Original source text
Manchester United Plc (NYSE:MANU) posted a record fiscal 2026, with revenue of £677.6 million and adjusted EBITDA of £216.4 million, both ahead of Jefferies' £665 million and £210 million estimates, as the club returned to operating profit despite playing the year without Champions League football.The club swung to an operating profit of £22.6 million, compared with an £18.4 million loss a year earlier.
Fourth-quarter revenue of £157.5 million and adjusted EBITDA of £28.9 million topped Jefferies' £145 million and £22 million estimates, even as both metrics fell year-over-year, down 4.0% and 22.9% respectively, on Premier League match phasing and the club lapping a post-season tour and last year's Europa League final.
Broadcasting was the only segment to grow in the quarter, rising 28.4% to £49.7 million, reflecting United's third-place Premier League finish versus 15th the prior season.
Sponsorship revenue fell 26.2% in the quarter and 14.8% for the full year, driven by the roll-off of the Tezos partnership. New sleeve and training kit deals with SumUp and Betway have since filled both slots, which Jefferies expects to turn the high-margin sponsorship line positive going forward. Commercial revenue overall fell 18.1% to £72.2 million in the quarter, with retail and merchandise down 7.0% to £34.4 million.
On costs, full-year operating expenses fell £31.8 million, or 4.3%, to £701.9 million, with employee expenses down 3.6% to £302.0 million, or 44.6% of revenue versus 47.0% a year earlier. Adjusted EBITDA margin expanded roughly 450 basis points to 31.9%. However, fourth-quarter employee expense ran at 52.3% of revenue versus 48.3% a year earlier, which Jefferies flagged as a sign that Champions League bonuses and squad costs will absorb part of next year's incremental revenue.
Management also secured land for a proposed 100,000-seat stadium, accounting for £63.5 million of the year's £85.9 million in property, plant and equipment spending. Jefferies called it a derisking milestone but noted design, construction, financing and matchday uplift remain years away, with no timeline yet disclosed.
For fiscal 2027, management guided revenue to £740-760 million, growth of 9-12% off the record base, with adjusted EBITDA of £205-225 million. Jefferies said the revenue guidance captures Champions League participation, but the EBITDA range brackets fiscal 2026's £216.4 million, implying European costs and wages will consume most of the incremental revenue. The firm views that guidance as conservative given this year's cost discipline.
Looking ahead, Jefferies said Champions League qualification alongside the new Betway and SumUp partnerships should drive an inflection in commercial revenue, and cited a leaner cost base, coaching stability and the secured stadium land as reasons it remains constructive on Manchester United's long-term value, even as the EBITDA guidance keeps near-term expectations in check.