Last close As at 05/08/2026
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▲ 0.03 (0.99%)
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EUR339m
Research: Consumer
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.
Borussia Dortmund |
Uncertain times continue |
Q121 results |
Travel & leisure |
16 November 2020 |
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 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.
Year end |
Revenue (€m) |
EBITDA (€m) |
PBT* |
EPS* |
DPS |
P/E |
EV/EBITDA |
06/19 |
370.3 |
116.0 |
101.5 |
0.88 |
0.06 |
5.9 |
4.9 |
06/20 |
370.2 |
63.0 |
45.6 |
0.47 |
0.00 |
11.1 |
9.1 |
06/21e |
336.2 |
39.5 |
23.0 |
0.25 |
0.00 |
20.8 |
14.5 |
06/22e |
346.6 |
60.8 |
43.8 |
0.43 |
0.00 |
12.1 |
9.4 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Q121: Delayed start to the new season
Due to the delayed start to the new football season, with fewer games played during Q121 (one home Bundesliga game) than the prior year (three home Bundesliga games and one Champions League game), and fan attendance at games severely restricted due to COVID-19, revenue declined by 46% y-o-y to €56.5m. All sources of revenue fell versus Q120 and the company reported an EBITDA loss of €9.3m. There was good control of costs, where possible. Total operating expenses fell by 20% y-o-y, within which personnel declined by 13%, including among the playing squad, and other operating expenses by 48%. The operating loss and net investment in the playing squad spend of €63m, albeit much lower than the Q120 investment of €116m, led to an increase in the net debt position of €94m vs €29m at the end of FY20. After seven games of the new season, to the date of the quarterly report, the team is third in the Bundesliga with 15 points, three points behind first-placed Bayern Munich.
FY21: Outlook remains uncertain
At this early stage of the season, and with a high level of uncertainty about when fans will be allowed to return to watch games, we retain our prior forecasts for FY21, as per our recent Outlook note. Following earlier trials to allow a restricted number of fans into the stadium, all games in November are to be played with no fans in attendance, and further disruptions due to COVID-19 are possible.
Valuation: SOTP valuation reduced to €11.96/share
Our SOTP valuation reduces to €11.96/share from €13.03 to reflect a number of changes: the higher net debt position vs June 2020; the May 2018 brand valuation is adjusted for recent changes in the share prices of quoted peers; and the estimated squad valuation (per Transfermarkt.com) of €587m is adjusted down by the average transfer costs (as a percentage of gross transfer fees) since FY19 of 9.4%.
Exhibit 1: Financial summary
€'k |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021e |
2022e |
||
Year end 30 June |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
|||||||||||
Revenue |
|
|
256,280 |
263,601 |
281,261 |
328,375 |
313,310 |
370,256 |
370,196 |
336,239 |
346,606 |
Cost of Sales |
(15,857) |
(8,237) |
69,322 |
51,388 |
202,639 |
(21,273) |
(22,392) |
(17,066) |
(19,384) |
||
Gross Profit |
240,423 |
255,364 |
350,583 |
379,763 |
515,949 |
348,983 |
347,804 |
319,173 |
327,222 |
||
EBITDA |
|
|
49,132 |
55,594 |
86,668 |
74,073 |
137,306 |
