Manchester United Plc (NYSE:MANU) swung to a loss in the second quarter as the Premier League football club’s absence from the top flight of European football hampered revenue.
A £27.7 million loss was recorded for the three months to December 31, the club reported Wednesday, against a £24.4 million profit a year earlier.
Revenue slipped 12% in the meantime to sit at £198.7 million, driven by a 42.1% slump in broadcasting turnover after the men’s team failed to make this season’s Champions League.
Having finished eighth in the Premier League and in its worst domestic spot since 1990 last season, Man U missed out on top-tier European football.
Fortunes have since worsened on the field, with the men’s team currently placed 15th in the league, but still in the lower level Europa League.
Losses, which sat at £26.3 million for the half year, come despite a string of cost-cutting measures under minority owner Jim Ratcliffe, which has included over 200 layoffs.
“We recognise the challenges in improving our men’s team’s league position and we are all working hard, collectively, to achieve that,” chief executive Omar Berrada said.
Guidance for £650 million to £670 million in revenue was reiterated, while adjusted earnings were said to be on course to hit the high end of the £145 million to £160 million range.
Shares dropped 1.9% to US$15.23.