Manchester United (MANU) was weighed down by its team's performance despite reporting strong revenues...
Manchester United reported a third-quarter loss per share of $17.35 compared with the year prior's loss of $16.73. The company's earnings before interest, taxes, depreciation, and amortization ("EBITDA") were $25.2 million versus last year's $18.1 million.
Meanwhile, its revenue also came in above estimates at $192 million compared with the projected $148.8 million. Still, the soccer club's shares fell 8% following the press release on the wider-than-expected earnings loss.
CEO Richard Arnold said that while its revenue came in higher than anticipated, Manchester United had a disappointing season for the men's team. As a result, the company's football director John Murtough and its new manager Erik ten Hag said they would work to address the issue to achieve better results in the next season.
"After a disappointing stretch of play, British soccer club Manchester United parted ways with its manager," wrote editor Alan Gula in an issue of Stansberry's Investment Advisory. But "regardless of who is managing the team and how well the team performs on any given day, Manchester United remains a true Trophy Asset."
That's because the franchise's strong brand will likely further fuel demand for its products. Businesses will also continue to approach the company for sponsorship deals and partnerships that rake in millions. And as this persists, it should remain a long-term tailwind for the company – even if its team struggled in its latest quarter.