BVB Finances - "We make money the old fashioned way. We EARN it."

I thought it might be time for a thread dealing only with the club's finances.

 

Two new reports post earnings have been posted on the BVB website by covering analysts. Both indicate that the Goetze transfer revenue is included in the 305mln number.

http://aktie.bvb.de/eng/BVB-Share/Capital-Market-View

 

BVB extends contract with Champion Partner Hankook until 2015.

BVB und Hankook verlängern Partnerschaft
[27.08.2013] Borussia Dortmund hat seine erfolgreiche Champion-Partnerschaft mit dem Premium-Reifenhersteller Hankook verlängert. Im Rahmen des Bundesligaheimspiels gegen Werder Bremen am vergangenen Freitag unterzeichneten beide Unternehmen einen bis 2015 datierten Champion Partner-Vertrag.

 

DGAP-News: Borussia Dortmund GmbH & Co. KGaA / Key word(s): Dividend Borussia Dortmund intends to pay a dividend in an amount of 0,10 EUR per share


25.09.2013 / 10:20








As a result the supervisory board followed the proposal of the management to the shareholders' general meeting that this may decide to utilize the disposable profit of the fiscal year 2012/2013 in an amount of EUR 53,258,363.42 to pay a dividend in an amount of EUR 0.10 per share entitled (in total EUR 6,140,539.90) and to allocate the remaining amount of EUR 47.117.823,52 to other retained earnings.

http://aktie.bvb.de/eng/IR-News/Cor...a-dividend-in-an-amount-of-0-10-EUR-per-share

I believe this represents about a 2.5 Mln Euro increase

 

Last years full financial report is now available. German version only at this point.

http://aktie.bvb.de/Publikationen/Geschaeftsberichte/Geschaeftsbericht-2012-2013-KGaA-Konzern

 

In the know your enemy category...

BERLIN (Reuters) - Bundesliga club Schalke 04's turnover rose by 10 percent to more than 85 million euros for the first half of 2013 compared to the same period in 2012 boosted by sponsor revenues, transfers and broadcasting rights, they said on Friday.

http://www.schalke04.de/de/aktuell/news/130927_halbjahreszahlen/page/2493--10-213--213.html

 

Late with this reply, but just returned from a nice visit to Berchtesgaden and Munich.

We still have net financial liabilities of something like 33mln as of 30 June. That represents a decrease of like 9mln from the prior year. The majority of it are loans from the stadium expansion.

If I remember correctly Watzke was alluding to the fact that our accounts receivable exceed our liabilities.

BVB like most companies will probably carry debt on the balance sheet, which is not a bad thing. What's exciting is that BVB have the money to upgrade facilities, expand the academy, open new team shops, etc. Thats all good debt because it will help drive future revenues, comes with manageable payments given our revenues and comes at relatively low interest rates.

 

From the BVB website



Thomas Treß has been awarded 'CFO of the year 2013'

Thomas Treß, CFO of Borussia Dortmund GmbH & Co. KGaA, has been awarded 'CFO of the year 2013' on November 5th, 2013. He received the award in Karlsruhe in the course of the evening event '9. Structured FINANCE' on behalf of the German 'FINANCE-Magazine' for his efforts regarding to the company's bail out and to the sportive and economic resurrection of 'Borussia Dortmund'.
Only six years after company's nearly insolvency Borussia Dortmund won the German Championship in 2011. In 2012 this title could be defended and moreover Borussia Dortmund won the German DFB-Cup in the same year. In 2013 Borussia Dortmund participated in the final of the UEFA Champions League. The company was able to present an annual account in the fiscal year 2012/2013, which recorded the highest net profit in the history of a German football club ever in an amount of approx. 51.2 m. EUR. Simultaneously revenues could be increased from approx. 215.0 m. EUR to approx. 305.0 m. EUR.
In his speech Thomas Treß expressed thanks to his colleagues and to all company employees: 'What was achieved since the nearly insolvency of BVB is the work of many hands'.

