Expected earnings trend
Society as whole, and by extension football, is facing unprecedented challenges. The number one priority is containing the spread of the COVID-19 virus in all facets of life. Professional football and thus Borussia Dortmund GmbH & Co. KGaA have been hit hard by the effects of the pandemic.
Therefore, the expectation is of severe adverse effects on the earnings trend in the 2020/2021 season.
The Company anticipates that spectators will be able to attend matches in the new season. As a result of the measures to contain the pandemic, only a very limited number of tickets will be made available per match, which will continue to weigh heavily on income from match operations.
Due to the economic uncertainty, Borussia Dortmund expects a rather subdued transfer window, which will lead to significantly lower net transfer income year on year.
The club traditionally pursues a more conservative approach when factoring success on the pitch and any associated earnings contributions into the forecast.
In light of the high degree of uncertainty related to all streams of revenue, the management currently expects to generate a net loss of between EUR 70 million and EUR 75 million in the coming 2020/2021 financial year.
In this planning scenario, the result from operating activities (EBIT) will exceed the forecast net loss for the year by the financial result and tax expense of approximately EUR 2 million. The operating result (EBITDA) would be around EUR 100 million higher than the result from operating activities (EBIT) due to depreciation and amortisation and would probably amount to between EUR 30 million and EUR 35 million.
Expected revenue trend and consolidated total operating proceeds
In the past financial year, Borussia Dortmund generated revenue of EUR 370,196 thousand and consolidated total operating proceeds of EUR 486,884 thousand. Revenue is expected to decline by approximately 5% in the coming reporting period, due primarily to lower income from match operations and TV marketing. Borussia Dortmund forecasts consolidated total operating proceeds of approximately EUR 388,000 thousand. The measures to contain the COVID-19 pandemic will impact nearly all of Borussia Dortmund GmbH & Co. KGaA's revenue streams.
Expected trend for significant operating expenses
Cost management continues to be Borussia Dortmund's highest priority. Especially in times of crisis, efforts are being undertaken to optimise this further. 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 these expenditures are always commensurate with the club's success.