STRONG GROWTH IN REVENUE EXCLUDING PLAYER TRADING: 66%
TOTAL REVENUE: €95.0 MILLION
Lyon, 12 November 2018
Revenue totalled €95.0 million in Q1 2018/19 (1 July to 30 September 2018), vs €100.4 million in the previous year.
Revenue excluding proceeds from the sale of player registrations rose significantly (66%) during the quarter to €57.3 million, from €34.6 million in Q1 2017/18, as the men's professional team took part in the group stage of the Champions League this season and media rights distributed by UEFA increased sharply starting with the 2018/19 season.
The Ticketing, Sponsoring - Advertising and Brand-related revenue line items all posted double-digit growth in Q1 2018/19.
Player trading revenue was high, at €37.7 million, but below the record level achieved in Q1 2017/18 (€65.8 million), which included the transfer of Alexandre Lacazette to Arsenal in July 2017.
1/ REVENUE EXCL. PLAYER TRADING UP 66%
| Revenue - In € m (from 1 July to 30 September) | Q1 2018/19(*) | Q1 2017/18 | Chg. €m | Chg. % |
| Ticketing | 8.0 | 7.0 | +1.0 | +15% |
| of which French Ligue 1 | 8.0 | 5.6 | +2.4 | +42% |
| of which European play | 0.0 | 1.3 | -1.3 | n.s. |
| of which other matches | 0.0 | 0.0 | 0.0 | n.s. |
| Sponsoring - Advertising | 6.8 | 6.1 | +0.7 | +11% |
| Media and marketing rights | 37.8 | 16.2 | +21.7 | +134% |
| of which LFP-FFF | 10.8 | 10.0 | +0.7 | +7% |
| of which UEFA | 27.1 | 6.1 | 20.9 | +342% |
| Events | 0.9 | 1.8 | -1.0 | -53% |
| of which seminars and stadium tours | 0.8 | 0.5 | +0.3 | +50% |
| of which major events | 0.1 | 1.3 | -1.2 | -95% |
| Brand-related revenue | 3.9 | 3.5 | +0.3 | +10% |
| of which derivative products | 2.1 | 2.1 | +0.0 | +1% |
| of which image/video, travel and other | 1.8 | 1.4 | +0.3 | +22% |
| Revenue, excluding player trading | 57.3 | 34.6 | +22.7 | +66% |
| Revenue from sale of player registrations | 37.7 | 65.8 | -28.1 | -43% |
| Total revenue | 95.0 | 100.4 | -5.4 | -5% |
*figures are preliminary, estimated and unaudited
TICKETING: €8.0 MILLION (UP €1.0 MILLION OR 15%)
Ticketing receipts advanced by 15% in Q1 2018/19, an increase of €1.0 million year-on-year. As there was no home European cup match during the first quarter (1 Europa League match in Q1 2017/18), these receipts derived exclusively from French Ligue 1 matches.
Ligue 1 ticketing revenue thus increased 42% over the period, totalling €8.0 million, vs €5.6 million in Q1 2017/18, with one more match this season (four matches in Q1 2017/18).
Average attendance(1) was 51,330 spectators, up 35% year-on-year (37,887 on average in Q1 2017/18). Average revenue per matchday(1), mainly including general public and VIP ticketing and merchandising revenue, totalled €1.9 million in Q1 2018/19, up 14% (€1.7 million in Q1 2017/18 over four Ligue 1 matches) generating a gross margin of 53% (same as in Q1 2017/18).
(1) Men's professional team matches
SPONSORING - ADVERTISING: €6.8 MILLION (UP €0.7 MILLION OR 11%)
Revenue from sponsoring and advertising increased by 11% in Q1 2018/19 to €6.8 million. The Group benefited in particular from revenue related to the stadium naming contract, which came into force on 1 August 2017.
MEDIA AND MARKETING RIGHTS: €37.8 MILLION (UP €21.7 MILLION OR 134%)
Media and marketing rights surged 134% to €37.8 million in Q1 2018/19, driven in particular by the Club's participation in the Champions League this season (Europa League in Q1 2017/18).
Domestic media rights (LFP, FFF) increased 7% to €10.8 million, vs €10.0 million in Q1 2017/18, as the Club ranked 5th in the French Ligue 1 at end-September 2018 (8th at end-September 2017).
International media rights (UEFA) jumped 342% to €27.1 million. The increase in this line item was very high because:
- the men's professional team took part in the group stage of the Champions League this season (Europa League group stage last year);
- gross revenue from UEFA media rights will increase by 38% for the new 2018-21 cycle;
- the method for distributing this revenue has changed, with a significant increase in the fixed portion, linked to the UEFA coefficient over 10 years.
