Deutsche Entertainment is on course for a €200m year after posting its first third-quarter profit…
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Deutsche Entertainment AG seeks to finance further growth after increasing revenues 34.2% in the first half of 2018
By Jon Chapple on 30 Aug 2018
Deutsche Entertainment AG (DEAG) has announced plans to issue a new corporate bond to finance further growth after a strong start to 2018.
According to provisional financial results, the Berlin-based promoter recorded a 34.2% increase in turnover in the first half (H1) of 2018, to €118 million – up from €87.9m the previous year –while earnings before interest and taxes (EBIT) grew to €8.1m, from €2.2m in H1 2017.
The figures are adjusted to account for the recent acquisition of 49% of DEAG Classics and the sale of Raymond Gubbay Ltd, with a profit on deconsolidation of €5.3m.
According to the company, “a number of event highlights contributed to its positive development [in H1 2018]. For instance, DEAG had a successful first half year with open-air events, rock/pop tours, classical events, theatre productions and events for the entire family, as well as the ticketing business, in its core markets.
“With a well-filled pipeline of events and over 2m tickets already sold, DEAG has a solid basis for further development”
“DEAG’s operations are thus well on target for 2018 as a whole. Besides its positive development, measures were also taken to increase the earnings per share attributable to shareholders by reducing minority interests. For example, DEAG acquired 49% of DEAG Classics AG and now holds 100% of the shares. Furthermore, DEAG bought back 24.9% of the shares in MyTicket AG and now holds 75.1% of the company.
“DEAG also underscored the growth focus of its business in the UK by acquiring 100% of the shares of the Belladrum Festival in Scotland, which sold out for the ninth consecutive year in 2018.
“With a well-filled pipeline of events and over two million tickets already sold, DEAG has a solid basis for further development in the financial year. The executive board confirms the sales and earnings forecast for the full year 2018.”
DEAG has appointed IKB Deutsche Industriebank of Dusseldorf to handle the issuing of the bond, expected later in the year.
DEAG’s final H1 2018 results will be published in full tomorrow (31 August).
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