Released :

RECORD Q3 REVENUES OF £123.4 MILLION, UP 29.9%

RECORD Q3 ADJUSTED EBITDA OF £44.9 MILLION, UP 76.8%

MANCHESTER, England --(BUSINESS WIRE)-- Manchester United (NYSE: MANU; the “Company” and the “Group”) – one of the most popular and successful sports teams in the world - today announced financial results for the 2016 fiscal third quarter and nine months ended 31 March 2016.

Highlights

Commercial revenues of £65.8 million up 37.7% for the quarter.

for the quarter. Five sponsorship deals announced in the quarter: New Global deals with Gulf Oil International and 20th Century Fox Regional deal with YouC1000 (isotonic drinks partner in Indonesia ) MUTV deal with Sina Sports in China Renewal of partnership with Yanmar

Announced licensing deal with Columbia as Manchester United’s first Official Outdoor Apparel Partner .

as Manchester United’s first Official Outdoor Apparel Partner International Premier League Broadcasting rights up approximately 40% for the 2017-19 cycle.

Commentary

Ed Woodward, Executive Vice Chairman, commented, “The conclusion to this year’s season demonstrates once again why the Premier League is the most popular league in the most popular sport.

As we reflect on our season, we are delighted by the emergence of yet another crop of exciting young players that demonstrate once again our terrific track record of youth development. We are looking forward to the FA Cup final on May 21st and hopefully winning this special trophy for a record equaling twelve times.”

Outlook

For fiscal 2016, Manchester United expects:

Revenue to be £500m to £510m.

Adjusted EBITDA to be £178m to £188m.

Key Financials (unaudited)

£ million (except adjusted diluted earnings per share) Three months ended

31 March Nine months ended

31 March 2016 2015 Change 2016 2015 Change Commercial revenue 65.8 47.8 37.7% 203.1 151.0 34.5% Broadcasting revenue 27.8 21.7 28.1% 92.7 66.9 38.6% Matchday revenue 29.8 25.5 16.9% 85.0 71.5 18.9% Total revenue 123.4 95.0 29.9% 380.8 289.4 31.6% Adjusted EBITDA* 44.9 25.4 76.8% 142.6 88.1 61.9% Profit/(loss) for the period (i.e. net income) 13.7 (2.9) - 37.3 6.0 521.7% Adjusted profit/(loss) for the period (i.e. adjusted net income)* 11.7 (7.1) - 32.1 1.5 2040.0% Adjusted diluted earnings/(loss) per share (pence)* 7.15 (4.34) - 19.56 0.91 2049.5% Net debt 348.7 384.2 (9.2%) 348.7 384.2 (9.2%)

* Adjusted EBITDA, adjusted profit/(loss) for the period and adjusted diluted earnings/(loss) per share are non-IFRS measures. See “Non-IFRS Measures: Definitions and Use” below and the accompanying Supplemental Notes for the definitions and reconciliations for these non-IFRS measures and the reasons we believe these measures provide useful information to investors regarding the Group’s financial condition and results of operations.

Revenue Analysis

Commercial

Commercial revenue for the third quarter was £65.8 million, an increase of £18.0 million, or 37.7%, over the prior year quarter.

Sponsorship revenue for the third quarter was £38.8 million, an increase of £1.3 million, or 3.5%, over the prior year quarter.

revenue for the third quarter was £38.8 million, an increase of £1.3 million, or 3.5%, over the prior year quarter. Retail, Merchandising, Apparel & Product Licensing revenue for the third quarter was £24.4 million, an increase of £16.8 million, or 221.1% over the prior year quarter, primarily due to the commencement of the new agreement with adidas from 1 August 2015, which included a step-up in minimum guaranteed revenues and the contribution from several businesses previously operated by Nike.

revenue for the third quarter was £24.4 million, an increase of £16.8 million, or 221.1% over the prior year quarter, primarily due to the commencement of the new agreement with adidas from 1 August 2015, which included a step-up in minimum guaranteed revenues and the contribution from several businesses previously operated by Nike. Mobile & Content revenue for the third quarter was £2.6 million, a decrease of £0.1 million, or 3.7% over the prior year quarter.

