Manchester United (NYSE:MANU) reported a wider third-quarter loss on Wednesday as the English soccer club tackled surging operating expenses and saw segment revenues decline sharply from last year.
For the full year, the club expects to generate revenue of about £660 million, revised from the previously provided forecast range of £635 million to £665 million. Adjusted EBITDA is expected to be about £140 million, revised from an earlier range of £125 million to £150 million.
Results were hurt due to weakness in its Matchday and Broadcasting revenue, which fell 40.7% and 26%, respectively. Its commercial revenue rose marginally to £69.6 million.
The company said the Matchday segment slid as a result of the club playing fewer home matches in the current quarter compared to last year, while Broadcasting fell due to the men’s first team playing fewer matches in the quarter in both continental and domestic competitions.
The club’s total revenue fell nearly 20% to £136.7 million, while its operating expenses during the quarter jumped 15.3% to £203.7 million.
Loss for the period came in at £71.4 million for the quarter ending March 31, which translated to an adjusted basic loss per share of 24.47 pence, compared with a loss of £5.6 million or an adjusted loss per share of 7.41 pence last year.
MANU stock is -1.5% before the bell at $15.70.