Why Manchester United Shares Are Gaining After Q2 Results
Portfolio Pulse from Nabaparna Bhattacharya
Manchester United Ltd. (NYSE:MANU) shares rose in premarket trading after Q2 results exceeded expectations with a quarterly revenue of $280.28 million against a forecast of $222.43 million. The increase was attributed to UEFA Champions League participation and Matchday attendance. Despite an 8.8% drop in commercial revenue, broadcasting and Matchday revenues surged by 81% and 59.2%, respectively. Operating expenses rose by 18.6%, but cash and equivalents doubled, thanks to strategic financial management. Adjusted EPS was $0.15, outperforming the expected loss of $0.22. The company is exploring stadium development options and maintains its fiscal 2024 revenue and EBITDA guidance.
March 12, 2024 | 1:30 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Manchester United Ltd. (NYSE:MANU) shares increased after reporting a strong Q2 performance, with revenues and adjusted EPS exceeding expectations.
The positive earnings report, showcasing higher than expected revenue and a shift from an expected loss to a profit in adjusted EPS, directly impacts investor sentiment and stock price. The significant growth in broadcasting and Matchday revenues, along with strategic financial management leading to an increase in cash and equivalents, presents a strong financial position. The company's focus on future growth through stadium development and maintaining its fiscal 2024 guidance further supports a positive outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100