TENCENT ANNOUNCES 2025 FIRST QUARTER RESULTS
Sustained High Quality Revenue GrowthOperating Leverage to Support Strategic AI Investments over Longer Term
HONG KONG, May 14, 2025 /PRNewswire/ -- Tencent Holdings Limited (HKEX: 00700 (HKD Counter) and 80700 (RMB Counter), "Tencent" or "the Company"), a world-leading Internet and technology company in China, today announced the unaudited consolidated results for the quarter ended 31 March 2025 ("1Q2025").
Mr. Ma Huateng, Chairman and CEO of Tencent, said, "During the first quarter of 2025, our high-quality revenue streams sustained their solid growth trajectory. AI capabilities already contributed tangibly to businesses, such as performance advertising and evergreen games. We also stepped up our spending on new AI opportunities, such as the Yuanbao application and AI in Weixin. We believe the operating leverage from our existing high-quality revenue streams will help absorb the additional costs associated with these AI-related investments and contribute to healthy financial performance during this investment phase. We expect these strategic AI investments will create value for users and society, and generate substantial incremental returns for us over the longer term."
1Q2025 Financial HighlightsRevenues: +13% YoY, gross profit: +20% YoY, non-IFRS[1] operating profit: +18% YoY
Total revenues were RMB180.0 billion (USD25.1 billion[2]), up 13% over the first quarter of 2024.
Gross profit was RMB100.5 billion (USD14.0 billion), up 20% YoY.
On a non-IFRS basis, which is intended to reflect core earnings by excluding certain one-time and/or non-cash items:
Operating profit was RMB69.3 billion (USD9.7 billion), up 18% YoY. Operating margin increased to 39% from 37% last year.
Profit for the period was RMB 62.7 billion (USD8.7 billion), up 22% YoY.
Profit attributable to equity holders of the Company for the period was RMB61.3 billion (USD8.5 billion), up 22% YoY.
Basic earnings per share were RMB6.735. Diluted earnings per share were RMB6.583.
On an IFRS basis:
Operating profit was RMB57.6 billion (USD8.0 billion), up 10% YoY. Operating margin decreased to 32% from 33% last year.
Profit for the period was RMB49.7 billion (USD6.9 billion), up 17% YoY.
Profit attributable to equity holders of the Company for the quarter was RMB47.8 billion (USD6.7 billion), up 14% YoY.
Basic earnings per share were RMB 5.252. Diluted earnings per share were RMB5.129.
Capital expenditure was RMB27.5 billion (USD3.8 billion), up 91% YoY.
Total cash was RMB476.0 billion (USD66.3 billion) and free cash flow was RMB47.1 billion (USD6.6 billion), down 9% YoY. Net cash position totalled RMB90.2 billion (USD12.6 billion).
As at 31 March 2025, fair value of our shareholdings[3] in listed investee companies (excluding subsidiaries) totalled RMB653.4 billion (USD91.0 billion) and the carrying book value of our shareholdings in unlisted investee companies (excluding subsidiaries) was RMB337.9 billion (USD47.1 billion).
During the first quarter of 2025, the Company repurchased approximately 43.0 million shares on the Hong Kong Stock Exchange for a consideration of approximately HKD17.1 billion.
[1] Non-IFRS adjustments excludes share-based compensation, M&A related impact such as net (gains)/losses from investee companies, amortisation of intangible assets, impairment provisions/(reversals), SSV & CPP, income tax effects and others
[2] Figures stated in USD are based on USD1 to RMB7.1782
[3] Including those held via special purpose vehicles, on an attributable basis
1Q2025 Business Review and Outlook
We provided more onboarding support for Mini Shops merchants, in order to enrich the range of branded product listings, contributing to rapid year-on-year growth in GMV.
We rolled out AI features within Weixin to provide more interactive user experiences and increase productivity for content creators and developers. For example, we integrated our AI service Yuanbao as a Weixin contact, powered Weixin Search with large language models (LLMs), and provided a text-prompt image generating tool for Official Accounts.
Tencent Video maintained its leading position in China's long-form video market with 117 million[4] video subscribers. Tencent Music sustained its industry leadership in China's music streaming market with 123 million[5] music subscribers.
Several of our evergreen games, including Honour of Kings and CrossFire Mobile, achieved record high levels of gross receipts during the seasonally strong first quarter.
Delta Force's domestic user base reached a post-launch record of 12 million peak DAU in April 2025. Delta Force became the sixth most popular mobile game by average DAU industry-wide[6], and the highest-DAU new game released in the last three years industry-wide.
We upgraded our advertising technology platform with enhanced generative AI capabilities, such as improved image generation and video editing to accelerate advertisement creation, digital human solutions to facilitate live streaming activities, and deeper understanding of merchandise and user interests to deliver better recommendations.
Tencent Cloud's audio and video solutions ranked first by revenue for the seventh consecutive year in China[7]. We enhanced the audio and video solutions' content generation, media processing and real-time interaction experience by integrating LLM capabilities.
