Original-Research: Borussia Dortmund GmbH & Co KGaA - from NuWays AG
Classification of NuWays AG to Borussia Dortmund GmbH & Co KGaA
Strong Q1 profitability driven by transfer income Topic: On Friday, BVB released preliminary Q1 results, which came in flat on the top-line but showed significant margin expansion thanks to increased transfer income. In detail: Q1p sales came in at € 107m (eNuW: € 109m), flat yoy. We see a decline in Match Operations (-39.5% yoy to € 4.9m), Merchandising (-11.6% to € 8.9m) and Conference, Catering and Others (-36.8% to € 8.9m), which should be attributable to a lower amount of home games (-1 yoy) as well as a tough comparable base due to the EURO 2024, which inflated Conference, Catering an Others. The decline was compensated by TV Marketing, which increased 21.7% to € 47.7m (44.6% of group sales), which should be due to the FIFA CWC, where BVB reached the quarterfinals. Advertising sales increased slightly by 1.9% yoy to € 36.6m. On the bottom-line, Q1p EBITDA came in strong at € 54.3m (eNuW: € 48.3m), implying a margin of 50.7% (+26.7pp yoy). The steep yoy improvement is largely explained by increased net transfer income of € 52.9 (+174.1%), that was mainly caused by the transfer of Jamie Gittens to Chelsea FC for a reported € 56m. Moreover, other expenses decreased 7.6% yoy based on the effects mentioned in the sales paragraph (i.e. expenses connected with EURO games). This was only partly offset by increased personnel expenses of € 66.1m (+12.2%), which we regard at least partly connected to CWC related bonus payments. Net income came in at € 22.9m, implying a 21.4% margin. With this, the company should be well on track to achieve the FY25/26 targets of € 475m sales, € 105-115m EBITDA and € 7m FCF, which is conservative at this point given the strong first quarter and the club reaching its sporting goals. To the sporting part. With the Bundesliga and UCL season up and running, we were able to develop a sound opinion regarding the clubs on-pitch performance, which is positive thus far. In the Bundesliga, the team has put on some decent performances and is positioned in 3rd place after 10 games. The thing we like most so far is, that the team apparently gained the ability to even win tough games, where the performance is not at 100%, which is a clear attribute of a top-team. Looking at the national cup, BVB survived the second round after penalties against UCL team Frankfurt and will now face last years Bundesliga runners-up Leverkusen in the third round. In the UCL BVB only lost to Manchester City and sits in 14th position after 4 matches. Given the performances so far, reaching the top-24 should be a formality while we also see a strong likelihood of reaching the top-8 (direct qualification for round of 16) given that 3 of the last 4 games are at home. Mind you, reaching the top 16 alone equals € 11m premium payments (not considering starting and league phase payments), while reaching the quarterfinals would result in additional premium payments of € 12.5m. Overall, Q1 results strengthened BVB's financial position and the performance on the pitch makes us confident that the team will reach its on-field targets this season (Bundesliga top-4, UCL round of 16). Confirm BUY with an unchanged € 5.20 PT based on DCF. You can download the research here: borussia-dortmund-gmbh-co-kgaa-2025-11-10-previewreview-en-268ca_nd For additional information visit our website: https://www.nuways-ag.com/research-feed Contact for questions: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||
2226584 10.11.2025 CET/CEST
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