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DEAG sees huge returns in third quarter of 2022

Deutsche Entertainment (DEAG) continued to reap the rewards of its bullish M&A strategy in the third quarter of 2022, according to the company’s latest financial results.

The Berlin-based live entertainment group saw revenue and operating profit massively improve in Q3, compared to both last year and the pre-crisis year 2019.

Revenue rose to €101.7 million during Q3 of 2022, up 72% compared to the same period in 2019 and a six-fold increase compared to revenue of €16.7m in the same period of the previous year.

EBITDA (earnings before interest, taxes, depreciation and amortisation) increased significantly to €10.2m in the third quarter, which equates to an increase of 110% compared to the figure for 2019, or an increase of 134% compared to EBITDA of €4.3m in the same period of 2021.

DEAG says the strong financial results are driven by a significant upturn in operating activities in all of the company’s national markets (Germany, the UK, Switzerland, Ireland and Denmark).

The companies bought by DEAG since 2019 also made a significant contribution to the results. Recent acquisitions include Ireland’s tickets.ie. platform, as well as German festivals Indian Spirit, Classic Open Air and Airbeat One.

“2022 will be a record year for DEAG”

DEAG’s event portfolio now has more than 30 annual festivals across the aforementioned markets that attract more than 580,000 visitors.

Notable events for DEAG in Q3 2022 include the sold-out open-air events Belladrum Tartan Heart Festival in the UK and Sion sous les étoiles in Switzerland.

In Germany, the electro music festivals Nature One, Ruhr-in-Love and Mayday were deemed “complete successes” and drew around 100,000 visitors.

“We are extremely satisfied with our performance in the third quarter,” says Professor Peter L.H. Schwenkow, CEO of DEAG.

“Despite a challenging economic environment overall, the excellent development in the first six months of 2022 continued with high momentum in the third quarter.

“We successfully staged countless concerts and events and recorded a record summer in ticketing with three million tickets sold between June and August alone. We are experiencing unabated high demand for tickets to events and concerts. 2022 will be a record year for DEAG. The first quarter of 2023 is already characterised by high visibility. We expect our dynamic growth to continue beyond 2022.”

DEAG says it expects revenue to grow to €300 million, with a further improvement in EBITDA for the full year 2022.

 


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DEAG acquires Ireland’s tickets.ie platform

DEAG has grown its ticketing business by acquiring a majority stake in Oshi, operator of Ireland’s tickets.ie. platform.

Tickets.ie, which has provided ticketing solutions to the Irish live events sector since 2004, is the leading independent provider of fully outsourced ticketing services in Ireland.

The deal was completed through DEAG’s UK subsidiary MyTicket Services Ltd and will complement its existing myticket and gigantic.com platforms. Oshi founder and MD John O’Neill will remain a shareholder and continue to manage the firm in the long term.

“We see this deal with DEAG, Kilimanjaro and Singular Artists as bringing our relationship to the next level, of partnership and collaboration,” says O’Neill. “That, to us, is very appealing and exhilarating as we’ll be working closely with them to ensure that all their great artists reach the maximum audience possible.”

“Ticketing is DEAG’s fastest growing business area and an important earnings driver”

Berlin-based DEAG launched in Ireland in 2020 in partnership with veteran concert promoters Fin O’Leary, Brian Hand and Simon Merriman. Through its UK subsidiary Kilimanjaro Live, it established Singular Artists, a new company that will organise concerts in both Northern Ireland and the Republic.

In the coming years, DEAG aims to distribute more than eight million tickets per year via its own ticketing platforms and to further expand its position as an established distribution channel in its core markets.

“Ticketing is DEAG’s fastest growing business area and an important earnings driver,” says DEAG CEO Peter Schwenkow. “Especially after the corona pandemic has subsided, we are experiencing a massive increase in demand for tickets for physical events. We already have a strong international market position with our own platforms and are now expanding our position further.

