Borussia Dortmund

DE: BVB

€827.5m market cap

€9 last close

The group operates Borussia Dortmund, a leading German football club, DFB Cup winners in 2016/17 and Round of 16 participants in this season’s UEFA Champions League (quarter-finalists in 2016/17).

Investment summary

Despite a recent dismal Der Klassiker loss, Borussia Dortmund (BVB) remains well-placed for its Bundesliga title challenge and has already effectively secured Champions League participation for next season, its overriding KPI. This marks a highly successful campaign with a new head coach and a developing squad. Moreover, we recently raised forecasts to reflect the buoyancy of international TV marketing and January’s bumper transfer of Pulisic. Transfermarkt.de’s new €45m upgrade in squad valuation, highlighted by Sancho (19) as most valuable Bundesliga player (€80m), suggests more to come, reinforcing EV/EBITDA of 7x FY19e as unbecoming of BVB’s brand and financial strengths.

Y/E Jun
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 405.7 74.1 61.1 56.4 15.9 7.0
2018A 536.0 126.6 111.2 102.7 8.8 5.1
2019E 495.0 105.0 94.0 86.8 10.4 6.6
2020E 508.0 110.0 100.0 92.4 9.7 6.4
Last updated on 23/05/2019
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 23/05/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net cash (€m) 46
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.5 18.9 50.7
Relative* 3.9 14.0 63.6
52-week high/low €10.1/€5.4
*% relative to local index
Key management
Thomas Treß CFO

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