Escolar Documentos
Profissional Documentos
Cultura Documentos
15 November 2011
TableofContents
OverviewofFirstQuarterandYeartoDate.............................................................................................3
FinancialHighlights................................................................................................................................5
KeyPerformanceIndicators.....................................................................................................................6
ManagementsDiscussionandAnalysisofFinancialPerformance...........................................................7
ConsolidatedIncomeStatement-Unaudited........................................................................................11
ConsolidatedStatementofFinancialPositionandCashFlows-Unaudited...........................................12
NotestotheConsolidatedFinancialStatements-Unaudited.............................................................13
OVERVIEWOFFIRSTQUARTERANDYEARTODATE
MUFinanceplcannouncestheresultsoftheRedFootballLimitedgroup(RFLortheCompany)forthe
first quarter of the financial year ending 30 June 2012. The report summarises RFLs financial and
operatingperformanceforthethreemonthsfrom1July2011to30September2011.
Insummary:
Strongstarttotheseason
nd
! Currently2 intheFAPL(FAPremierLeague)
! Currently1stinUCL(UEFAChampionsLeague)Groupandunbeatenafter4matches
! Reachedquarter-finalintheCarlingCup
Continuedinvestmentintheplayingsquad
! New signings - David De Gea (Atletico Madrid), Ashley Young (Aston Villa) and Phil Jones
(BlackburnRovers)
! New contracts signed with Antonio Valencia (2015), Chris Smalling (2016), Ji-sung Park (2013),
TomCleverley(2015)andJavierHernandez(2016)
Yearonyearrevenuegrowthof16.6%from63.3mto73.8m
! Matchdayrevenuesincreased9.6%from19.7mto21.6m
!
4competitivehomematchesplayed,inlinewiththeprioryearperiod
!
StrongattendancesatallFAPLandUCLhomegamesplayed
!
SeasonalandMatchdayhospitalitysalesaheadoflastyear
!
SuccessfultouroftheUSinsummer2011
! Mediarevenuesincreased16.5%from19.4mto22.6m
!
UCL income beneficially impacted from finishing as FAPL Champions in the 2010/11
season(2009/10:RunnersUp)
!
6liveFAPLmatchestelevised,inlinewiththeprioryearperiod
! Commercialrevenuesincreased22.3%from24.2mto29.6m
!
Continuedgrowthinrevenuefromcommercialpartners(excludingKit&Shirt)
!
NewtrainingkitdealsignedwithDHLeffectivefromthisseason
!
Increases in the partial recognition of cumulative profit share associated with Nike
partnership
YearonyearEBITDAgrowthof29.5%from14.9mto19.3m
EBITDAmarginof26.2%inthequartercomparedwith23.5%forthequarterto30September2010
Strongstatementoffinancialposition
! Netassetsof804.8m
! Cashbalanceof65.0m
OVERVIEWOFFIRSTQUARTERANDYEARTODATE(CONTINUED)
As previously disclosed in the senior secured note Offering Memorandum and quarterly financial
statements, we may from time to time purchase or sell our securities. We confirm that we purchased
23.7 million (sterling equivalent) of senior secured notes during the quarter ended 30 September
2011.
Asof30September2011weown87.5million(sterlingequivalent)ofourseniorsecurednotes.
Thesepurchasesweremadepursuanttotheboardsemphasisonprudenttreasurymanagementand
improvingtheyieldfromitscashandcashequivalentbalances.Thepurchasedseniorsecurednotesare
beingheldbytheCompanyandhavenotbeenretired.Theseniorsecurednotesmaybesoldbackto
themarketinthefuturedependingonthecapitalandoperatingrequirementsofthebusiness.
