OL GROUPE : FIRST-QUARTER 2017/18 REVENUE

TOTAL REVENUE IN Q1 2017/18: €100.4M

TOTAL REVENUE SURGED €51.3M (105%),

BUOYED BY A RECORD LEVEL OF PLAYER TRANSFERS IN SUMMER 2017

Lyon, 13 November 2017

Total revenue in the first quarter of 2017/18 was €100.4 million, vs. €49.0 million in Q1 2016/17, representing an increase of €51.3 million or 105%, driven principally by revenue from player trading, which exceeded €60 million during the period.

Revenue excluding player trading totalled €34.6 million, vs €47.5 million in Q1 2016/17 (down €12.9 million or 27%), principally because European media rights declined. The club is participating this season in the Europa League group stage, whereas it competed in the Champions League group stage last year.

Revenue from the sale of player registrations reflected the quarter's very strong trading activity, totalling €65.8 million, vs €1.5 million in Q1 2016/17. It included the transfer to Arsenal of Alexandre Lacazette, a player trained in the OL Academy. The amount of the transfer was the highest ever achieved by Olympique Lyonnais. This record transfer confirmed once more the excellent quality of the Groupama OL Academy, a source of value creation and recurrent revenue for Olympique Lyonnais.

TOTAL REVENUE INCREASED BY €51.3 MILLION (105%)

Breakdown of revenue (1 July 2017 to 30 September 2017)

(in € m)
30/09/17*
30/09/16
Chg. €m
% chg.


Ticketing
7.0
5.7
1.3
23%


of which French Ligue 1
5.6
4.0
1.7
42%


of which European play
1.3
1.4
-0.1
-4%


of which other matches
-
0.3
-0.3
-93%


Sponsoring - Advertising
6.1
6.5
-0.5
-7%


Media and marketing rights
16.2
29.6
-13.4
-45%


of which LFP/FFF
10.0
9.7
0.3
3%


of which UEFA
6.1
19.8
-13.7
-69%


Events
1.8
2.3
-0.4
-19%


Brand-related revenue
3.5
3.5
-
1%


of which derivative products
2.1
2.0
0.1
7%


of which image/video, travel and misc.
1.4
1.5
-0.1
-6%


Revenue excluding player trading
34.6
47.5
-12.9
-27%


Revenue from sale of player registrations
65.8
1.5
64.3
4,286%


Total revenue
100.4
49.0
51.3
105%

*figures are preliminary, estimated and unaudited

Ticketing revenue up sharply: +23%, €+1.3 million

(Q1 2017/18: €7.0 million, Q1 2016/17: €5.7 million)

Receipts from ticketing rose €1.3 million in the first quarter of 2017/18 compared with Q1 2016/17.

Ticketing revenue from French Ligue 1 matches increased by €1.7 million to €5.6 million, vs €4.0 million in Q1 2016/17, with one more match this year.

European ticketing performed well, generating revenue of €1.3 million, vs €1.4 million in Q1 2016/17, despite the difference in competitions (Europa League vs Champions League). The number of matches was equal to that of last year.

All competitions combined, average attendance⁽¹⁾ was virtually stable at 35,852 vs 36,282 in Q1 2016/17. Average revenue per matchday⁽¹⁾, including principally general public and VIP ticketing revenue and merchandising revenue, totalled €1.5 million in the first quarter of 2017/18, vs €1.4 million in Q1 2016/17. It generated an average gross margin of 52% (46% in Q1 2016/17).

⁽¹⁾ Men's professional team matches

Sponsoring and advertising revenue: -7%, €-0.5 million

(Q1 2017/18: €6.1 million, Q1 2016/17: €6.5 million)

Sponsoring and advertising revenue totalled €6.1 million, vs €6.5 million in Q1 2016/17. Revenue generated by the stadium naming contract (Groupama Stadium) from 1 August 2017 partially offset certain contracts that expired or were scaled back, in particular technology/construction contracts that had been put in place for the construction of the stadium. 

Media and marketing rights: -45%, €-13.4 million

(Q1 2017/18: €16.2 million, Q1 2016/17: €29.6 million)

Media and marketing rights totalled €16.2 million, vs €29.6 million in Q1 2016/17.

Domestic media rights (LFP, FFF) stood at €10.0 million, vs €9.7 million in Q1 2016/17 (up €0.3 million, or 3%), with an 8th place preliminary ranking in the French Ligue 1 as of 30 September 2017 (9th as of 30 September 2016).

At the international level (UEFA), media and marketing rights declined, because the men's professional team is not participating in the Champions League group stage this season. They included the revenue from the club's participation in the Europa League group stage and stood at €6.1 million, vs €19.8 million in Q1 2016/17.

