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Endeavor Q1 revenue boosted by demand for events

WME parent company Endeavor has reported significant growth in the first quarter of 2022, driven by the resumption of concert touring and demand for live events.

Endeavor, which also owns sports agency IMG and the Ultimate Fighting Championship (UFC), among other properties, generated revenue of US$1.474 billion for the first fiscal quarter of 2022.

Net revenue came to $517.7m, while EBITDA (earnings before interest, taxes, depreciation and amortisation) totalled $314.4m.

The agency’s representation business (comprising WME, sports agency IMG and Endeavor Content) generated revenue of $357.3m for the quarter, up $108.4m or 44% compared to the first quarter of 2021.

The segment’s adjusted EBITDA was $101.7m for the quarter, up $40.2m or 65%, year on year.

According to the company, the growth was primarily driven by increased brand spending, as well as higher commissions resulting from continued strong demand for Endeavor’s talent, and the recovery of live entertainment, primarily music and comedy touring.

WME artists include Drake, Justin Timberlake, Adele, Bruno Mars, Pearl Jam, Kendrick Lamar, the Killers, Bjork, Frank Ocean, Foo Fighters, St Vincent, Shakira and more.

“Our growth in the first quarter was driven by our ability to respond to the high demand for premium content and live events”

Elsewhere, the Events, Experiences & Rights segment revenue was $825.8m for the quarter, up $286.2m or 53% compared to the first quarter of 2021.

Increases were primarily driven by the return of more full-capacity live events in the quarter compared to the first quarter of 2021, including Super Bowl LVI, the Miami Open, the NCAA Final Four and Frieze LA, as well as $38m in revenue from the acquisition of NCSA, which closed in Q2 2021.

The segment’s adjusted EBITDA was $132.5m for the quarter, up $93.4m or 239%, year on year.

Owned Sports Properties segment revenue was $296.7m for the quarter, up $13.2m or 5% compared to the first quarter of 2021 – primarily driven by greater sponsorship, licensing, commercial PPV and event-related revenue for UFC among other factors. The segment’s adjusted EBITDA was $148.7m for the quarter, up $3.2m or 2% year on year.

“Our growth in the first quarter was driven by our ability to respond to the high demand for premium content and live events,” said Ariel Emanuel, CEO, Endeavor. “We feel great about where we sit relative to the secular tailwinds across all of our businesses, and we’ve raised our guidance for the fourth quarter in a row to reflect our positive outlook for the balance of the year.”

For 2022, Endeavor is projecting revenue between $5.235bn and $5.475bn, as well as adjusted EBITDA between $1.1bn and $1.15bn.

Last year, the company generated $5.1bn in revenue but posted a net loss of $467.5m.

 


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DEAG sales soar, return to pre-pandemic levels

Deutsche Entertainment (DEAG) has reported a return to form in the first quarter of 2022, with sales returning to pre-pandemic levels.

The Berlin-based live entertainment group generated sales of around €31 million in the first three months of 2022 – up 2,700% from Q1 2021 when operating sales were €1.1m and reported sales were €4m.

Sales in Q1 of this year were even higher than the first quarter of 2018 (€27m) and the first quarter of 2019 (€25.5m).

According to the promoter and ticketing agency, the increase is largely down to a number of events in all of the company’s national markets (Germany, the UK, Switzerland, Ireland and Denmark).

Notable events for DEAG in Q1 2022 included concerts by Simply Red and Texas in the UK and Bonnie Tyler in Switzerland, the international literature festival lit.COLOGNE, electronic festival “Mayday – 30 Years” in Germany, and Dita von Teese’s burlesque tour in the UK.

In addition, EBITDA (earnings before interest, taxes, depreciation and amortisation) in Q1 came to around €2.8m, up from €2.4m in the same period of last year.

“Finally! we can shift into a forward gear operationally once again and do what we burn for: to host exciting events”

For the first time in DEAG’s history, the ticketing segment was profitable in the traditionally weaker first quarter – a growth which is expected to continue throughout the year.

Overall, sales for the financial year of 2022 are expected to multiply year-on-year and significantly exceed pre-corona levels, says the company.

“Finally! Following the paralysis of the entire live entertainment industry caused by corona, we can shift into a forward gear operationally once again and do what we burn for: to host exciting events,” comments Prof. Peter L.H. Schwenkow, CEO of DEAG.

“The audience reactions and our first quarter figures show that we are extremely successful with this. We increased our operating sales by a factor of twenty-eight, a result that we owe entirely to our operational strength.

“Our EBITDA is also clearly positive. The Covid-19-related conditions have since eased further, so we will be burning off event fireworks in the coming quarters. For example, we will stage concerts with stars such as KISS, Ed Sheeran in the UK, Iron Maiden, Zucchero, Die Toten Hosen, Anna Netrebko and Die Ärzte, as well as open-air festivals such as Nature One, Belladrum and Sion sous les étoiles. We are excellently positioned for the restart of the industry. In 2022 as a whole, we will massively increase our sales and even significantly exceed the pre-corona level.”

DEAG says it has already sold more than 6.3 million tickets for events in its core markets for the coming quarters. On the basis of ticket sales and the “bulging event pipeline,” the company expects its upward trajectory to carry on in 2023.

 


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