FINANCIALHIGHLIGHTS
ThetablebelowsummarisestheCompanysunauditedfinancialperformanceforthethreemonthsto
30September2011andforthecorrespondingperiodinthepreviousfinancialyear(bothperiodsstated
underIFRS):
(millions)
Threemonthsended
30September
2010
2011
Matchdayrevenue
19.7
21.6
Mediarevenue
19.4
22.6
Commercialrevenue
24.2
29.6
Totalrevenue
63.3
73.8
Staffcosts
(33.7)
(37.8)
Operatingcosts
(14.7)
(16.7)
Totaloperatingcosts
(48.4)
(54.5)
14.9
19.3
23.5%
26.2%
7.8
3.2
Operatingfreecashflow
22.7
22.5
Netplayercapitalexpenditure
(8.2)
(47.1)
Generalcapitalexpenditure
(3.7)
(13.8)
Cashflowbeforefinancing
10.8
(38.4)
(22.7)
(21.0)
(3.2)
(0.2)
(23.1)
Decreaseincashandcashequivalents
(12.1)
(85.7)
Grossdebt
516.7
433.2
Cashandcashequivalents
151.7
65.0
EBITDA
EBITDAmargin(%)
Changeinworkingcapital
Loan/bankinterestpaid
Taxpaid
Netchangeinborrowings
KEYPERFORMANCEINDICATORS
ThetablebelowsummarisestheCompanysKeyPerformanceIndicators(KPIs)forthethreemonthsto
30September2011andforthecorrespondingperiodinthepreviousfinancialyear:
Threemonthsended
30September
2010
Matchday
2011
%oftotalrevenue
31.1%
HomeMatchesPlayed
29.3%
FAPL
UCL
DomesticCups
AwayMatchesPlayed
UCL
DomesticCups
Media
%oftotalrevenue
30.6%
Commercial
30.6%
%oftotalrevenue
38.3%
40.1%
NikeandAon%ofCommercial
47.4%
44.6%
Partnersandother%ofCommercial
52.6%
55.4%
Other
Employees
Staffcosts%ofrevenue
602
670
53.2%
51.2%
PhasingofFAPLhomegames(2011/12ascurrentlyscheduled,subjecttochange)
Quarter1
Quarter2
Quarter3
Quarter4
Total
2011/12season
19
2010/11season
19
MANAGEMENTSDISCUSSIONANDANALYSISOFFINANCIALPERFORMANCE
IncomeStatement
Matchdayrevenue
Matchday revenue for the quarter ended 30 September 2011 was 21.6 million, an increase of 1.9
million or 9.6% over 19.7 million for the same period in 2010/11. The success of the US Tour in
summer2011broughtinadditionalrevenuesoverandabovethesameperiodin2010/11.Inaddition,
Matchdayincomewas0.4millionhigherthanthesameperiodin2010/11,duetoimprovedseasonal
hospitalitysalescomparedwith2010/11.
Mediarevenue
Mediarevenueforthequarterended30September2011was22.6million,anincreaseof3.2million
or16.5%over19.4millionforthesameperiodin2010/11.Mediaincomeintheperiodwasimpacted
mainly by UCL income distributions from UEFA. Whilst we have played the same number of UCL
matchesasthesameperiodin2010/11,in2011/12wereceivehigherrevenuesfromthemarketpool
due to our 1st place FAPL finish in 2010/11 (2nd place FAPL finish in 2009/10). In addition, we have
recentlyreceivedafinalpaymentfromUEFArelatingtothe2010/11UCLcompetitionwhichhasbeen
accountedforinthefirstquarterof2011/12.
Commercialrevenue
Commercialrevenueforthequarterended30September2011was29.6million,anincreaseof5.4
million or 22.3% over 24.2 million for the same period in 2010/11. This increase was a result of
continued growth in additional sponsorship revenues generated by an increase in the number and
valueofourglobal,regional,mobileandsuppliersponsorstogetherwiththeimpactofthetrainingkit
deal signed with DHL. The 2011/12 commercial revenue figure also reflects an increase in the partial
recognition of the cumulative profit share associated with the Nike partnership compared with that
recognisedin2010/11.
Staffcosts
Staffcostsforthequarterended30September2011were37.8million,anincreaseof4.1millionor
12.2% over 33.7 million for the same period in 2010/11. This increase largely relates to growth in
player remuneration, driven by new player acquisitions and further contractual negotiations together
with increased costs and headcount arising from the continued growth in our sponsorship and
commercialoperations.
Otheroperatingexpenses
Otheroperatingexpensesforthequarterended30September2011were16.7million,anincreaseof
2.0millionor13.6%over14.7millionforthesameperiodin2010/11.Thisincreaserelatestocosts
associatedwiththeUSTourinsummer2011andageneralunderlyinggrowthinoperatingexpenditure
largelyassociatedwiththecontinuedgrowthintheGroupscommercialandmediabusinesses.
Amortisationofplayersregistrations
Amortisation of players registrations for the quarter ended 30 September 2011 was 10.1 million,
consistentwith10.1millionforthesameperiodin2010/11.Increasesinamortisationduetoplayer
acquisitions (Jones, De Gea and Young) have been offset by reductions due to contract extensions
(Anderson,Smalling,Valencia)anddepartedplayers.
Profitondisposalofplayersregistrations
Profitondisposalofplayersregistrationsforthequarterended30September2011was5.6million,
anincreaseof3.8millionover1.8millionforthesameperiodin2010/11.Theprofitondisposalin
2011/12 relates to the disposals of Obertan (Newcastle), Brown and OShea (Sunderland). For
2010/11,theprofitondisposalrelatedmainlytothetransfersofCathcartandPossebonwithadditional
triggerpaymentsbeingreceivedforplayerspreviouslytransferred.
