Close Brothers Seydler Research AG - BVB Aktie - Borussia Dortmund

Borussia Dortmund GmbH & CO KGaA
Financials
Historical financial development
Almost 10 years ago, Borussia Dortmund was nearly insolvent, but more
impressive is the considerable leap forward the company has achieved since then.
Since 2003 large debt caused by buying expensive players (who did not bring the
desired sporting performance) and doubtful business decisions in the course of the
stadium expansion (which had to be rented for the matches) burdened the
company. Total debt amounted to EUR 118m in FY 2003/04. The crisis led to the
resignation of the responsible managing director Gerd Niebaum in February 2005.
He was succeeded by Hans-Joachim Watzke, who initiating an economic
consolidation by drastically reducing the player and transfer budget, restructuring of
the liabilities (associated with the repurchase of the stadium) and three capital
increases. The new strategic focus was on the increase in profitability induced by
concentration on the key revenue streams and a sustainable investment in players.
As a consequence the company has stabilised its operative performance over the
last years.
Success story after
some bumps on the
road
Despite the achieved financial success, the sporting performance plays an
essential role in terms of revenue development. The chart below shows revenue
development since season 2007/08 along with the achieved rankings in the
Bundesliga and the participation in UEFA tournaments.
Revenue development
show a strong upside
Historical development of revenues, net income and Bundesliga
performance (including UEFA tournament participation)
230
215.2
180
151.5
130
113.0 114.7
110.1
80
30
27.5
5.4
-20
-1.4 -5.9 -6.1
2007/08 2008/09 2009/10 2010/11 2011/12
Source: Borussia Dortmund GmbH & Co. KGaA, CBS Research AG
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Net result
Revenues
Bundesliga ranking
UEFA participation
Over the period 2007/08-2011/12 the company experienced a top line growth of
CAGR 17.5% on a yearly basis and managed to improve net result figures
significantly from EUR -1.45m in season 2007/08 up to EUR 27.53m in 2011/12.
Especially the participation in UEFA tournaments has contributed to revenue
growth. In 2008/09 Borussia Dortmund reached only the first round of the Europa
League (former UEFA Cup), which had only a small impact on revenues, while
participations in Europa League (2010/11) and Champions League (2011/12), and
both times reaching the group stage, resulted in significant revenue growth. In
addition also broadcasting revenues from the Bundesliga increased due to the
better achieved ranking (13 in season 2007/08, 1 in 2011/12).
Champions League
helped to boost the
revenues
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