Manchester United shares dip as lack of Champions League football hits financials
Manchester United today reported lower revenue and profit for the second quarter as its absence from the Champions League this season took its toll.
Core earnings fell 31 per cent to £72m in the quarter to 31 December, compared to the same period last year.
Revenue fell 19 per cent to £168m.
The New York-listed club maintained its outlook for 2020, with revenue expected to be in a range of £560m – £580m and adjusted earnings in a range of £155m to £165m.
United is in fifth place in the Premier League at the moment as the season draws into its final phase.
If Manchester City is banned from Europe’s top club competition next year, as has been threatened, fifth would be enough to secure a place in the lucrative tournament.
Ed Woodward, executive vice chairman, said: “We are pushing for a strong finish in the Premier League, the Europa League and the FA Cup as we enter the final third of the season.”
Commercial revenue rose 7.1 per cent to £70.6m and sponsorship revenue rose 11.9 per cent to £45.1m.
However, broadcasting revenue fell 37.6 per cent to £64.7m, which United said was “primarily due to non-participation in the UEFA Champions League”.
Net debt jumped to £391.3m, an increase of £73.6m over the year, which the club said was “primarily due to an overall decrease in cash and cash equivalents”.
Despite a season where United’s performance under Norwegian manager Ole Gunnar Solskjaer has been patchy at best, the club still finishes the season with a chance of a Champions League spot.
However, United’s glory days of the 90s and 2000s seem long gone, with Woodward describing a “squad rebuild” as the club looks to regain its past ascendancy.
The recent purchase of Portuguese playmaker Bruno Fernandes in a £47m deal has already made an impact on the pitch. However, a lack of forward cover remains a problem with star striker Marcus Rashford injured.
Local rival Liverpool, in contrast, is going through a purple patch under manager Jurgen Klopp. Victory in the Champions League last year looks almost certain to be followed up with the Premier League title in 2020.
United shares fell 2.8 per cent to $18.40 this afternoon.