Manchester United (NYSE:MANU) is confident it will post record revenue for 2016, despite it seeing a £38mln drop in 2015, mainly because the famous football club did not qualify for the UEFA Champions League.
Being out of the contest cost the group £35mln in match and broadcasting income, it emerged.Total revenue for the year to end June came in at £395.2mln - 8.8% lower than the £433.2mln in 2014.
Broadcasting revenue was £107.7 million, 20.7% lower than the year before, while matchday revenue came in at £90.6mln - 16.2% less than the same period in 2014.
The club, synonymous with the "old Trafford" Ground in Manchester, UK, had a second trophy-less season in 2014-15.
That said, sponsorship revenue hit record levels for the year just gone, hitting £154.9 million, an increase of £19.1 million, or 14.1% on 2014, mainly due to the start of the seven year
General Motors shirt sponsorship and several new global and regional sponsorships.
Mobile and content revenue fell 35%, while retail, merchandising, apparel and product licensing fell 15.7% on the previous year.
Notably, the year also saw the club surpass 100 million social media followers, an increase of more than 50% since last year and launched official Pinterest, LINE, Kakao Story and WeChat pages.
For 2016, the group expects revenue to be £500mln to £510mln and adjusted EBITDA to be £165mln to £175mln.
Executive vice chairman Ed Woodward said: “As we look to the new season, we are enthusiastic about our strong position, both on and off the pitch.
"In recent weeks we have further strengthened our squad with an exciting mix of experience and youth, qualified for the group stage of the UEFA Champions League, and seen an impressive launch of our partnership with adidas.
"Our record revenue and EBITDA guidance for 2016 reflects the underlying strength of our business and our confidence in its continued growth.”