Broadcasting

Broadcasting revenue for the third quarter was £27.8 million, an increase of £6.1 million, or 28.1%, over the prior year quarter, primarily due to participation in UEFA competitions and one additional FAPL live broadcast game in the current quarter.

Matchday

Matchday revenue for the third quarter was £29.8 million, an increase of £4.3 million, or 16.9%, over the prior year quarter, primarily due to playing two UEFA Europa League home games in the current quarter.

Other Financial Information

Operating expenses

Total operating expenses for the third quarter were £102.2 million, an increase of £3.2 million, or 3.2%, over the prior year quarter.

Employee benefit expenses

Employee benefit expenses for the third quarter were £56.2 million, an increase of £6.0 million, or 12.0%, over the prior year quarter, primarily due to renewals of existing player contracts, coupled with an uplift in annual player salaries due to participation in the UEFA Champions League.

Other operating expenses

Other operating expenses for the third quarter were £22.3 million, an increase of £2.9 million, or 14.9%, over the prior year quarter, primarily due to retail, merchandising, apparel and licensing costs now being recognized in-house, plus an increase in matchday costs as a result of playing two UEFA competition home games in the current quarter.

Depreciation & amortization

Depreciation for the third quarter was £2.5 million, which was unchanged from the prior year quarter. Amortization for the third quarter was £21.2 million, a decrease of £4.5 million, or 17.5%, over the prior year quarter. The unamortized balance of players’ registrations at 31 March 2016 was £228.3 million.

Net finance costs

Net finance costs for the third quarter were £3.6 million, a decrease of £2.2 million, or 37.9%, over the prior year quarter. The decrease was primarily due to a reduction in interest payable on the secured term loan facility and senior secured notes following the refinancing in June 2015.

Tax

The tax expense for the third quarter was £5.9 million, compared to a credit of £8.5 million in the prior year quarter.

Cash flows

Net cash generated from operating activities for the third quarter was £5.9 million, an increase of £20.9 million over the prior year quarter, primarily due to increased profit.

Capital expenditure on property, plant and equipment for the third quarter was £0.2 million, a decrease of £0.1 million over the prior year quarter.

Net player and other intangible assets capital expenditure for the third quarter was £16.1 million, an increase of £5.1 million over the prior year quarter.

Dividend

As previously approved, a $0.045 per share quarterly cash dividend on the Company's outstanding Class A and Class B ordinary shares will be payable on 10 June 2016, to shareholders of record on 26 May 2016. The stock will begin to trade ex-dividend on 23 May 2016.

The Board of Directors recently approved replacing the previous quarterly cash dividend with a regular semi-annual cash dividend on the Company's outstanding Class A and Class B ordinary shares of $0.09 per share which will be paid in January and June 2017. The specific record, ex dividend, and payment dates with respect to each semi-annual cash dividend will be announced in future releases.

Conference Call Information

The Company’s conference call to review third quarter fiscal 2016 results will be broadcast live over the internet today, 13 May 2016 at 8:00 a.m. Eastern Time and will be available on Manchester United’s investor relations website at http://ir.manutd.com. Thereafter, a replay of the webcast will be available for thirty days.

About Manchester United

Manchester United is one of the most popular and successful sports team in the world, playing one of the most popular spectator sports on Earth.

Through our 138-year heritage we have won 62 trophies, enabling us to develop the world’s leading sports brand and a global community of 659 million followers. Our large, passionate community provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, mobile & content, broadcasting and matchday.

Cautionary Statement

This press release contains forward-looking statements. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to the Company’s operations and business environment, all of which are difficult to predict and many are beyond the Company’s control. Forward-looking statements include information concerning the Company’s possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or similar expressions. The forward-looking statements contained in this press release are based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the “Risk Factors” section and elsewhere in the Company’s Registration Statement on Form F-1, as amended (File No. 333-182535) and the Company’s Annual Report on Form 20-F (File No. 001-35627).

