Expected results of operations

Expected earnings trend

The ongoing COVID-19 pandemic continues to pose major challenges for Germany and the world. The number one priority is containing the spread of the COVID-19 virus in all facets of life. Professional football must also play its part in overcoming the crisis. Borussia Dortmund GmbH & Co. KGaA also remains heavily affected. Therefore, the expectation is of further severe adverse effects on the earnings trend in financial year 2021/2022.

The projection is that matches will be played to limited spectator numbers in the first half of the new season, with the second half seeing a return to full capacity. As a result of the measures to contain the pandemic, only a limited number of tickets will initially be made available per match, which will continue to weigh heavily on income from match operations and public catering.

Despite the economic uncertainties and a more subdued transfer market, Borussia Dortmund expects there to be some very lucrative transfer deals in the offing, setting up net transfer income as a significant earnings driver.

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 12,000 thousand and EUR 17,000 thousand in the coming 2021/2022 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 2,000 thousand. The operating result (EBITDA) would be around EUR 107,000 thousand higher than the result from operating activities (EBIT) due to depreciation and amortisation and would probably amount to between EUR 88,000 thousand and EUR 93,000 thousand.

Expected revenue trend and consolidated total operating proceeds

In the past financial year, Borussia Dortmund generated revenue of EUR 334,171 thousand and consolidated total operating proceeds of EUR 358,577 thousand. Revenue is expected to increase to approximately EUR 374,000 thousand in the coming reporting period, due primarily to higher income from advertising, match operations and conference, catering and miscellaneous. Borussia Dortmund forecasts consolidated total operating proceeds of approximately EUR 484,000 thousand on the back of a likely rise in transfer fees. The COVID-19 pandemic will continue to affect almost all of the revenue streams of Borussia Dortmund GmbH & Co. KGaA and its subsidiaries.

Expected trend for significant operating expenses

Cost management continues to be Borussia Dortmund’s highest priority. Operating cost-effectively makes a material contribution to earnings, and Borussia Dortmund is unwavering in its efforts to achieve further optimisation.

Personnel expenses account for approximately half of all operating expenditure. Portions of these personnel expenses are also 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, which itself is a source of income.

The other operating expenses are also partly dependent on the number of matches and the club’s success on the pitch. Any efforts at cost optimisation aside, there may therefore be an increase in operating expenses that goes hand-in-hand with a material increase in income and corresponding contribution to earnings.

4th match day / 17.10.2020


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