1 / 32

Manchester United PLC

Manchester United PLC. Preliminary Results to 31 July 2004 27 September 2004. Preliminary Results – July 04 Striving to be the best…..on and off the pitch. Agenda Overview David Gill Financial Review Nick Humby Vision & Strategy David Gill Commercial Review Andy Anson

haru
Download Presentation

Manchester United PLC

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Manchester United PLC Preliminary Results to 31 July 2004 27 September 2004

  2. Preliminary Results – July 04Striving to be the best…..on and off the pitch Agenda • Overview David Gill • Financial Review Nick Humby • Vision & Strategy David Gill • Commercial Review Andy Anson • Summary David Gill

  3. Preliminary Results – July 04Financial highlights • Strong revenue performance - £169m • Operating profit before depreciation and amortisation up 6% to £58.3m • PBT down due to player trading losses of £3.1m • EPS 7.4p (11.5p) • Solid balance sheet - cash held £36.0m Consistent financial performance

  4. Preliminary Results – July 04Dividends • Progressive dividend policy continues • Basic up 6% to 2.65p (2.50p) • Basic increased for 12th consecutive year • Dividend covered 2.8 times • Strategic decision to expand stadium takes precedent over special dividend Consistent dividend policy

  5. Preliminary Results – July 04Player / Agent disclosures • First UK club to provide full disclosure of all player trading activity • Aim to set benchmark for the sector • Transparency key to improving industry standards Consistent high standards of governance

  6. Preliminary Results – July 04Profit and loss summary Strong operating performance – PBT impacted by player trading

  7. Preliminary Results – July 04Revenue analysis £m £m 2003 Revenue 173.0 Less one-off items in 2003 ECL Final (3.5) Nike – yr 1 of contract (3.5) (7.0) 166.0 Matchday Domestic cup gate receipts (3.6) ECL – reduced no’ games (4.4) Other 2.1 (5.9) Media FAPL TV 0.9 ECL – new contracts 3.0 Domestic Cup 2.4 6.3 Commercial Vodafone / Platinum 1.1 Other 1.5 2.6 2004 Revenue 169.0 Revenue down but improved mix benefits Operating Profit

  8. Preliminary Results – July 04Revenue mix £m Underlying revenue from FAPL up

  9. Preliminary Results – July 04 Operating profit before depreciation and amortisation up £m 2002/03 55.1 Exceptionals 2.2 ECL Final (1.3) Nike – yr 1 of contract (3.5) 52.5 Contribution from domestic cup 0.3 Contribution from ECL 0.2 Staff costs 2.6 Other revenues net of costs 2.7 2003/04 58.3 Operating profit margin 34%

  10. Preliminary Results – July 04 Operating profit before depreciation and amortisation by competition UCL contribution 40%

  11. Preliminary Results – July 04 Player trading - disposals Cash generated by player disposals

  12. Preliminary Results – July 04 Player trading - acquisitions Prior years Current year Reinvesting in the squad

  13. Preliminary Results – July 04 Cash flow summary Strong cash generation & balance sheet

  14. Preliminary Results – July 04 Stadium expansion update • Develop North East and North West quadrants of the stadium • Increase capacity by 7,800 to 75,600 from start of 2006/07 season • Costs estimated to be £39 million • Planning application submitted 10 September • Expected cash payback of 6 years Largest club stadium in England

  15. Computer image of North East Quadrant

  16. Preliminary Results – July 04Our Vision……to be the best football club in the world both on and off the pitch Developing key strategies for growth: • Maintain playing success • Develop media rights • Leverage global brand • Treat fans as customers • Maximise use of Old Trafford Consistent strategy designed to deliver long-term value

  17. Maintaining Playing Success Continual process of squad development

  18. Preliminary Results – July 04 Media Revenues • FAPL 04/05 - Total value unchanged but no stepped onwards increases - £2.3m p.a. deposits finished 03/04 - Additional live games granted under new contracts - Increase in overseas contracts - Net impact = £8m decrease in 04/05 • UCL 04/05 - 15% (03/04 – 45%) of fixed TV pool due to 3rd in FAPL in 03/04 - 4 English teams (03/04 – 3) - Net impact = £6m decrease in 04/05 Impact of centrally negotiated media contracts