Events: -19%, €-0.4 million

(Q1 2017/18: €1.8 million, Q1 2016/17: €2.3 million)

The new Events business at Groupama Stadium continued to be highly successful. Major events, including concerts and non-OL sporting competitions, generated €1.3 million, vs €1.5 million in Q1 2016/17. In the first quarter of 2017/18, Groupama Stadium hosted a Celine Dion concert on 12 July 2017, the revenue from which almost equalled that of the two events hosted in Q1 2016/17 (a Euro 2016 match and the Rihanna concert). Revenue from conventions, B-to-B seminars and stadium tours totalled €0.5 million in Q1 2017/18, vs €0.8 million in Q1 2016/17. The number of seminars was higher (56 vs 48) but generated less revenue individually, connected with a change in pricing policy.

Other major events will take place in Groupama Stadium during the 2017/18 financial year, including a France/All Blacks rugby match on 14 November 2017, the UEFA Europa League final on 16 May 2018, the two Top 14 rugby semi-finals on 25 and 26 May 2018, Monster Jam in June 2018, and probably two concerts, currently being negotiated, during the summer of 2018.

Groupama Stadium will also host the two semi-finals and the final of the 2019 Women's Football World Cup (2, 3 and 7 July 2019).

Brand-related revenue: +1%

(Q1 2017/18: €3.5 million, Q1 2016/17: €3.5 million)

Brand-related revenue totalled €3.5 million, stable vs Q1 2016/17. At constant structure, excluding OL Voyages, which was sold as of 30 June 2017, brand-related revenue increased by €0.6 million vs Q1 2016/17. Derivative products posted an increase of 7% and totalled €2.1 million in the first quarter of 2017/18.

Record revenue from sale of player registrations: €65.8 million

(Q1 2017/18: €65.8 million, Q1 2016/17: €1.5 million)

Revenue from the sale of player registrations exceeded €60 million in the first quarter of 2017/18 alone and stood at €65.8 million, an all-time high for the period. It resulted from the transfers of:

• Alexandre Lacazette to Arsenal. This transfer was the highest ever achieved by Olympique Lyonnais. As the player was trained at Groupama OL Academy, the capital gain on the transfer is equal to the amount of the transfer fee;


• Emanuel Mammana to Zenit Saint Petersburg;


• Maciej Rybus to Lokomotiv Moscow;

totalling €64.9 million, plus incentives and player loan payments of €0.9 million.

Sporting results to date

• Men's team
  
  
  
  • French Ligue 1: 3rd place, after 12 matchdays
  
  
  • UEFA Europa League: group stage, tied for 1st place in group E, after four matchdays
  
  

• Women's team
  
  
  
  • French Division 1: 1st place, after eight matchdays
  
  
  • UEFA Champions League: round of 16 (0-7 victory in first leg on 8 November against Biik Kazygurt, return match at home on 15 November 2017).
  
  

Titles and performance

• Men's team
  
  
  
  • 27th in the UEFA index
  
  
  • 7 consecutive French Ligue 1 titles, a record in France
  
  
  • 7 Trophée des Champions titles, a record in France
  
  
  • 4 Coupe de France titles
  
  
  • 1 Coupe de la Ligue title
  
  
  • 245 matches played in European Cup competition, the most among French clubs (Marseille 213, Paris 209, Bordeaux 208, Monaco 184)
  
  

• Women's team : No 1 in Europe
  
  
  
  • 4 Champions League titles, a record in Europe
  
  
  • 11 consecutive Division 1 titles, a record in France
  
  
  • 7 Coupe de France titles, a record in France
  
  
  • 81 matches played in European Cup competitions, the most among French clubs (Paris 32, Montpellier 27, Juvisy 23, Toulouse 12)
  
  

• OL Academy
  
  
  
  • No 3 in Europe⁽¹⁾ after Real Madrid and Barcelona
  
  
  • No 1 in France⁽²⁾ for the fifth consecutive year, ahead of Monaco and PSG
  
  

• Club licence
  
  
  
  • 1st in Club Licence ranking ahead of PSG and Lille
  
  

Olympique Lyonnais is the only club with both men's and women's facilities for its professional teams and for its training centre.

⁽¹⁾ CIES Football Observatory - October 2017

⁽²⁾ French Football Collective Bargaining Agreement Commission, July 2017, on proposal made by the National Technical Director

⁽³⁾ LFP ranking recognising investments made by clubs in their facilities and organisation, October 2017

Outlook

OL Groupe seeks to leverage its now-validated business model, which includes:

• a modern, 100% privately-owned stadium generating diversified and recurrent revenue,


• consistent presence in European competitions,


• a rejuvenated professional squad with talented, young players,


• a renowned, high-quality football academy,


• promising strategic partnerships with international partners, in particular in Asia via the Beijing OL FC joint venture.

In so doing, it endeavours to (i) maximise operations at Groupama Stadium so as to accentuate the development of recurrent revenue, (ii) increase profitability by optimising operating and overhead costs, while maintaining the customer experience as a key priority.

“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 2016/17 Registration Document.”

Annual Shareholders Meeting: 5 December at 11.30 am.

OL Groupe



Tel: +33 4 81 07 55 00

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



Email: [email protected]

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