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Despite a slight dip in revenues last year, Germany's DEAG is confident of a strong 2020, despite ongoing disruption caused by the coronavirus
By IQ on 25 Mar 2020
German promoter/ticketer Deutsche Entertainment AG (DEAG) says it considers 2019 a successful year for the company, despite slight decreases in both revenue and profit.
Consolidated sales for the Frankfurt-listed company were €185.2 million in 2019, down on €200.2m in 2018, while earnings before interest, taxes, depreciations and amortisation (EBITDA) also fell slightly, to €14.1m in 2019 from €14.6m the previous year.
Despite this, DEAG is hailing 2019 as another “successful financial year”, noting that its business grew by double digits in the important fourth quarter (Q4), with turnover up 31%, to €62.1m, and EBITDA increasing from €4.2m to €6.2m, “mainly driven by a good ticketing business”.
In its full-year financial report, the Berlin-based company also reveals it held off on a further two acquisitions planned for Q4 2019 amid uncertainty over Brexit. (Its UK businesses include Kilimanjaro Live, Flying Music Group and ticketing company Gigantic.)
“Any cancellations of current events due to force majeure are fully covered by insurance”
DEAG had also predicted double-digit growth in revenue and EBITDA for 2020; however, it now says, given the “corona crisis, it is currently impossible to provide a detailed outlook for the current year”. However, it assures investors that “any cancellations of current events, and those in advance sales, due to force majeure, are fully covered by insurance (including Covid-19) with one of the largest insurance groups worldwide.
“The first events that have incurred losses have already been assessed and paid for.”
More than 600 DEAG events, it adds, have already been postponed or cancelled.
Read IQ’s recent feature on the insurance implications of the coronavirus outbreak, as well insurance tips for event organisers, here.
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