Manchester United Ltd (NYSE:MANU) expects its 2018-19 revenue to rise to record levels boosted by UEFA's new broadcasting revenue distribution system coming into effect.
The New York-listed Premier League football club – owned by the US Glazer family - said revenue is expected to be between £615mln and £630mln for the year to June 2019.
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The forecast came as United posted record 2017-18 revenue of £590mln, up 1.5% on a year earlier, despite a slowdown in the fourth quarter due to a dip in commercial and broadcasting revenue.
In a statement, the football club’s executive vice-chairman Ed Woodward said: "Our increased revenue expectation for the year demonstrates our continued strong long-term financial performance which underpins everything we do and allows us to compete for top talent in an increasingly competitive transfer market."
United's revenue for the three months ended June 30 fell by 16% to £147.6mln as the team's failure to progress beyond the round of 16 of the lucrative UEFA Champions League contrasted with the previous year when they won the second-tier Europa League.
The club said its adjusted earnings (EBITDA) for the year are expected to be between £175mln and £190mln compared with £177.1mln reported for 2017-18, which was down 11% on the previous year.
United said its employee benefit expenses for the year rose by 12.3% to £295.9mln, primarily due to higher player wages related to participation in the Champions League.
UEFA, the European football body, switched to a new revenue distribution system in June 2018, under which €2.5bn will be distributed among clubs participating in the Champions League, Europa League and Super Cup competitions, up from €1.72bn in the 2017-18 season.