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Deutsche Entertainment AG, which lost €23m in 2015, is predicting its best quarter since 2011 after a strong year to date
By IQ on 30 Nov 2016
Deutsche Entertainment AG (DEAG) is on course for its best financial quarter in five years, it said today, as it returns to profitability following a €23 million loss in 2015 incurred by the launch of three new festivals.
The German promoter lost €6.8m in the first nine months of 2016 – affected by a “low event density and […] negative effect from exchange rate conversions” as a result of the post-Brexit slump in the pound sterling, according to its third-quarter (Q3) financial results – compared to -€11.6m in the same period of 2015 (a 41.6% increase).
Echoing comments made in August by chairman Peter LH Schwenkow, who praised the company’s “very well-filled event pipeline”, the DEAG board says it “expects the financial year 2016 to finish with a clearly positive adjusted operating result after depreciation and amortisation”, pointing to Christmas family events Christmas at Kew, Christmas at Blenheim and Christmas Garden Berlin, family shows Disney on Ice and Marvel Universe Live! and “many great tours, like the Red Hot Chili Peppers, Böhse Onkelz [and] David Garrett” as fourth-quarter highlights.
It also hailed “disproportionate organic growth in the UK [from subsidiaries Kilimanjaro Live and Raymond Gubbay] thanks to sold-out events, inter alia at the Royal Albert Hall”.
Despite the improved profit margins, sales revenues have so far declined, from €27.6m to €19.1m, hit by the weak pound, legal fees and the cost of the expansion of its ticketing subsidiary, MyTicket, into Austria.
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