Last close As at 05/08/2026
EUR3.07
▲ 0.03 (0.99%)
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EUR339m
Research: Consumer
Borussia Dortmund’s progress to the semi-final of the Champions League brings a further upgrade to profit guidance for FY24. In addition to helping the financial results of the current year, the relative success of German teams against those of other nations in European competitions this season may ensure the club qualifies for the Champions League next season despite currently being outside the top four of the Bundesliga.
Borussia Dortmund |
Helping itself |
Increased FY24 guidance |
Travel and leisure |
22 April 2024 |
Share price performance
Business description
Next events
Analysts
Borussia Dortmund is a research client of Edison Investment Research Limited |
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Borussia Dortmund’s progress to the semi-final of the Champions League brings a further upgrade to profit guidance for FY24. In addition to helping the financial results of the current year, the relative success of German teams against those of other nations in European competitions this season may ensure the club qualifies for the Champions League next season despite currently being outside the top four of the Bundesliga.
Year end |
Revenue (€m) |
EBITDA (€m) |
PBT* |
EPS* |
DPS |
EV/EBITDA (x) |
P/E |
Yield |
06/22 |
351.6 |
83.8 |
66.3 |
0.61 |
0.00 |
5.2 |
6.2 |
N/A |
06/23 |
418.2 |
123.2 |
104.1 |
0.63 |
0.00 |
3.5 |
6.0 |
N/A |
06/24e |
466.7 |
130.6 |
120.5 |
0.73 |
0.06 |
3.3 |
5.2 |
1.6 |
06/25e |
456.8 |
121.3 |
111.5 |
0.68 |
0.06 |
3.6 |
5.6 |
1.6 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Champions League success equals another upgrade
The first team beat Atlético Madrid in the quarter-final of the Champions League with an aggregate score of 5-4 over the two games. The semi-final of the competition brings two games against Paris Saint-Germain that will take place on 1 and 7 May 2024. The continued success in the competition naturally leads to a further upgrade to FY24 financial guidance. We have increased our FY24 estimate to be in line with management’s new guidance for net income of €33–43m, €8m higher than the guidance provided in April of €25–35m when the team qualified for the quarter-final of the competition. Success in the semi-final could lead to further upgrades to financial guidance.
Helping the coefficient
The team’s progress and the performance of teams from all nations in the various European competitions this season mean the German league may get an additional (ie fifth) place in the Champions League competition in the 2024/25 season. For Borussia Dortmund, this may be particularly helpful this season as it is currently in fifth place in the Bundesliga with four games to play. As a brief summary, each national league earns points based on the progress of its teams in the European competitions, which are aggregated to a ‘coefficient’. At the end of each season, the coefficients of each national league are compared and the number of places that each country may have in European competitions in the following season are adjusted accordingly (ie the more successful nations will be awarded more places, and vice versa).
Valuation: Significant discount
The share price has responded positively to the progress in the competition but remains at a significant discount to our asset-backed sum-of-the-parts valuation of €10.4 per share.
Exhibit 1: Financial summary
€m |
2022 |
2023 |
2024e |
2025e |
||
Year end 30 June |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
||||||
Revenue |
|
|
351.6 |
418.2 |
466.7 |
456.8 |
Cost of Sales |
(22.6) |
(24.1) |
(24.3) |
(25.1) |
||
