Man Utd debt soars 42% to £429m amid lockdown

New York-listed Manchester United plc on Thursday announced results for its 2020 fiscal third quarter ended March 31, 2020, saying total revenue fell 18.7% to £123.7 million and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 32.3% to £27.9 million.

The club reported a quarterly operating loss of £3.3 million compared to an operating profit of £14.2 million in the same period of the previous year.

Net debt is up 42.2% to £429.1 million compared to the same period of last year.

“The company is withdrawing its previously issued Fiscal 2020 Revenue and Adjusted EBITDA guidance,” said the company.

“Given ongoing uncertainty due to COVID-19 and the evolving related economic and financial consequences, the company is not providing updated guidance at this time.”

The company added: “Operationally, the impact of the pandemic and measures to prevent further spread continues to disrupt its businesses in a number of ways, most significantly in broadcasting and matchday operations.

“Old Trafford and its flagship Megastore operations have been closed to visitors since 20 March 2020 and Museum, Stadium Tour and Red Café operations have been closed since 17 March 2020.

“Government imposed restrictions have also resulted in the postponement of the Premier League, UEFA competitions and FA Cup competition since 13 March 2020.

“Postponement of the Premier League and changes to match scheduling has resulted in a reduction in the total broadcasting revenue expected for the season and has impacted broadcasting revenue during the quarter for matches played to date.

“In addition, during the quarter, broadcasting and matchday revenues were impacted due to the postponement of three matches: one away Premier League match, one home Round of 16 Europa League match and one away FA cup quarter-final match …

“As of 31 March 2020, the company had £90.3m of cash balances together with access to an additional £150m available under the company’s revolving credit facility … “

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