Deutsche Entertainment is on course for a €200m year after posting its first third-quarter profit since Q3 2012
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Bolstered by a massive fourth quarter and disproportionately strong growth in the UK, Deutsche Entertainment AG turned a €26.2m loss into a €500,000 profit last year
By Jon Chapple on 13 Apr 2017
German promoter Deutsche Entertainment AG (DEAG) returned to profit in 2016, it revealed today, after a fourth quarter that proved to be its strongest in five years.
As predicted by its board in November, a focus on Christmas-themed family events delivered a huge Q4 for DEAG, with the final three months of the year generating revenue of €86.8 million – almost half the company’s 2016 earnings, and a 61% increase on the €53.9m it turned over in Q4 2015.
While provisional full-year revenue only increased slightly – €204.9m, from €200.4m in 2015 – earnings before taxes and interest (EBIT) jumped nearly 102%, with DEAG once again making a (small) profit after 2015’s €26.2m loss (initially estimated at -€17.8m), incurred by the launch of three new festivals (two of which have since since been cancelled).
Alongside Christmas events such as Christmas at Kew, Christmas at Blenheim and Christmas Garden Berlin, key to DEAG’s 2016 growth were strong performances by its non-German subsidiaries – particularly Kilimanjaro Live and classical music promoter Raymond Gubbay in the UK – and its multinational ticketing business, MyTicket.
Other major Q4 shows for DEAG included Disney on Ice and Marvel Universe Live! and tours by Böhse Onkelz, David Garrett (Raymond Gubbay) and Red Hot Chili Peppers (Kilimanjaro).
“Our strategy, with a clear focus on family entertainment, rock and pop, classics and jazz, arts and exhibitions, and ticketing, has been proven right”
“Our strategy, with a clear focus on family entertainment, rock and pop, classics and jazz, arts and exhibitions, and ticketing, has been proven right,” comments DEAG founder and CEO Peter Schwenkow.
“In addition to our strong presence in German-speaking countries, our UK business also paid off, with disproportionate organic growth, now accounting for around 35% of DEAG’s total sales. We want to carry this momentum forward and expand our UK business to as much as 40% in the medium term.”
Owing a “well-filled [event] pipeline”, a statement from the DEAG board says it is “looking optimistically into 2017”, predicting EBIT “in the medium-to-upper single-digit million euro range”.
A detailed 2016 financial report will be released on 28 April.
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