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Borussia Dortmund’s business figures impacted by Covid-19

Borussia Dortmund CEO Hans-Joachim Watzke during a press conference. (Photo © Borussia Dortmund GmbH & Co. KGaA)
Borussia Dortmund CEO Hans-Joachim Watzke during a press conference. (Photo © Borussia Dortmund GmbH & Co. KGaA)

In the 2019/20 financial year, Borussia Dortmund GmbH & Co. KGaA generated total gross Group earnings of €486.9 million. Overall, the Group made a net loss of €43.9 million.

“The past decade was excellent throughout, both in sporting and financial terms,” said the CEO, Hans-Joachim Watzke, today at the annual press conference regarding the preliminary figures for the 2019/20 financial year, making a reference to the two German league championships and two cups, as well as three wins in the Supercup between 2011 and 2019, adding: “Financially, we have always been comfortably in the black. Then came Corona.”

From mid-March 2020, the revenue and earnings situation was significantly influenced by the severe restrictions on public life as a result of the Covid-19 pandemic and the accompanying severe impact on the economy. As a result, the company’s 6.3% consolidated sales growth realised in the first nine months was completely eradicated due to sales declines of more than 25 percent in the last three months of the 2019/2020 financial year compared with the same quarter of the previous year, accompanied by a high decline in earnings. “Football has suffered significantly more from Covid than DAX companies, which suffered average downturns of 13% in the fourth quarter,” explained CFO, Thomas Treß.

Five of the last 17 Bundesliga home games of the season had to be played behind closed doors. In addition, lower sponsorship revenues, TV revenues and, in particular, transfer revenues had a massive impact.

In the past financial year 2019/2020 (01.07.2019 – 30.06.2020), Borussia Dortmund generated total gross Group earnings (sales revenue plus gross transfer fees realised) of €486.9 million (previous year: €489.5 million). Borussia Dortmund’s consolidated sales revenue remained almost constant at €370.2 million (previous year: €370.3 million). In the past financial year, the net loss was €44.0 million (previous year: net profit of €17.4 million). Group earnings before taxes (EBT) were €-46.6 million (previous year: EUR 21.8 million), with Group operating earnings before interest, taxes, depreciation and amortisation (EBITDA) in the amount of €63.0 million (previous year: €116.0 million).

Group revenues amounted to €370.2 million (previous year: €370.3 million), broken down as follows: €32.5 million (previous year: €44,7 million) from match operations, €169.8 million (previous year: €167.3 million) from TV marketing, €98.0 million (previous year: €96.8 million) from advertising, €36.7 million (previous year €31.5 million) from catering, conferences and miscellaneous, with €33.3 million (previous year: €30.0 million) from merchandising.

The net profit from transfers, which is comprised of the gross transfer fees realised minus the residual book values and the resulting selling costs, amounted to €40.2 million (previous year: €82.9 million).

In the past financial year, personnel expenses in the Group increased by €10.1 million, rising from €205.1 million to €215.2 million. Depreciation and amortisation in the Group increased by €13.6 million from €92.5 million to €106.1 million. Other operating expenses in the Group rose from €118.5 million in the previous year to €119.0 million this year – an increase of €0.5 million. The consolidated financial result fell by €1.7 million from €-1.7 million to €-3.4 million.

In view of the above earnings situation, the distribution of a dividend cannot be proposed to the Annual General Meeting.

Looking ahead to the current financial year (1 July 2020 to 30 June 2021), Hans-Joachim Watzke explained: “We will only see the figures return to the black when we have no restrictions on the crowd. But we have to be patient. It is hard to imagine football without fans. We have to keep going. We will keep going until we get through it.”

(Borussia Dortmund)