OL GROUPE : FINANCIAL YEAR 2011/12 REVENUE
Amid a very weak economic context, good business performance (excl. player trading): €130.1m (€132.8bn in 2010/11, down 2.0%)
Player trading: €15.2m (€21.8m in 2010/11)
Coupe de France victory for the men's team
Historic triple crown for the women's team
Lyon, 25 July 2012
Financial year 2011/12 revenue
Breakdown by business segment (1 July to 30 June)
|(in € m)||2011/12*||2010/11||Change
|Sponsoring - Advertising||23.5||19.5||+20.5%|
|Media and marketing rights||70.0||69.6||+0.6%|
|Revenue excluding player trading||130.1||132.8||-2.0%|
|Revenue from sale of player registrations||15.2||21.8||-30.3%|
* preliminary, estimated unaudited figures
In the fourth quarter of 2011/12, revenue totalled €29.3 million, including €4.4 million in revenue from the sale of player registrations (€34.1 million and €10.3 million, respectively, in 2010/11).
Business during the financial year
Revenue excluding player tradingTicketing revenue totalled €17.7 million, down €1.3 million. This decline came about because OL faced lower-drawing teams in European cup play (round of 16 against Real Madrid the previous year). Sponsoring and advertising revenue, up €4.0 million, totalled €23.5 million, buoyed by the arrival of new sponsors, both for the men's team (Renault Trucks, Veolia) and the women's team (GDF-Suez, Renault Trucks). New partnerships related to the "Stade des Lumières" also contributed to this increase. Media and marketing rights totalled €70.0 million, up €0.4 million.
Despite a 4th place finish in the French Ligue 1 championship (3rd in the previous season), domestic media rights (LFP, FFF) totalled €47.6 million, up €1.0 million. OL was the largest earner of LFP media rights during the 2011/12 season. These revenues were also boosted by the club's good performance in the Coupe de France and the Coupe de la Ligue this season.
International TV rights (UEFA) remained stable at €22.4 million (vs. €23.0 million in 2010/11), as the club's sporting performance was identical to that of the previous season (Champions League round of 16). Brand-related revenue totalled €18.9 million, down €5.8 million. The previous year included the last €7 million installment of the Sportfive signing fee. Excluding the signing fee, brand-related revenue was up €1.2 million.
Revenue from sale of player registrations
Revenue from the sale of player registrations was €15.2 million and reflected the transfers of Miralem Pjanic to AS Roma and Ishak Belfodil to Parma FC, as well as incentives.
Football performance 2011/12
Men's team:Coupe de France victory, 16th trophy since 2001 (Bordeaux 6, OM 5, PSG 4). This victory qualifies OL directly for the pool stage of the Europa League and for the Trophée des Champions against Montpellier in New York on 28 July. 4th place in the French Ligue 1 Finalist in the Coupe de la Ligue Champions League round of 16 10th place in UEFA rankings
Women's team: historic triple crown, unbeaten record in all competitions in the 2011/12 seasonFrench Division 1 champions: 6th consecutive title Coupe de France: Victory UEFA Women's Champions League: 2nd consecutive title UEFA ranking: 1st place
OL Academy recognised by the FFF
The French Football Federation (FFF) has just published its ranking of the best French football academies in the 2011/12 season, and OL ranked 3rd. This ranking recognises the club's strategy to capitalise on its young talent and the high quality of the work accomplished by the technical and educational staff.
Strategic priorities and Outlook
During the 2012/13 season, OL will take part in the pool stage of the UEFA Europa League, after participating 12 consecutive times in the UEFA Champions League.
By pursuing ambitious targets on the pitch while keeping a firm grip on operating costs, OL should be able to partially offset the impact on the Group's results from not participating in the Champions League. This impact can be estimated at €15-20 million compared with the previous year, depending on sporting results.
The player transfer targets set by the Board of Directors for the 2011/12 and 2012/13 seasons were not met during the first of these two years. Consequently, the planned reduction in payroll was not achieved, capital gains on the sale of player registrations were not realised, and the Group could not improve operating results over those of the previous year.
On the other hand, the departure of Pjanic and Toulalan, as well as certain contract extensions during the season led to a substantial reduction in amortisation expense on player registrations.
For the 2012/13 season, it remains a priority of the Board of Directors to significantly reduce the number of player contracts through transfer and expiry, while integrating talented young players from the OL academy to the fullest extent possible. This should enable the Group to achieve the required reduction in payroll and in amortisation of player registrations, with the goal of returning to structural operating breakeven.
Capitalising on a young and talented professional roster will enable the Group to maintain its ambitious sporting objectives, with the aim of returning to the Champions League in the 2013/14 season.
The rise of women's football and the repeatedly outstanding performance of Olympique Lyonnais' women's team should also help increase related revenue streams (media rights, sponsorships, ticketing, etc.).
Progress on the new stadium project
On 17 July 2012, Olympique Lyonnais welcomed three decisions handed down by the Lyon Administrative Court on 5 July. They validate the addition of OL's new "Stade des Lumières" to the list of "public interest" sporting facilities.
As of today, the only complaint directly involving Olympique Lyonnais that has not yet been resolved relates to the construction permit. The Administrative Court is likely to hand down a decision in the 2nd half of 2012.
The new stadium is set to be delivered at the end of the 2nd half of 2014, with the first team taking possession of the stadium preferably at the start of the 2015/16 season.
In a press release dated 26 July 2011, Olympique Lyonnais announced that the Vinci group had agreed to participate in the financing of Foncière du Montout by taking an equity stake of up to 49% in the company.
Negotiations on the design/build contract are advancing satisfactorily, and the contract is set to be signed during the summer. Vinci has validated the amount of the project, as described in the agreements signed in July 2011.
Separately, Lazard bank is currently studying the potential bank financing structure, together with a panel of banks and financial institutions. The goal is to finalise the financing arrangements in the 4th quarter of 2012.
The figures included in this press release are unaudited, preliminary estimates.
Next press release: Full-year 2011/12 earnings, 23 October 2012 after the market close.
Next match: Trophée des Champions on 28 July against Montpellier, in New York.
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Fax: +33 (0)4 26 29 67 18
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