Original-Research: Borussia Dortmund GmbH & Co KGaA - from NuWays AG 12.05.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

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

12.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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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:                        12.05.2025
     Target price:                EUR 5.20
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Philipp Sennewald

Q3 prelims better than expected / CL chances rising; Chg.

BVB released a strong Q3 prelims., showing sales growth of 52% yoy to EUR 149m
(eNuW: EUR 134m) as well as an EBITDA of EUR 29.6m (eNuW: EUR 24.3m; prior year: EUR
-1.8m), implying a strong 19.9% margin.

The strong improvements are largely explained by the increased number of
games (Q3 24/25: 18 vs Q3 23/24: 13), resulting in almost a doubling of
match operation sales (+90% to EUR 20.3m) and strongly increased sales from TV
marketing (+69% to EUR 64.5m). While advertising showed comparably steady
growth of 14% to EUR 40.6m, sales from merchandising (+81% to EUR 9.8m) and
conference, catering and others (+59% to EUR 13.6m) also showed stellar growth
driven by the favorable calendar due to the new UCL format (4 more games).
Also, the departure of Donyell Malen allowed for increased transfer income
(+110% to EUR 12.6m).

While this also drove personnel expenses (+22% to EUR 81m), as more games
unlock more variable payments to players, BVB benefitted from operating
leverage, visible in the disproportionate cost growth. Given stable D&A of EUR
23.8m, Q3 preliminary EBIT came in at EUR 5.8m.

Importantly, BVB is now also performing on the pitch. Since a 2-0 loss
against direct competitor Leipzig in March, BVB managed to win 6 out of
their last 7 Bundesliga matches. Thanks to this streak, BVB jumped from 11th
to 5th position and reduced the gap to the crucial top-4 (UCL qualification)
from 10 points to only 1. With only one game to go and direct competitors
Freiburg (4th) and Frankfurt (3rd) facing each other, we regard BVB's
chances as good to gain a top-4 finish, especially as the team is playing
already relegated Kiel at home. Here is what needs to happen for BVB to
reach that crucial position.

Option 1: If BVB vs Kiel ends in a draw, Frankfurt must beat Freiburg, and
BVB qualifies for UCL.

Option 2: If BVB wins by a margin of 1 goal, they need either a Frankfurt
win, a draw or a Freiburg win with a margin of 2+ goals.

Option 3: If BVB wins by a margin of 2+ goals, they are qualified, no matter
what happens in Freiburg (only unlikely exception: BVB wins by 2 and
Freiburg wins by 1 and scores 4 goals more than BVB)

We hence upgrade BVB's chances of reaching the UCL to 90% (old: 10%),
explaining our raised estimates and reiterate BUY with an unchanged EUR 5.20
PT based on DCF.

You can download the research here: http://www.more-ir.de/d/32554.pdf
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
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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