Cost of materials
Cost of materials increased by EUR 1,179 thousand to EUR 21,273 thousand.
This figure included the cost of goods sold for both BVB Event & Catering GmbH and BVB Merchandising GmbH. Both items increased due to higher revenue.
Personnel expenses
In financial year 2018/2019, personnel expenses amounted to EUR 205,104 thousand (previous year: EUR 186,715 thousand).
Personnel expenses for the professional squad increased by 10.11% year on year. In addition to the increase of EUR 6,201 thousand in base salaries, performance-based bonuses also rose by EUR 9,128 thousand. This was due to the team finishing second in the Bundesliga with 76 points, reaching the round of 16 of the UEFA Champions League, and automatically qualifying for the group stage of the competition in the 2019/2020 season.
In the reporting period, personnel expenses related to the retail and administration areas increased by EUR 2,705 thousand year on year to EUR 28,925 thousand. This was due primarily to the expansion of the Sports management team, including the scouting department, the expansion of the football academy and the newly established security department at BVB Stadionmanagement GmbH.
Personnel expenses in relation to amateur and youth football amounted to EUR 9,200 thousand during the current 2018/2019 financial year (previous year: EUR 8,845 thousand).
Depreciation, amortisation and write-downs
Depreciation, amortisation and write-downs declined by EUR 5,850 thousand to EUR 92,482 thousand in the reporting period. Depreciation, amortisation and write-downs for financial year 2017/2018 were restated retrospectively to EUR 98,332 thousand due to a necessary change in the applicable accounting policies.
During the period from 1 July 2018 to 30 June 2019, intangible assets – which consist primarily of Borussia Dortmund's player registrations – were amortised in the amount of EUR 65,850 thousand (previous year: EUR 66,814 thousand).
Furthermore, EUR 13,809 thousand in write-downs of intangible assets to their fair values were recorded (previous year: EUR 20,362 thousand).
Depreciation and write-downs of property, plant and equipment rose by EUR 11,156 thousand to EUR 12,823 thousand due to investments in SIGNAL IDUNA PARK relating to the flood lights, the expansion and improvement of security measures and the modernisation and renovation of existing areas, as well as investments in the training ground and the headquarters building.
Other operating expenses
Other operating expenses decreased by EUR 40,910 thousand or 20.89% from EUR 195,820 thousand in the previous year to EUR 154,910 thousand in the reporting period.
Transfer deals declined by EUR 53,369 thousand to EUR 43,612 thousand. This item includes the derecognition of the residual carrying amounts of and sales-related costs for the players Christian Pulisic, Sokratis Papastathopoulos, Nuri Sahin and Andriy Yarmolenko as well as other (subsequent) transfer payments.
Other transfer payments decreased due to the necessary change in the accounting policy applicable to agent and brokerage commissions and expenses in connection with contract extensions and subsequent costs for players acquired on free transfers. Under the new policy, these items are recognised as intangible assets beginning in financial year 2017/2018 and amortised over the term of the individual contract.
Expenses from match operations increased by EUR 7,494 thousand to EUR 47,318 thousand. This increase is due to rising football association dues for national TV marketing, repair and modernisation measures in and around SIGNAL IDUNA PARK and the training ground, higher scouting-related expenses as well as enhanced security measures during match operations.
Advertising expenses also rose, by EUR 1,437 thousand. The year-on-year rise in advertising income lead to an increase in commissions paid to Lagardère Sports Germany GmbH. Other advertising measures also increased.
Administrative expenses also rose by EUR 3,947 thousand to EUR 26,201 thousand in the financial year ended. This increase was due primarily to the year-on-year rise in cost and profit allocations, higher travel expenses – attributable in part to the team's US tour and the tours of the US and Asia undertaken by BVB legends in their roles as brand ambassadors – as well as legal and consulting fees.
Financial result
The financial result for financial year 2018/2019 amounted to EUR -1,692 thousand (previous year: EUR -4,323 thousand) and breaks down as follows:
The financial result includes interest income amounting to EUR 427 thousand (previous year: EUR 552 thousand) in addition to the share of the profits (EUR 13 thousand) of Orthomed Medizinisches Leistungs- und Rehabilitationszentrum GmbH in 2018.
Interest expenses amounted to EUR 2,132 thousand (previous year: EUR 4,888 thousand).
Tax expense
Tax on income amounted to EUR 4,418 thousand (previous year: EUR 2,946 thousand) and consisted of EUR 1,742 thousand in tax expenses relating to the 2018/2019 financial year and expenses of EUR 2,942 thousand (EUR 1,136 thousand) in respect of changes in deferred taxes.