BUY
Original-Research: Borussia Dortmund GmbH & Co KGaA - from NuWays AG
Classification of NuWays AG to Borussia Dortmund GmbH & Co KGaA
Company Name: Borussia Dortmund GmbH & Co KGaA ISIN: DE0005493092
Reason for the research: Update
Recommendation: BUY
from: 26.02.2024
Target price: 5.50
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Philipp Sennewald
Strong Q2: A beat on all lines / chg. est.
Borussia Dortmund released Q2 prelims, which came in significantly ahead of our estimates. In detail:
Q2 sales increased by 32.7% yoy, to € 154m (eNuW: € 131m), which was mainly driven by a steep increase in revenues from TV-marketing (+43% yoy to € 71.5m) as well as match Operations (+71% to 19.9m). Both should be at least partly attributable to the weak comparable base following the 2022 Qatar World Cup. Sales from Conference, Catering and Miscellaneous also contribute strongly, as the segment’s sales grew 33.4% yoy to € 12.4m, which we regard as a result of a pick-up in company events. Q2 EBITDA came in at € 42.1m (eNuW: € 35.4m), implying a 27.3% margin (+3.4pp yoy). This should be mainly explained be the strongly increased TV-marketing revenues, which de facto do not incur any costs.
Against this backdrop, the company should be fully on track to outperform its FY targets of > € 427m sales (lower end would even imply a 13% yoy decrease in H2 sales) and EBITDA of € 104-114m (implying negative EBITDA in H2 after € 122m at H1).
Besides the strong financial results, BVB is also delivering good performances on the pitch. After trailing the Top-4 by six point before the second half of the season started, BVB is now 1 point clear of 5th placed Leipzig in P4, which would definitely be sufficient to qualify for the next UCL season. Even more importantly, the team returned with a 1-1 draw from Eindhoven, where they played the first leg of their UCL round of 16 tie. Given the strong performances on their home turf in recent years, we regard BVB’s chances as high to advance to the quarterfinals, which would in turn generate additional prize money of € 10.6m as well as an additional home match (eNuW: € 2m sales). However, we conservatively do not include this in our estimates yet.
On another note, UEFA recently disclosed first indications of the prize money allocation for the newly formatted 2024/25 UCL, stating that overall prize money will increase by c. 25% to € 2.47bn. While there will be a higher emphasis on performance (+7.5pp of total prize money), UEFA will also increase the starting fee to € 18.9m (prior: € 15.6m). Until more details follow, we are initially modelling a 25% increase in BVB’s UCL TV-marketing sales for 24/25e, based on the increase in total prize money.
We confirm our BUY recommendation with an unchanged PT of € 5.50.
You can download the research here:
http://www.more-ir.de/d/28971.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.
Kontakt für Rückfragen
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++
-------------------transmitted by EQS Group AG.-------------------
The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.
P R O D U C T S U G G E S T I O N S
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.