Manchester United’s 2012 earnings analysis: Debt payment and servicing, escalating wage bill #MUFC

Manchester United’s 2012 earnings analysis: Debt payment and servicing, escalating wage bill #MUFC

Revenue rose 8-10% for the quarter and first half of the year. Do note that this is the first half of the year so Champions League earning, which make up 1/3 of their revenue, is going to be zero . Look to second half of the year to be greatly impacted Expenses (not inclusive of player sales) rose 14% or more. This means that year on year their EBITDA (ex player sales) is actually worse. We do not understand why the wage bill is growing so much despite cutting players EBIT fell 6% for the quarter and rose 10% for the first half of the year. This is still pretty okay Interest on debt actually fell 10% for the quarter and year! This is actually a good thing Know what is not a good thing? EBIT is 44 mil for the first half of the year, Interest expense is 20 mil! That is almost half of their operating cash flow brought in Cash Holding fell drastically due to interest servicing...

Full article: http://www.investmentmoats.com/stock-market-commentary/co...