115,983 |
62,992 |
39,500 |
60,801 |
Normalised operating profit |
|
|
40,976 |
46,025 |
75,798 |
62,597 |
126,150 |
103,160 |
49,050 |
25,205 |
46,326 |
Amortisation of acquired intangibles |
(22,523) |
(32,865) |
(31,899) |
(51,939) |
(66,814) |
(65,850) |
(88,285) |
(94,972) |
(107,072) |
||
Exceptionals |
0 |
0 |
(7,469) |
0 |
(20,362) |
(13,809) |
(3,903) |
0 |
0 |
||
Reported operating profit |
18,453 |
13,160 |
36,430 |
10,658 |
38,974 |
23,501 |
(43,138) |
(69,767) |
(60,746) |
||
Net Interest |
(3,889) |
(7,159) |
(2,104) |
(1,567) |
(4,336) |
(1,705) |
(3,444) |
(2,233) |
(2,483) |
||
Joint ventures & associates (post tax) |
27 |
0 |
8 |
28 |
13 |
13 |
(1) |
0 |
0 |
||
Profit Before Tax (norm) |
|
|
37,114 |
38,866 |
73,702 |
61,058 |
121,827 |
101,468 |
45,605 |
22,972 |
43,843 |
Profit Before Tax (reported) |
|
|
14,591 |
6,001 |
34,334 |
9,119 |
34,651 |
21,809 |
(46,583) |
(72,000) |
(63,229) |
Reported tax |
(2,621) |
(469) |
(4,898) |
(910) |
(2,946) |
(4,418) |
2,630 |
0 |
(4,384) |
||
Profit After Tax (norm) |
30,447 |
35,828 |
63,188 |
54,965 |
111,469 |
80,913 |
43,030 |
22,972 |
39,458 |
||
Profit After Tax (reported) |
11,970 |
5,532 |
29,436 |
8,209 |
31,705 |
17,391 |
(43,953) |
(72,000) |
(67,613) |
||
Minority interests |
(310) |
(281) |
(245) |
0 |
0 |
0 |
0 |
0 |
0 |
||
Net income (normalised) |
30,137 |
35,547 |
62,943 |
54,965 |
111,469 |
80,913 |
43,030 |
22,972 |
39,458 |
||
Net income (reported) |
11,660 |
5,251 |
29,191 |
8,209 |
31,705 |
17,391 |
(43,953) |
(72,000) |
(67,613) |
||
Average number of shares outstanding (m) |
61.4 |
92.0 |
92.0 |
92.0 |
92.0 |
92.0 |
92.0 |
92.0 |
92.0 |
||
EPS - normalised (c) |
|
|
49.06 |
38.64 |
68.42 |
59.74 |
121.16 |
87.95 |
46.77 |
24.97 |
42.89 |
EPS - diluted normalised (€) |
|
|
0.49 |
0.39 |
0.68 |
0.60 |
1.21 |
0.88 |
0.47 |
0.25 |
0.43 |
EPS - basic reported (€) |
|
|
0.19 |
0.06 |
0.32 |
0.09 |
0.34 |
0.19 |
(0.48) |
(0.78) |
(0.73) |
Dividend (€) |
0.10 |
0.05 |
0.06 |
0.06 |
0.06 |
0.06 |
0.00 |
0.00 |
0.00 |
||
Revenue growth (%) |
1.1 |
2.9 |
6.7 |
16.8 |
(-4.6) |
18.2 |
(-0.0) |
(-9.2) |
3.1 |
||
Gross Margin (%) |
93.8 |
96.9 |
124.6 |
115.6 |
164.7 |
94.3 |
94.0 |
94.9 |
94.4 |
||
EBITDA Margin (%) |
19.2 |
21.1 |
30.8 |
22.6 |
43.8 |
31.3 |
17.0 |
11.7 |
17.5 |
||
Normalised Operating Margin |
16.0 |
17.5 |
26.9 |
19.1 |
40.3 |
27.9 |
13.2 |
7.5 |
13.4 |
||
BALANCE SHEET |
|||||||||||
Fixed Assets |
|
|
249,492 |
289,509 |
302,765 |
354,858 |
351,405 |
371,715 |
441,455 |
390,189 |
329,642 |
Intangible Assets |
61,602 |
96,340 |
65,278 |
141,521 |
120,342 |
163,710 |
229,667 |
189,695 |
137,624 |
||
Tangible Assets |
184,502 |
189,518 |
188,423 |
184,664 |
180,693 |
184,001 |
193,037 |
181,742 |
173,267 |
||
Investments & other |
3,388 |
3,651 |
49,064 |
28,673 |
50,370 |
24,004 |
18,751 |
18,751 |
18,751 |
||
Current Assets |
|
|
42,803 |
97,030 |
121,780 |
123,739 |
134,207 |
128,356 |
76,512 |
44,802 |
35,413 |
Stocks |
5,921 |
9,376 |
10,158 |
8,978 |
5,588 |
4,569 |
6,754 |
5,148 |
5,847 |
||
Debtors |
14,923 |
29,680 |
51,072 |
48,776 |
22,981 |
30,061 |
36,520 |
33,170 |
34,193 |
||
Cash & cash equivalents |
17,852 |
53,739 |
51,722 |
49,297 |
59,464 |
55,865 |
3,317 |
(23,436) |
(34,548) |
||
Other |
4,107 |
4,235 |
8,828 |
