Berlin-based Deutsche Entertainment (DEAG) is increasing its presence in Scandinavia with a 75% stake in Danish promoter and international producer CSB Island Entertainment, via its wholly owned subsidiary DEAG Classics.

CSB, founded in 1994, organises and hosts around 300 events a year and has brought a slate of internationally renowned artists to Scandinavia including Kiss, James Blunt, Sir Elton John and Kylie Minogue.

The company also holds worldwide rights to productions and shows including The Show – A Tribute to Abba, which has now been performed in around 50 countries worldwide, Queen Machine Symphonic and Disco Tango Eurovision Show.

CSB company founder and CEO Carsten Svoldgaard and COO Kenneth Svoldgaard will remain shareholders and will continue to manage the company in the long term with their team, which will remain completely with the company.

“DEAG has been working closely and successfully with CSB for many years, especially in the UK and Scandinavia but also in the classics and jazz sector,” says Detlef Kornett, member of the executive board of DEAG.

“We see growth opportunities for our ticketing business and expect to see synergy effects in our international business”

“The investment in CSB is the next logical step of our trustful cooperation. Scandinavia is an economically strong market in Europe and is considered to be particularly digitally minded. We see good growth opportunities for our ticketing business in particular and expect to see synergy effects in our international business.”

The acquisition shortly comes after the German live entertainment company accepted a takeover offer from the company’s largest single shareholder, Apeiron Investment Group, and its Malta-based subsidiary Musai Capital.

The deal, which will see DEAG delist from Frankfurt’s Xetra stock exchange after 23 years as a public company, would provide the company with greater resources for future acquisitions, CEO Peter Schwenkow told IQ.

“We have huge financial support from our investors for future acquisitions, and this support is much, much bigger than any money we could collect from the capital market,” Schwenkow explains. “So, on the one hand it gives us the freedom to do the right decisions, and on the other it gives us deep pockets.”

The Berlin-based promoter and ticket agency has interests in Germany, Switzerland, the UK and the Republic of Ireland.

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Deutsche Entertainment AG (DEAG) has released its preliminary figures for financial year 2018, recording significant growth and beating its sales and earnings forecast.

The German promoter and ticketing company increased revenue to €200.2m, up 25% on the previous year’s €159.8m, while earnings before interest, taxes, depreciation and amortisation (EBITDA) grew a huge 123%, to €14.6m (previous year €6.5m). A significant increase of earnings before interest and taxes (EBIT) was also recorded: 110%, to €10.6m, from €5.1m the previous year.

The company had expected strong results, revising its growth forecast for the fourth quarter of 2018 following its first positive EBIT figure in Q3 since 2012. DEAG also announced plans to issue a new corporate bond to finance further growth.

In 2018, DEAG eliminated most of its minority holdings and joint ventures, acquiring all remaining shares (50%) in Swiss classical music promoter the Classical Company, as well as taking full control of DEAG Classics and ticketing platform MyTicket.

The German promoter views “realistic opportunities for internal and external growth” across its five business divisions in 2019

Hailing its “excellent start” to the 2019 financial year, the Berlin-based company says its “very well-filled event pipeline forms a solid basis for a positive business development in 2019”, with “realistic opportunities for internal and external growth” across its five business divisions: of rock/pop, classical and jazz, family entertainment, arts/exhibitions and ticketing.

The company recently appointed Roman Velke as chief financial officer. Velke will take over from Ralph Quellmalz on April 1.

DEAG will publish the full report on financial year 2018 with the final figures on 29 March 2019.

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Deutsche Entertainment AG (DEAG) has become the sole owner of Swiss classical music promoter the Classical Company, after acquiring all remaining shares in the company (50%) from Zurich-based media group Ringier.

The Classical Company is now a fully owned subsidiary of DEAG Classics – itself 100% owned by DEAG since June, when it bought out Sony Music’s 49% stake – although Ringier will remain a media partner until 2020.

The Classical Company deal is the latest step in DEAG’s strategy to eliminate its minority holdings and joint ventures, following DEAG Classics and, in July, MyTicket (formerly an equal partnership with Starwatch Entertainment).

Founded in 2010, the Classical Company is one of the leading promoters of classical music concerts in Switzerland. Past successes include Lang Lang, David Garrett, Vittorio Grigolo, Nigel Kennedy and Simone Kermes, while future shows include Anna Netrebko’s highly anticipated performance in Lucerne in February 2019.

In addition to various investments in TV, radio and ecommerce, Ringier is the owner of the Moon and Stars festival in Locarno and leading ticket agency Ticketcorner, the latter co-owned with CTS Eventim.

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Berlin-based Deutsche Entertainment AG (DEAG) has agreed a deal with Sony Music Entertainment Germany whereby it will acquire 49% of DEAG Classics AG to take full control of the company. As part of the deal, DEAG is selling its shares in UK-based show producer Raymond Gubbay Live (RGL) to Sony Music Entertainment International Limited.

No financial details were disclosed, but DEAG says its ownership stake in London-based live music promoter Kilimanjaro Live will remain unaffected, while Kili itself says it will continue to work closely with RGL as they have done for several years on events such as the Kew the Music concert series and the Kevin and Karen Dance tour – both of which will return in 2019.

Kilimanjaro are currently having their most successful year ever with over 1m fans attending the record breaking Ed Sheeran stadium tour which has just finished. They have also recently seen huge success with their Live at Chelsea concert series which features an annual fireworks prom, which this year was a musical celebration of the works of Andrew Lloyd Webber marking his 70th Birthday. Last year Kilimanjaro promoted two special performances with Hans Zimmer and looking forward to later this year Kilimanjaro will see Andrea Bocelli play two sold out shows at the O2.

The transaction represents a first step for DEAG towards successively reducing minority interests with the aim of increasing the earnings per share for DEAG shareholders.

DEAG will now own 100% of the shares in DEAG Classics AG including the shareholding in The Classical Company AG (Switzerland).

DEAG executive Detlef Kornett says, “DEAG and I am grateful for the integrity, loyalty and the tremendous success we have experienced in partnering with RGL ltd, in particular with its senior management Debra Eagers, Anthony Findlay and Jonathan Marks and their staff. We have seen through a fundamental change to the business of RGL while profitability increased in our time and the transaction allows RGL to prosper and at the same time the DEAG Classics business to continue to thrive, also in the UK.

“We are actively looking now at opportunities overall in the UK market to continue on our tremendous growth path that DEAG has started in partnership with Kilimanjaro and also Flying Music Group.”

The transaction represents a first step for DEAG towards successively reducing minority interests with the aim of increasing the earnings per share for DEAG shareholders. Proceeds of this transaction are intended to further strengthen DEAG’s position in the UK, one of its two core markets, also by investing in and increasing activities of myticket.co.uk.

Kili boss Stuart Galbraith comments, “We will continue to enjoy the full support and the opportunities of collaboration within the DEAG Group, with Flying Music Group but also with RGL in the future. There are numerous opportunities for us to grow our business which we will be able to continue to exploit.”

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