Annual report 2003 Summary

Transcription

1 Annual report 2003 Summary Brøndbyernes IF Fodbold A/S 26th accounting year CVR nr

2 Management s review The year in brief As expected, year 2003 turned out to be a financial turning point for the company. The expansion of Brøndby Stadium was the cause of two very difficult financial years in 2001 and However, in year 2003, the company budgeted for a zero-result. Impressive sports results both in the Danish SAS League and in the European Cup have resulted in a major improvement on the financial results. Therefore, the company is able to present a positive result of DKK 6.5 million before tax, which is approximately DKK 1.5 million better than the expectations to this year s result per 3 November In this connection it must be emphasized that the company has chosen not to let the pending case between Brøndby IF and VfL Wolfsburg have any influence on this year s result. However, Brøndby IF expects that FIFA will side with them regarding the claim for transfer payment from VfL Wolfsburg for the football player Peter Madsen, although the case is not expected to be settled before spring Year 2002 became a really fantastic sports year that peaked when Brøndby IF won the Danish Cup Tournament, silver medals in the Danish SAS League and not to mention victories in three rounds in the European Cup. Last but not least, it is a fact that the trainer duo Michael Laudrup and John Faxe Jensen have indeed improved the team s playing style as well as the individual players. As regards the other important operating areas, the company experienced a positive development as stated below: For the home matches in the Danish SAS League during the spring season, the average number of spectators was 17,614 in 2003 compared with in 2002 and 15,393 in The corresponding figures for the 2003 autumn season were 16,290 compared with 12,173 in 2002 and 15,025 in The total number of spectators at 18 Danish SAS League matches, 3 European Cup matches and 2 Danish Cup Tournament matches was 376,750 at Brøndby Stadium corresponding to an average of 16,380 spectators per match. Gate receipts and TV revenues increased as last year. This year s increase was 53.3 % from DKK 23.6 million in 2002 to DKK 36.2 million in Sponsor and advertising income continued to increase this year by 4.7 % from DKK 38.8 million in 2002 to DKK 40.7 million in Other income, primarily related to Brøndby Stadium and GildhøjCentret increased by 30.2 % from DKK 27.7 million in 2002 to DKK 36.1 million in The total expenses increased by DKK 1.5 % from DKK 99.8 in 2002 to DKK in The result before transfers and financial items is DKK 12.7 million compared with DKK -9.0 in This year s result after tax amounts to DKK 4.6 million compared with DKK 24.7 million in The company s revenues continue to show an upward trend. Moreover, the company has succeeded in reducing the increase of the expenses in 2003 so that it is at the same level as the inflation. In 2003, the company succeeded in achieving the sponsor and advertising income as budgeted for The assumption, that the delay of the reconstruction of Brøndby Stadium has created a time lag on the sponsor and advertising income of an accounting year, has been confirmed. It is expected that the company s independence of the transfer income will be obtained in the accounting year Furthermore, there has not been budgeted for important revenues regarding international 2

3 matches such as participation in the UEFA s Champions League, which will lead to an extra income of approximately DKK million. Outlook for 2004 The sports outlook is bright as usual. Obviously, the expectations to the trainers as well as the players are that the present first place in the Danish SAS League can be maintained and thereby win the Danish Championship again. This will mean that we must continue our excellent football play from the autumn In this connection it must be emphasized that there is a great deal of young players on the team. It might cause problems when decisive matches are to be played during the spring. At the same time, it is the aim to defend the Danish Cup Tournament. Internationally, it is the objective to continue the impressive sports results from It is, of course, crucial whether the team via a Danish Championship is capable of gaining access to the financial and sporting very attractive Champions League. Our objective is to continue the development of the team both technically and tactically and thereby strengthen the team for new major sports challenges. The Board of Directors estimate that year 2004 will yield a profit of DKK 4-5 million and that transfer income will be equivalent to transfer expenses. Post balance sheet events Last year a part of the property of GildhøjCentret was developed into two sites: A southern built-up site (20,801 m 2 ) and a northern un-built site (16,422 m 2 ). The company has commenced negotiations regarding a sale of the northern site. These negotiations are expected to be finished during the spring 2004, and it is expected that the site will be sold at a higher price than the booked value. A profit regarding the sale is not included in the result budgeted for The company has bought the Danish international player Asbjørn Sennels from Viborg FF for a nondisclosed transfer amount. Asbjørn Sennels has signed a contract with Brøndby IF for 5 years. Brøndby IF won the Danish Cup Tournament, after a 3-0 victory over FC Midtjylland.. 3

4 Financial highlights - Group DKK' Total Income Depreciation/amortisation Other expenses Profit/loss before transfer and financial items Transfer Profit/loss before financial items Financial items, net Profit/loss on ordinary activities Tax Profit/loss after tax Intangible assets Property, plant and equipment Investments Securities Other current assets Total assets Share capital Capital and reserves Provisions Long-term liabilities other than provisions Short-term liabilities other than provisions Total equity and liabilities Average number of employees Investments in property, plant and equipment

5 Income statement Group Parent company DKK' Income Gate receipts and TV revenues Sponsor- and advertising expenses Prizes Other income Total Income Expenses Expenses for matches and players Selling and advertising expenses Administrative expenses Staff costs Depreciation/amortisation Other expenses Total expenses Profit/loss before transfer and financial items Transfer Transfer income Transfer expenses Depreciation, players Total transfer Profit/loss before financial items Loss on ordinary activities before tax in group enterprises Interest income and similar items Interest expense and similar items Profit/loss before tax Tax PROFIT/LOSS FOR THE YEAR The profit is transferred to the capital and reserves. 5

6 Balance sheet at 31 December Group Parent company DKK' ASSETS Fixed assets Intangible assets Deposits Contractual rights, players Other rights Property, plant and equipments Land and buildings Fixtures and fittings, tools and equipments Investments Investments in group enterprises Investments in associates Total fixed assets Current assets Inventories Goods for sale Receivables Trade receivables Amounts owed by group enterprises Other receivables Prepayments Tax assets Securities Ohter securities Cash at bank and in hand Total current assets TOTAL ASSETS

7 Balance sheet at 31 december Group Parent company DKK' EQUITY AND LIABILITIES Capital and reserves Share capital Share premium account Retained earnings Total capital and reserves Long-term liabilities other than provisions Credit institutes Short-term liabilities other than provisions Short-term portion of long-term liabilities other than provisions Bank loans and overdraft Trade payables Other payables Deferred income Total liabilities other than provisions TOTAL EQUITY AND LIABILITIES