OL GROUPE : Revenue for the first nine months of 2009/10
Significant improvement in European-level football performance
Nine-month revenue from businesses: €125.5 million (-6.3%)
Lyon, 5 May 2010
To boost the club's performance in European competitions, Olympique Lyonnais made significant investments in top-level players at the start of the season. These have paid off, as the team reached the UEFA Champions League semifinal round for the first time.
The figures to 31 March presented below include the revenue from the Champions League round of 16 and quarter-final.
Breakdown by business segment (1 July to 31 March)
|in € m||Nine-months
|Partnerships - Advertising||12.2||16.5||-26.1%|
|Revenue from businesses, excluding player trading||111.5||119.5||-6.7%|
|Revenue from sale of player registrations||14.0||14.4||-2.8%|
|Total revenue from businesses||125.5||133.9||-6.3%|
* preliminary, estimated and unaudited figures
Revenue from businesses is presented for the nine months as a whole, given the special nature of the Group's business (match schedule uncertainties and breaks, regulated transfer windows, etc.)
For information, revenue from businesses for the 3rd quarter of the financial year totalled €35.6 million, up €2.1 million over the year-earlier period. First-quarter revenue had declined by €0.9 million (€46.1 million vs. €47 million in Q1 2008/09) and that of Q2 had contracted by €9.6 million (€43.8 million vs. €53.4 million).
The new law opening online gaming to competition was adopted by the National Assembly on 6 April 2010 and should come into force before the start of the World Cup in June. Media rights (LFP, FFF, UEFA) totalled €58.0 million (down 4.8%). This decline came about because OL occupied 5th place in the French Ligue 1 as of 31 March, compared with its 1st place position a year earlier. Brand-related revenue of €22.1 million continued to be buffeted by lacklustre consumer demand for derivative products. The partnership with Adidas will come into effect with the 2010/11 season. Adidas' extensive distribution network both in France and other countries should give a fillip to merchandising revenue. Revenue from the sale of player registrations totalled €14.0 million and included the transfers of Keita (Galatasaray), Grosso (Juventus) and Mounier (Nice) at the start of the season. No players were transferred out during the winter transfer window.
The new stadium project continued to move forwards, in line with the timetable presented along with first-half financial results.
Management reiterates that the report of the Commission responsible for the public inquiry on the amendment to the Décines-Charpieu land use plan, published on 23 April, has no validity from a legal standpoint. This is because the amendment on which the report is based was cancelled by the Administrative Appeal Court on 10 December 2009. Greater Lyon approved a new amendment procedure on 11 January 2010 by a very clear majority of 97 votes out of a total of 157.
Olympique Lyonnais is pursuing the necessary preliminary work and maintains its objective to deliver the new stadium at the end of 2013. We continue to work with the French central government, local authorities and the public, including associations and residents of Greater Lyon and especially those living in the area around the planned stadium. In so doing, we will be able to respond to various comments that have been made, specifically during recent public meetings, and make additional improvements if necessary. This will make the project, already destined to serve as an engine of economic development for Lyon's eastern suburbs, even more exemplary.
On 28 May, UEFA will designate the country that will host the Euro 2016. There are three candidates: Italy, Turkey and France.
Football results to date
After 35 matchdays, Olympique Lyonnais occupies 4th place in the French Ligue 1, with a match in hand.
The women's team became the 1st French team to qualify for the UEFA Women's Champions League final, by beating Swedish team Umea in the semifinal. The final will be played in Getafe, Spain on 20 May. In Division 1 play, the women's team is in 3rd place, with three matches in hand.
The OL reserves (CFA) team is in 1st place in their league.
The U19 and U17 teams are in 1st and 2nd place in their respective leagues.
Future plans and outlook
In the fourth quarter OL Groupe will benefit from the team's record performance, via the revenue from the Champions League semifinal games against Bayern Munich. This improved European performance should partly offset the impact of the economic recession, which has penalised the Group's various business activities.
Internationally:Olympique Lyonnais is taking part for the 2nd time in the Superleague Formula, a motor racing competition pitting single-seaters displaying the colours of world-class football clubs against each other. This year, the OL car is being driven by Sébastien Bourdais, a former Formula 1 driver, who distinguished himself right from the 1st race by winning an event on the Silverstone circuit. This summer, OL will take part in the four-club Emirates Cup tournament, alongside AC Milan, Celtic Glasgow and hosts Arsenal.
Concerning partnerships, the ten-year contract with Adidas, worth a total of €80-100 million, will come into effect on 1 July 2010. Negotiations are underway with other partners and should be finalised in the next few months.
OL Groupe reiterates that elimination of collective image rights will have a negative impact estimated at more than €6 million on 2010/11 earnings. As a result, the Board of Directors is likely to reduce the professional team by two experienced players, compared with the current season (20 experienced players, eight young players).
The summer transfer window will open on 1 June and end on 31 August 2010. A significant portion of the Group's revenue usually derives from this period. The World Cup will begin in South Africa on 10 June and could have an impact on whether transfers realised during the period are recognised before or after the end of the financial year (30 June).
Owing to the performance and earnings achieved in recent years and the resulting sound financial condition and cash position, OL Groupe will be able to pursue its development projects, both on and off the pitch, in the short term and in the medium term.
Next press release: Full-year 2009/10 revenue on 28 July 2010 after the market close
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