Borussia Dortmund Gives an Outlook on The Results for the 2019/2020 Financial Year
DORTMUND, GERMANY / ACCESSWIRE / June 29, 2020 / The Covid-19 pandemic, with its ongoing restrictions on public life and the associated significant effects on both the global economy and Borussia Dortmund's operating business, has caused and is still causing considerable uncertainty. The company had therefore initially withdrawn its forecast for the entire 2019/2020 financial year from the market and made no new forecast (see our ad hoc announcement of March 16, 2020) and then – without a detailed earnings forecast – announced that the Management assumes that no positive consolidated annual result will be achieved for the entire 2019/2020 financial year (see our ad hoc announcement of May 8, 2020).
With completion of the 34th match day and the resulting termination of the Bundesliga season 2019/2020 – recently by means of special match operations "without spectators" – in the association's specified period of a season end before June 30th, the management of Borussia Dortmund decided today, based on the current findings, to give an outlook on key earnings figures for 2019/2020 financial year.
Borussia Dortmund group now expects an EBITDA of approx. EUR 62 million and a consolidated net loss of approx. EUR 45 million. This outlook is subject to value-adjusting facts until the completion of the preparation of the annual financial statements and the knowledge gained in the course of the audit of the consolidated financial statements for the 2019/2020 financial year after the balance sheet date as well as possible further transfer income.
The expected aforesaid key figures have to be understood as a direct impact of the Covid-19 pandemic, which has affected all Borussia Dortmund income and revenue sources. Borussia Dortmund has the largest stadium in Germany with a total capacity of 81,365 spectators and the second largest VIP hospitality areas. The special match operations "without spectators" therefore had a significant impact (see also our corporate news from March 9, 2020). In addition, reductions and / or refunds of advertising and VIP hospitality proceeds have been made. It is also important that the global transfer market came nearly to a complete standstill in the fourth quarter.
Due to the good earnings situation in the past financial years and in the period of the current financial year up to the start of the Covid-19 pandemic, due to a group equity of approx. EUR 355 million as of 30. June 2019 (corresponding to an equity ratio of approx. 71%) and thanks to the company's sustainable positioning, Borussia Dortmund is prepared to bear the expected losses.
The management continuously evaluates the situation around the ongoing Covid-19 pandemic and is now focusing on the development of new concepts and measures for the start of the new 2020/2021 season.
Dortmund, 29. June 2020
Borussia Dortmund GmbH & Co. KGaA
Borussia Dortmund Geschäftsführungs-GmbH
Contact:
Dr. Robin Steden
Inhouse Counsel / Investor Relations
SOURCE: Borussia Dortmund GmbH & Co. KGaA
ReleaseID: 595584
Borussia Dortmund Gives an Outlook on The Results for the 2019/2020 Financial Year
DORTMUND, GERMANY / ACCESSWIRE / June 29, 2020 / The Covid-19 pandemic, with its ongoing restrictions on public life and the associated significant effects on both the global economy and Borussia Dortmund's operating business, has caused and is still causing considerable uncertainty. The company had therefore initially withdrawn its forecast for the entire 2019/2020 financial year from the market and made no new forecast (see our ad hoc announcement of March 16, 2020) and then – without a detailed earnings forecast – announced that the Management assumes that no positive consolidated annual result will be achieved for the entire 2019/2020 financial year (see our ad hoc announcement of May 8, 2020).
With completion of the 34th match day and the resulting termination of the Bundesliga season 2019/2020 – recently by means of special match operations "without spectators" – in the association's specified period of a season end before June 30th, the management of Borussia Dortmund decided today, based on the current findings, to give an outlook on key earnings figures for 2019/2020 financial year.
Borussia Dortmund group now expects an EBITDA of approx. EUR 62 million and a consolidated net loss of approx. EUR 45 million. This outlook is subject to value-adjusting facts until the completion of the preparation of the annual financial statements and the knowledge gained in the course of the audit of the consolidated financial statements for the 2019/2020 financial year after the balance sheet date as well as possible further transfer income.
The expected aforesaid key figures have to be understood as a direct impact of the Covid-19 pandemic, which has affected all Borussia Dortmund income and revenue sources. Borussia Dortmund has the largest stadium in Germany with a total capacity of 81,365 spectators and the second largest VIP hospitality areas. The special match operations "without spectators" therefore had a significant impact (see also our corporate news from March 9, 2020). In addition, reductions and / or refunds of advertising and VIP hospitality proceeds have been made. It is also important that the global transfer market came nearly to a complete standstill in the fourth quarter.
Due to the good earnings situation in the past financial years and in the period of the current financial year up to the start of the Covid-19 pandemic, due to a group equity of approx. EUR 355 million as of 30. June 2019 (corresponding to an equity ratio of approx. 71%) and thanks to the company's sustainable positioning, Borussia Dortmund is prepared to bear the expected losses.
The management continuously evaluates the situation around the ongoing Covid-19 pandemic and is now focusing on the development of new concepts and measures for the start of the new 2020/2021 season.
Dortmund, 29. June 2020
Borussia Dortmund GmbH & Co. KGaA
Borussia Dortmund Geschäftsführungs-GmbH
Contact:
Dr. Robin Steden
Inhouse Counsel / Investor Relations
SOURCE: Borussia Dortmund GmbH & Co. KGaA
ReleaseID: 595584
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