Manchester United reported a quarterly net loss and signaled record revenue for the full year while implementing cost-cutting measures and confirming changes to leadership; the club also announced a stake sale to INEOS founder Sir Jim Ratcliffe and noted New York Stock Exchange activity.
Manchester United Plc (NYSE:MANU) told investors it is expecting to bank record revenue for its financial year, but today it marked a net loss of £71.4 million for its third quarter.
The club, meanwhile, was confident that it will comply with the Premier League's profitability and sustainability rules - which allows clubs to make a loss of up to £105 million over three seasons.
Fewer home fixtures in the quarter – because of the early exit from European competition – saw revenue for the three-month period down 19.6% year-on-year, at £136.7 million.
Improved commercial revenue saw a slight increase, up 0.3% to £69.6 million in the quarter, and sponsorship revenue was down 0.7%.
Manchester United reported that the 27.7% stake sale to INEOS founder Sir Jim Ratcliffe had incurred £30.3 million of costs.
Following the deal, the club has been working on a wide-ranging reform of its operations, its internal structures and has involved significant changes to its executive management.
A cost-cutting drive inside the club, will see around 250 job cuts.
Looking ahead, meanwhile, the club has upgraded its full-year revenue guidance pitched at a record level of £660 million.
Manchester United’s New York listed shares rose by 79 cents or 4.96% to trade on Wednesday at $16.73 each.
