Manchester United Profit & Revenue Dip
Manchester United has confirmed a lack of silverware last season cost it tens of millions of pounds but says its financial performance should pick up.
The Premier League football club saw its pre-tax profit for the 12 months to June 30 dip by 16.5% to £91.6m while total revenues dropped by just over 3% to £320.3m.
The result reflects a 2011/12 season in which the club won no major trophies - exiting the lucrative Champions League at the group stage.
Its statement said: "broadcasting revenues for the year decreased 11.3% to £104m primarily as a result of our elimination at the group stages of the Champions League.
"For the fourth quarter, revenues decreased 37.4% to £27.5m as no participation fees were earned compared to Champions League participation fees from the quarter-final, semi-final and final in the fourth quarter of the prior year.
"In addition, we earned minimal revenues from the FA Cup following our fourth round exit, compared with reaching the semi-final in the previous year."
While match day revenues also fell, sposorship and commercial revenues rose strongly - thanks in part to a training kit deal with DHL and a world record shirt sponsorship with Chevrolet.
Manchester United's debt level was recorded at £436.9m on June 30 but it said the £68m raised through the sale of 10% of the club in August's flotation was being used to reduce this figure.
No updated total was given in the statement.
It did however forecast improved fortunes for the current financial year, with revenues hitting up to £360m and profits rising to £110m.
The figures were based on the assumption that the team reaches the quarter finals of the Champions League.
Those predictions will be keenly watched by investors following the New York listing.
Since the stock was launched at a price of $14 per share, value has fallen amid criticism from some analysts that the flotation was over-priced.
It lost a further 1.6% when Tuesday's trading began to stand at $12.75.
The club believes a better season coupled with improved revenues from TV rights will help improve that valuation.