Expected earnings trend
Given that transfer income is extremely volatile and also difficult to plan, but usually also associated with high contributions to earnings, a decidedly conservative approach is taken when factoring such income into this earnings forecast. At the same time, market-related increases in the cost of players, which consequently weigh down earnings due to amortisation of intangible assets in the respective subsequent years, must be recorded and thus have a pronounced effect on this earnings forecast.
Furthermore, the club pursues a conservative approach when factoring success on the pitch and any associated earnings contributions into the forecast.
Against this backdrop and despite positive market developments, management currently forecasts that Borussia Dortmund will generate a net profit in the mid-seven-figure range for the upcoming 2019/2020 financial year. This can increase significantly in line with the team's sporting success or if the club generates surpluses from transfer deals that are not factored into the forecast.
Based on these forecast assumptions and analogue to the net profit for the year, EBIT is also expected be in the mid-seven-figure range. Depreciation, amortisation and write-downs are expected to exceed EUR 85,000 thousand, with the operating result (EBITDA) forecast to exceed the result from operating activities (EBIT) by this amount.
Expected revenue trend
In the financial year ended, Borussia Dortmund's revenue decreased by 8.68% to EUR 489,524 thousand, due primarily to the decline in transfer deals by EUR 102,529 thousand. Given that transfer income is extremely volatile and difficult to plan, Borussia Dortmund takes a conservative approach (using past experience and prior-year figures) to factoring this income into the revenue forecast for the 2019/2020 financial year. Against this backdrop and given the expectations of a highly favourable market environment in which income from TV marketing will continue to increase significantly, Borussia Dortmund expects total revenue for the 2019/2020 financial year to exceed EUR 485,000 thousand.
Expected trend for significant operating expenses
Cost management continues to be Borussia Dortmund's highest priority. The objective is to specifically manage and continually monitor risks in order to avoid or minimise these.
Operating expenses are linked directly to the number of matches played and the club's performance in competitions, meaning that these are always contingent upon the club's footballing success.
Personnel expenses are also largely dependent upon the club's sporting success, because the professional squad is compensated on the basis of its performance, meaning that those expenditures are always commensurate with the club's success.
Borussia Dortmund expects personnel expenses to increase in the coming financial year due to the rising costs for the professional squad resulting from fierce competition across Europe's leagues. We have already begun to benefit from the efforts we took in the previous season to rebuild the team. This included assigning new areas of responsibility and hiring additional staff. Borussia Dortmund will continue to pursue its strategy of professionalising the support team it has in place for its professional squad.