Manchester United PLC (MANU) saw its shares drop 5.46% in pre-market trading after the club reported a net loss for the first quarter, driven by lower revenue from broadcasting and sponsorship due to its absence from European competitions this season.
The club posted a net loss of £6.6 million ($8.83 million) for the quarter ended September 30, compared to a profit of £1.4 million a year ago. Total revenue fell 2%, with broadcasting revenue declining 4.5% and sponsorship revenue dropping 9.3%. The club attributed the downturn to its exclusion from European competitions, which has significantly impacted its financial performance.
Despite cost-cutting measures, including job reductions, the club reiterated its full-year revenue guidance of £640-660 million. However, the immediate market reaction reflects investor concerns over the club's short-term financial challenges and sporting underperformance.
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