Deutsche Entertainment (DEAG) has announced a “new level of revenue and earnings” in 2023, thanks to a consolidation break and the industry’s full recovery after Covid-19.

The German live entertainment company today reported earnings for the first nine months of the 2023 financial year, driven by its “own formats, the successful buy and build strategy, and the outperformance in the ticketing business”.

Compared to the pre-Covid year 2019, revenue increased by 73.3% from €123.1 million to €213.3m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also rose significantly from €8m in the first nine months of 2019 to €13.8m (+72.5%) in the first nine months of the current financial year.

Adjusted EBITDA (EBITDA excluding the bonus programme for 25 executives – which expires at the end of this year) amounts to €15m.

DEAG says it now generates around half of its consolidated revenue from its own event formats, the tickets for which are sold mainly and, in many areas, exclusively via its own ticketing platforms, myticket.de, myticket.at, myticket.co.uk, gigantic.com and tickets.ie.

The fourth quarter is already shaping up to be the strongest in terms of sales in the history of the Group’s own platforms, according to the results, with more than three million tickets sold so far for upcoming events.

In the third quarter of 2023, DEAG generated revenue of €90.7m, compared to €101.7m in the same period of the previous year, and EBITDA of €8.7m (previous year: €10.2m).

For the full year 2023, DEAG is aiming for revenue of more than €300m

For the full year 2023, DEAG is aiming for revenue of more than €300m and “remains committed to its goal of high operating profitability”. In 2022, the company reported the highest revenue and EBITDA in the company’s 45-year history at €325m and said it expected 2023 to surpass that.

The Berlin-based promoter and ticket agency says it will continue to play an active role in the consolidation of the live entertainment industry in Europe and drive its growth both organically and through M&As. To further accelerate its growth, is also continuing to examine all equity financing options, including a possible stock market listing.

The company has only been private for the last two years, having accepted a takeover offer from its largest single shareholder, Apeiron Investment Group, and its Malta-based subsidiary Musai Capital in 2021. Prior to that, the company was public for 23 years.

“DEAG’s growth in 2023 exceeds our expectations,” says Prof. Peter Schwenkow, CEO of DEAG.”Without acquisitions in the current year and without significant catch-up effects as in 2022, the company has reached a new level of revenue and earnings compared to the pre-pandemic period. We are particularly pleased with the development in the ticketing and Services businesses.

“DEAG is succeeding in selling an increasing share of tickets for concerts and events via its own ticketing platforms. The share of sales by third parties is also increasing. We will continue on our successful growth path, as M&A will remain a building block of our strategy. We are in advanced discussions with potential companies and will continue to establish new companies abroad.”

DEAG has interests in Germany, Great Britain, Switzerland, Ireland and Denmark. Its group includes Kilimanjaro Group (UK), Wizard Promotions (DE), UK Live, My Ticket (DE, AT, UK) and Belladrum Tartan Heart festival (UK).

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K-pop giant SM Entertainment has reported its highest-ever quarterly earnings for Q3, bolstered by concerts and record sales.

The Seoul-based company, which is home to acts some of the world’s biggest K-pop acts, reported KRW 48 billion (€34m) in operating profit – a 77% surge year-on-year (YOY).

Revenue followed suit with a 40% YoY increase, soaring to KRW 188.7 bn (€133.9m), while net profit reached KRW 37.1 bn (€26.3m), jumping 68% YoY.

SM says increases across the board can be attributed to the rise in music and recording sales by NCT DREAM, aespa and RIIZE, as well as the increase in artist activities such as offline concerts.

The entertainment agency is also home to acts including Girls’ Generation, Super Junior, EXO, NCT and Red Velvet.

The Seoul-based company reported KRW 48 billion (€34m) in operating profit – a 77% surge year-on-year

SM has also revealed a consolidated operating profit of KRW 50.5 bn (€35.8m) for Q3, a staggering 70% YoY increase, as well as a revenue surge of KRW 266.3 bn (€188.9m), a 12% YoY increase. Both figures recorded the highest quarterly performance.

Meanwhile, net profit increased by 189% to KRW 84.2 bn (€59.7m), compared to KRW 29.2 bn (€20.7m) during the same period last year. Operating margin for Q3 recorded 19%, a YoY increase of 6.5%.

