DEAG is expecting to close 2019 on a high, as a record year for MyTicket and an acceleration of sales in the past six months contribute to a strong Q4
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Access to €60m in financial resources, Covid-19 insurance cover and plans for Christmas Gardens 2020 leave DEAG in a "strong position" to get through the pandemic
By IQ on 27 May 2020
German live entertainment group Deutsche Entertainment AG (DEAG) has reported a “stable and profitable” start to the 2020 financial year, stating it is in a “strong position” to weather the Covid-19 crisis.
In the first quarter of 2020, DEAG saw an increase in both sales and earnings before interest, taxes, depreciation and amortisation (EBITDA) from the previous year, with sales for the period up 3% to €26.2 million and ebitda up 20% to €1.2m.
Although the company states it expects to see a “material decline in sales and earnings” for the rest of the year due to the Covid-19 pandemic, it hopes to remain EBITDA positive for 2020, meaning it would stay profitable at an operating level.
The company has applied cost-cutting measures, including the implementation of short-time work in Germany, the UK and Switzerland.
“DEAG considers itself to be in a strong position to weather the crisis, even beyond 2020”
With over €60m in available liquidity, credit lines with banks and grants, as well as insurance payments – DEAG had previously reported it was “fully covered” for Covid-19 and has so far received “a seven-figure euro amount as compensation” – DEAG “considers itself to be in a strong position to weather the crisis, even beyond 2020”.
DEAG is also among those to begin hosting drive-in events, with Stage Drive Kulturbühne launching in the car park of the Jahrhunderthalle venue complex in Frankfurt last week. The company is also behind the BW-Kulturhuset in Stuttgart and is launching other formats in the UK.
A boost in the fourth quarter of 2020 is expected to come in the form of the yearly Christmas Gardens. DEAG expects between 1.2 and 1.5m to visit the seasonal garden locations around the country, using pre-assigned time slots and expanding to eleven venues from six to reduce crowd density.
The complete quarterly financial statement will be available for download here tomorrow (28 May).
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