[4] The average daily number of paying users for the first quarter of 2025
[5] The average number of paying users as of the last day of each month during the first quarter of 2025
[6] By DAU among mobile games in domestic market during the first quarter of 2025, according to QuestMobile
[7] During 2018-2024, according to IDC
Operating Metrics As at
31 March
2025
As at
31 March
2024
Year-
on-year
change
As at
31 December
2024
Quarter-
on-quarter
change(in millions, unless specified)
Combined MAU of Weixin
and WeChat
1,402
1,359
3 %
1,385
1 %
Mobile device MAU of QQ
534
553
-3 %
524
2 %
Fee-based VAS paying
users
268
260
3 %
262
2 %
1Q2025 Management Discussion and Analysis
Revenues from VAS increased by 17% year-on-year to RMB92.1 billion for the first quarter of 2025. Domestic Games revenues were RMB42.9 billion, representing a 24% year-on-year increase from a low base in the same period last year, driven by growth in revenues from Honour of Kings and Peacekeeper Elite, as well as contributions from recently released DnF Mobile and Delta Force. International Games revenues were RMB16.6 billion, reflecting a 23% year-on-year increase (22% increase on a constant currency basis), driven by growth in revenues from Brawl Stars, Clash Royale and PUBG MOBILE. Social Networks revenues rose by 7% year-on-year to RMB32.6 billion, driven by growth in app-based game virtual item sales, music subscription revenues and Mini Games platform service fees.
Revenues from Marketing Services[8] were RMB31.9 billion for the first quarter of 2025, reflecting a 20% year-on-year increase. This growth was primarily due to robust advertiser demand for Video Accounts, Mini Programs and Weixin Search inventories, supported by higher user engagement, ongoing AI upgrades to our advertising platform, and improvements to the transaction ecosystem within Weixin. Marketing Services revenues increased across most major industry categories during the quarter.
Revenues from FinTech and Business Services increased by 5% year-on-year to RMB54.9 billion for the first quarter of 2025. FinTech Services revenue growth was due to higher revenues from consumer loan services and wealth management services. Business Services revenue growth was driven by an increase in cloud services revenues and eCommerce technology service fees.
For other detailed disclosure, please refer to our website https://www.tencent.com/en-us/investors.html, or follow us via Weixin Official Account (Weixin ID: TencentGlobal).
[8] Starting third quarter of 2024, we have renamed this revenue segment from "Online Advertising" to "Marketing Services" to better represent the breadth of our marketing solutions and accompanying technology services across our online marketing properties
About Tencent
Tencent uses technology to enrich the lives of Internet users.
Our communication and social services, Weixin and QQ, connect users with each other and with digital content and services, both online and offline, making their lives more convenient. Our targeted marketing services helps advertisers reach out to hundreds of millions of consumers in China. Our FinTech and business services support partners' business growth and assist their digital upgrade.
Tencent invests heavily in talent and technological innovation, actively promoting the development of the Internet industry. Tencent was founded in Shenzhen, China, in 1998. Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since 2004.
Investor contact: IR@tencent.comMedia contact: GC@tencent.com
Non-IFRS Financial Measures
To supplement the consolidated results of the Group ("the Company and its subsidiaries") prepared in accordance with IFRS, certain additional non-IFRS financial measures (in terms of operating profit, operating margin, profit for the period, profit attributable to equity holders of the Company, basic EPS and diluted EPS) have been presented in this press release. These unaudited non-IFRS financial measures should be considered in addition to, not as a substitute for, measures of the Group's financial performance prepared in accordance with IFRS. In addition, these non-IFRS financial measures may be defined differently from similar terms used by other companies.
The Company's management believes that the non-IFRS financial measures provide investors with useful supplementary information to assess the performance of the Group's core operations by excluding certain non-cash items and certain impact of investment-related transactions. In addition, non-IFRS adjustments include relevant non-IFRS adjustments for the Group's major associates based on available published financials of the relevant major associates, or estimates made by the Company's management based on available information, certain expectations, assumptions and premises.
Forward-Looking Statements
This press release contains forward-looking statements relating to the business outlook, estimates of financial performance, forecast business plans and growth strategies of the Group. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future. Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements.
