Stansberry Research

Manchester United Reports Second Post-Pandemic Profit as Full Stadiums Drive Strong Growth

Nick KoziolStansberry NewsWire

Manchester United (MANU) continues to rebound as COVID-19 restrictions ease...

The soccer franchise reported second-quarter earnings per share ("EPS") of £0.04, versus the £0.08 estimate. That marked only the second profit MANU has reported since the start of the pandemic.

Revenue for the quarter was £185.4 million, beating the expectation of £184.5 million. That represents 7% growth from the same quarter last year.

CFO Cliff Baty highlighted strong performance from MANU's Sponsorships, which grew revenue 3% in the quarter. MANU recently signed a partnership with blockchain firm Tezos, which is reportedly worth £24 million ($32.6 million).

The franchise's sought-after brand will continue to drive demand for its products. Businesses will keep lining up to do sponsorship deals with one of the largest sports franchises in the world to get their logo in front of all those fans.

But Matchday revenue was MANU's key growth driver. The fourth quarter marked the first full quarter that MANU's stadium – Old Trafford – had been at full capacity for the entire quarter. As a result, ticketing revenue surged more than 2,000% year over year to £34.6 million.

MANU 's Trophy Asset brand should continue to pull in millions in partnerships and new sponsors. And fans will continue to come from all over the world to see MANU play. That's a long-term tailwind for MANU shares.