The figure is the result of "an unusually large number of major tours" in early 2015, says CEO Klaus-Peter Schulenberg, and both revenue and income are up overall
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CTS Eventim saw its turnover fall by 35% and earnings even further, from €57.1m to €13.5m, in a difficult start to 2020
By IQ on 20 May 2020
The ongoing impact of the Covid-19 pandemic contributed to a 35% drop in revenue for CTS Eventim, from €283 million to €185m year on year, in the first financial quarter of 2020, reveal the company’s Q1 fiscal results, released today (20 May).
The release of Eventim’s latest financials – which follows news of similarly grim first quarters for other public live companies such as Live Nation and MSG Entertainment – also show the German live entertainment powerhouse saw a 76% fall in earnings before interest, taxes, depreciation and amortisation (ebitda), to €13.5m from €57.1m in Q1 2019 – though CEO Klaus-Peter Schulenberg says the company still has a “good cash-flow situation”, after benefiting from strong government support for the sector, including in the form of adjustments to ticket refunds.
“We got off to a very strong start in 2020 – we grew our live entertainment business internationally even further by acquiring majority shareholdings in Gadget Entertainment AG and wepromote Entertainment Group Switzerland AG, by completing our takeover of a majority stake in the Barracuda Group in Austria and by entering a new joint venture with Michael Cohl, the well-known US promoter,” comments Schulenberg.
“We are benefiting from the group’s good cash-flow situation in order to cope with this challenging situation over a longer period of time”
“In March 2020, the entire live entertainment industry and its fans were hard hit by the spread of the Covid-19 pandemic and the associated measures implemented by government and local authorities. However, we actively adjusted to the new situation and responded immediately and rigorously with internal measures to minimise costs and maximise efficiency. At the same time, we are benefiting from the group’s good cash-flow situation in order to cope with this challenging situation over a longer period of time and even to emerge stronger from this phase afterwards.”
Eventim also highlights the introduction of ticket voucher schemes in Germany, Austria and Italy as benefiting the company’s financial situation, praising “policymakers for respond[ing] to the dramatic situation in the event promotion industry”.
In a letter to investors, CTS says it is unable to issue a new growth forecast for 2020, given the “current uncertainties” surrounding the coronavirus, but hopes to have a revised prediction for “revenue and earnings as soon as a reliable forecast is possible”.
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