By Adria Calatayud
Manchester United Ltd. /zigman2/quotes/205140601/lastsale MANU +0.89% said Thursday that it swung to a loss for the second quarter of fiscal 2018, as it booked a large expense on the back of U.S. tax reform
The English soccer club posted a quarterly loss of 29.1 million pounds ($40.6 million), or GBP17.71 a share, for the three months ended Dec. 31. This compares with a profit of GBP17.5 million, or GBP10.66 a share, for the same period of fiscal 2017. On an adjusted basis, second-quarter earnings were GBP9.21 a share for the recently ended quarter.
Analysts expected a profit of GBP15.3 million, or GBP8.77 a share, according to FactSet.
The soccer team said its fourth-quarter expenses included a noncash tax accounting write-off of GBP48.8 million, following the U.S. tax overhaul.
Manchester United reported adjusted earnings before interest, taxes, depreciation, and amortization--its preferred profit measure--of GBP67.8 million, compared with GBP69 million in the year-earlier period. Adjusted Ebitda was forecast at GBP70 million, according to FactSet.
Sales rose to GBP163.9 billion from GBP157.9 million for the second quarter of fiscal 2017. This was in line with analysts' forecasts of GBP164 million, according to FactSet.
Manchester United confirmed its guidance for the fiscal year ending June 30, calling for revenue of GBP575 million to GBP585 million and adjusted Ebitda of GBP175 million to GBP185 million.