Original-Research: Borussia Dortmund (von NuWays AG): Kaufen
Source: EQSClassification of
Company
ISIN: DE0005493092
Reason for the research: Update
Recommendation: Kaufen
from:
Target price:
Target price on sight of: 12 Monaten
Last rating change:
Analyst:
A big step towards UCL 24/25 as
On Saturday BVB ended a long drought as the team won away at Bayern Munich
(2-0) for the first time in ten years. Moreover, as
Mind you, that the upcoming UCL season will be played in a new format with
the total number of games rising from 125 to 189 and consequently an
increased prize money pool of € 2.5bn (+25%). In fact,
€ 670m will be allocated to equal shares, leading to a starting fee of € 18.6m (old format: € 15.6m).
€ 914m will be distributed according to individual club performance which is based on group stage performance as well as knock-out stage progress (e.g. € 11m for round of 16 qualification).
€ 853m will be distributed according to the 'value pillar', a combination of the former market pool (based on value of country specific TV market) and coefficient (10-year coefficient rank) pillars.
More detail on the performance and value pillars is provided in the graphic on the second page.
Given our base scenario for the next season, in which the club reaches the round of 16 via the newly implemented knockout round play-offs, BVB will earn € 79.4m in TV marketing revenues from the newly formatted UCL. This is 17% more compared to our base case for the old format. Should BVB reach the quarter-finals like in this season, respective revenues would amount to € 91.9m (eNuW). Mind you, this does not include additional revenues from match operations thanks to two extra home games (group stage + play-offs). Moreover, additional TV marketing sales come at de facto no extra cost, thus driving profitability going forward. Against the backdrop as well as the continuously undemanding valuation (0.9 EV/sales 23/24e vs peer trading at 3.9x), the stock remains a BUY with an unchanged PT of € 5.50 based on DCF.
You can download the research here:
http://www.more-ir.de/d/29293.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.
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