Manchester United shares fell Wednesday after the iconic English soccer club lowered its 2024 revenue guidance, citing the club’s early exit from the Champions League and the related impact on broadcasting revenues.
The club exited the Champions League at the group stage in December following a 1-0 defeat by German giants Bayern Munich at Manchester United’s Old Trafford Stadium. Manchester United last won the Champions League in 2008.
Shares of operator Manchester United Ltd.
MANU,
fell 5.8% Wednesday, putting the stock on pace for its biggest single day percentage decline since Oct. 16, 2023, when it fell 10.4%.
Related: Manchester United football club announces deal to sell up to 25% of club to Jim Ratcliffe
Manchester United reported fiscal first-quarter results early Wednesday, and is now forecasting 2024 revenue between £635 million ($803.7 million) and £665 million ($841.7 million), down from its prior guidance of £650 million ($822.8 million) to £680 million ($860.7 million). The club also lowered its adjusted EBITDA guidance to between £125 million ($158.2 million) and £150 million ($189.9 million), from its prior forecast of £140 million ($177.2 million) to £165 million ($208.8 million).
The club’s stock has fallen 12.9% in the last 52 weeks, compared with the S&P 500 index’s
SPX
gain of 20.7%.
Manchester United’s stock climbed last month after British billionaire Sir Jim Ratcliffe clinched his 25% minority stake in the club. Ratcliffe, the CEO of chemical conglomerate Ineos Group, has vowed to return the club to soccer’s pinnacle.
The club’s majority owners, the American Glazer family, have come under intense pressure to sell Manchester United amid ongoing fan frustration over what is seen as underperformance. One of the biggest names in world football, Manchester United last won the Premier League in 2013. In 2021, the Glazers also faced major backlash from fans over planned involvement in the controversial European Super League.
The club, which is currently seventh in the Premier League, drew 2-2 with Tottenham Hotspur on Sunday. Manchester United’s next game is on Jan 28th against Newport County in the fourth round of the F.A. Cup.
This story originally appeared on Marketwatch
