed 8 global partnerships, in-person events resumed.
• Financials: Total revenues £583.2M, adjusted EBITDA £81.1M, cash balances up, net debt increased due to foreign exchange.

Total revenues for the period were £583.2 million, £89.1 million higher than the prior year due to the return of fans, offset by a reduction in broadcasting revenues. Commercial revenues were £257.8 million, with sponsorship at £147.9 million (£7.7 million higher) and merchandising/licensing at £109.9 million (£17.9 million higher). Broadcasting revenues were £214.9 million (down £39.9 million). Matchday revenues were £110.5 million (up £103.4 million). Adjusted EBITDA was £81.1 million, down £14 million from the prior year.

• Expected full year fiscal '23 revenues £580 million to £600 million, impacted by new Premier League rights cycle, European League vs Champions League, and normalized summer tour revenue.
• Fiscal 2023 adjusted EBITDA between £100 million to £110 million, reflecting wage savings from UCL clauses, elevated utility costs, £180 million amortization, and £120 million committed net player CapEx.

• Macro-economic pressures and inflation affecting operational costs.
• Foreign exchange impact on U.S. dollar debt affecting net finance costs and debt calculations.
• Competition in football and compliance with financial regulations like FFP.

Q: Randy Konik asked about monetizing content and stadium revenue growth while keeping ticket prices flat.

A: Philip Lynch mentioned personalization, blockchain, and MUTV integration; Richard Arnold talked about ticket price balance, executive box sales, and fan Advisory Board impact on ticket sales structure.

Q: Xian Siew asked about EBITDA guidance and path back to pre-COVID levels.

A: Richard Arnold said EBITDA is linked to Champions League participation, wage normalization, and revenue growth, with focus on returning to Champions League and managing costs in line with FFP regulations