“The ticketing market in Ireland is also showing strong growth rates. With myticket.ie, we have a strong independent third-party content platform here that is an excellent complement to our ticketing portfolio.”

 


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DEAG acquires majority stake in Indian Spirit fest

DEAG has acquired a majority stake in the German’s Indian Spirit, which is billed as one of the biggest psytrance festivals in Europe.

Featuring leading psytrance (psychedelic trance) DJs, the event has been held in Eldena, near Ludwigslust in Mecklenburg-Western Pomerania, since 1999 and attracts around 20,000 visitors every year.

The announcement comes days after DEAG expanded its interests in the family entertainment sector by signing a cooperation agreement with Dresdner Weihnachts-Circus.

“We have a strong international position and a well-balanced portfolio, which we are continuously expanding in a rapidly growing market”

“Indian Spirit is an excellent addition to our current range of music festivals,” says DEAG founder and CEO Peter Schewenkow. “We have a strong international position and a well-balanced portfolio, which we are continuously expanding in a rapidly growing market. Indian Spirit will provide further impetus for our growth and drive our expansion. We are very much looking forward to working with Sebastian Eggert and his team in greater depth.”

Berlin-headquartered DEAG’s ticketing platform myticket has already started advance sales for the 2023 festival as the exclusive ticketing partner of Indian Spirit. In addition, DEAG says it expects to gain “synergy effects” in the live entertainment business from the deal, both in terms of purchasing and artist acquisition.

Last month, DEAG enhanced its presence in the classical and jazz market with the acquisition of classical music festival Classic Open Air. Earlier this year, the Berlin-headquartered group reported the most successful summer in its 44-year history, with more than three million tickets sold for its events.

Its event portfolio now comprises more than 30 multi-day and one-day festivals in its national markets of Germany, the UK, Switzerland and Ireland. These include the electronic festivals Nature One, Mayday, Ruhr-in-Love and Airbeat One, as well as open-air events Sion sous les étoiles and Belladrum Tartan Heart.

Festival founder Rolf Eggert and service provider Music Eggert will continue to run Indian Spirit as a shareholder, together with his team led by MD Sebastian Eggert. DEAG has been working with Eggert since

In July 2022, DEAG took over the majority of the electronic festival Airbeat One and has been working successfully with  Eggert ever since acquiring a majority stake in Airbeat One last July.

In view of the current economic climate, DEAG has revealed it is also examining various possibilities for refinancing its 2018/2023 bond and has mandated IKB Deutsche Industriebank AG with examining the option of issuing a new unsecured bond.

 


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DEAG expands family entertainment portfolio

German live giant DEAG has expanded its interests in the family entertainment sector by signing a cooperation agreement with Dresdner Weihnachts-Circus (DWC).

The partnership includes multi-channel ticketing sales for multiple events, with DEAG’s Myticket platform becoming a DWC ticketing partner with immediate effect.

DWC, which is celebrating its 25th anniversary this year, is one of the largest Christmas circuses in Germany, with 70,000 visitors each year.

“The ticketing collaboration is an initial important step in our partnership, which we intend to expand by acquiring a stake in the future”

“We expect to have a strong fourth quarter, which will be significantly influenced by our Christmas business,” says DEAG founder and CEO Peter Schewenkow. “We are very pleased to be able to cooperate with Dresdner Weihnachts-Circus with another top-class event. The ticketing collaboration is an initial important step in our partnership, which we intend to expand by acquiring a stake in the future.”

DEAG has operated Christmas circuses in Essen, Hanover and Regensburg for several years and expects to further strengthen its festive business. The agreement with DWC includes a right of first refusal on all business shares of Dresdner Weihnachts-Circus.

Last month, DEAG enhanced its presence in the classical and jazz market with the acquisition of classical music festival Classic Open Air. Earlier this year, the Berlin-headquartered group reported the most successful summer in its 44-year history, with more than three million tickets sold for its events.

