41% of Danes of all ages, and a majority of 30–49-years-olds, went to at least one show last year, reveals a new audience survey
Sign up for IQ Index
The latest industry news to your inbox.
Despite Covid-19, the German live entertainment group capped its losses at €300,000 due to cost-cutting and insurance payouts
By IQ on 28 Aug 2020
German live entertainment group DEAG has managed to cap its losses at €300,000 in the first half of the year, according to the company’s half-year earnings report.
Despite the widespread economic impact of coronavirus, the company has minimised its losses as a result of a “massive cost-cutting programme” and €9 million in insurance payouts, with another €5.1 million in the settlement process.
DEAG (Deutsche Entertainment AG), which owns My Ticket and Gigantic, also reported that sales in the first half of the year amounted to €31.7 million (previous year €63.9m) and to €5.6m (previous year: €38.4m) in the second quarter.
In the second quarter, the company managed to save more than 30% compared to the first quarter of 2020.
“We are satisfied with the economic result in the first half of 2020 against the backdrop of the drastic restrictions imposed by Covid-19 on us. Above all, we are demonstrating operationally that DEAG can develop and implement successful events in any market environment, provided the regulatory framework allows it,” says Peter Schwenkow, CEO of DEAG.
“Due to DEAG’s strong financial resources, the time scale of the crisis is not the main focus of our considerations”
DEAG’s report says its relatively smooth six months is down to the company’s swift pivot to new event formats.
According to the report, electronic festival Nature One made its virtual debut in August to an audience of 4.5 million users.
While the drive-in event, BW-Bank Kulturwasen in Stuttgart, has been extended until the end of September.
The company also cites Stage Drive in Frankurt and virtual reality format TimeRide as successful projects.
“I am extremely grateful to all our employees not only for their ideas, but also for their motivation and commitment to our cost reduction and efficiency programmes. Our enormous efforts are proving to be a great success. Due to DEAG’s strong financial resources, the time scale of the crisis is not the main focus of our considerations,” continues Schwenkow.
“On the contrary, our dense calendar of events for 2021, many millions of tickets sold and already more than €100m in contracted revenues at the end of the first half of the year make us very optimistic. For the vast majority of these revenues in the coming year, we also have full insurance coverage again, including cancellation due to force majeure.”
According to the company, nearly 90% of customers have indicated that they will keep their tickets for postponed events. At the end of the first half of the year, DEAG had already sold a total of around 2.5m tickets in Germany, Switzerland and the UK (including Scotland).
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.