Manchester United chief executive Omar Berrada said the club are reaping the "positive financial impact" of their redundancy programme after the latest financial results showed an increase in profit despite a fall in revenues - but a return to the Champions League looks imperative.
Although United's men's team are without European football this season, they generated an operating profit of £32.6million in the first six months of the fiscal year, compared with a £3.9m loss for the same period last year.
The operating profit for the most recent quarter was £19.6m, compared to £3.1m in the same period last year.
Those numbers come after minority owner Sir Jim Ratcliffe oversaw a wide-scale redundancy programme and restructuring of the club, and in announcing their latest figures, United said they were seeing "the positive impact of operating cost and headcount reduction programmes implemented in the prior year".
United's total revenues for the second quarter of the financial year were £190.3m, down from £198.7m for the equivalent period the previous year, with commercial revenue dropping from £85.1m to £78.5m and matchday revenues down from £52m to £49.5m but that has been without the financial benefit of Champions League football this season.
The onus then falls to Man Utd to ensure a spot in Europe's elite competition next season to continue their financial gains under Ratcliffe's tenure. English clubs have each made between £73m and £86m from playing in the league phase of the Champions League this season.
The club still has $650m worth of debt from the Glazer era while short-term borrowing is up to £295.7m.
But with a revived United up to fourth in the Premier League under Michael Carrick, and Marc Skinner's side second in the Women's Super League and through to the quarter-finals of the Women's Champions League, United believe they are well placed for a further rise in profits going forward.
"We are now seeing the positive financial impact of our off-pitch transformation materialise both in our costs and profitability," Berrada said. "We continue to take a football-first approach and invest in both our men's and women's first teams.
"On the pitch our men's team sits fourth in the Premier League and our women's team are second in the Women's Super League, as well as reaching the League Cup final and the quarter-final of the UEFA Women's Champions League.
"Today's results demonstrate the underlying strength of our business as we continue to push for the best football results possible for our men's and women's teams."
United say they remain on track to record revenues of between £640m and £660m for the full fiscal year.
Your Site News' Kaveh Solhekol:
"Manchester United's latest accounts show how important it is for the club to get back into Europe.
"If you want to make Manchester United great again, they need to be playing in the Champions League again as soon as possible.
"The new expanded format of the competition means English clubs have each made between £73m and £86m from just playing in the league phase this season.
"United are improving on and off the pitch, although it is too early to start celebrating about the latest figures they posted in New York this morning.
"Not being in Europe would be a financial disaster for most clubs, but United's finances are just about holding up - despite overall debt rising to £1.29 billion with no new stadium for that vast borrowing.
"The long-term Glazer debt is still $650m, the short-term borrowing is up to £295.7m and more than £500m is owed on transfers.
"As expected, being out of Europe means United revenues for the six months to the end of last December fell from £341.8m to £330.7m.
"Matchday income was down £2.8m to £75.7m because United played five fewer games at Old Trafford than in the final six months of the previous year.
"Increased ticket prices mean United are making more per game and United still make more money on matchdays than any other club in England.
"The departure of several high-profile players means United's wage bill for the final three months of last year fell by 9 per cent to £75.1m.
"There is no mention of how much compensation Ruben Amorim was paid as he was sacked on 5 January - just after the period covered in these accounts."
