Original-Research: Borussia Dortmund GmbH & Co KGaA (von NuWays AG): BUY

Original-Research: Borussia Dortmund GmbH & Co KGaA (von NuWays AG): BUY

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Original-Research: Borussia Dortmund GmbH & Co KGaA - from NuWays AG

18.08.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

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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: 18.08.2025

Target price: EUR 5.20

Target price on sight of: 12 month

Last rating change:

Analyst: Philipp Sennewald

FY24/25 ahead on sales but behind on the bottom-line / Chg.

On Friday, BVB released preliminary FY24/25 figures, showing further

top-line growth against a strong comparable base as well as FCF

improvements, while profitability came in slightly weaker than expected. In

detail:

FY24/25p sales increased 3.3% yoy to EUR 526m (eNuW: EUR 517m; eCons: EUR 511m),

which was especially driven by TV Marketing sales of EUR 227m (+10.3% yoy;

eNuW: EUR 215m) which benefitted from the FIFA CWC that was held in June/July

(c. 75% of corresponding sales attributable to FY24/25). Besides this, sale

were largely in line with match operations sales up 5.0% to EUR 55.2m,

Advertising up 4.8% to EUR 154m, Merchandising down 16.4% to EUR 40.0m and

Conference, catering & others down 10.7% to EUR 50m. The reason for the

decline in Merchandising and CC&O lies mainly in the tough comparable base

given the UEFA Euros in summer 2024 and BVB reaching the UCL final last

year.

FY24/25p EBITDA declined by 22.9% yoy to EUR 116m (eNuW: EUR 121m; eCons: EUR

118m), implying a 22.0% margin (FY23/24: 29.5%). While the CWC should have

made up for not reaching the UCL final again, the main factor for the

decline lies in the transfer result, which was pushed the year before by the

EUR 103m of Jude Bellingham to Real Madrid. Overall, net transfer income

declined 61.3% to EUR 37.8m as a result.

On the contrary, FY24/25p FCF improved significantly to EUR 21.5 (eNuW: EUR

20.9m), up from EUR -4.4m the year before. FCF generation was predominantly

driven by positive WC swings, as oustanding receivables in connection with

player transfers were collected as well as normalizing CapEx (investments in

new catering facilities and training ground for women team last year).

What to expect for FY25/26: Let's start with the sporting perspective, which

is laying the foundation for the financial success of a football club. As in

the previous seasons, we expect BVB to finish the Bundesliga inside the

Top-4, thus securing qualification for the 2026/27 UCL season, reach the

round of 16 in the UCL as well as the quarterfinals in the national cup. On

this basis, sales are seen to decline by 3.3% to EUR 509m given that the

majority of CWC prize money was recorded in FY24/25 as well as the fact,

that BVB did reach the UCL quarterfinal last season. Despite that we expect

an EBITDA improvement by 17% to EUR 136m (26.7% margin) on the back of

recovering net transfer income, as the already sealed transfer of Jamie

Gittens to Chelsea alone had a bottom-line effect of EUR 37-42m, according to

the company. Two further player transfers for a total gross value of EUR 13m

as well as the expectation of additional transfers lead us to our estimate

of EUR 60m net transfer income in FY25/26e. The company is expected to publish

a guidance for FY25/26 with the release of the annual report on 26th

September.

On this basis as well as the continuous undemanding valuation of 3.1x

EV/EBITDA FY25/26e, we confirm our BUY recommendation an maintain our EUR 5.20

PT based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=bad229336174ddc482674dda31d3e01c

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

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

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2184858 18.08.2025 CET/CEST

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