Manchester United upbeat on future despite suffering £11.8m loss in first quarter

Red Devils secured Champions League for next season, leaving CEO 'very positive about the club's progress'

Manchester United manager Michael Carrick secured Champions League football next season. Picture: PA 

Manchester United reported a loss of £11.8m (€13.6m) in the first quarter of the year but raised annual revenue and core profit forecast for the year to June, helped by a third-place finish in the 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% 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% to £64.9m 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 £655m and £665m and adjusted core profit between £200m and £210m for the year ending June.

The Old Trafford club had previously guided to revenue in the £640m to £660m range and adjusted core profit in the £180m to £200m range.

Still, United reported a net loss of £11.8m 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.

Reuters