Netfinancecosts
Net finance costs for the quarter ended 30 September 2011 were 19.3 million, an increase of 18.5
millionfrom0.8millionforthesameperiodin2010/11.Themainreasonsforthisincreaseare:
- a reduction in interest payable on senior secured notes of 1.5 million, from 10.8 million in the
same period in 2010/11 to 9.3 million in the quarter ended 30 September 2011, due to the
repurchaseofseniorsecurednotes
- theabovepartlyoffsetbyapremiumof1.9millionpaidonfurtherrepurchasesofseniorsecured
notesinthequarterended30September2011
- anunrealisedlossof6.3milliononthetranslationofthedollardenominatedseniorsecurednotes
compared to an unrealised gain of 13.0 million for the same period in 2010/11 a total
movement of 19.3 million. This foreign exchange loss/gain is currently not a cash charge/credit
and could reverse depending on the dollar exchange rate movement. Any gain or loss on a
cumulativebasiswillnotberealiseduntil2017orearlieriftheseniorsecurednotesarerefinanced.
Tax
Whilst the Group accounts for tax in the income statement, most of these tax charges are offset by
losses elsewhere within our UK tax group, with Red Football Shareholder Limited, the indirect parent
company,astheultimateparentofthatUKtaxgroup.Asaresult,wetypicallyincursignificantlylower
cash tax charges compared with the charges in our consolidated income statement. The statutory tax
rate during the quarter ended 30 September 2011 was 26% compared with 28% during the quarter
ended30September2010.
Thetaxchargeforthequarterended30September2011was0.5million,adecreaseof0.9million
over1.4millionforthesameperiodin2010/11.
StatementofCashFlows
EBITDA
EBITDA for the quarter ended 30 September 2011 was 19.3 million, an increase of 4.4 million over
14.9 million for the same period in 2010/11. This increase arises primarily as a result of higher
revenues earned to date across all revenue streams, partially offset by increased staff costs and
operatingexpensesasdescribedpreviously.
Workingcapital
Changesinworkingcapitalforthequarterended30September2011producedacashinflowof3.2
million, a decrease of 4.6 million over 7.8 million cash inflow for the same period in 2010/11. The
decreaseinworkingcapitalmovementcomparedtothesameperiodin2010/11islargelyduetothe
timing of annual sponsorship receipts, increased Tour monies received in advance of the reporting
quarter,togetherwithhigherbonuspaymentsmaderelatingtothepreviousfinancialyear.
Netplayercapitalexpenditure
Net player capital expenditure for the quarter ended 30 September 2011 was an outflow of 47.1
million, an increase of 38.9 million over 8.2 million outflow for the same period in 2010/11. The
8
increaseispredominantlyduetotheacquisitionsofDeGea,JonesandYoung,offsetbythedisposalsof
Obertan, Brown and OShea in the summer 2011 transfer window compared with the acquisitions of
BebeandHernandezandthedisposalofTosicduringthesummer2010transferwindow.
Generalcapitalexpenditure
Generalcapitalexpenditureforthequarterended30September2011wasanoutflowof13.8million,
an increase of 10.1 million over 3.7 million outflow for the same period in 2010/11. During the
period we have expanded our property portfolio around the Old Trafford Stadium (outflow of 8.2
million2010/11nil)andhavealsomadefurtherinvestmentinimprovingourcorporatefacilities.
Netinterestpaid
Net interest paid for the quarter ended 30 September 2011 was 21.0 million, a decrease of 1.7
millionon22.7millionforthesameperiodin2010/11.Thereductionisduetotheincreaseinsenior
securednotesnowheldbytheGroup.
Tax
Duringtheperiodwemadea3.2mcorporationtaxpaymentrelatingtotheyearended30June2011.
ThiswasduetotheGrouplossesavailableforsurrenderbeinginsufficienttooffsettheentiretaxcharge
fortheyear.
Netcashoutflowfromfinancing
Netcashflowfromfinancingforthequarterended30September2011wasanoutflowof23.1million,
anincreaseof22.9millionoveracashoutflowof0.2millionforthesameperiodin2010/11.During
thequarterwepurchased23.7million(sterlingequivalent)nominalvalueofourseniorsecurednotes
inopenmarkettransactions.
Other
AsdisclosedintheseniorsecurednotesOfferingMemorandum,wemayfromtimetotimepurchaseor
otherwise acquire our indebtedness or sell or otherwise dispose of our indebtedness, including the
senior secured notes due 2017, in individually negotiated transactions, open market purchases or
otherwise.
CONSOLIDATEDFINANCIALSTATEMENTS
The summary financial information provided overleaf has been derived from our unaudited
consolidated interim financial report as at and for the three month period ended 30 September 2011
and 2010, each of which has been prepared in accordance with International Financial Reporting
Standards (IFRS) using the same accounting principles and on the same basis. Our interim results are
notnecessarilyindicativeofresultstobeexpectedforthefullyear.
