Despite the German promoter's return to profit, income is 85% less than this time last year, although there are positive signs for ticketing business myticket.de
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Following a strong FY 2018, Berlin-based DEAG reports a successful start to 2019 and announces more investments are in the pipeline
By Anna Grace on 28 May 2019
Deutsche Entertainment AG (DEAG) has reported that its financial year 2019 is off to a strong start, showing high rates of organic growth and an increase in earnings compared to the previous year.
The German promoter and ticketing company recorded sales amounting to €25.5 million in Q1 2019 and a rise in EBITDA (earnings before interest, taxes, depreciation and amortisation) to €1m, compared to €800,000 in the same period of the previous year.
For the remainder of the year, the executive board expects that investments in companies in the three core markets of Germany, England and Switzerland will generate further growth in sales and EBITDA. The investments are currently close to completion.
According to DEAG, the increase in sales in Q1 equates organic growth of almost 25%, after adjusting the previous year’s figure (€27m) for the sales contribution of Raymond Gubbay Limited (€6.5m).
DEAG sold its shares in UK-based show producer Raymond Gubbay Live to Sony Music Entertainment International Limited in 2018.
“The board expects that investments in companies in Germany, England and Switzerland will generate further growth”
The DEAG report states that all five of its divisions – rock/pop, arts and exhibitions, family entertainment, classical and jazz and ticketing – have contributed to growth.
The “excellent start” to the 2019 financial year follows a successful 2018 for the Berlin-based company. Preliminary figures show revenue amounting €200.2m, a 25% increase on the previous year, and a significant 123% growth in EBITDA.
In 2018, DEAG eliminated most of its minority holdings and joint ventures, acquiring all remaining shares (50%) in Swiss classical music promoter the Classical Company, as well as taking full control of DEAG Classics and ticketing platform MyTicket – the first ticketing agency in Germany to allow payment via Amazon Pay.
According to the International Ticketing Yearbook 2018, DEAG promotes around 4,000 concerts and events each year, selling more than five million tickets annually.
DEAG will publish its complete quarterly financial statement on its website tomorrow (Wednesday 29 May).
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