Man United Sponsorship Triggers a Plunge for Remote-Work Winner

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TeamViewer AG, a remote working software business whose valuation has soared during the pandemic, slumped the most on record Friday amid concerns around the cost of a new shirt sponsorship deal with soccer club Manchester United Plc.

The stock dropped as much as 16% after TeamViewer announced the deal and revised its 2021 adjusted Ebitda margin guidance range to 49% to 51% of billings. Last month, the firm had predicted 55% to 57%.

The update implies a 35 million-euro ($42 million) increase in marketing expenses in 2021, according to Morgan Stanley analyst George Webb. However, Webb wrote in a note to clients that that amount may only cover the part of the soccer season that falls into TeamViewer’s fiscal year, and so the annual rate might be materially higher.

Even so, “from a broader perspective, we believe the marketing exposure TeamViewer will garner from the deal could significantly aid the company’s traction,” Webb said. “We would view the share price reaction today as a buying opportunity.”

Man United Sponsorship Triggers a Plunge for Remote-Work Winner

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