  19. Preliminary Results – July 04Commercial Focus TREATING OUR FANS AS CUSTOMERS • CRM • Targeting key markets • Membership • New business initiatives • Re-alignment of sponsorship structure • Nike • Vodafone • Driving profitability • Re-structuring key deals • Efficiency of content creation • New business initiatives WORKING WITH THE RIGHT PARTNERS DEVELOPING OUR OWN MEDIA CONTENT

  20. Preliminary Results – July 04 Treating Fans as Customers Customer Relationship Management Customer Focused Initiatives • 1.7 million fans attending games • MU Finance • 116,000 customers • International expansion • One United • 193,000 members • International expansion • 3.8 million shirts in 1st 2 years • 6 million unique users p.a. • c100k MUTV subscribers • Collected 2.5 million fan records • Filling data gaps • Segmentation of fan base • Tailored communication • Appropriate products and service • Contractual improvement of data quality

  21. Preliminary Results – July 04 Targeting Key Markets ‘Must Have’ Business • Membership • Merchandise • Kit • Non-kit • Media • MUTV • Publishing • Internet • Mobile • Soccer Schools • Sponsor activation • Tours to create ‘halo’ effect Strong focus on most attractive markets

  22. Preliminary Results – July 04 Working With The Right Partners/Media Content Vodafone • £36m over 4 years • Mobile JV • Portals Launched in UK, Australia, Sweden and New Zealand • Significant addition to Platinum tier • 2 Year deal • Cash plus supply of cars • Nike, Vodafone plus fewer, bigger relationships (primary partners) • Tailored rights packages • Global activation • Secondary tiers of ‘suppliers’ and ‘promotional partners’ • Importance of MUTV • Content efficiency • New publishing deal Audi Re-alignment of sponsorship structure Media Content

  23. Preliminary Results – July 04 Working With The Right Partners - Nike Geographic split of sales • Strong shirt sales for non-home kit year • Working closely with Nike to target individuals in key markets more effectively • Established soccer schools in Hong Kong and Disneyland Paris • MU Premier Cup - final at Old Trafford Shirt Sales (000’s) 03/04 02/03 Home 406 1,741 Away 631 521 Third 259 300 1,296 2,565 Strong 2nd year of global partnership

  24. Preliminary Results – July 04Performance summary • FA Cup winners for record 11th time • Strong results and cash generation • Continued evolution of playing squad • Continued success of Nike and Vodafone partnerships • Exciting stadium expansion plans • Progressive growth in basic dividend to 2.65p Consistently setting high standards

  25. Appendices

  26. Match Day Turnover down 13% * Includes hospitality

  27. Media Turnover up 11%

  28. Commercial Turnover down 2%

  29. Media contracts • Domestic • New FAPL contracts worth £1.3 billion (current £1.4 billion) for 3 years 2004/05 – 2006/07 • Distribution principles retained (50% equal share, 25% facility fees, 25% merit awards) • 136 live appearance over 4 packages (current contract = 66 Sky + 40 PPV) • Stepped increases in current contract plus a new limit of 25 live games will mean reduced income to MU from new contract • Overseas contracts up 29% • ECL • Current contracts for 3 years from 2003/04 – 2005/06 • Distribution • Participation fee - CHF 2.5m • Group stage - CHF 0.5m per match plus CHF 0.5m win/CHF 0.25m draw • Last 16 - CHF 2.5m • Quarter final - CHF 3.0m • Semi-final - CHF 4.0m • Final - Winner CHF 10m / Runners – up CHF 6m • TV pool - CHF 89m for English clubs - Fixed = 50% allocated on FAPL prior season finish (1st 40%, 2nd 30%, 3rd 15%, 4th 15%) - Performance = 50% allocated on number of games played relative to total number of games played by English Clubs.

  30. Number of games played in 2003/04

  31. Capital Expenditure Since Flotation £,000 Stadium developments 1991-2003 93,219 2004 – Quadrants development 2,820 96,039 Carrington training ground (phase I & II) 21,268 United Trading Estate 9,125 Land/property/car parks 12,597 2004 – car parks 1,740 23,462 Other (plant, machinery, fixtures & fittings) 36,004 2004 – LED hoardings etc 3,477 39,481 Total to 31 July 2004 180,250

More Related