CONDENSED CONSOLIDATED INCOME STATEMENT
RMB in millions, unless specifiedUnauditedUnaudited1Q2025
1Q20241Q2025
4Q2024
Revenues
180,022
159,501180,022
172,446
VAS
92,133
78,62992,133
79,022
Marketing Services
31,853
26,50631,853
35,004
FinTech and Business Services
54,907
52,30254,907
56,125
Others
1,129
2,0641,129
2,295
Cost of revenues
(79,529)
(75,631)(79,529)
(81,793)
Gross profit
100,493
83,870100,493
90,653
Gross margin
56 %
53 %56 %
53 %
Selling and marketing expenses
(7,866)
(7,536)(7,866)
(10,285)
General and administrative expenses
(33,664)
(24,809)(33,664)
(31,403)
Other gains/(losses), net
(1,397)
1,031(1,397)
2,513
Operating profit
57,566
52,55657,566
51,478
Operating margin
32 %
33 %32 %
30 %
Net gains/(losses) from investments
and others
1,407
6561,407
1,119
Interest income
3,748
4,2483,748
3,910
Finance costs
(3,860)
(2,826)(3,860)
(2,512)
Share of profit/(loss) of associates and
joint ventures, net
4,581
2,1864,581
9,253
Profit before income tax
63,442
56,82063,442
63,248
Income tax expense
(13,717)
(14,169)(13,717)
(11,781)
Profit for the period
49,725
42,65149,725
51,467
Attributable to: Equity holders of the Company
47,821
41,88947,821
51,324
Non-controlling interests
1,904
7621,904
143
Non-IFRS operating profit
69,320
58,61969,320
59,475
Non-IFRS profit attributable to equity
holders of the Company
61,329
50,26561,329
55,312
Earnings per share for profit
attributable to equity holders of
the Company
(in RMB per share) - basic
5.252
4.4795.252
5.597
- diluted
5.129
4.3865.129
5.485
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
RMB in millions, unless specifiedUnaudited1Q2025
1Q2024
Profit for the period
49,725
42,651
Other comprehensive income, net of tax:
Items that may be subsequently reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures
652
(337)
Transfer of share of other comprehensive income to profit or loss upon disposal
and deemed disposal of associates and joint ventures
-
(30)
Transfer to profit or loss upon disposal of financial assets at fair value through
other comprehensive income
1
1
Net gains from changes in fair value of financial assets at fair value through other
comprehensive income
106
10
Currency translation differences
2,294
(3,929)
Net movement in reserves for hedges
(213)
(782)
Items that will not be subsequently reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures
522
(120)
Net gains from changes in fair value of financial assets at fair value through
other comprehensive income
26,361
15,918
Currency translation differences
370
(463)
Net movement in reserves for hedges
6
-30,099
10,268
Total comprehensive income for the period
79,824
52,919
Attributable to:
Equity holders of the Company
75,858
51,673
Non-controlling interests
3,966
1,246
OTHER FINANCIAL INFORMATION
RMB in millions, unless specifiedUnaudited1Q2025
1Q2024
4Q2024
EBITDA (a)
73,817
65,094
63,917
Adjusted EBITDA (a)
81,559
69,259
69,579
Adjusted EBITDA margin (b)
45 %
43 %
40 %
Interest and related expenses
3,386
3,044
3,340
Net cash/(debt)(c)
90,229
92,534
76,798
Capital expenditures (d)
27,476
14,359
36,578
Note:
(a) EBITDA is calculated as operating profit minus other gains/(losses), net, and adding back depreciation of property, plant and equipment,
investment properties as well as right-of-use assets, and amortisation of intangible assets and land use rights. Adjusted EBITDA is calculated as
EBITDA plus equity-settled share-based compensation expenses
(b) Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues
(c) Net cash/(debt) represents period end balance and is calculated as cash and cash equivalents, plus term deposits and others, including highly
liquid investment products held for treasury purpose, minus borrowings and notes payable
(d) Capital expenditures primarily consist of investments in technology IT infrastructure (including computer equipment, components, and software),
data centres, land user rights, office premises and intellectual properties (excluding media content)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONRMB in millions, unless specifiedUnaudited
AuditedAs at
31 March, 2025
As at
31 December, 2024
ASSETSNon-current assets Property, plant and equipment
91,72780,185
Land use rights
22,92823,117
Right-of-use assets
17,08517,679
Construction in progress
13,25012,302
Investment properties
900801
Intangible assets
207,641196,127
Investments in associates
305,487290,343
Investments in joint ventures
7,1387,072
Financial assets at fair value through profit or loss
202,869204,999
Financial assets at fair value through other
comprehensive income
337,527302,360
Prepayments, deposits and other assets
49,95942,828
Other financial assets
9781,076
Deferred income tax assets
29,49028,325
Term deposits
98,06677,6011,385,0451,284,815
Current assets Inventories
427440
Accounts receivable
49,31148,203
Prepayments, deposits and other assets
102,015101,044
Other financial assets
4,4804,750
Financial assets at fair value through profit or loss
30,2129,568
Financial assets at fair value through other
comprehensive income
5,4443,345
Term deposits
132,549192,977
Restricted cash
3,5443,334
Cash and cash equivalents
205,253132,519533,235496,180
Total assets
1,918,2801,780,995
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
RMB in millions, unless specified
Unaudited
Audited
As at
31 March, 2025
As at
31 December, 2024
EQUITY
Equity attributable to equity holders of the Company
Share capital--
Share premium47,02043,079
Treasury shares(2,777)(3,597)
Shares held for share award schemes(5,377)(5,093)
Other reserves80,29147,129
Retained earnings921,297892,030
1,040,454973,548Non-controlling interests82,48480,348Total equity1,122,9381,053,896LIABILITIES
Non-current liabilities
Borrowings209,079146,521
