Manchester United, the English soccer giants, have announced record first quarter (Q1) revenue, driven by an increase in commercial and matchday income.
For the three months ended September 30, 2023, the club generated total Q1 revenue of £157.1 million ($199.3 million), up 9.3% from £143.7 million in the prior year.
Commercial revenue came in at £90.4 million, up £3 million, or 3.4%. Sponsorship income was £56.2 million, a decrease of £1.6 million over the prior year quarter.
In this period, Man United signed a new multi-year global partnership with Wow Hydrate and renewed partnerships with Konami, Concho Y Toro, and Mlily.
Retail, merchandising, apparel, and product licensing revenue was £34.2 million, an increase of £4.6 million, which was primarily attributed to the extension of the club’s partnership with German sportswear giant Adidas until the end of the 2034-35 season, and strong sales in its megastore.
Matchday revenue for the quarter was £27.4 million, up £6.1 million, as the team played one more home game in the current year quarter, compared to the previous year.
Broadcasting revenue was £39.3 million, up £4.3 million as the club was participating in the UEFA Champions League elite European club competition compared to the second-tier UEFA Europa League last year, as well as increased income from the Premier League.
However, that revenue is expected to fall after the club's early exit from the Champions League this season, failing to make it out of the group stage.
Despite this increased revenue, Manchester United reported a net loss of £25.8 million for the quarter, compared with £26.5 million a year earlier.
Total operating expenses for the quarter were £184.7 million, an increase of £21 million.
Despite strong Q1 figures, United’s early UCL exit has led to the club lowering its revenue forecast for the financial year to between £635 million and £665 million after previously projecting £650 million to £680 million.
Adjusted earnings before interest, taxes, depreciation, and amortization is expected to be between £125 million and £150 million from prior guidance of £140 million to £165 million.
In addition, the club could potentially miss out on Champions League qualification next season as they currently sit seventh in the Premier League,
Billionaire Sir Jim Ratcliffe concluded a deal to secure a 25% minority stake in Manchester United last month, worth around £1.3 billion.
The deal valued the club at £6.2 billion and has seen Ratcliffe, owner of petrochemical giant Ineos, take full charge of the club’s sporting operations from the majority owners, the US-based Glazer family.