Borussia Dortmund

DE: BVB

€756.7m market cap

€8.23 last close

The group operates Borussia Dortmund, a leading German football club, Bundesliga runners-up in 2018/19, DFB Cup winners in 2016/17 and competing in this season’s UEFA Champions League (round of 16 participants in 2018/19).

Investment summary

Borussia Dortmund’s Q120 results exhibited typical volatility due to the key summer transfer window. Excluding the volatile transfer revenue, there was good growth with other revenue up c 15%. We maintain our forecasts but note there is a key Champions League game in less than two weeks and results in the Bundesliga must improve to ensure qualification for the competition next season. The shares continue to look well supported by its player assets and the FY20e EV/EBITDA multiple of 5.8x.

Y/E Jun
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2018A 536.0 137.3 121.9 112.6 7.3 4.5
2019A 489.5 116.0 101.5 93.8 8.8 5.0
2020E 534.0 128.0 113.0 104.5 7.9 5.0
2021E 564.0 132.0 116.0 107.2 7.7 4.9
Industry outlook

Unsustainable spend on wages and transfers is increasingly being penalised by UEFA Financial Fair Play requirements. A ‘break-even requirement’ obliges clubs to spend no more than they generate over a rolling three-year period. Sanctions vary from a warning to a ban from UEFA competition, fines and a cap on wages and squad size.

Last updated on 15/11/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net cash (€m) 33
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (12.1) (8.7) (12.5)
Relative* (16.1) (21.3) (25.0)
52-week high/low €9.9/€7.0
*% relative to local index
Key management
Thomas Treß CFO

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