Edison Expands its European Presence With Coverage of Borussia Dortmund (BVB)

Edison Expands its European Presence With Coverage of Borussia Dortmund (BVB)

  PR Newswire

  LONDON, April 24, 2013

LONDON, April 24, 2013 /PRNewswire/ --

Edison Investment Research, a leading international investment research firm,
announces the initiation of coverage of Borussia Dortmund, a major force in
German and European football.

 (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

Edison has recently published a comprehensive report examining the investment
merits of Borussia Dortmund, focusing on the company's success in creating
value in a sustainable business. In the report, Das Wunder von Dortmund ,
Richard Finch, Senior Analyst, argues that current market valuations do not
reflect the long-term potential of powerful brand development, valuable media
rights and sustainable positive cash flow, backed by freehold property,
substantial subscription revenue, and hidden reserves from player investment.
A more reasonable EV/EBITDA (before transfers) would be 5x (share price
€3.70), as would a P/E of 7x (€4.30). Free cash flow yield of 7% would be
justified by the sustainability of cash flow (€4.60); company finances are
strong (net cash is in prospect for FY14e even before transfers). EV against
resilient and growing revenue is only 1.0x prospective. This year's likely
step-change in pre-transfer EBITDA should be a catalyst for the underrated
share price; we forecast a near-50% increase, even before lucrative rewards
for success in its imminent Champions League semi-final against Real Madrid.

For the full report see:
http://www.edisoninvestmentresearch.com/research/company/borussia-dortmund

The launch of coverage on Borussia Dortmund is part of a programme of research
expansion in Europe. Edison provides detailed research coverage on more than
350 companies in Europe, North America and Australia. Its consumer research
team provides a range of coverage across small-, mid- and large-cap companies.
All published Edison reports are available to download free of charge from its
website http://www.edisongroup.com .

About Edison Investment Research

Edison, the investment intelligence firm, is the future of investor
interaction with corporates. Our team of over 100 analysts and investment
professionals works with leading companies, fund managers and investment banks
worldwide to support its capital markets activity. We provide services to more
than 400 retained corporate and investor clients from our offices in London,
New York, Berlin, Sydney and Wellington. Edison is authorised and regulated by
the Financial Services Authority (
http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584 ).

Edison is not an adviser or broker-dealer and does not provide investment
advice. Edison's reports are not solicitations to buy or sell any securities.

About Borussia Dortmund

Borussia Dortmund is one of Germany's leading football clubs. Second only to
Bayern Munich in terms of Bundesliga titles over the last 20 years, it was the
first German club to win a European competition (the European Cup Winners' Cup
in 1966) and the Champions League in 1997. It is a Champions League
semi-finalist this season, and second in the Bundesliga. The club's well-known
stadium (the Westfalenstadion, now formally the Signal Iduna Park) is the
largest in Germany and has long enjoyed the highest average attendance (c
80,000) in the country (and last year in Europe).



For more information please contact:

Richard Finch   Edison Investment Research     +44-(0)-20-3077-5700
consumer@edisongroup.com