Presentation is loading. Please wait.

Presentation is loading. Please wait.

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

Similar presentations


Presentation on theme: "Manchester United PLC Preliminary Results to 31 July 2004 27 September 2004."— Presentation transcript:

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

2 Preliminary Results – July 04 Striving to be the best…..on and off the pitch Agenda OverviewDavid Gill Financial ReviewNick Humby Vision & StrategyDavid Gill Commercial ReviewAndy Anson SummaryDavid Gill

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

5 Preliminary Results – July 04 Preliminary Results – July 04 Player / 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 04 Preliminary Results – July 04 Profit and loss summary July 04July 03 £mChange£m Turnover169.0-2%173.0 Group operating profit before depreciation and amortisation 58.3+2% 57.3 Depreciation (6.6)-10% (7.3) Amortisation(21.8)+4%(21.0) Exceptional Costs-- (2.2) Group Operating Profit29.9+12%26.8 (Loss)/profit on disposals (3.1)12.9 Interest, JVs etc. 1.1(0.4) Profit before tax27.9-29%39.3 Strong operating performance – PBT impacted by player trading

7 Preliminary Results – July 04 Revenue analysis £m 2003 Revenue173.0 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 04 Revenue mix Underlying revenue from FAPL up £m

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 Reinvesting in the squad Prior years Current year

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 04 Preliminary Results – July 04 Our 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 3 rd 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 04 Preliminary Results – July 04 Commercial Focus 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 TREATING OUR FANS AS CUSTOMERS WORKING WITH THE RIGHT PARTNERS DEVELOPING OUR OWN MEDIA CONTENT

20 Preliminary Results – July 04 Preliminary Results – July 04 Treating Fans as Customers 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 1 st 2 years 6 million unique users p.a. c100k MUTV subscribers Customer Relationship Management 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 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 Preliminary Results – July 04 Working With The Right Partners/Media Content Vodafone Audi Re-alignment of sponsorship structure Media Content £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

23 Shirt Sales (000s) 03/04 02/03 Home 406 1,741 Away 631 521 Third 259 300 1,296 2,565 Preliminary Results – July 04 Preliminary Results – July 04 Working With The Right Partners - Nike 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 Geographic split of sales Strong 2 nd year of global partnership

24 Preliminary Results – July 04 Performance summary FA Cup winners for record 11 th 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 (1 st 40%, 2 nd 30%, 3 rd 15%, 4 th 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 2004180,250

32


Download ppt "Manchester United PLC Preliminary Results to 31 July 2004 27 September 2004."

Similar presentations


Ads by Google