Borussia Dortmund's Financial Update: Maintaining a BUY Recommendation

Borussia Dortmund GmbH & Co KGaA has faced a challenging Q3, primarily due to an early exit from the UEFA Champions League. Sales fell by 16.1% year-over-year to €125 million, largely attributable to missing out on UEFA’s premium payments. TV marketing revenue dropped significantly, while match operations and other sectors also saw declines. However, advertising remained stable.

The operating profit showed a stark decrease, with EBITDA hitting €12.4 million, down from €29.6 million the previous year. Despite lower expenses connected to personnel and operations, revenue losses were substantial. Nonetheless, the company experienced a positive cumulative EBITDA rise of 6.6% over nine months.

With Borussia Dortmund securing a second-place finish in the Bundesliga, their financial outlook for the next season is promising due to guaranteed UCL participation. This bolsters their ability to invest in new talent, supporting their long-term strategy. The recommendation to buy is reiterated with a target price of €5.00.