Notes payable123,240130,586
Long-term payables 11,49510,201
Other financial liabilities4,8314,203
Deferred income tax liabilities20,07018,546
Lease liabilities13,40513,897
Deferred revenue4,4806,236386,600330,190Current liabilities
Accounts payable125,488118,712
Other payables and accruals71,53284,032
Borrowings44,15152,885
Notes payable9,3268,623
Current income tax liabilities18,95616,586
Other tax liabilities5,1194,038
Other financial liabilities5,8466,336
Lease liabilities5,4425,600
Deferred revenue122,882100,097408,742396,909Total liabilities795,342727,099Total equity and liabilities1,918,2801,780,995
RECONCILIATIONS OF THE GROUP'S NON-IFRS FINANCIAL MEASURES TO THE NEAREST MEASURES PREPARED IN ACCORDANCE WITH IFRSAs
reported
Adjustments
Non-IFRS
RMB in millions,
unless specified
Share-based
compensation (a)
Net (gains)/losses
from investee
companies (b)
Amortisation of
intangible assets (c)
Impairment
provisions/ (reversals)
(d)
SSV & CPP
(e)
Income
tax effects
(f)Unaudited three months ended 31 March 2025
Operating profit
57,566
10,100
–
1,515
–
139
–
69,320
Share of profit/(loss) of associates
and joint ventures, net
4,581
968
111
1,713
267
–
–
7,640
Profit for the period
49,725
11,068
(31)
3,228
(689)
160
(769)
62,692
Profit attributable to
equity holders
47,821
10,833
1,081
2,854
(719)
160
(701)
61,329
Operating margin
32 %
39 %Unaudited three months ended 31 March 2024
Operating profit
52,556
4,694
–
1,249
–
120
–
58,619
Share of profit/(loss) of associates and
joint ventures, net
2,186
1,509
(459)
1,556
699
–
–
5,491
Profit for the period
42,651
6,203
(1,476)
2,805
1,562
132
(535)
51,342
Profit attributable to equity holders
41,889
6,035
(1,449)
2,589
1,541
132
(472)
50,265
Operating margin
33 %
37 %Unaudited three months ended 31 December 2024
Operating profit
51,478
6,140
–
1,416
–
441
–
59,475
Share of profit/(loss) of associates and
joint ventures, net
9,253
1,003
(3,799)
1,176
116
–
–
7,749
Profit for the period
51,467
7,143
(6,888)
2,592
1,760
1,109
(706)
56,477
Profit attributable to equity holders
51,324
7,034
(6,931)
2,396
1,037
1,109
(657)
55,312
Operating margin
30 %
34 %
Note:
(a) Including put options granted to employees of investee companies on their shares and shares to be issued under investee companies' share-based incentive plans which can be acquired by the Group, and other incentives
(b) Including net (gains)/losses on deemed disposals/disposals of investee companies, fair value changes arising from investee companies, and other expenses in relation to equity transactions of investee companies
(c) Amortisation of intangible assets resulting from acquisitions
(d) Mainly including impairment provisions/(reversals) for associates, joint ventures, goodwill and other intangible assets arising from acquisitions
(e) Mainly including donations and expenses incurred for the Group's Sustainable Social Value and Common Prosperity Programme ("SSV & CPP") initiatives
(f) Income tax effects of non-IFRS adjustments
View original content:https://www.prnewswire.com/apac/news-releases/tencent-announces-2025-first-quarter-results-302455231.html
SOURCE Tencent
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Manchester United Plc Reports Third Quarter Fiscal 2025 Results
Key Points The Men's first team reached the final of the UEFA Europa League and finished the 2024/25 season in 15th position; The Women's team reached the FA Cup final and finished the 2024/25 Women's Super League season in third position, qualifying for the UEFA Women's Champions League for the 2025/26 season; The Women's team reached the final of the inaugural World Sevens Football tournament in Estoril, Portugal; The Men's first team has undertaken its first ever post-season tour, with games in Kuala Lumpur and Hong Kong; The Men's first team also announced its preparations for the 2025/26 season, including matches in New Jersey, Chicago and Atlanta as part of the Premier League's Summer Series; The club announced its ambition to build a new world-class 100,000 seater stadium as the centerpiece of a regeneration project across the Old Trafford area with conceptual designs released; Work continues at our Carrington training ground as part of the £50 million investment in a new high-performance focused training facility, expected to be finished in advance of the 2025/26 season; The academy achieved a 2nd place finish in the U18 Premier League North and Chido Obi Martin, Harry Amass and Tyler Fredricson all made first-team debuts in the second half of the season; Total revenues increased 17.4% in the quarter with increases across all three key revenue streams, driven by additional matches played in the quarter as a result of strong performance in the UEFA Europa League and high demand for the Club's hospitality offering; The Company recorded an operating profit £0.7m in the quarter compared to an operating loss of £66.2m in 3Q24; Adjusted EBITDA for the quarter was £51.2 million, up 274% on Q3 fiscal 2024; The club announced measures to improve financial sustainability and enhance operational efficiency as part of a wider transformation plan, with benefits expected to be realised from Q1 of fiscal 2026; For fiscal 2025, the Company tightens its revenue guidance to £660m to £670m and expects to be at the higher end of this range; the Company also raises its Adjusted EBITDA guidance to between £180 million and £190 million. MANCHESTER, England, June 06, 2025--(BUSINESS WIRE)--Manchester United (NYSE: MANU; the "Company," the "Group" and the "Club") today announced financial results for the 2025 fiscal third quarter ended 31 March 2025. Management Commentary Omar Berrada, Chief Executive Officer, commented, "We were proud to reach the final