Despite Covid-19, the German live entertainment group capped its losses at €300,000 due to cost-cutting and insurance payouts
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A combination of new events, cost savings and insurance compensation means Deutsche Entertainment is up €300,000 this year
By IQ on 26 Nov 2020
Germany’s Deutsche Entertainment AG (DEAG) made money in the first nine months of 2020, its latest financial results reveal, turning a profit of €300,000 in quarters one to three, even against the backdrop of the Covid-19 pandemic.
The Berlin-based company, which trades on the Frankfurt stock exchange, turned over €39 million in January–September (compared to €123.1m in the same period last year), resulting in earnings before interest, tax depreciation, and amortisation (ebitda) of €0.3m.
In Q3 (July to September) alone, ebitda was €0.6m, with DEAG attributing the success to new event formats, significant cost cutting (the firm has almost halved its spending this year) and €10m worth of insurance compensation. (DEAG revealed in March it is “fully covered” for coronavirus-related disruption.)
For the full year 2020, DEAG expects to at least break even, according CEO Peter Schwenkow, who says the company already has over €100m in sales for 2021, along with liquidity of around €50m.
“In view of the Covid-19 pandemic, we are comfortable with our results for the first nine months of 2020,” comments Schwenkow.
“We are comfortable with our results for the first nine months of 2020”
“Although large parts of our visible operational business are currently suspended, the DEAG team is working behind the scenes to continue our growth course successfully as the pandemic ebbs away and finally comes to an end.
“The breakthrough in the development of vaccines in November brings a tailwind for our entire industry. We have significantly reduced our cost base and are taking advantage of available promotion and support programmes in our core markets. We are currently already planning for the opening of the market and a new start in live entertainment.
“In addition to our core markets of Germany, Switzerland and the UK, we are also present in Ireland through our joint venture Singular Artists. We are seeking contact with artists and management, preparing the expansion of our successful formats and developing new offers.”
DEAG says its ticketing business, comprising MyTicket and the UK’s Gigantic, is becoming “increasingly important” for the company’s bottom line, adding that MyTicket now includes additionally functionality to ensure social distancing at events.
The publishing of DEAG’s latest financial results follows that of German rival CTS Eventim, which revealed last week it has lost just under €18m in 2020 to date.
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