Manchester United said it remained on track to meet full-year financial targets as it posted a 14 per cent fall in second quarter revenue, hurt by the absence of Champions League income this season.
The 20-times English champions, currently third in the Premier League, said total revenue in the three months to Dec. 31 fell to £105.7 million, as the club missed out on midweek European soccer and related income after a dismal seventh place finish last season.
United welcomed a new three-year TV rights deal worth over £5 billion signed by the 20-team Premier League this week, an increase of 70 per cent.
“The recently announced Premier League broadcasting rights package... once again demonstrates that we are part of the top football league in the world,” executive vice chairman Ed Woodward said.
Despite a downturn in their playing fortunes since the retirement of manager Alex Ferguson in 2013, United’s ability to grow revenues off the pitch has strengthened, making them the world’s second richest club behind Spain’s Real Madrid.
Majority owned by the American Glazer family, United confirmed expectations for lower full-year revenue of £385-395 million, down from £433 million last year, and core earnings of £90-£95 million, down from £130 million .
At £105.7 million, second quarter revenues beat an analyst consensus forecast of £100.8 million , helped by two new sponsorship deals in the period that boosted commercial income by 9.7 per cent.
Reflecting United’s first season without European soccer for more than two decades, the club’s broadcasting revenue, however, tumbled 39.4 per cent in the quarter, with match day revenue down 8.3 per cent.
The club’s form has been mixed of late with performances lacking some of the style the club’s 659 million followers around the globe demand.
Despite spending over £150 million on the likes of Argentine winger Angel di Maria and Spanish midfielder Ander Herrera, the team sit 12 points adrift of league leaders Chelsea. However, a top four finish would ensure a return to the Champions League.
United shares, listed on the New York Stock Exchange, closed at $17.23 on Wednesday, up 13 per cent on a year ago, valuing the club at about $2.8 billion.