Non-IFRS Measures: Definitions and Use

1. Adjusted EBITDA

Adjusted EBITDA is defined as profit/(loss) for the period before depreciation, amortization, profit/(loss) on disposal of players’ registrations, exceptional items, net finance costs, and tax.

We believe adjusted EBITDA is useful as a measure of comparative operating performance from period to period and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our asset base (primarily depreciation and amortization), capital structure (primarily finance costs), and items outside the control of our management (primarily taxes). Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for an analysis of our results as reported under IFRS as issued by the IASB. A reconciliation of profit for the period to adjusted EBITDA is presented in supplemental note 2.

2. Adjusted profit/(loss) for the period (i.e. adjusted net income)

Adjusted profit/(loss) for the period is calculated, where appropriate, by adjusting for charges/credits related to exceptional items, foreign exchange gains/losses on unhedged US dollar denominated borrowings, fair value movements on derivative financial instruments, and hedge ineffectiveness on cash flow hedges, adding/subtracting the actual tax expense/credit for the period, and subtracting/adding the adjusted tax expense/credit for the period (based on an normalized tax rate of 35%; 2015: 35%). The normalized tax rate of 35% is management’s estimate of the tax rate likely to be applicable to the Group in the long-term.

We believe that in assessing the comparative performance of the business, in order to get a clearer view of the underlying financial performance of the business, it is useful to strip out the distorting effects of charges/credits related to ‘one-off’ transactions and then to apply a ‘normalized’ tax rate (for both the current and prior periods) of the US federal income tax rate of 35%. A reconciliation of profit for the period to adjusted profit for the period is presented in supplemental note 3.

3. Adjusted basic and diluted earnings/(loss) per share

Adjusted basic and diluted earnings/(loss) per share are calculated by dividing the adjusted profit/(loss) for the period by the weighted average number of ordinary shares in issue during the period. Adjusted diluted earnings/(loss) per share is calculated by adjusting the weighted average number of ordinary shares in issue during the period to assume conversion of all dilutive potential ordinary shares. We have one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the “Equity Plan”). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year. Adjusted basic and diluted earnings/(loss) per share are presented in supplemental note 3.





Key Performance Indicators Three months ended Nine months ended



31 March 31 March 2016 2015 2016 2015 Commercial % of total revenue 53.3% 50.3% 53.3% 52.2% Broadcasting % of total revenue 22.5% 22.8% 24.4% 23.1% Matchday % of total revenue 24.2% 26.9% 22.3% 24.7% Home Matches Played FAPL 5 5 14 15 UEFA competitions 2 - 6 - Domestic Cups 2 2 4 2 Away Matches Played UEFA competitions 2 - 6 - Domestic Cups 2 3 2 4 Other Employees at period end 797 791 797 791 Staff costs % of revenue 45.5% 52.8% 44.8% 51.2%































Phasing of Premier League home games

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 2015/16 season





4





5





5





5





19



2014/15 season

3 7 5 4 19













































CONSOLIDATED INCOME STATEMENT (unaudited; in £ thousands, except per share and shares outstanding data)



Three months ended

31 March Nine months ended

31 March

2016 2015 2016 2015

Revenue 123,444

94,970

380,770

289,401



Operating expenses

(102,168 )

(98,976 )

(310,578 )

(284,864 )

Profit/(loss) on disposal of players’ registrations 1,950 (1,556 ) (4,838 ) 18,204

Operating profit/(loss) 23,226 (5,562 ) 65,354 22,741

Finance costs

(3,747 )

(5,904 )

(12,925 )

(18,381 )

Finance income 185 37 290 136

Net finance costs (3,562 ) (5,867 ) (12,635 ) (18,245 )

Profit/(loss) before tax

19,664



(11,429 )

52,719



4,496



Tax (expense)/credit (5,903 ) 8,555 (15,391 ) 1,519

Profit/(loss) for the period 13,761 (2,874 ) 37,328 6,015



















Basic earnings/(loss) per share:

















Basic earnings/(loss) per share (pence)

8.40



(1.75 )

22.78



3.67



Weighted average number of ordinary shares outstanding (thousands)

163,892



163,797



163,889



163,794



Diluted earnings/(loss) per share:

