 


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Stuart Galbraith, Oliver Hoppe join DEAG board

Germany’s Deutsche Entertainment (DEAG) has appointed Kilimanjaro Live’s Stuart Galbraith and Wizard Promotions’ Oliver Hoppe as divisional board members.

Galbraith becomes executive vice president of international touring, and is tasked with the development of the rock/pop/contemporary business within the DEAG Group and in DEAG’s national markets (Germany, the UK, Switzerland, Ireland and Denmark).

Hoppe, meanwhile, is named executive vice president of product and innovation, and is responsible for the further development of the overarching product acquisition and utilisation.

DEAG says the pair’s tasks will also include the further expansion of the live entertainment business and a stronger interlinking of the DEAG Group companies.

This includes the development of new channels for the evaluation of content as well as the further harmonisation of various distribution channels.

Hoppe and Galbraith will assist DEAG’s executive board with the implementation of M&A projects

In addition, Hoppe and Galbraith will assist DEAG’s executive board with the implementation of M&A projects and create further synergy effects in ticketing and artist acquisition.

Hoppe is managing director of the DEAG subsidiary Wizard Promotions, the main tour and concert promoter within the DEAG Group in Germany. In recent years, the company has organised concerts by Iron Maiden, Bryan Ferry, Zucchero, Papa Roach, KISS, Böhse Onkelz and den Scorpions, among other artists.

Wizard’s portfolio also includes artists like 50 Cent, Limp Bizkit and Jamie Cullum.

Galbraith is CEO of the British promoter Kilimanjaro Live. The DEAG subsidiary has significantly expanded its event portfolio in recent years to include areas such as the spoken word, comedy and sports, and is now one of the largest live entertainment promoters in the UK. Both Galbraith and Hoppe will remain active in these roles.

The executive board is completed by Jacqueline Zich (executive vice president classics & jazz and COO DEAG Classics AG) and Benedikt Alder (executive vice president legal affairs & business development).

 


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DEAG acquires Germany’s Classic Open Air

DEAG has enhanced its presence in the classical and jazz market with the acquisition of classical music festival Classic Open Air.

The German live entertainment group has acquired 85% of the shares in the event, which celebrated its 30th anniversary this year, via its DEAG Classics AG subsidiary.

Launched in 1992, Classic Open Air has grown under the direction of Gerhard Kämpfe und Mario Hempel to attract around 25,000 to 30,000 visitors each year to the Gendarmenmarkt in Berlin. Highlights have included evenings with Till Brönner, Sarah Connor, Katie Melua, José Carreras, Al Jarreau, the Scorpions, Earth Wind & Fire, Montserrat Caballé, Udo Jürgens, Chris de Burgh, Roger Cicero and Joja Wendt.

“We are adding an attractive festival series to our event portfolio, which has already hosted many top national and international stars in recent years,” say DEAG CEO Peter Schwenkow and Jacqueline Zich, divisional board member of DEAG Classics AG. “We are delighted to be able to contribute to the further development of Classic Open Air with our live expertise and outstanding network.”

“DEAG has the potential to make this unique event even more international”

As well as expanding its activities and market position in the classics and jazz segment, DEAG says it expects to achieve synergy effects in the concert business and in the acquisition of artists, among other areas.  The deal will also increase the volume of DEAG’s ticketing business.

Hempel, MD of Media On-Line, the organiser of Classic Open Air, will remain a shareholder and continue to provide long-term support and advice to the company together with DEAG Classics AG.

“I am very pleased to have found the right partner in Peter Schwenkow and DEAG Classics AG for the further development of Classic Open Air at Gendarmenmarkt, which will celebrate its 30th anniversary this year,” says Hempel. “DEAG has the potential to make this unique event even more international at one of the world’s most beautiful venues and I am very much looking forward to being able to accompany this.”

 


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DEAG’s H1 revenue soars past pre-pandemic levels

Deutsche Entertainment’s (DEAG) revenue has soared past pre-pandemic levels, according to the company’s financial results for the first half of 2022.

