TOTAL REVENUE: €101.6M
ENVIRONMENT REMAINED GREATLY DISRUPTED BY PUBLIC HEALTH CRISIS
COVID-19 IMPACT ESTIMATED AT €12M
Lyon, 12 November 2020
Revenue in Q1 2020/21 (1 July to 30 September 2020), was hit hard by the impact of the healthcare crisis on the professional sports and events sector. Revenue (excl. player trading) in Q1 2020/21 declined by 12% to €101.6 million, vs €126.4 million in Q1 2019/20, before the Covid-19 pandemic. The decline came about in particular because both ticketing and events revenue were down sharply. Total revenue (incl. player trading) was down 20%, as the Group had posted record player trading revenue in the first quarter of the previous year. Excluding player trading, revenue totalled €51.1 million, down €7.2 million or 12%. The impact on revenue (excl. player trading) of this opportunity loss in the first quarter of the year is estimated at around €12 million2. Excluding the impact of Covid-19, total revenue excluding player trading came in at around €63 million, up around €5 million or 8%, demonstrating the Group's resilience amid the public health crisis.
1/TOTAL REVENUE DOWN 20% AT €101.6M (€126.4M IN Q1 2019/20)
|En € m (from 1 July to 30 September)||Q1 2020/21* |
|Q1 2019/20 |
in € m
|of which French Ligue 1 and other matches||1.1||7.3||-6.2||-85%|
|of which European competitions||0.0||1.9||-1.9||-100%|
|MEDIA AND MARKETING RIGHTS||37.7||34.5||+3.2||+9%|
|of which LFP-FFF||10.9||9.4||+1.5||+16%|
|of which UEFA||26.8||25.1||+1.7||+7%|
|SPONSORING - ADVERTISING||8.5||7.5||+1.0||+14%|
|of which derivative products||2.1||2.4||-0.3||-11%|
|of which image/video and other||1.2||1.5||-0.3||-18%|
|of which seminars and stadium tours||0.4||1.1||-0.7||-63%|
|of which major events||0.0||2.2||-2.2||-100%|
|REVENUE (EXCL. PLAYER TRADING)||51.1||58.2||-7.2||-12%|
|REVENUE FROM SALE OF PLAYER REGISTRATIONS||50.5||68.1||-17.6||-26%|
*estimated, unaudited figures
TICKETING: €1.1M (DOWN €8.0M OR 88%)
In Q1 2020/21, ticketing receipts were hit particularly hard by public health measures implemented to restrict the number of spectators in sporting facilities (maximum of 5,000 spectators at the start of the season, then 1,000 from 22 September 2020 onwards). Ligue 1 ticketing revenue stood at €1.1 million, vs. €7.3 million in Q1 2019/20, down 85%, with, in addition, fewer home matches this season than last (2 vs. 4 in 2019/20).
Q1 2019/20 ticketing revenue also included €1.9 million in European ticketing revenue from the first match of the Champions League group stage. The Club is not participating in any European cup competition during the 2020/21 season owing to its 7th place finish in Ligue 1 in 2019/20, as the LFP had decided to terminate the championship prematurely in the spring of 2020.
MEDIA AND MARKETING RIGHTS: €37.7M (UP €3.2M OR 9%)
Media and marketing rights were boosted by the €26.8 million in UEFA media rights received in connection with the 2019/20 Champions League matches (round-of-16 second leg, quarter-final and semi-final), played in Lisbon behind closed doors in August 2020 because of the Covid-19 crisis. This revenue was recognised in the 2020/21 financial year. In Q1 2019/20 the Club played the first match of the Champions League group stage, which generated €25.1 million in UEFA media rights.
LFP-FFF media rights increased to €10.9 million (€9.4 million in Q1 2019/20), because the contracts signed with Mediapro, BeIN and Free for the 2020-24 period came on stream, lifting the overall level of Ligue 1 media rights. In Q1 2020/21, the Club played fewer matches than in Q1 2019/20 (5 vs 8), which nevertheless held back media rights revenue.
In October 2020, as a result of the Covid-19 crisis, Mediapro announced its intention to renegotiate its broadcast agreements and did not meet its October 2020 payment obligation to the LFP. To offset the non-payment, the LFP then obtained a €112 million bank loan and in early November 2020 paid reimbursable advances to the clubs equal to the amounts due to them.
SPONSORING – ADVERTISING: €8.5M (UP €1.0M OR 14%)
Sponsoring and advertising revenue rose 14% to €8.5 million, demonstrating that the OL brand is highly attractive. In particular, the new five-year sponsorship contract with Emirates comes into effect this season, as do new contracts signed with adidas, Groupama (naming) and MasterCard (now a women's team shirt sponsor).
BRAND-RELATED REVENUE: €3.3M (DOWN €0.5M OR 13%)
Brand-related revenue totalled €3.3 million in Q1 2020/21 (vs. €3.9 million in Q1 2019/20). In the current public health context, the merchandising business has been severely restricted, because the number of spectators allowed at Groupama Stadium is extremely low, in particular on matchdays. The e-commerce business showed strong growth over the quarter (up 47% vs Q1 2019/20).
EVENTS: €0.4M (DOWN €2.9M OR 88%)
In Q1 2020/21, the Seminars business was also heavily impacted by the public health context. The number of seminars and conventions at Groupama Stadium was down significantly, leading to a 63% decline compared with the year-earlier period.
Groupama Stadium was not able to host a single major event during the first quarter, whereas it hosted the semi-finals and the final of the Women's World Cup in Q1 2019/20.