of the UEFA Europa League, but ultimately, we were disappointed to finish as runner-up in Bilbao. We had a difficult season in the Premier League, which we all know fell below our standards and we have a clear expectation of improvement next season. We have been pleased with the performance of our women's team, with a third placed league finish, enabling us to qualify for the UEFA Champions League and once again reaching the FA Cup Final. We followed this by reaching the final of the inaugural World Sevens Series. We extended the contract of Head Coach, Marc Skinner, reflecting the excellent work he has done with the team this season. "We remain focused on infrastructure, with the redevelopment of our Carrington Training Complex continuing and on track, which will be the heart of our club, providing world class facilities for all our teams and our staff. We have also announced our aspiration to pursue a new 100,000 seat stadium, sitting at the heart of the regeneration of the Old Trafford area, which would be a catalyst for growth and investment in our local community. We are continuing to work with all the relevant stakeholders, including central Government, to support their vision for growth." Outlook For fiscal 2025, the Company tightens its revenue guidance to £660m to £670m and expects to be at the higher end of this range. The Company also raises its Adjusted EBITDA guidance to between £180 million and £190 million. The club remains committed to, and in compliance with, both the Premier League's Profit and Sustainability Rules and UEFA's Financial Fair Play Regulations. Phasing of Premier League games Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 2024/25 season 6 13 10 9 38 2023/24 season 7 13 9 9 38 2022/23 season 6 10 10 12 38 Key Financials (unaudited) £ million (except loss per share) Three months ended31 March Nine months ended31 March 2025 2024 Change 2025 2024 Change Commercial revenue 74.7 69.6 7.3% 245.1 231.7 5.8% Broadcasting revenue 41.3 37.5 10.1% 134.2 183.3 (26.8%) Matchday revenue 44.5 29.6 50.3% 123.0 104.5 17.7% Total revenue 160.5 136.7 17.4% 502.3 519.5 (3.3%) Adjusted EBITDA(1) 51.2 13.7 273.7% 145.3 128.3 13.3% Operating profit/(loss) 0.7 (66.2) 101.1% (3.2) (36.9) 91.3% Loss for the period (i.e. net loss) (2.7) (71.5) 96.2% (29.1) (76.9) 62.2% Basic loss per share (pence) (1.57) (43.12) 96.4% (17.09) (46.87) 63.5% Adjusted loss for the period (i.e. adjusted net loss)(1) (5.5) (40.6) 86.5% (12.1) (29.9) 59.5% Adjusted basic loss per share (pence)(1) (3.19) (24.47) 87.0% (7.07) (18.22) 61.2% Non-current borrowings in USD (contractual currency)(2) $650.0 $650.0 0.0% $650.0 $650.0 0.0% (1) Adjusted EBITDA, adjusted loss for the period and adjusted basic loss per share are non-IFRS measures. See "Non-IFRS Measures: Definitions and Use" on page 6 and the accompanying Supplemental Notes for the definitions and reconciliations for these non-IFRS measures and the reasons we believe these measures provide useful information to investors regarding the Group's financial condition and results of operations. (2) In addition to non-current borrowings, the Group maintains a revolving credit facility which varies based on seasonal flow of funds. The outstanding balance of the revolving credit facility as of 31 March 2025 was £210.0 million and total current borrowings including accrued interest payable was £212.3 million. Revenue Analysis Commercial Commercial revenue for the quarter was £74.7 million, an increase of £5.1 million, or 7.3%, over the prior year quarter. Sponsorship revenue was £42.5 million, an increase of £1.8 million, or 4.4%, over the prior year quarter, primarily due to the new Qualcomm front of shirt sponsorship agreement, partially offset by other changes in our commercial agreements. Retail, Merchandising, Apparel & Product Licensing revenue was £32.2 million, an increase of £3.3 million, or 11.4%, over the prior year quarter, primarily due to the launch of our new e-commerce model in partnership with SCAYLE. Broadcasting Broadcasting revenue for the quarter was £41.3 million, an increase of £3.8 million, or 10.1%, over the prior year quarter, primarily due to the men's first team playing 4 additional matches in UEFA competitions in the current year quarter, partially offset by 1 less match played in domestic cup competitions versus the prior year quarter. Matchday Matchday revenue for the quarter was £44.5 million, an increase of £14.9 million, or 50.3%, over the prior year quarter, due to playing 4 more home matches compared to the prior year quarter, alongside strong demand for our hospitality offering. Other Financial Information Operating expenses Total operating expenses for the quarter were £162.1 million, a decrease of £41.6 million, or 20.4%, over the prior year quarter. Employee benefit expenses Employee benefit expenses for the quarter were £71.2 million, a decrease of £20.0 million, or 21.9%, over the prior year quarter. This is primarily due to the impact of transactions made during the January transfer window, the men's first team participating in the UEFA Europa League rather than the UEFA Champions League in the prior year and reduced non-playing staff costs as a result of the club's restructuring process. Other operating expenses Other operating expenses for the quarter were £38.1 million, an increase of £6.3 million, or 19.8%, over the prior year quarter. This is primarily due to increased matchday costs associated with playing 4 more home games in the quarter, compared to the prior year quarter and additional costs associated with our new e-commerce model, partially offset by a reduction in costs as a result of the company's focus on improving operating efficiency. Depreciation