Man Utd shine off pitch with higher profit forecast
By Aastha Agnihotri
(Reuters) - English Premier League football club Manchester United showed its commercial strength when it raised its core earnings expectations for the year despite indifferent form this season.
United have failed to qualify for the knock-out stages of the lucrative European Champions League and some lacklustre displays have led to speculation about the future of manager Louis van Gaal.
"Our solid results off the pitch help contribute to what remains our number one priority - success on the pitch," Executive Vice-Chairman Ed Woodward said in a statement as United announced revenue rose almost 27 percent in the last three months of 2015.
United said it expects adjusted core earnings of 178 million pounds to 188 million pounds for the year, an increase from its earlier outlook of 165 million to 175 million. It maintained expectations for revenue of between 500 and 510 million pounds.
There were several factors behind the increased forecast, head of corporate finance Hemen Tseayo told financial analysts.
"The English clubs received a higher-than-expected distribution from the Champions League market pool," he said, referring to the way broadcast revenue is shared out.
Lower than expected player costs and appearance fees had given a further boost after United made no major signings in the January transfer window.
Shares in United, controlled by the American Glazer family, jumped 6.9 percent to $14.57 on the New York Stock Exchange. The shares had fallen about 30 percent from its November high of $19.74, reflecting the team's struggles.
United, league winners a record 20 times are only fifth in the Premier League, six points adrift of fourth-placed Manchester City.
Clubs need to finish in the top four of the Premier League to gain access to the Champions League in the following season.
United's global appeal, which it says stretches to 659 million followers, continues to prove lucrative, with two sponsorship deals signed in the quarter.
Earlier in the month, the club signed a partnership with Twenty-First Century Fox to promote film distributor's latest movies during the club's home games.
United is to pay a quarterly dividend of $0.045 per share.
(Reporting by Aastha Agnihotri in Bengaluru; editing by Jason Neely and Keith Weir)