Gross Profit |
329.0 |
394.1 |
442.5 |
431.6 |
||
EBITDA |
|
|
83.8 |
123.2 |
130.6 |
121.3 |
Operating profit (before amort. and excepts.) |
|
|
70.5 |
110.3 |
117.0 |
107.3 |
Amortisation of acquired intangibles |
(87.4) |
(89.7) |
(83.8) |
(83.8) |
||
Exceptionals |
(9.1) |
(3.6) |
0.0 |
0.0 |
||
Reported operating profit |
(26.0) |
16.9 |
33.3 |
23.5 |
||
Net Interest |
(4.2) |
(6.1) |
3.5 |
4.2 |
||
Joint ventures & associates (post tax) |
0.1 |
0.0 |
0.0 |
0.0 |
||
Profit Before Tax (norm) |
|
|
66.3 |
104.1 |
120.5 |
111.5 |
Profit Before Tax (reported) |
|
|
(30.2) |
10.8 |
36.7 |
27.7 |
Reported tax |
(1.7) |
(1.2) |
(3.0) |
(3.0) |
||
Profit After Tax (norm) |
64.6 |
70.0 |
81.0 |
74.9 |
||
Profit After Tax (reported) |
(31.9) |
9.6 |
33.7 |
24.7 |
||
Minority interests |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net income (normalised) |
64.6 |
70.0 |
81.0 |
74.9 |
||
Net income (reported) |
(31.9) |
9.6 |
33.7 |
24.7 |
||
Average Number of Shares Outstanding (m) |
105.6 |
110.4 |
110.4 |
110.4 |
||
EPS - normalised (c) |
|
|
61.2 |
63.4 |
73.4 |
67.9 |
EPS - normalised fully diluted (c) |
|
|
61.2 |
63.4 |
73.4 |
67.9 |
EPS - basic reported (€) |
|
|
(0.30) |
0.09 |
0.31 |
0.22 |
Dividend (€) |
0.00 |
0.00 |
0.06 |
0.06 |
||
Revenue growth (%) |
5.2 |
18.9 |
11.6 |
(-2.1) |
||
Gross Margin (%) |
93.6 |
94.2 |
94.8 |
94.5 |
||
EBITDA Margin (%) |
23.8 |
29.5 |
28.0 |
26.6 |
||
Normalised Operating Margin (%) |
20.0 |
26.4 |
25.1 |
23.5 |
||
BALANCE SHEET |
||||||
Fixed Assets |
|
|
361.9 |
440.7 |
481.3 |
461.2 |
Intangible Assets |
127.8 |
169.7 |
159.9 |
147.8 |
||
Tangible Assets |
172.5 |
182.3 |
183.6 |
175.7 |
||
Investments & other |
61.6 |
88.8 |
137.8 |
137.8 |
||
Current Assets |
|
|
96.6 |
71.1 |
60.1 |
94.1 |
Stocks |
4.4 |
5.4 |
5.4 |
5.4 |
||
Debtors |
45.8 |
38.2 |
38.6 |
39.0 |
||
Cash & cash equivalents |
10.6 |
4.5 |
(6.9) |
26.8 |
||
Other |
35.7 |
22.9 |
22.9 |
22.9 |
||
Current Liabilities |
|
|
(137.3) |
(161.0) |
(161.9) |
(169.4) |
Creditors |
(132.6) |
(144.5) |
(145.3) |
(146.2) |
||
Tax and social security |
(0.0) |
(1.1) |
(1.1) |
(1.1) |
||
Short term borrowings |
0.0 |
(12.8) |
(12.8) |
(12.8) |
||
Finance leases |
(4.6) |
(2.6) |
(2.6) |
(2.6) |
||
Other |
0.0 |
0.0 |
0.0 |
(6.6) |
||
Long Term Liabilities |
|
|
(48.0) |
(68.1) |
(63.1) |
(58.1) |
Long term borrowings |
0.0 |
(8.8) |
(8.8) |
(8.8) |
||
Finance leases |
(12.5) |
(10.4) |
(5.4) |
(0.4) |
||
Other long term liabilities |
(35.5) |
(48.9) |
(48.9) |
(48.9) |
||
Net Assets |
|
|
273.2 |
282.7 |
316.4 |
327.9 |
Minority interests |
0.0 |
0.0 |
0.0 |
0.0 |
||
Shareholders' equity |
|
|
273.2 |
282.7 |
316.4 |
327.9 |
CASH FLOW |
||||||
Operating Cash Flow |
79.6 |
117.1 |
134.1 |
125.5 |
||
Working capital |
12.7 |
8.9 |
0.5 |
0.5 |
||
Exceptional & other |
(56.9) |
(70.5) |
(85.5) |
(76.7) |
||
Tax |
0.0 |
0.0 |
(3.0) |
(3.0) |
||
Net operating cash flow |
|
|
35.4 |
55.5 |
46.1 |
46.3 |
Capex |
(1.7) |
(21.4) |
(15.0) |
(6.0) |
||
Net investment in intangibles |
(49.4) |
(55.3) |
(41.0) |
0.8 |
||
Acquisitions/disposals |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net interest |
(0.3) |
(1.1) |
3.5 |
4.2 |
||
Equity financing |
86.5 |
0.0 |
0.0 |
0.0 |
||
Dividends |
0.0 |
0.0 |
0.0 |
(6.6) |
||
Other |
(61.6) |
16.3 |
(5.0) |
(5.0) |
||
Net Cash Flow |
8.8 |
(6.1) |
(11.4) |
33.7 |
||
Opening net debt/(cash) |
|
|
76.2 |
6.6 |
30.1 |
41.5 |
Other non-cash movements |
60.8 |
(17.4) |
0.0 |
0.0 |
||
Closing net debt/(cash) |
|
|
6.6 |
30.1 |
41.5 |
7.8 |
Source: Borussia Dortmund, Edison Investment Research
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Research: Healthcare
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