The Berlin-based live entertainment group saw its revenue increase by a whopping 109% from €63.9 million to €133.4m compared to the first half of 2019.

EBITDA (earnings before interest, taxes, depreciation and amortisation) also increased from €3.1m to €10.1m (+226%), exceeding projections.

The news comes after DEAG reported the most successful summer in its 44-year history, with more than three million tickets sold in the company’s national markets – Germany, UK, Ireland, Switzerland and Denmark.

Highlights of 2022 so far have included concerts by Ed Sheeran in the UK and performances by Kiss and Zucchero in Germany. In Switzerland, concerts were held with Die Ärzte, Die Toten Hosen and Iron Maiden, among others.

Sold-out open-air events such as Nature One, Belladrum and Sion sous les étoiles were also deemed successful.

DEAG says its recent run of acquisitions, which includes Fane Productions, Gigantic.com, C² Concerts and Airbeat One,  has also contributed to the increase in key financial figures.

“We sold over three million tickets between June and August 2022 alone”

The company plans to continue playing an active role in the consolidation of the live entertainment industry in the future and to drive its growth through M&A, with a particular focus on complementary ticketing acquisitions.

With a financial base of over €100m and a strong first half of the year, DEAG expects its revenue to increase to over €300m for the full year 2022, with a further improvement in EBITDA.

“Live is back! We are very pleased with our operational development in the first half of the year,” says Prof. Peter L.H. Schwenkow, CEO of DEAG.

“Our teams have done a great job and held all of the events planned, despite material shortages and a lack of skilled workers in all markets. Our thanks also go to the many fans and guests at our events. After more than two years of the corona pandemic, people are eager to attend concerts and enjoy good entertainment.

“In some cases, visitors have kept tickets for up to three years in order to be able to be part of the restart of the event industry. With great joy and enthusiasm, we have set off the event fireworks we announced and will continue to delight visitors with top-class events in the coming months.

“We sold over three million tickets between June and August 2022 alone and expect one of the strongest third quarters in the company’s history. Especially in the current environment, we want more than ever to bring “a little happiness” to people. And we will do so many thousands of times in the months ahead.”

 


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DEAG acquires majority stake in Airbeat One festival

DEAG has acquired a majority stake in Airbeat One, an electronic music festival which takes place annually in northern Germany.

Founded in 2002 by Music Eggert, the festival typically attracts around 60,000 visitors to Neustadt-Glewe in Mecklenburg-Vorpommern each year.

According to DEAG, Airbeat One is now the largest electronic music festival in northern Germany and one of the largest in Germany.

Following the acquisition, Sebastian Eggert from Music Eggert becomes managing director of Airbeat One GmbH, the new organiser of Airbeat One.

With his team, which will remain entirely with the festival, he will continue to run the event in the long term.

DEAG says it expects the takeover to create “synergy effects in the live entertainment business as well as positive impulses for the ticketing business, especially for DEAG Group company I-Motion”– organiser of electronic music festivals Nature One, Mayday, Syndicate, Toxicator and Ruhr-in-Love.

DEAG says it expects the takeover to create “synergy effects in the live entertainment business”

In addition, the company hopes the acquisition will result in “significant cost synergies as well as added values in purchasing and artist acquisition, among other areas”.

Oliver Vordemvenne, MD of I-Motion, says: “We are all delighted about the partnership and the co-operation with Sebastian and the whole team, who have built up one of the biggest electro music festivals in Germany and inspire thousands of fans from all over the world every year.

“Airbeat One is an excellent addition to DEAG’s portfolio. With Airbeat One, we unite two of the most successful electro music festivals in Germany under one roof and are excellently positioned in this field with now a total of six electro music festivals with over 200,000 visitors annually. With the acquisition of Airbeat One, we have also created very good conditions for the further expansion of our business activities.”

