Manchester United Revenue Tumbles 14%

Manchester United (NYSE: MANU - news) has posted a 14% decline in second quarter revenue, blaming the performance on its failure to secure Champions League football.

The Premier League side said it remained on track to meet its full-year financial targets despite income falling to £105.7m over the final three months of 2014.

The club, which is lying third in the table following a seventh-placed finish last season, said revenue over the first six months of its financial year stood at £194.4m - down 12.2% on the same period in 2013.

Earnings have been hurt by the lack of European games - hitting its broadcast, stadium and other related income.

Broadcast revenues took a dive of almost 40%, however two new sponsorship deals in the quarter boosted commercial income by 9.7%.

United welcomed a new three-year TV rights deal worth more than £5bn signed with Sky (Other OTC: BSYBF - news) , the owner of Sky News, and BT earlier this week.

Executive vice chairman Ed Woodward said: "The recently announced Premier League broadcasting rights package...once again demonstrates that we are part of the top football league in the world."

United has spent big to improve its fortunes on the pitch, with more than £150m going on the likes of Argentine winger Angel di Maria and Spanish midfielder Ander Herrera since the departure of manager David Moyes.

The side needs a top four Premier League finish under Louis van Gaal to secure its return to Europe's elite club competition.

United confirmed expectations for lower full-year revenue of £385m-£395m, down from £433m last year, and core profits of £90m-£95m, down from £130m in the 2013/14 financial year.

Its shares, which have gained 13% on the NYSE, currently value the club at $2.8bn (£1.8bn).