Last close As at 24/08/2026
EUR3.20
▲ 0.04 (1.11%)
Market capitalisation
EUR353m
Research: Consumer
Borussia Dortmund’s FY26 net loss was at the low end of management’s revised expectations for the year. The financial results reflect the first team’s elimination from the Champions League knockout phase versus reaching the quarter-final stage in the 2024/25 season. Management’s first guidance for positive net income reflects its standard assumption that the first team will progress to the Round of 16 of the Champions League in the 2026/27 season.
| Year end | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (€) | DPS (€) | P/E (x) | EV/EBITDA (x) |
|---|---|---|---|---|---|---|---|
| 6/24 | 509.1 | 150.3 | 140.7 | 0.86 | 0.06 | 3.7 | 2.6 |
| 6/25 | 526.0 | 115.9 | 102.1 | 0.62 | 0.06 | 5.1 | 3.4 |
| 6/26 | 460.5 | 92.2 | 77.9 | 0.47 | 0.00 | 6.7 | 4.2 |
| 6/27e | 490.3 | 112.6 | 100.3 | 0.61 | 0.06 | 5.2 | 3.5 |
Borussia Dortmund reported a net loss for FY26 of €21.7m, at the low end of management’s most recent guidance for a loss of €12–22m. All revenue streams except Advertising declined in the year, such that group revenue declined by c 12% to c €460.5m. The 26% decline in TV Marketing, which at 43% of FY25 revenue is the company’s most important revenue source, was the main contributor to the overall decline in revenue. Both personnel expenses and other operating expenses declined in absolute terms versus FY25; however, these both increased relative to revenue. Therefore, the EBITDA margin declined by 2pp to 20.0%, and EBITDA declined c 20% to €92.2m. Having reinstated the annual dividend in FY23 following the global COVID pandemic, the FY26 net loss means no dividend will be declared for FY26.
Management’s initial guidance for FY27 is a net profit of €0–10m, an absolute increase of €21.7–31.7m from FY26’s loss. Its other initial guidance includes revenue of €485–495m, y-o-y growth of €24.5–34.5m or c 5–7%, and gross transfer income of €45m versus FY26’s €76.8m. The new guidance suggests limited growth in operating costs on an absolute basis. Ahead of the publication of full financial statements for FY26 at the end of September 2026, when management typically provides more granularity on its financial guidance, we have amended our FY27 forecasts to be consistent with management’s new guidance. With management’s expectation for a net profit, we forecast a return to dividend payments.
We will update our asset-backed sum-of-the-parts valuation, previously €11/share, following publication of the full financial statements. We note that Borussia Dortmund trades at a low FY27 EV/sales multiple of 0.8x versus the median of 3.0x for other European football club peers. The low valuation is confirmed by recent press reports that Viessmann Generations Group is to acquire a 5% minority stake in Bayern München for c €250m, implying an equity valuation of c €5bn.
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Research: TMT
Dentsu’s H126 results and the new CEO’s updated mid-term management plan point to a business in transition. Japan continues to perform strongly, and cost reductions are supporting profit and internal investment; however, organic growth across the international business remains weak. Against this backdrop, management has reset the mid-term plan around simplifying the group, restoring profitability and financial strength, and concentrating investment to where Dentsu has a competitive advantage to rebuild organic growth. The key questions remain, particularly, whether Dentsu can restore competitiveness in international markets and turn structural cost savings into higher profitability. Achieving the new mid-term financial targets, which although below where some peers are currently operating, would be helpful for its valuation.