10
CONSOLIDATEDINCOMESTATEMENT-UNAUDITED
Threemonthsended
30September
(thousands)
Matchdayrevenue
Mediarevenue
Commercialrevenue
2010
19,697
19,370
24,235
63,302
2011
21,550
22,609
29,623
73,782
(33,705)
(14,711)
(37,828)
(16,665)
14,886
19,289
(1,721)
(10,064)
3,101
1,788
4,889
(12,182)
(1,839)
(10,094)
7,356
5,624
12,980
(10,059)
-
12,987
(868)
(704)
(767)
4,122
(1,383)
2,739
(1,900)
(6,252)
(803)
(321)
(19,335)
(6,355)
(522)
(6,877)
Grouprevenue
Staffcosts
Otheroperatingexpenses
Operatingprofitbeforedepreciationandamortisationof,andprofiton
disposalof,playersregistrations(EBITDA)
Depreciation
Amortisationofplayersregistrations
Operatingprofitbeforeprofitondisposalofplayersregistrations
Profitondisposalofplayersregistrations
Operatingprofit
Netinterestpayableonloansandseniorsecurednotes
Premiumonrepurchaseofseniorsecurednotes
Unrealisedfxgains/(losses)ondollardenominatedseniorsecurednotes
Amortisationofissuediscountanddebtissue/financecosts
Fairvaluemovementoninterestrateswapfinancialinstruments
Netfinancecosts
Profit/(loss)onordinaryactivitiesbeforetax
Tax
Profit/(loss)onordinaryactivitiesaftertax
Attributableto:
OwnersoftheCompany
Non-controllinginterests
2,628
111
2,739
(6,925)
48
(6,877)
11
CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION-UNAUDITED
(thousands)
Property,plantandequipment
Investmentproperty
Intangibleassetsgoodwill
Intangibleassetsplayersregistrations
Non-currenttradeandotherreceivables
Non-currenttaxreceivable
Non-currentassets
Currentassetsother
Currentassetscashandcashequivalents
Currentliabilities
Netcurrentassets
Totalassetslesscurrentliabilities
Non-currentliabilities
Netassets
EquityattributabletoownersoftheCompany
Non-controllinginterests
Equity
Note
At30September
2010
2011
241,511
9,016
421,453
92,396
11,203
2,500
778,079
679,914
151,702
(186,741)
644,875
244,746
13,816
421,453
120,234
13,000
2,500
815,749
674,887
64,967
(230,223)
509,631
1,422,954 1,325,380
(619,203) (520,620)
803,751
804,760
806,311
(2,560)
803,751
807,042
(2,282)
804,760
CONSOLIDATEDSTATEMENTOFCASHFLOWS-UNAUDITED
(thousands)
EBITDA
Threemonthsended
30September
2010
2011
14,886
19,289
7,756
3,192
Netcashinflowfromoperatingactivities
22,642
22,481
Netinterestpaid
Taxpaid
Netcashoutflowfromplayercapitalexpenditure
Netcashoutflowfromgeneralcapitalexpenditure
Netchangeinborrowings
Netdecreaseincashandcashequivalents
(22,731)
(23)
Movementinworkingcapital
(20,978)
(3,212)
(8,189)
(47,068)
(3,664)
(13,775)
(166)
(23,126)
(12,131) (85,678)
12
NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS-UNAUDITED
At30September
2010
2011
-
643
20,766
16,194
626,499
618,385
10,060
10,269
33,792
42,396
691,117
687,887
(1,203)
(3,000)
(10,000)
(10,000)
679,914 674,887
1.Currentassets-other
(thousands)
Derivativefinancialinstruments
Nettradereceivables
Amountsduefromparentundertaking
Otherreceivables
Prepaymentsandaccruedincome
Lessnon-currentportion:
Tradereceivables
Otherreceivables
2.Currentliabilities
At30September
2010
2011
(thousands)
Derivativefinancialinstruments
Borrowings
Tradepayables
Amountsduetoparentundertaking
Currenttaxliabilities
Socialsecurityandothertaxes
Otherpayables
Accruals
Deferredincome
Provisions
3.Non-currentliabilities
(thousands)
Borrowings
Tradepayables
Otherpayables
Deferredincome
Provisions
Deferredtaxliabilities
1,904
8,076
8,630
21,246
-
7,859
3,863
20,663
114,029
471
186,741
1,725
6,942
15,598
30,114
1,127
9,852
5,632
24,112
134,642
479
230,223
At30September
2010
2011
508,662
2,151
23,390
25,080
2,080
57,840
619,203
426,299
4,006
19,067
16,106
1,795
53,347
520,620
13