Borussia Dortmund Reports Record Sales But Mixed Profitability

On August 20, 2024, NuWays AG released a research update for Borussia Dortmund GmbH & Co. KGaA, recommending a BUY with a target price of €5.50. The update highlights record sales but notes a weaker-than-expected profitability for the fiscal year 2023/24.

Borussia Dortmund's sales surged by 21.7% to €509 million, outperforming estimates of €483 million. Significant growth was observed in match operations, merchandising, and conference and catering segments, driven by an increased number of games in the UEFA Champions League and the 2024 European Championship.

Despite the sales growth, EBITDA was below expectations due to higher personnel expenses and other operating costs. The final free cash flow was negative at €-4.4 million, attributed to infrastructure investments and deferred payments.

For the first time since 2019, the management proposes paying a dividend of €0.06 per share, yielding 1.5%. Additionally, the team reached the second round of the national cup and signed promising forward Maximilian Beyer.