 

BVB reported Q1 earnings today. Group revenues up 15% y/y to 60mln. All segments reported y/y improvement. Profit declined y/y however to 1.36mln, due primarily to increased personnel expenses. Full report is available on the website.

Borussia Dortmund continued in the first quarter (July 1st, - September 30th, 2013) of the fiscal year 2013/2014 its growth course. Group revenues increased by approx. 15% compared to the previous reference report period.
According to International Financial Reporting Standards (IFRS) the Borussia Dortmund quarterly group result amounted EUR 1.4 Mio. (previous year EUR 2.6 Mio.). Group Revenues recorded EUR 59.5 Mio. (previous year EUR 52.0 Mio.). Group gross revenue amounted EUR 60.5 Mio. (previous year EUR 52.7 Mio.). Group Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted EUR 9.7 Mio. (previous year EUR 9.8 Mio.). Group Earnings before interest and taxes (EBIT) resulted in EUR 2.3 Mio. (previous year EUR 4.2 Mio.) in the report period.
Borussia Dortmund GmbH & Co. KGaA recorded Earnings before interest and taxes (EBIT) in an amount of EUR 0.3 Mio. (previous year EUR 2.7 Mio.) in the first quarter of the fiscal year 2013/2014. Earnings before taxes (EBT) amounted EUR 1.2 Mio. (previous year EUR 3.5 Mio.) in the first quarter, the result in the respective report period amounted EUR 1.2 Mio. (previous year EUR 3.2 Mio.).

 

@Dhajj ... some thoughts

Yes BVB will have the money to buy another striker for next year. Not crazy oil money striker like 50mln, but they could afford a Dzeko or Volland...think neighborhood of 20mln.

BVB will be able to afford the Sahin buyout as well. 7mln if I remember correctly. BVB financially planned for the team to not advance past the group stages of the CL. Raising the dividend was also a signal they feel comfortable with their cash and cash flow.

Purchases beyond those two WITHOUT the proceeds from selling players are possible, but will depend on many things we don't know at this point like CL performance payouts, merchandising revenues, champion partner revenues etc.

I agree with Footy that qualification for next years CL is the paramount goal.

 

A couple of updated research reports are now available on the website. Increases in estimates based on our knockout round qualification. Part of the report from Edison Research:

Qualification boosts forecasts
Borussia Dortmund’s success as group winner in the Champions League brings an assured financial return in terms of a €3.5m UEFA broadcasting fee for participation in the Round of 16 on 25 February and 19 March, as well as bonuses from company sponsors. Our revenue forecast for the current year has therefore been increased by €8m. The boost at the EBITDA level could be reduced by associated costs (player bonuses, travel and accommodation etc) to c €4m, but this may be cautious as it does not take into account merchandising potential in particular. Victory over Zenit St Petersburg in the Round of 16 would secure, from UEFA alone, a €3.9m fee for participation in the quarter-finals and further income from its broadcasting market pool. There may also be higher sponsor bonuses.

 

Deloitte Money League 2014 is out. BVB move up one spot to 11th at 256mln. We passed Liverpool. Juventus jumped us to 9th or we would have been top 10.

PSG jumps from 10th to 5th on the basis of a completely bogus deal. FFP better deal with them.

FCB jumps to 3rd and knocks ManU down to 4th.

Schalke 13th 198mln, HSV 17th 135mln

 

We announced a new champion partner. Terms as per usual are undisclosed.

BVB welcome Unitymedia KabelBW as new Champion Partner

Unitymedia KabelBW, the leading German cable operator with broadband networks in the German states of North Rhine-Westfalia, Hesse and Baden-Württemberg, is Borussia Dortmund’s new Champion Partner.

http://www.bvb.de/eng/News/Overview/Unitymedia-KabelBW-neuer-Champion-Partner