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DEAG has pulled out of "direct business activities" in Austria, instead focusing its attentions on Germany, Switzerland and, especially, the UK
By Jon Chapple on 14 Nov 2017
Deutsche Entertainment AG (DEAG) is to scale back its activities in Austria amid a renewed focus on Germany and its “second home market”, the UK, it announced today.
While DEAG will continue to promote shows in cooperation with Austrian partners, and sell tickets via its myticket.at platform, its standalone Austrian concerts subsidiary, Blue Moon Entertainment, ceased trading at the end of September. The Berlin-based company will now “concentrate in the future even more strongly on the growth markets of Germany, the UK and Switzerland”, it announced today.
“After Germany, the UK is increasingly developing into DEAG’s second home market,” reads a release from DEAG. “With its British subsidiaries Kilimanjaro Holdings Ltd and Raymond Gubbay Ltd, as well as the Flying Music Group Holding Ltd, which was acquired in the middle of August 2017, DEAG is now one of the leading promoters and theatre producers in the UK. In 2017, the profitable UK business will contribute 40% to the group’s total turnover.
“The management board is keen to continue the current expansion course and wants to extend the range of successfully established events, such as the Christmas Garden formats, which will be held in Edinburgh, Scotland, for the first time in 2017.”
The company also once again confirmed that it is eyeing further “targeting M&A activities” in the UK, echoing chairman Peter Schwenkow’s remarks last August that DEAG is “examining opportunistic acquisition opportunities” in Britain.
“By discontinuing our direct business activities in Austria, we will improve our group earnings in the future”
Board member and international business development chief Detlef Kornett comments: “We aim to continue to grow profitably internationally. With the changed market strategy for Austria, we are transforming ourselves from a rival competitor into an attractive supplier of high-quality entertainment formats. Furthermore, we see good conditions in the UK, Germany and Switzerland, and will continue our expansion strategy.
“Our recent acquisition of the British Flying Music Group in August 2017 expanded our international portfolio of events. This will enable DEAG to continue to grow, especially in the area of family entertainment, but also in musicals and theatre events.”
“The clear premise of our expansion plans is always sustainable profitability,” adds DEAG CFO Ralph Quellmalz. “Discontinuing our direct business activities in Austria, we will improve lastingly our group earnings in the future.”
DEAG posted a 14.4% increase in revenue, to €90.2 million, and profits of €300,000 in the first half of 2017. Its Q3 results will be released on 30 November.
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