Sebastian Eggert, MD of Airbeat One, adds: “We are all very pleased to have DEAG as a strong partner for the further development of Airbeat One. We share the same vision for the festival with a clear focus on the visitors and want to continue to offer them an exceptional customer experience in the future. We are strongly rooted in the region of northern Germany and will stay here for the long term and drive our growth together with DEAG.”

 


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DEAG promotes Moritz Schwenkow to CTTO

Deutsche Entertainment AG (DEAG) CTO Moritz Schwenkow has been elevated to chief ticketing and technology officer (CTTO) at the company.

Schwenkow was appointed CTO in 2020, taking charge of DEAG’s entire ticketing business, including MyTicket in Germany, Austria and the UK, and the UK’s Gigantic, acquired in December 2019.

In addition to his existing duties, Berlin-based Schwenkow will assume strategic responsibility for digitalisation and technology including the exploration and introduction of new systems and infrastructures. He will also focus on further developing and leveraging synergies between DEAG’s ticketing platforms.

The move takes into account the ongoing developments in ticketing tech and digitisation while underscoring the sector’s importance to DEAG’s wider operations.

“We will continue to use new technologies such as blockchain technology and NFTs to further strengthen our position in the market and expand into new markets”

“We are already excellently positioned on the international ticketing market with our state-of-the-art platforms,” says Schwenkow, son of DEAG CEO Peter. “The digitalisation of the event industry has gained even more momentum, not least due to the corona pandemic. This not only affects areas such as e-ticketing, but also new digital formats.

“With our Nature One and Mayday livestreams, we anticipated new trends early on and showed that we can react quickly to new circumstances. We will continue to use new technologies such as blockchain technology and NFTs to further strengthen our position in the market and expand into new markets. This will enable us to continue to offer our customers first-class entertainment – digitally and locally.”

DEAG recently reported the most successful summer in its 44-year history, with more than three million tickets sold for the promoter’s events. A record total of 3.1m people are scheduled to attend DEAG shows in Germany, UK, Ireland, Switzerland and Denmark between June and August.

 


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DEAG reports biggest summer in company history

DEAG has reported the most successful summer in its 44-year history, with more than three million tickets sold for the promoter’s events.

A record total of 3.1m people are scheduled to attend DEAG shows in Germany, UK, Ireland, Switzerland and Denmark between June and August.

Highlights so far have included Stuttgart’s Kesselfestival, which attracted 50,000 visitors for the first time last weekend. A similar number is expected at the upcoming Sion Sous Les Etoiles festival, along with an open air Die Ärzte concert in Thun, both in Switzerland.

Via its Kilimanjaro Live subsidiary, it has also either promoted or co-promoted stadium concerts by Ed Sheeran and Stereophonics in the UK and Tom Jones at Live at Chelsea. Allied to shows by the Berlin Philharmonic Orchestra and Kiss in Germany, as well as the Rock the Ring festival in Switzerland, DEAG welcomed close to 1.1m paying customers in June alone.

“It’s a great feeling to finally be back on track after the challenging months brought on by corona”

“It’s a great feeling to finally be back on track after the challenging months brought on by corona,” says DEAG CEO Peter Schwenkow. “Considering the rising costs and limited availability of personnel and material, my unconditional thanks go to our organisers, partners and employees for their great commitment to artists and the audiences.”

The group has already sold 1.3m tickets in July for concerts by the likes of Iron Maiden, Anna Netrebko, Die Toten Hosen in Switzerland, the Scottish festival Belladrum and the Nature One and Ruhr-in-Love festivals. Together with the already very good sales for August 2022.

Schwenkow predicted a bumper year when speaking to IQ earlier this year.

“We are very much convinced we will see a record year, just by delivering the 5,000-plus shows we have on sale,” he said. “Probably not with the full profit margins due to lack of personnel and by accepting higher costs at ticket prices from 2020 and 2021, but still strong.”

 


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