and amortization Depreciation for the quarter was £4.2 million, compared to £4.1 million in the prior year quarter. Amortization for the quarter was £45.9 million, a decrease of £0.4 million, or 0.9%, over the prior year quarter. The unamortized balance of registrations on 31 March 2025 was £513.7 million. Exceptional items Exceptional items for the quarter were a cost of £2.7 million, as a result of compensation for loss of office costs incurred in relation to the restructuring of the club's operations. Exceptional items for the prior year quarter were a cost of £30.3 million. This comprised costs incurred in relation to the sale of 27.7% of the Group's voting rights to Trawlers Limited, an entity wholly owned by Sir Jim Ratcliffe. These voting rights have been subsequently transferred from Trawlers Limited to INEOS Limited. Profit on disposal of intangible assets Profit on disposal of intangible assets for the quarter was £2.3 million, compared to a profit of £0.8 million for the prior year quarter. Net finance costs Net finance costs for the quarter were £3.8 million, compared to £17.3 million in the prior year quarter. The movement was primarily driven by a favourable swing in foreign exchange rates in the current quarter (gain on re-translation of £7.3 million), compared to an unfavourable swing in foreign exchange rates in the prior year quarter (loss on re-translation of £2.6 million). Income tax The income tax credit for the quarter was £0.4 million, compared to a credit of £12.1 million in the prior year quarter. Cash flows Overall cash and cash equivalents (including the effects of exchange rate movements) decreased by £22.5 million in the quarter to 31 March 2025, compared to an increase of £4.2 million in the prior year quarter. Net cash inflow from operating activities for the quarter was £22.3 million, compared to a net cash outflow in the prior year quarter of £15.1 million. This is primarily due to increased matchday and broadcasting income compared to the prior year quarter, in addition to a reduced cost base, as described above. Net capital expenditure on property, plant and equipment for the quarter was £16.9 million, an increase of £13.9 million over the prior year quarter, due to the improvement works taking place to our Carrington training facility. Net capital expenditure on intangible assets for the quarter was £31.3 million, an increase of £15.5 million over the prior year quarter due to investment in the first team playing squad. Net cash outflow from financing activities for the quarter was £0.1 million, compared to a net cash inflow of £38.4 million in the prior year quarter. The prior year quarter saw £158.5 million of proceeds from the issue of shares as part of the transaction agreement with Trawlers Limited, partially offset by a £120.0 million repayment of our revolving facilities. Balance sheet Our USD non-current borrowings as of 31 March 2025 were $650 million, which was unchanged from 31 March 2024. As a result of the year-on-year change in the USD/GBP exchange rate from 1.2632 at 31 March 2024 to 1.2913 at 31 March 2025, our non-current borrowings when converted to GBP were £500.9 million, compared to £511.3 million at the prior year quarter. In addition to non-current borrowings, the Group maintains a revolving credit facility which varies based on seasonal flow of funds. Current borrowings at 31 March 2025 were £212.3 million compared to £143.0 million at 31 March 2024. As of 31 March 2025, cash and cash equivalents were £73.2 million compared to £67.0 million at the prior year quarter. This movement is detailed further in the Statement of Cash Flows on page 11 of this release. About Manchester United Manchester United is one of the most popular and successful sports teams in the world, playing one of the most popular spectator sports on Earth. Through our 147-year football heritage we have won 69 trophies, enabling us to develop what we believe is one of the world's leading sports and entertainment brands with a global community of 1.1 billion fans and followers. Our large, passionate and highly engaged fan base provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, broadcasting and matchday initiatives which in turn, directly fund our ability to continuously reinvest in the club. Cautionary Statements This press release contains forward‑looking statements. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to the Company's operations and business environment, all of which are difficult to predict and many are beyond the Company's control. These statements often include words such as "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "seek," "believe," "estimate," "predict," "potential," "continue," "contemplate," "possible" or similar expressions. The forward-looking statements contained in this press release are based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the "Risk Factors" section and elsewhere in the Company's Registration Statement on Form F-1, as amended (File No. 333-182535) and the Company's Annual Report on Form 20-F (File No. 001-35627) as supplemented by the risk factors contained in the Company's other filings with the Securities and Exchange Commission. Non-IFRS Measures: Definitions and Use 1. Adjusted EBITDA Adjusted EBITDA is defined as loss for the period before depreciation, amortization, exceptional items, profit on disposal of intangible assets, net finance costs and tax. Adjusted EBITDA is useful as a measure of comparative operating performance from period to period and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our asset base (primarily depreciation and amortization), material volatile items (primarily profit on disposal of intangible assets and exceptional items), capital structure (primarily finance costs), and items outside the control of our management (primarily taxes). Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for an analysis of our results as reported under IFRS as issued by the IASB. A reconciliation of loss for the period to adjusted EBITDA is presented in supplemental note 2. 2. Adjusted loss for the period (i.e. adjusted net loss) Adjusted loss for the period is calculated, where appropriate, by adjusting for charges/credits related to exceptional items, foreign exchange gains/losses on unhedged US dollar denominated borrowings (including foreign exchange losses immediately reclassified from the hedging reserve following change in contract currency denomination of future revenues), and fair value movements on embedded foreign exchange derivatives and foreign currency options, adding/subtracting the actual tax expense/credit for the period, and subtracting/adding the adjusted tax expense/credit for the period (based on a normalized tax rate of 21%; 2024: 21%). The normalized tax rate of 21% is the current US federal corporate income tax rate. In assessing the comparative performance of the business, in order to get a clearer view of the underlying financial performance of the business, it is useful to strip out the distorting effects of the items referred to above and then to apply a 'normalized' tax rate (for both the current and prior periods) of the weighted average US federal corporate income tax rate of 21% (2024: 21%) applicable during the financial year. A reconciliation of loss for the period to adjusted loss for the period is presented in supplemental note 3. 3. Adjusted basic and diluted loss per share Adjusted basic and diluted loss per share are calculated by dividing the adjusted loss for the period by the weighted average number of ordinary shares in issue during the period. Adjusted diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue during the period to assume conversion of all dilutive potential ordinary shares. There is one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the "Equity Plan"). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year. Adjusted basic and diluted loss per share are presented in supplemental note 3. Key Performance Indicators Three months ended 31 March Nine months ended 31 March 2025 2024 2025 2024 Revenue Commercial % of total revenue 46.6% 50.9% 48.8% 44.6% Broadcasting % of total revenue 25.7% 27.4% 26.7% 35.3% Matchday % of total revenue 27.7% 21.7% 24.5% 20.1% 2024/25 Season 2023/24 Season 2024/25 Season 2023/24 Season Home Matches Played PL 5 4 15 14 UEFA competitions 2 - 5 3 Domestic Cups 2 1 4 3 Away Matches Played PL 5 5 14 15 UEFA competitions 2 - 5 3 Domestic Cups 1 3 2 3 Other Employee benefit expenses % of revenue 44.4% 66.7% 46.6% 53.2% CONSOLIDATED STATEMENT OF PROFIT OR LOSS (unaudited; in £ thousands, except per share and shares outstanding data) Three months ended31 March Nine months ended31 March 2025 2024 2025 2024 Revenue from contracts with customers 160,564 136,693 502,329 519,545 Operating expenses (162,128 ) (203,732 ) (544,206 ) (587,155 ) Profit on disposal of intangible assets 2,271 790 38,662 30,670 Operating profit/(loss) 707 (66,249 ) (3,215 ) (36,940 ) Finance costs (13,783 ) (18,377 ) (44,749 ) (53,720 ) Finance income 10,019 1,057 12,018 1,506 Net finance costs (3,764 ) (17,320 ) (32,731 ) (52,214 ) Loss before income tax (3,057 ) (83,569 ) (35,946 ) (89,154 ) Income tax credit 347 12,069 6,820 12,271 Loss for the period (2,710 ) (71,500 ) (29,126 ) (76,883 ) Basic earnings per share: Basic loss per share (pence) (1.57 ) (43.12 ) (17.09 ) (46.87 ) Weighted average number of ordinary shares used as the denominator in calculating basic loss per share (thousands) 172,353 165,823 170,459 164,040 Diluted earnings per share: Diluted loss per share (pence) (1) (1.57 ) (43.12 ) (17.09 ) (46.87 ) Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted loss per share (thousands) (1) 172,353 165,823 170,459 164,040 (1) For the three and nine months ended 31 March 2025 and the three and nine months ended 31 March 2024, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. CONSOLIDATED BALANCE SHEET (unaudited; in £ thousands) As of 31 March2025 30 June2024 31 March2024 ASSETS Non-current assets Property, plant and equipment 280,008 256,118 254,908 Right-of-use assets 7,394 8,195 7,913 Investment properties 19,503 19,713 19,783 Intangible assets 942,507 837,564 877,283 Deferred tax assets 25,336 17,607 11,010 Trade receivables 47,679 27,930 24,694 Derivative financial instruments 191 380 667 1,322,618 1,167,507 1,196,258 Current assets Inventories 12,003 3,543 3,757 Prepayments 19,460 18,759 17,235 Contract assets – accrued revenue 40,882 39,778 53,887 Trade receivables 123,122 36,999 37,673 Other receivables 1,696 2,735 1,835 Derivative financial instruments 21 1,917 1,539 Cash and cash equivalents 73,211 73,549 66,994 270,395 177,280 182,920 Total assets 1,593,013 1,344,787 1,379,178 CONSOLIDATED BALANCE SHEET (continued) (unaudited; in £ thousands) As of 31 March2025 30 June2024 31 March2024 EQUITY AND LIABILITIES Equity Share capital 56 55 55 Share premium 307,345 227,361 227,361 Treasury shares (21,305) (21,305) (21,305) Merger reserve 249,030 249,030 249,030 Hedging reserve (550) (1,000) (308) Accumulated losses (337,161) (309,251) (271,628) 197,415 144,890 183,205 Non-current liabilities Contract liabilities - deferred revenue 6,234 5,347 6,834 Trade and other payables 181,866 175,894 188,581 Borrowings 500,883 511,047 511,296 Lease liabilities 7,752 7,707 7,603 Derivative financial instruments 3,272 4,911 3,648 700,007 704,906 717,962 Current liabilities