EVENTS: €0.9 MILLION (DOWN €1.0 MILLION OR 53%)
Events revenue was down in Q1 2018/19, at €0.9 million, because there was no major event during the period, whereas the Celine Dion concert took place in July 2017.
Revenue from B2B and B2C activities (seminars, conventions, stadium tours) increased by 50% over the period to €0.8 million (€0.5 million in Q1 2017/18). Seventy-one seminars were held at Groupama Stadium in Q1 2018/19, vs 56 in the year-earlier period, representing a 27% increase.
BRAND-RELATED REVENUE: €3.9 MILLION (UP €0.3 MILLION OR 10%)
Brand-related revenue continued to rise steadily, with a 10% increase year-on-year, deriving in particular from the summer 2018 international tournaments. It totalled €3.9 million (€3.5 million in Q1 2017/18).
PLAYER TRADING: €37.7 MILLION (DOWN €28.1 MILLION OR 43%)
Proceeds from the sale of player registrations totalled €37.7 million in Q1 2018/19, corresponding to the transfers of Mariano Diaz to Real Madrid (€21.7 million) and Myziane Maolida to Nice (€10.0 million), as well as incentives of €6.0 million. They generated EBITDA on player trading of around €30 million in the first quarter.
As a reminder, OL Groupe had achieved a record level of player trading revenue in Q1 2017/18 (€65.8 million), with, in particular, the transfer of Alexandre Lacazette to Arsenal.
2/ OUTLOOK
OL Groupe anticipates significant growth in revenue excluding player trading for the 2018/19 financial year, as the Club's participation in the group stage of the Champions League is generating an increase in European ticketing revenue and UEFA media rights. In addition, UEFA media rights will see an overall increase of 38% over the 2018-21 period.
The seminar business continues to grow. Groupama Stadium hosted several large-scale seminars in October, and other major seminars are scheduled to take place between now and the end of the financial year.
Major events are also scheduled, such as the Ed Sheeran concerts on 24, 25 and 26 May 2019, a Stars 80 concert on 1 June 2019 and the Women's World Cup semi-final and final matches on 2, 3 and 7 July 2019.
The Group's medium-term objective is to optimise its partnership revenue, in particular via several contracts that expire in 2020. On 29 October 2018, the kit manufacturer contract with adidas was extended until 2025, on a more advantageous basis. Partnerships with the women's team should also expand, as Division 1 media rights have been granted to Canal+ for the 2018-23 period. The Group also stands to benefit from the increase in Ligue 1 media rights, awarded to the Mediapro group for the 2020-24 period (€1,153 million p.a. vs €726.5 million p.a. over the 2016-20 period, a total increase of nearly 60%).
The Group is seeking to increase operating profitability by optimising operating and organisational costs, while maintaining the customer experience as a key priority.
OL Groupe confirms its strategy centred on repeated elite sporting performance by its professional teams and the OL Academy, which produces young talent and is a major source of value creation. Olympique Lyonnais has recently been ranked as the second-best training club in Europe, behind Real Madrid and ahead of FC Barcelona (CIES Football Observatory ranking as of 29 October 2018).
"This document contains indications about OL Groupe's goals. Known and unknown risks, uncertainties and other factors may affect the achievement of these goals, and consequently, OL Groupe's future results, performance and achievements may differ significantly from implied or stated goals. These factors could include changes to the economic and business environment, regulations, and risk factors detailed in OL Groupe's 2017/18 Registration Document."
Next press release:
Annual Shareholders Meeting: 5 December 2018 at 11 am at Groupama Stadium.
| OL Groupe Tel: +33 (0)4 81 07 55 00 Fax: +33 (0)4 81 07 45 65 Email: dirfin@olympiquelyonnais.com www.ol.fr | Euronext Paris - Segment B Indices: CAC Small - CAC Mid & Small - CAC All-Tradable - CAC All-Share - CAC Consumer Services - CAC Travel & Leisure ISIN code: FR0010428771 Reuters: OLG.PA Bloomberg: OLG FP ICB: 5755 Recreational Services |
APPENDIX
SPORTING RESULTS TO DATE
| Men's team | 2018/19 as of 12 November 2018 | 2014/15 Season | 2016/17 Season |
| French Ligue 1 | 4th | 3rd | 4th |
| Europe | Champions League 2nd in group F after 4 matches | Europa League Group stage Round of 16 | Champions League Group stage Europa League Semi-final round |
| Women's team | 2018/19 Season as of 12 November 2018 | 2017/18 Season | 2016/17 Season |
| French Division 1 | 1st | 1st | 1st |
| Europe | Champions League Qualified for 1/4 final against Wolfsburg (March 2019) | Champions League Victory | Champions League Victory |
https://www.actusnews.com/documents_communiques/ACTUS-0-55946-olg-121118-ca-t1-18-19-gb.pdf
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