Diluted earnings/(loss) per share (pence)

8.38



(1.75 )

22.72



3.66



Weighted average number of ordinary shares outstanding (thousands) 164,288 164,140 164,288 164,140





















CONSOLIDATED BALANCE SHEET (unaudited; in £ thousands)













As of 31 March 2016 As of 30 June 2015 As of 31 March 2015

ASSETS























Non-current assets























Property, plant and equipment



247,200





250,626



252,494



Investment property



13,475





13,559



13,587



Goodwill



421,453





421,453



421,453



Players’ registrations and other intangible assets



230,230





238,944



237,760



Derivative financial instruments



2,692





-



1,323



Trade and other receivables



10,542





3,836



1,000



Deferred tax asset 133,640 133,640 147,284

1,059,232 1,062,058 1,074,901

Current assets























Inventories



1,293





-



-



Derivative financial instruments



4,553





27



1,354



Trade and other receivables



95,238





83,627



107,716



Current tax receivable



-





124



124



Cash and cash equivalents 104,202 155,752 11,204

205,286 239,530 120,398

Total assets 1,264,518 1,301,588 1,195,299

















































CONSOLIDATED BALANCE SHEET (continued) (unaudited; in £ thousands)























As of 31 March 2016 As of 30 June 2015 As of 31 March 2015

EQUITY AND LIABILITIES

Equity























Share capital



52





52



52



Share premium



68,822





68,822



68,822



Merger reserve



249,030





249,030



249,030



Hedging reserve



(18,324 )



4,729



(6,566 )

Retained earnings 178,779 155,285 161,872

478,359 477,918 473,210

Non-current liabilities























Derivative financial instruments



7,473





2,769



4,087



Trade and other payables



19,620





48,078



39,827



Borrowings



450,551





410,482



392,480



Deferred revenue



15,961





21,583



24,464



Deferred tax liabilities 12,740 17,311 26,569

506,345 500,223 487,427

Current liabilities























Derivative financial instruments



2,407





2,966



2,340



Trade and other payables



163,014





131,283



118,135



Current tax liabilities



7,626





2,105



1,753



Borrowings



2,356





485



2,950



Deferred revenue 104,411 186,608 109,484

279,814 323,447 234,662

Total equity and liabilities 1,264,518 1,301,588 1,195,299



























CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited; in £ thousands)









Three months ended

31 March

Nine months ended

31 March 2016 2015 2016 2015 Cash flows from operating activities











Cash generated from/(used in) operations (see supplemental note 4)

14,493



(3,189 )

45,601



45,732

Interest paid

(8,419 )

(10,907 )

(11,537 )

(24,136 ) Debt finance costs relating to borrowings

-



-



-



(824 ) Interest received

129



368



246



457

Income tax paid (296 ) (1,271 ) (1,898 ) (2,281 ) Net cash generated from/(used in) operating activities 5,907 (14,999 ) 32,412 18,948 Cash flows from investing activities















Purchases of property, plant and equipment

(207 )

(293 )

(783 )

(4,086 ) Proceeds from sale of property, plant and equipment

-



-



19



-

Purchases of players’ registrations and other intangible assets

(17,048 )

(14,406 )

(112,940 )

(101,272 ) Proceeds from sale of players’ registrations 956 3,447 36,729 20,163 Net cash used in investing activities (16,299 ) (11,252 ) (76,975 ) (85,195 ) Cash flows from financing activities















Proceeds from borrowings

-



-



-



4,704

Repayment of borrowings

(94 )

(102 )

(277 )

(301 ) Dividends paid (10,191 ) - (15,004 ) - Net cash (used in)/generated from financing activities (10,285 ) (102 ) (15,281 ) 4,403 Net decrease in cash and cash equivalents

(20,677 )

(26,353 )

(59,844 )

(61,844 ) Cash and cash equivalents at beginning of period

121,611



37,115



155,752



66,365

Effects of exchange rate changes on cash and cash equivalents 3,268 442 8,294 6,683 Cash and cash equivalents at end of period 104,202 11,204 104,202 11,204

















SUPPLEMENTAL NOTES

1General information

Manchester United plc (the “Company”) and its subsidiaries (together the “Group”) is a professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (2011 Revision) of the Cayman Islands , as amended and restated from time to time.

