Manchester United lift earnings forecast after top three Premier League finish
FILE PHOTO: Soccer Football - Carabao Cup - Third Round - Manchester United v Barnsley - Old Trafford, Manchester, Britain - September 17, 2024 General view of flag outside the stadium before the match Action Images via Reuters/Jason Cairnduff/ File Photo
May 27 : Manchester United raised annual revenue and core profit forecast for the year to June, helped by a third-place finish in the English Premier League and as fans snapped up merchandise as the team's fortunes improved on the pitch.
The club's New York-listed shares rose 5 per cent to $20.71 in premarket trade.
"We feel very positive about the club's progress this season and the continuing positive impact of our business transformation initiatives," CEO Omar Berrada said in a statement.
United's third-place finish under Michael Carrick, who was appointed permanent manager last week, secured a berth in the Champions League for the first time in two seasons.
The club's return to Europe's top club competition is also expected to boost revenue next fiscal year as they benefit from lucrative broadcast rights and new sponsorship deals.
Broadcasting revenue jumped 57 per cent to 64.9 million pounds in the third quarter, driven by the higher Premier League finish compared to last year and increased international broadcast rights payments.
As a result, United expect revenue between 655 million and 665 million pounds and adjusted core profit between 200 million and 210 million pounds for the year ending June.
The Old Trafford club had previously guided to revenue in the 640 million to 660 million pounds range and adjusted core profit in the 180 million to 200 million pounds range.
Still, United reported a net loss of 11.8 million pounds for the three months to March, wider than a year earlier, as falling sponsorship revenue, weaker ticket sales and costs related to the sacking of Ruben Amorim weighed on income.
The group had seen net losses for six straight years and looked set for another year in the red.
Jim Ratcliffe, the minority shareholder who runs football operations at the club, has taken steps to revive United's fortunes, including cutting jobs and raising ticket prices.
The 20-times English champions have struggled to replicate the success they enjoyed on- and off-the-pitch under Alex Ferguson, who left in 2013 after helping United win 13 Premier League titles.