SM’s subsidiaries include live entertainment company Dream Maker, advertising, production, travel and talent company SM Culture & Contents, entertainment management agency Keyeast and music publishing subsidiary KMR.

Looking towards the future, SM CEO Cheol Hyuk JANG said: “We have a packed line-up of activities through the end of the year, from aespa, Red Velvet and Taeyeon to TVXQ’s 20th anniversary album and concerts. We are also planning on showcasing a strong lineup of artists and content in the coming year as well. Through our music publishing subsidiary KMR, we’ll actively seek out global songwriters, focus on securing a stable supply of high-quality songs and eventually secure a new stream of revenues for SM through royalties made from selling music to external labels and agencies.”

Earlier this year, internet company Kakao Corp became the second-largest shareholder in SM Entertainment.

SM says increases across the board can be attributed to, in part, to the increase in artist activities such as offline concerts

SM Entertainment says the capital raised through the deal will fund its new business strategy dubbed “SM 3.0” – establishing multiple production centres and labels as well as a music publishing-specialised subsidiary, and investing in the metaverse.

At the end of last year, the Seoul-based operation announced plans to launch a headquarters in Singapore, in order to strengthen its presence in Southeast Asia.

Months later, it was announced that SM and Kakao would launch an integrated division in North America.

The division will combine SM’s global intellectual property and production capabilities with Kakao’s music distribution network and multi-label system, “with the goal of firmly establishing itself as a global K-pop key player”.

The aim is to promote artists from both companies, including Kakao-owned Starship Entertainment’s girl group IVE, as well as SM’s girl group Aespa and boy band NCT.

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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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WME parent Endeavor has reported continued growth across its portfolio in the second quarter of 2022, prompting the company to increase its full-year forecast for adjusted EBITDA.

Endeavor, which also owns sports agency IMG and the Ultimate Fighting Championship (UFC), among other properties, generated revenue of US$1.313 billion for the quarterly period ended 30 June, 2022.

Net income came to $42.2m while adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) totalled $306.4m.

The agency’s representation business (comprising WME, sports agency IMG and Endeavor Content) generated revenue of $358m for the quarter, up $29.7m or 9% compared to the second quarter of 2021.

The segment’s adjusted EBITDA was $111.2m for the quarter, up $49.5m or 80% year over year.

According to the company, the growth was primarily driven by the continued strong demand for talent, including the recovery of music and comedy touring, as well as increased corporate client spending.

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.

Elsewhere, the Events, Experiences & Rights segment revenue was $627.9m for the quarter, up $99.2m or 19% compared to the second quarter of 2021.

“We benefited from strong growth globally across our segments in the second quarter”

Increases were primarily driven by the return of full-capacity live events including music festivals, the Masters, and the NCAA Final Four, as well as the inclusion of the Madrid Open and NCSA acquisitions.

The segment’s adjusted EBITDA was $108.1 million for the quarter, up $71.3m or 194% year over year.

Owned Sports Properties segment revenue was $331.9m for the quarter, up $73.1m or 28% compared to the second quarter of 2021.

Growth was primarily driven by an increase in media rights fees and live event, partnership, consumer product and licensing revenues at UFC, as well as higher revenues at PBR (Professional Bull Riders), and the inclusion of Diamond Baseball Holdings.

The segment’s adjusted EBITDA was $161.3m for the quarter, up $29.0m or 22% year over year.

The upswing in each segment has prompted Endeavor to slightly adjust its full-year forecast for adjusted EBITDA to a range of $1.13bn to $1.17bn, which is up from the estimate of $1.1bn to $1.15bn offered in May with Q1 results.

Revenue for 2022 is expected to be between $5.235bn and $5.475bn, as estimated in the Q1 results.

“We benefited from strong growth globally across our segments in the second quarter,” said Ariel Emanuel, CEO, Endeavor.

“While we recognise there are broader macroeconomic forces at play, given the quarter’s performance and our line of sight through the end of the year, we’ve once again raised our Adjusted EBITDA guidance. We remain focused on our long-term strategy – leveraging the diversity and scale of our businesses to drive maximum value for our shareholders, our clients and our owned IP.”

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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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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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