Borussia Dortmund

DE: BVB

€535.4m market cap

€5.82 last close

The group operates Borussia Dortmund, a leading football club, Bundesliga runners up in 2019/20, DFB Super Cup winners in 2019/20 and DFB Cup winners in 2016/17. The club has qualified for the Champions League in eight of the last 10 seasons.

Investment summary

Borussia Dortmund’s Q121 results were affected, as expected, by the delayed start to the 2020/21 season, and the severe restrictions on fan attendance at games as experienced towards the end of the prior season. The recent decision by federal and state governments to further restrict attendance at games, in response to the resurgence of COVID-19 in November, highlights the uncertain operating environment for the club. We currently retain our prior forecasts but our SOTP valuation reduces by 8% to €11.96/share.

Y/E Jun
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2019A 370.3 116.0 101.5 87.95 6.6 17.7
2020A 370.2 63.0 45.6 46.77 12.4 180.6
2021E 336.2 39.5 23.0 24.97 23.3 N/A
2022E 346.6 60.8 43.8 42.89 13.6 225.7
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 30/11/2020
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Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (€m) 65.9
Forecast gearing ratio (%) 28
Price performance
%
1m
3m
12m
Actual 38.3 4.1 (30.5)
Relative* 20.3 1.4 (30.8)
52-week high/low €9.4/€4.2
*% relative to local index
Key management
Thomas Treß CFO

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