Original-Research: Borussia Dortmund GmbH & Co KGaA - from NuWays AG 10.11.2025 / 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



10.11.2025 / 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
     Target price:                5.2
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Philipp Sennewald



Strong Q1 profitability driven by transfer income



Topic: On Friday, BVB released preliminary Q1 results, which came in flat on
the top-line but showed significant margin expansion thanks to increased
transfer income. In detail:



Q1p sales came in at EUR 107m (eNuW: EUR 109m), flat yoy. We see a decline in
Match Operations (-39.5% yoy to EUR 4.9m), Merchandising (-11.6% to EUR 8.9m)
and Conference, Catering and Others (-36.8% to EUR 8.9m), which should be
attributable to a lower amount of home games (-1 yoy) as well as a tough
comparable base due to the EURO 2024, which inflated Conference, Catering an
Others. The decline was compensated by TV Marketing, which increased 21.7%
to EUR 47.7m (44.6% of group sales), which should be due to the FIFA CWC,
where BVB reached the quarterfinals. Advertising sales increased slightly by
1.9% yoy to EUR 36.6m.



On the bottom-line, Q1p EBITDA came in strong at EUR 54.3m (eNuW: EUR 48.3m),
implying a margin of 50.7% (+26.7pp yoy). The steep yoy improvement is
largely explained by increased net transfer income of EUR 52.9 (+174.1%), that
was mainly caused by the transfer of Jamie Gittens to Chelsea FC for a
reported EUR 56m. Moreover, other expenses decreased 7.6% yoy based on the
effects mentioned in the sales paragraph (i.e. expenses connected with EURO
games). This was only partly offset by increased personnel expenses of EUR
66.1m (+12.2%), which we regard at least partly connected to CWC related
bonus payments. Net income came in at EUR 22.9m, implying a 21.4% margin.



With this, the company should be well on track to achieve the FY25/26
targets of EUR 475m sales, EUR 105-115m EBITDA and EUR 7m FCF, which is
conservative at this point given the strong first quarter and the club
reaching its sporting goals.



To the sporting part. With the Bundesliga and UCL season up and running, we
were able to develop a sound opinion regarding the clubs on-pitch
performance, which is positive thus far. In the Bundesliga, the team has put
on some decent performances and is positioned in 3rd place after 10 games.
The thing we like most so far is, that the team apparently gained the
ability to even win tough games, where the performance is not at 100%, which
is a clear attribute of a top-team. Looking at the national cup, BVB
survived the second round after penalties against UCL team Frankfurt and
will now face last years Bundesliga runners-up Leverkusen in the third
round. In the UCL BVB only lost to Manchester City and sits in 14th position
after 4 matches. Given the performances so far, reaching the top-24 should
be a formality while we also see a strong likelihood of reaching the top-8
(direct qualification for round of 16) given that 3 of the last 4 games are
at home. Mind you, reaching the top 16 alone equals EUR 11m premium payments
(not considering starting and league phase payments), while reaching the
quarterfinals would result in additional premium payments of EUR 12.5m.



Overall, Q1 results strengthened BVB's financial position and the
performance on the pitch makes us confident that the team will reach its
on-field targets this season (Bundesliga top-4, UCL round of 16).



Confirm BUY with an unchanged EUR 5.20 PT based on DCF.




You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=420d0b3c430c2b394bc6a7ba3e18df97
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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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2226584 10.11.2025 CET/CEST