€529m market cap
€5.75 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 Q221 trading update showed higher profitability y-o-y due to active cost control despite lower revenue in aggregate as a result of COVID-19. Revenue declined by 3% y-o-y (we note that three of its five sources of revenue increased) and a 13% reduction in cash costs led to EBITDA 23% higher than the prior year. Our forecasts are broadly unchanged. For FY21, management previously guided that the restrictions required to counter COVID-19 will lead to a 5% decline in revenue which, coupled with other effects (eg lower transfer activity and high operational gearing) will translate into a reported operating loss due to amortisation of intangibles.
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 | 6.5 | 17.5 |
| 2020A | 370.2 | 63.0 | 45.6 | 46.77 | 12.3 | 178.5 |
| 2021E | 331.5 | 39.4 | 22.9 | 24.91 | 23.1 | 108.9 |
| 2022E | 346.6 | 60.8 | 43.8 | 42.89 | 13.4 | 107.1 |
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 03/03/2021
Sector |
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| Consumer |
Share price graph
Balance sheet |
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| Forecast net debt (€m) | 68.5 |
| Forecast gearing ratio (%) | 29 |
Price performance
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Key management |
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| Thomas Treß | CFO |