PLAYER TRADING: €50.5M (DOWN €17.6M OR 26%)
During the first quarter of the financial year, despite a very unfavourable transfer market context, Olympique Lyonnais sold several player registrations to other clubs for a cumulative amount of €50.5 million. The players transferred included Amine Gouiri to Nice (€7 million), Martin Terrier to Rennes (€12 million), Oumar Solet to RB Salzburg (€4 million), Fernando Marçal to Wolverhampton Wanderers (€2 million), Kenny Tete to Fulham (€3 million) and Bertrand Traoré to Aston Villa (€15.9 million). The Club also received incentives of €5.9 million on previous transfers.
In 2019/20, the Group had set a first-quarter record for sales of player registrations of €68.1 million. The largest transfers were Tanguy Ndombele, who went to Tottenham for a €47.6 million fee and Nabil Fékir, who joined Real Betis for €19.8 million.
2/ SOUND FINANCIAL CONDITION
As of 31 October 2020, OL Groupe had €41 million in cash, including a government-guaranteed loan (PGE) of €92.6 million obtained on 23 July 2020, plus undrawn RCF availability of €115 million, i.e. overall available cash of €156 million.
The Group is also prepared to implement any additional financing arrangements made available by the French government.
In the context of the Covid-19 crisis, the Group thus has additional sources of financing, which should give it the flexibility it needs to pursue its future development with confidence.
3/ OUTLOOK FOR THE 2020/21 FINANCIAL YEAR
The start of the 2020/21 financial year was characterised by good performance from the men's team, which reached the semi-final of the Champions League, and from the women's team, with a fifth consecutive Champions League title.
The summer 2020 transfer window was extended until 5 October 2020, disrupting the start of the regular season, but enabling the Club to build a high-level professional team. The team's momentum since the end of the transfer window demonstrates its potential, with an objective to return to the Champions League in the 2021/22 season. Training and the state of mind prevailing in particular on the men's professional team have always been and continue to be Olympique Lyonnais' values and are in line with the wishes of Sporting Director Juninho.
The Group was pleased with the LFP's recent decision to maintain professional sporting activities despite the new lockdown measures imposed in France since 30 October, in contrast to its decisions last spring during the first lockdown. As a result, French championship matches were able to go ahead and clubs were able to maintain their ties with fans and partners and preserve a certain amount of revenue (media rights, sponsorships).
As presented in October, the Group is expected to benefit from certain positive factors, such as new sponsorships, the increase in domestic media rights, and the balance of 2019/20 UEFA media rights, to support its 2020/21 revenue. This should soften the decline in revenue deriving from the men's team's absence from European cup competitions and from the current public health measures.
Nevertheless, given that significant public health restrictions continue to weigh on the Group's business, that the Club is not participating in European cup play during the 2020/21 season, and based on a normative level of trading during the 2020/21 financial year, OL Groupe expects to post a net loss for the 2020/21 financial year.
On 23 October 2020, the Conseil d'État ruled that the LFP (and not the French government) was solely responsible for cancelling the remainder of the 2019/20 season on 30 April 2020. Consequently, Olympique Lyonnais is pursuing its claim of damages exclusively against the LFP, whose decision deprived clubs of a significant portion of their media rights, which could have and should have been safeguarded. The Group estimates the loss it suffered at €117 million.
In addition, Olympique Lyonnais has retained its 3rd place ranking among European training academies, as established by the CIES Football Observatory (November 2020), demonstrating once again the performance of the OL Academy, one of the top four in Europe for the last nine consecutive years (2012-2020).
4/ ROADMAP TO 2023/24
OL Groupe remains confident in its ability to achieve the objectives set for the period from now until 2023/24, as presented last February, i.e. total revenue of €420-440 million (incl. player trading, according to the API, as indicated above) and EBITDA in excess of €100 million, assuming the current public health crisis is resolved in the short term. This is based on our “full entertainment” growth strategy oriented around our core business – football – and also on the development, diversification and recurrent nature of our “Events” programming, related in particular to the new arena project.
“This document contains indications about OL Groupe's goals. Known and unknown risks, uncertainties and other factors may affect the achievement of these goals, and consequently, OL Groupe's future results, performance and achievements may differ significantly from implied or stated goals. These factors could include changes to the economic and business environment, regulations, and risk factors detailed in OL Groupe's 2019/20 Universal Registration Document.”
Next press release: Revenue for the first half of the 2020/21 financial year on 16 February 2021 after Euronext markets close.
Tel: +33 (0)4 81 07 55 00
Fax: +33 4 81 07 45 65
Email: [email protected]
|Euronext Paris - Segment B |
Indices: CAC Small - CAC Mid & Small – CAC All-Tradable – CAC All-Share – CAC Consumer Discretionary
ISIN code: FR0010428771
Bloomberg: OLG FP
ICB: 5755 Recreational services
|Men's team||2020/2021 |
as of 9 November 2020
|FRENCH LIGUE 1||5th||7th|
|EUROPE||-||CHAMPIONS LEAGUE |
Semi-final (Bayern Munich)
|Women's team||2020/2021 |
as of 9 November 2020
|FRENCH DIVISION 1||1st||1st|
|EUROPE||CHAMPIONS LEAGUE |
Qualified for round of 32 (December 2020)
|CHAMPIONS LEAGUE |
 Alternative Performance Indicator (API): “Total revenue” corresponds to the previous definition of “Total revenue”, i.e. revenue excluding player trading plus proceeds from the sale of player registrations.
 This estimate does not take into account the opportunity loss that resulted from the Club not qualifying for European cup play in the 2020/21 season, as the Ligue 1 championship was ended at Matchday 28, freezing the club in 7th place.