OL GROUPE : REVENUE FOR THE FIRST NINE MONTHS OF 2014/15

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Total revenue of €76.2 million (€95.1m in the 1st 9 months of 2013/14)

buffeted by the club's elimination from Europa League playoffs and a reduction in player trading (€3.9m, down €12.2m from previous year) tied to player transfer postponement in summer 2014

Lyon, 4 May 2015

Revenue in the first nine months of 2014/15 totalled €76.2 million, vs. €95.1 million in the year-earlier period. It declined because the club was absent from European cup play and because the summer 2014 plan to sell player registrations was postponed. It did not yet reflect the club's momentum, driven by good results on the pitch and by favourable progress on new stadium construction and marketing, which should generate additional revenue of around €70 million p.a. within the next five years.

Excluding revenue from European cup play, revenue excluding player trading totalled €70.2 million in the first nine months of the financial year, vs. €66.5 million in the year-earlier period, representing an increase of €3.7 million, or 5.6%.

Proceeds from the sale of player registrations totalled €3.9 million, an historic low, as the Board of Directors had decided to postpone the plan to sell registrations last summer in favour of the season's sporting performance.

As of the date of this press release, Olympique Lyonnais was in 2nd place in the French Ligue 1, ensuring the club at least one of the top three spots in the final standings (3 matches left to play) and a qualification for a European cup spot next season.

Revenue (from 1 July to 31 March)

in € m 2014/15* 2013/14 Change % Change
Ticketing 8.1 9.2 -1.1 -12%
French Ligue 1 7.6 7.1 0.5 7%
European play 0.2 1.2 -1.0 -83%
Other matches 0.3 0.9 -0.6 -67%
Sponsoring - Advertising 17.6 13.6 4.0 29%
Media and marketing rights 34.6 44.2 -9.6 -22%
LFP/FFF 32.6 32.9 -0.3 -1%
UEFA 2.0 11.3 -9.3 -82%
Brand-related revenue 12.1 12.0 0.1 n.s.
Revenue, excluding player trading 72.3 79.0 -6.7 -8%
Proceeds from sale of player registrations 3.9 16.1 -12.2 -76%
Total revenue 76.2 95.1 -18.9 -20%

*figures are preliminary, estimated and unaudited

Revenue in the third quarter of 2014/15 totalled €23.7 million (€29.5 million in Q3 2013/14).

1) Revenue excluding player trading

  • Receipts from ticketing totalled €8.1 million, down €1.1 million from the first nine months of 2013/14. The decline came about because the club did not take part in the group stage of a European cup competition. Receipts from European play totalled €0.2 million in the first nine months of 2014/15, vs. €1.2 million in the year-earlier period.
  • Sponsoring revenue was up sharply at €17.6 million, vs. €13.6 million in the year-earlier period, a rise of €4 million or 29%. It was buoyed by a signing fee of €3 million related to catering for the new stadium and by an increase in sponsoring contracts.
  • Media and marketing rights came to €34.6 million, vs. €44.2 million in the year-earlier period. Domestic media rights (LFP-FFF) were virtually stable at €32.6 million, vs. €32.9 million in the nine months to 31 March 2014. International rights (UEFA) declined by €9.3 million to €2.0 million, as the club did not qualify for the Europa League group stage.
  • In an economic environment that remained challenging, brand-related revenue edged up to €12.1 million, principally on merchandising revenue, vs. €12.0 million in the first nine months of 2013/14.

2) Proceeds from sale of player registrations

Revenue from the sale of player registrations totalled €3.9 million, vs. €16.1 million in the year-earlier period. This amount derived from two transfers carried out at the start of the season (Naby Sarr to Sporting Portugal and Alessane Pléa to Nice), plus incentives.

3) Sporting results as of 4 May 2015

  • Men's team:
  • French Ligue 1: 2nd place
  • UEFA Europa League: OL participated in the two playoff rounds in the summer of 2014 and did not qualify for the group stage
  • Coupe de la Ligue: Faced Monaco in round of 16
  • Coupe de France: Faced Nantes in round of 32
  • Women's team:
  • French Division 1: 1st place
  • UEFA Women's Champions League: Faced PSG in the round of 16
  • Coupe de France: Victory against Montpellier on April 19

4) New stadium

Work on the new stadium is progressing according to plan so as to enable OL to play the second half of its 2015/16 season in its new home. The Vinci group is currently installing the roof structure, the stadium's most complex component.

Naming discussions are underway with several large French and international companies. The new stadium's location, close to Lyon's two airports, linked by tram to the two railway stations and bordered by the Lyon area's eastern ring road, lends it very high visibility. This unique location plus the park's ultra-modern image (2.0 connectivity) and the quality of services that will be available to users will help the stadium draw value from a high-quality naming.

5) Trends and outlook

We are continuing to successfully implement our new business model, based on players trained at the OL Academy and a reduction in operating expenses, in line with the fundamental principles of Financial Fair Play at the European level.

In the medium term, the OL Academy remains central to the Group's strategy. The club is constantly strengthening the training of young players coming out of the OL Academy, the first team's official supplier of players and a source of significant potential capital gains. The Group's objective is to return to the Champions League as soon as possible and to develop growth momentum with the new stadium supporting performance on the pitch and bolstering the Group's economic prosperity.

With today's sporting performance making it possible to envision a return to European cup play, the Board of Directors has decided to build the men's and women's professional training grounds on the Olympique Lyonnais Park in Décines, and the OL Academy in the adjoining town of Meyzieu. With geographical proximity will come optimised training and performance. In this context, Olympique Lyonnais is pleased to announce the imminent signature of a naming contract for the OL Academy with the insurance company Groupama Rhône-Alpes Auvergne. This contract might subsequently be complemented by a naming contract for the training grounds.

In an effort to spur sales of the stadium's hospitality services, OL Groupe's Board of Directors has decided to deploy the resources necessary to finalise the lay-out and interior design of the stadium, among other aspects related to the principal infrastructure in Décines, and now in Meyzieu. New investments should total a maximum of €40 million, most of which should be financed by new equity capital (subject to AMF approval of the proposed transaction). The balance would be financed by complementary financial resources.

Construction of the "Olympique Lyonnais Park", composed of the new stadium and its related facilities (hotels, sports medicine facility, spa, leisure and entertainment centre, office buildings, etc.) and open 365 days a year, is expected to generate long-term revenue growth for the Group, as other modern new stadiums in both hemispheres have done. Initial simulations point to additional revenue estimated to be in the region of €70 million p.a. within five years.

As of the date of this press release, new stadium marketing was continuing apace: 41 boxes have been sold or reserved and several founding and technology partnerships are being negotiated. The sale of building rights for the related infrastructure is being finalised.

Delivery of the new stadium should also enable the Group to intensify its CSR policy, already well underway with the OL Foundation and the sOLidarity fund. A Corporate and Community Innovation Centre will soon open next to the OL Academy, and nonprofit volunteers will work in the CENACLE.

CDC (Caisse de Dépôts et Consignations) will subscribe to the final tranche of bonds to be issued by Foncière du Montout on 15 June 2015, in accordance with the agreements signed on 26 July 2013.

Work on the new stadium is progressing according to the plan set down by Vinci. The plan calls for definitive delivery no later than 31 January 2016; OL aims nonetheless to play its first Ligue 1 matches there in January 2016.

 

OL Groupe

Tel: +33 (0)4 26 29 67 00
Fax: +33 (0)4 26 29 67 18

Email:
dirfin@olympiquelyonnais.com
 
www.olweb.fr
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