Contract liabilities - deferred revenue 171,472 198,628 102,643 Trade and other payables 298,435 249,030 218,042 Income tax liabilities 1,022 427 851 Borrowings 212,318 35,574 142,960 Lease liabilities 836 934 730 Derivative financial instruments 4,333 2,603 1,830 Provisions 7,175 7,795 10,955 695,591 494,991 478,011 Total equity and liabilities 1,593,013 1,344,787 1,379,178 CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited; in £ thousands) Three months ended31 March Nine months ended31 March 2025 2024 2025 2024 Cash flows from operating activities Cash generated from/(used in) operations (see supplemental Note 4) 34,767 (2,584 ) 2,168 (14,725 ) Interest paid (12,952 ) (13,082 ) (31,723 ) (31,838 ) Interest received 667 281 2,423 853 Tax (paid)/refunded (165 ) 268 (464 ) 5,524 Net cash inflow/(outflow) from operating activities 22,317 (15,117 ) (27,596 ) (40,186 ) Cash flows from investing activities Payments for property, plant and equipment (16,856 ) (3,109 ) (34,091 ) (14,949 ) Payments for intangible assets (36,063 ) (18,453 ) (239,720 ) (186,395 ) Proceeds from sale of intangible assets 4,803 2,684 44,141 36,266 Net cash outflow from investing activities (48,116 ) (18,878 ) (229,670 ) (165,078 ) Cash flows from financing activities Proceeds from issue of shares - 158,542 79,985 158,542 Proceeds from borrowings 30,000 - 230,000 160,000 Repayment of borrowings (30,000 ) (120,000 ) (50,000 ) (120,000 ) Principal elements of lease payments (102 ) (180 ) (293 ) (680 ) Net cash (outflow)/inflow from financing activities (102 ) 38,362 259,692 197,862 Effects of exchange rate movements on cash and cash equivalents 3,570 (182 ) (2,764 ) (1,623 ) Net (decrease)/increase in cash and cash equivalents (22,331 ) 4,185 (338 ) (9,025 ) Cash and cash equivalents at beginning of period 95,542 62,809 73,549 76,019 Cash and cash equivalents at end of period 73,211 66,994 73,211 66,994 SUPPLEMENTAL NOTES 1 General information Manchester United plc (the "Company") and its subsidiaries (together the "Group") is a men's and women's professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (as amended) of the Cayman Islands. 2 Reconciliation of loss for the period to adjusted EBITDA Three months ended31 March Nine months ended31 March 2025£'000 2024£'000 2025£'000 2024£'000 Loss for the period (2,710 ) (71,500 ) (29,126 ) (76,883 ) Adjustments: Income tax credit (347 ) (12,069 ) (6,820 ) (12,271 ) Net finance costs 3,764 17,320 32,731 52,214 Profit on disposal of intangible assets (2,271 ) (790 ) (38,662 ) (30,670 ) Exceptional items 2,658 30,340 25,833 39,935 Amortization 45,867 46,262 148,560 143,602 Depreciation 4,254 4,144 12,803 12,399 Adjusted EBITDA 51,215 13,707 145,319 128,326 3 Reconciliation of loss for the period to adjusted loss for the period and adjusted basic and diluted loss per share Three months ended31 March Nine months ended31 March 2025£'000 2024£'000 2025£'000 2024£'000 Loss for the period (2,710 ) (71,500 ) (29,126 ) (76,883 ) Adjustments: Exceptional items 2,658 30,340 25,833 39,935 Foreign exchange (gains)/losses on unhedged US dollar denominated borrowings (7,285 ) 2,641 (8,033 ) 3,062 Fair value movement on embedded foreign exchange derivatives 348 (777 ) 2,079 8,332 Income tax credit (347 ) (12,069 ) (6,820 ) (12,271 ) Adjusted loss before income tax (7,336 ) (51,365 ) (16,067 ) (37,825 ) Adjusted income tax credit (using a normalized tax rate of 21% (2024: 21%)) 1,834 10,787 4,017 7,943 Adjusted loss for the period (i.e. adjusted net loss) (5,502 ) (40,578 ) (12,050 ) (29,882 ) Adjusted basic loss per share: Adjusted loss per share (pence) (3.19 ) (24.47 ) (7.07 ) (18.22 ) Weighted average number of ordinary shares used as the denominator in calculating adjusted basic loss per share (thousands) 172,353 165,823 170,459 164,040 Adjusted diluted loss per share: Adjusted diluted loss per share (pence) (1) (3.19 ) (24.47 ) (7.07 ) (18.22 ) Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating adjusted diluted loss per share (thousands) (1) 172,353 165,823 170,459 164,040 (1) For the three and nine months ended 31 March 2025 and the three and nine months ended 31 March 2024, potential ordinary shares are anti-dilutive, as their inclusion in the adjusted diluted loss per share calculation would reduce the loss per share, and hence have been excluded. 4 Cash generated from operations Three months ended31 March Nine months ended31 March 2025£'000 2024£'000 2025£'000 2024£'000 Loss for the period (2,710 ) (71,500 ) (29,126 ) (76,883 ) Income tax credit (347 ) (12,069 ) (6,820 ) (12,271 ) Loss before income tax (3,057 ) (83,569 ) (35,946 ) (89,154 ) Adjustments for: Depreciation 4,254 4,144 12,803 12,399 Amortization 45,867 46,262 148,560 143,602 Profit on disposal of intangible assets (2,271 ) (790 ) (38,662 ) (30,670 ) Net finance costs 3,764 17,320 32,731 52,214 Non-cash employee benefit expense – equity-settled share-based payments 419 431 1,216 1,907 Foreign exchange losses on operating activities 2,883 411 2,731 888 Reclassified from hedging reserve (1,067 ) 2 1,876 - Changes in working capital: Inventories 1,420 267 (8,460 ) (592 ) Prepayments 7,806 9,522 (1,607 ) (1,311 ) Contract assets – accrued revenue 18,965 7,932 (1,104 ) (10,555 ) Trade receivables (38,112 ) 41,849 (87,355 ) (2,506 ) Other receivables 326 230 1,039 8,093 Contract liabilities – deferred revenue 7,836 (48,225 ) (26,269 ) (66,806 ) Trade and other payables (13,876 ) 1,980 1,044 (29,859 ) Provisions (390 ) (350 ) (429 ) (2,375 ) Cash generated from/(used in) operations 34,767 (2,584 ) 2,168 (14,725 ) View source version on Contacts Investors: Roger BellChief Financial Media: Toby CraigChief Communications Sign in to access your portfolio