2Reconciliation of profit for the period to adjusted EBITDA



Three months ended

31 March

Nine months ended

31 March



2016 £’000 2015 £’000 2016 £’000 2015 £’000

Profit/(loss) for the period



13,761

(2,874 )



37,328 6,015



Adjustments:































Tax expense/(credit)



5,903





(8,555 )



15,391



(1,519 )

Net finance costs



3,562





5,867





12,635



18,245



(Profit)/loss on disposal of players’ registrations



(1,950 )



1,556





4,838



(18,204 )

Exceptional items



-





1,275





-



2,336



Amortization



21,164





25,708





64,950



73,931



Depreciation 2,524 2,469 7,491 7,365

Adjusted EBITDA 44,964 25,446 142,633 88,169



































3Reconciliation of profit/(loss) for the period to adjusted profit for the period and adjusted basic and diluted earnings per share



Three months ended

31 March

Nine months ended

31 March

2016 £’000 2015 £’000 2016 £’000 2015 £’000 Profit/(loss) for the period

13,761

(2,874 )

37,328

6,015

Exceptional items

-



1,275



-



2,336

Foreign exchange (gains)/losses on unhedged US dollar denominated borrowings

(242 )

468



972



(530 ) Fair value movement on derivative financial instruments

(1,351 )

(1,511 )

(4,263 )

(3,997 ) Hedge ineffectiveness of cash flow hedges

-



234



-



-

Tax expense/(credit) 5,903 (8,555 ) 15,391 (1,519 ) Adjusted profit/(loss) before tax

18,071



(10,963 )

49,428



2,305

Adjusted tax (expense)/credit (using a normalised tax rate of 35% (2015: 35%)) (6,325 ) 3,837 (17,300 ) (807 ) Adjusted profit/(loss) for the period (i.e. adjusted net income) 11,746 (7,126 ) 32,128 1,498























Adjusted basic earnings/(loss) per share:























Adjusted basic earnings/(loss) per share (pence)

7.17



(4.35 )

19.60



0.91

Weighted average number of ordinary shares outstanding (thousands)

163,892



163,797



163,889



163,794

Adjusted diluted earnings/(loss) per share:























Adjusted diluted earnings/(loss) per share (pence)

7.15



(4.34 )

19.56



0.91

Weighted average number of ordinary shares outstanding (thousands) 164,288 164,140 164,288 164,140

























4Cash generated from operations



Three months ended

31 March

Nine months ended

31 March



2016 £’000 2015 £’000 2016 £’000 2015 £’000

Profit/(loss) for the period



13,761

(2,874 )



37,328

6,015



Tax expense/(credit) 5,903 (8,555 ) 15,391 (1,519 )

Profit/(loss) before tax



19,664





(11,429 )



52,719





4,496



Depreciation



2,524





2,469





7,491





7,365



Amortization



21,164





25,708





64,950





73,931



(Profit)/loss on disposal of players’ registrations



(1,950 )



1,556





4,838





(18,204 )

Net finance costs



3,562





5,867





12,635





18,245



Loss on disposal of property, plant and equipment



-





-





10





5



Equity-settled share-based payments



375





322





1,170





1,029



Net exchange differences



(255 )



438





1,934





(530 )

Fair value adjustment to derivative financial instruments



(1,583 )



3,131





(5,629 )



4,342



Reclassified from hedging reserve



345





(1,383 )



1,008





(3,774 )

Decrease/(increase) in inventories



211





-





(1,293 )



-



(Increase)/decrease in trade and other receivables



(12,605 )



(22,468 )



1,774





29,930



Decrease in trade and other payables and deferred revenue (16,959 ) (7,400 ) (96,006 ) (71,103 )

Cash generated from/(used in) operations 14,493 (3,189 ) 45,601 45,732





































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Manchester United plc

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+44 207 054 5928

ir@manutd.co.uk

or

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Source: Manchester United plc