Business 12/10/2018, 03:35 PM

ANNUAL REPORT 2017/18

For the first time this year, Austria Wien publishes a comprehensive annual report that goes far beyond the mandatory information that must be submitted to the licensing senate of the Bundesliga, the commercial register and the association register, and covers all areas of the club. Here are the most important numbers, data and facts summarized.

Annual Report 2017/18

The focus of the annual report is on the concluded financial year 2017/18, at the same time it was our aspiration to take into account current figures, data and facts until the printing deadline on November 29th 2018 and thus to give first insights into the current season 2018/19. The first cross-comparisons to the preseason could be drawn and current developments could be outlined. A corresponding outlook is therefore significantly sounder. "We believe that such a voluntary report is an essential point in our further development, especially with regard to our process of internationalization and further professionalization," says CEO Markus Kraetschmer.

International benchmarking: the preparation of the annual report

The preparation of the annual report was also a new challenge for the office of Austria Wien. More than 30 national and international annual reports were used to design the layout and the page makeup, and the insights were broken down to Austria Wien. The research included larger, smaller and football clubs comparable to Austria Wien, as well as other athletic clubs and some business reports from major international companies. "Our aim was to incorporate digital elements as well. That's why we have placed QR codes for scanning in line with the respective topics, with which you can get video clips of our club's Viola TV, which visually and emotionally accentuate the facts and figures," says Kraetschmer.

Detailed insight into all areas of the club

Although the new era with the new Generali-Arena did not begin until the summer, the cornerstone was laid much earlier. Among others, of course, during the 2017/18 season, which we review in detail in this annual report and throw light on various angles and supplement with current figures from the 2018/19 season. The annual report provides detailed insights into all areas of the club, which are presented in the following chapters: Sports, Education, S.T.A.R. Project, Fans, Communication, Marketing, umbrella brand CSR: ‘Violet is more...’ and finances.

Finances

An essential cornerstone of the annual report is the finances. In the 2017/18 season, FK Austria Wien achieved the second-highest turnover of the post-Magna era with 36,059 million euros (rounded to the nearest thousand) and achieved a net profit of 661,000 euros. This succeeded despite higher expenses, which were necessary above all because of the game operations in the Happel Stadium and the training establishments in Steinbrunn. The positive equity thus increased to 2.022 million euros. The personnel costs are with 44,25% on a healthy level in international comparison.

Development of particularly relevant indicators over a period of ten years

In addition to the key financial figures that reflect the year 2017/18, in terms of the greatest possible transparency FK Austria Wien wanted to show the development of some particularly relevant key figures over a period of ten years, thus from the end of the management contract with Magna. In the 2017/18 season, FK Austria Wien achieved the second-highest total revenue of the last ten years. The annual result was positive seven times in the last ten seasons. Overall, the development of equity clearly points upwards, with personnel costs decreasing significantly in the last ten years. While Austria Wien had a clearly negative equity in the 2009/10 season after the termination of the management agreement with Magna (- 5.857 million euros), this trend has steadily increased in the following years and is currently at 2.022 million euros on a comparably sounder international level. Staff costs decreased from 79.73% in the 2009/10 season to 44.25% in the 2017/18 season.

Selling potential of the new Generali-Arena

The biggest revenue potential in the new stadium compared to the old Generali-Arena offers additional VIP & Hospitality revenue (2.993 million euros), viewer revenue (1.560 million euros), and proceeds from the marketing of the event venue Generali-Arena apart from the home games of Austria Wien (0.635 million euros). The higher revenue (totalling 5.693 million euros) also faces higher expenditure (2.860 million). This results in an additional contribution margin of around 2.833 million euros from the new Generali-Arena.

23.1% equity in financing the S.T.A.R. project

The S.T.A.R. project has a total financial volume of 48 million euros. This includes investments in the stadium (net 44,301 million), training grounds (net 1,470 million), the extension of the Academy (1,800 million net) and the Regional Junior Centre (0,429 million). The financing consisted of the loan agreement with BANK Austria (72.9%), own funds of FK Austria Wien (23.1%) and crowdfunding (4%).

Digitization: 2 million euros have been invested in the IT and media infrastructure

As part of the new stadium construction, a total of 2 million euros was invested in the IT and media infrastructure. This includes, among others, 400 displays, 1,728 network connections, 17 kilometres of fibre optic cabling and 424 access points. Other important steps in the direction of digitization were the implementation of a cashless arena with an open-loop system, the most fan-friendly option, where stadium visitors can pay contactless with their own credit and debit card, as well as mobile and digital stadium access with the new Austria-App.

Internationalization

The area of internationalization is initially set up as a project organization at Austria Wien, and an overall strategy will be developed. With Gazprom Export and Synthos, the club has already managed to attract two very large international partners. Apart from that, Austria Wien has mainly been known for its friendly relationship with Borussia Dortmund and its commitment to the European Club Association (ECA).

Fans: The adventure of a game day

At the beginning of 2018 Austria Wien conducted a large online survey on various topics relating to the Generali-Arena. Over 2,000 Austria Wien fans participated and worked together with the whole club at a unique stadium experience. Numerous suggestions and wishes of the Austria Wien fans could thus be recognized early on, considered and implemented in the further planning of home match days of Austria Wien. About two-thirds of the participants said they would buy the tickets online in the future, around half of the respondents would like to enter the tickets directly on their smartphone and get into the stadium completely mobile and digital, two-thirds could imagine arriving to home games using public transportation.

Since the first home game in the new Generali-Arena, Austria Wien has been carrying out regular surveys among Austria Wien fans, gathering opinions and feedback on the stadium experience and evaluating the measures taken. The ongoing feedback process will continue throughout the 2018/19 season. The feeling of security in the new Generali-Arena is extremely high. Overall, 98 percent of the participants rated the stadium experience as "very good" or "good". The supporting program is also perceived positively.

Employees from 39 different nations work for Austria Wien

An internal analysis has shown that in the 2017/18 season, people from 39 different countries (foreign nationals or first-generation immigrants) worked for Austria Wien - as employees in the office, coaches, rookies or professional players. "We are aware of our social responsibility as a football club. It is an extremely strong statement when people from so many different nations work together every day without any problems and live the concept of the Austria Wien family. These are things that you can be proud of, but that's just part of the way our club sees itself. This is not a marketing ploy, but deep conviction and anchored in our mission statement for many years," emphasizes Markus Kraetschmer.

Standings
Pos. Team Games Points
1. FC Red Bull Salzburg 4 12
2. LASK 4 10
3. RZ Pellets WAC 4 6
4. TSV Prolactal Hartberg 3 6
5. SK Puntigamer Sturm Graz 3 6
6. WSG Swarovski Tirol 4 5
7. SK Rapid Wien 3 4
8. FK Austria Wien 3 3
9. CASHPOINT SCR Altach 3 3
10. SV Mattersburg 4 3
11. spusu SKN St. Pölten 4 2
12. FC Flyeralarm Admira 3 0
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