16,688 |
46,174 |
37,861 |
29,921 |
29,921 |
29,921 |
||
Current Liabilities |
|
|
(71,014) |
(61,627) |
(78,811) |
(140,912) |
(119,026) |
(125,388) |
(122,609) |
(111,633) |
(109,310) |
Creditors |
(59,927) |
(58,327) |
(69,587) |
(128,707) |
(113,949) |
(119,779) |
(110,188) |
(89,212) |
(86,889) |
||
Tax and social security |
(571) |
(803) |
(5,212) |
(732) |
(1,962) |
(811) |
(40) |
(40) |
(40) |
||
Short term borrowings |
(8,889) |
0 |
0 |
0 |
0 |
0 |
(8,031) |
(18,031) |
(18,031) |
||
Finance leases |
(1,627) |
(2,497) |
(2,640) |
(10,295) |
(1,969) |
(3,127) |
(4,350) |
(4,350) |
(4,350) |
||
Other |
0 |
0 |
(1,372) |
(1,178) |
(1,146) |
(1,671) |
0 |
0 |
0 |
||
Long Term Liabilities |
|
|
(76,032) |
(38,834) |
(36,192) |
(25,383) |
(23,001) |
(19,764) |
(89,911) |
(89,911) |
(89,911) |
Long term borrowings |
(32,139) |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
||
Finance leases |
(20,142) |
(21,630) |
(18,990) |
(8,695) |
(6,726) |
(8,381) |
(20,054) |
(20,054) |
(20,054) |
||
Other long term liabilities |
(23,751) |
(17,204) |
(17,202) |
(16,688) |
(16,275) |
(11,383) |
(69,857) |
(69,857) |
(69,857) |
||
Net Assets |
|
|
145,249 |
286,078 |
309,542 |
312,302 |
343,585 |
354,919 |
305,447 |
233,447 |
165,834 |
Minority interests |
(334) |
(305) |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
||
Shareholders' equity |
|
|
144,915 |
285,773 |
309,542 |
312,302 |
343,585 |
354,919 |
305,447 |
233,447 |
165,834 |
CASH FLOW |
|||||||||||
Op Cash Flow before WC and tax |
45,270 |
48,435 |
84,572 |
72,534 |
132,983 |
111,914 |
59,547 |
37,266 |
58,318 |
||
Working capital |
(6,672) |
(20,851) |
29,052 |
31,488 |
(9,402) |
5,673 |
(18,011) |
(16,020) |
(4,045) |
||
Exceptional & other |
(4,649) |
(3,193) |
(76,641) |
13,868 |
52,171 |
(84,587) |
(38,877) |
(37,767) |
(47,517) |
||
Tax |
(3,879) |
(200) |
(320) |
(5,476) |
(1,723) |
(2,834) |
305 |
0 |
(4,384) |
||
Operating cash flow |
|
|
30,070 |
24,191 |
36,663 |
112,414 |
174,029 |
30,166 |
2,964 |
(16,520) |
2,372 |
Capex |
(10,923) |
(10,399) |
(9,442) |
(8,139) |
(7,195) |
(9,872) |
(6,143) |
(3,000) |
(6,000) |
||
Net investment in intangibles |
2,058 |
(61,682) |
(20,038) |
(96,526) |
(135,556) |
(13,643) |
(44,646) |
(15,000) |
(5,000) |
||
Acquisitions/disposals |
0 |
0 |
(500) |
(45) |
0 |
0 |
0 |
0 |
0 |
||
Net interest |
(3,644) |
(7,244) |
(1,435) |
(2,002) |
(3,668) |
(1,456) |
(3,326) |
(2,233) |
(2,483) |
||
Equity financing |
5 |
140,708 |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
||
Dividends |
(6,523) |
(6,451) |
(5,124) |
(5,519) |
(5,519) |
(5,519) |
(5,519) |
0 |
0 |
||
Other |
(5,727) |
(43,236) |
(2,142) |
(2,608) |
(11,924) |
(3,275) |
4,122 |
10,000 |
0 |
||
Net Cash Flow |
5,316 |
35,887 |
(2,017) |
(2,425) |
10,167 |
(3,599) |
(52,548) |
(26,753) |
(11,111) |
||
Opening net debt/(cash) |
|
|
53,932 |
44,945 |
(29,612) |
(30,092) |
(30,307) |
(50,769) |
(44,357) |
29,118 |
65,871 |
Other non-cash movements |
3,671 |
38,670 |
2,497 |
2,640 |
10,295 |
(2,813) |
(20,927) |
(10,000) |
0 |
||
Closing net debt/(cash) |
|
|
44,945 |
(29,612) |
(30,092) |
(30,307) |
(50,769) |
(44,357) |
29,118 |
65,871 |
76,983 |
Source: Company accounts, Edison Investment Research
|
|
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