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CTS Eventim ‘optimally positioned’ for reopening

CTS Eventim’s Q2 financial results show that the company is “optimally positioned for the return of live entertainment,” according to CEO, Klaus-Peter Schulenberg.

In the period from April to June 2021, the Munich-based company’s revenue was up sharply compared with Q2 2020, primarily thanks to an uptick in ticket sales.

In the second quarter of 2021, ticketing revenue went up by 283.7%, from €9.4 million to €36.1m. Normalised EBITDA (earnings before interest, taxes, depreciation and amortisation) amounted to €77.6m (previous year: loss of €18.2m). This included around €73m in German coronavirus support.

Before the outbreak of the coronavirus pandemic, around 250 million tickets per annum were marketed using the company’s systems, which include online portals under brands such as eventim.de, oeticket.com, ticketcorner.ch, ticketone.it, and entradas.com.

The company’s live music revenue also improved in the second quarter of 2021, jumping by 81.5% year on year to €11.5m (previous year: €6.3m). Normalised EBITDA amounted to €21.4m (previous year: €1.9m). German coronavirus support contributed around €29m to earnings.

“Ticket sales are recovering, which confirms our view that people are yearning for live entertainment after the pandemic”

“Ticket sales are recovering, which confirms our view that people are yearning for live entertainment after a year and a half of the pandemic,” said Schulenberg. “However, politicians must set out a framework so that it is economically viable for events to be held again. The government support is very helpful but the industry wants to finally be able to earn its money by returning to work.”

He added: “CTS Eventim has taken the coronavirus crisis as an opportunity to further strengthen and broaden its market position by undertaking a number of major strategic initiatives. Going forward, we will be better positioned than ever before, especially internationally, to be able to impress our customers with our services, industry expertise and technology in the live entertainment business.”

During the pandemic, the pan-European live entertainment giant continued the expansion of its Eventim Live promoter network, establishing the Gadget abc Entertainment Group in Switzerlandpartnering with legendary US promoter Michael Cohl, and acquiring a majority stake in the Barracuda Group in Austria.

In 2021, CTS acquired Berlin-based promoter DreamHaus, led by Matt Schwarz, taking the network up to 36 promoters in 15 countries.

The company recently announced plans to build a new €180 million arena in Milan, northern Italy.

 


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DEAG minimises losses in first half of 2020

German live entertainment group DEAG has managed to cap its losses at €300,000 in the first half of the year, according to the company’s half-year earnings report.

Despite the widespread economic impact of coronavirus, the company has minimised its losses as a result of a “massive cost-cutting programme” and €9 million in insurance payouts, with another €5.1 million in the settlement process.

DEAG (Deutsche Entertainment AG), which owns My Ticket and Gigantic, also reported that sales in the first half of the year amounted to €31.7 million (previous year €63.9m) and to €5.6m (previous year: €38.4m) in the second quarter.

In the second quarter, the company managed to save more than 30% compared to the first quarter of 2020.

“We are satisfied with the economic result in the first half of 2020 against the backdrop of the drastic restrictions imposed by Covid-19 on us. Above all, we are demonstrating operationally that DEAG can develop and implement successful events in any market environment, provided the regulatory framework allows it,” says Peter Schwenkow, CEO of DEAG.

“Due to DEAG’s strong financial resources, the time scale of the crisis is not the main focus of our considerations”

DEAG’s report says its relatively smooth six months is down to the company’s swift pivot to new event formats.

According to the report, electronic festival Nature One made its virtual debut in August to an audience of 4.5 million users.

While the drive-in event, BW-Bank Kulturwasen in Stuttgart, has been extended until the end of September.

The company also cites Stage Drive in Frankurt and virtual reality format TimeRide as successful projects.

“I am extremely grateful to all our employees not only for their ideas, but also for their motivation and commitment to our cost reduction and efficiency programmes. Our enormous efforts are proving to be a great success. Due to DEAG’s strong financial resources, the time scale of the crisis is not the main focus of our considerations,” continues Schwenkow.

“On the contrary, our dense calendar of events for 2021, many millions of tickets sold and already more than €100m in contracted revenues at the end of the first half of the year make us very optimistic. For the vast majority of these revenues in the coming year, we also have full insurance coverage again, including cancellation due to force majeure.”

According to the company, nearly 90% of customers have indicated that they will keep their tickets for postponed events. At the end of the first half of the year, DEAG had already sold a total of around 2.5m tickets in Germany, Switzerland and the UK (including Scotland).

 


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Share price holds steady in difficult Q2 for Live Nation

Live Nation’s second-quarter earnings report depicts a tough period for the live entertainment group. With few live events taking place worldwide, LN has reported a 98% drop in revenue and US$665 million loss during the quarter.

The company’s revenue for the quarter was $74m compared to $3.2 billion last year – even after gradually reducing costs for this year by over $800m – taking the company’s current debt to $4.9bn with a weighted average cost of 4.4%.

The loss includes refunds issued by the company’s ticketing platform, Ticketmaster, which reimbursed money for 11m tickets across 42,000 shows and generated a loss of approximately $79m.

However, the company’s share price has been on a steady incline since the end of June, increasing from $42.64 to current value of $47.64, and its CEO Michael Rapino is optimistic about the future.

Speaking during Live Nation’s latest earnings call at 5pm ET (9pm GMT) yesterday (5 August), Rapino said the company will be focusing on new revenue streams around keeping fans connected to artists, citing the potential for livestreaming to become a long-term component of the business.

“Virtual concerts have proven to be a huge demand with fans, so we established a live-from-home platform to provide a convenient place for fans of all types to find the performances from their favourite artists,” he says.

“Virtual concerts have proven to be a huge demand with fans, so we established a live-from-home platform for fans to find the performances from their favourite artists”

LN had 67m fans see over 18,000 concerts and festivals globally, the vast majority of them online, in the second quarter – most recently the virtual Lollapalooza festival.

Though LN has launched socially distant shows when and where permitted, in New Zealand, France, Denmark, Spain, Germany, Finland and as well as cities across the US, Rapino says he expects live events to return properly in summer 2021.

On the call, the CEO expressed confidence in the fans’ desire to attend shows in the future despite uncertainty, reporting that 86% of concert fans are keeping their tickets for rescheduled shows.

However, it seems LN is still planning for a potentially tough festival season in 2021. In early June, a memo was leaked outlining the company’s intention to update its contract terms for artists.

The memo, sent to booking agency partners, proposed changes including a 20% reduction in guarantees from 2021 levels, minimum requirements for marketing activity and a stipulation that artists hold their own cancellation insurance in the event that the festival does not go ahead.

However, on the earnings call, Rapino said “the press got a hold of a work in progress,” and that largely the memo was a “wish list of things”.

“Artists keep calling me daily saying, ‘When can I go? When’s it going to be safe? When are we going to go?’”

“We wanted to make sure that going into 2021, if you are a headline artist that was going to play a certain festival this year and [both LN and the artist] wanted you to play it next year, the two things we wanted to make sure that we were protected in, and that we both shared some of the risk, was a refund reduction and insurance,” he clarified,

“Those are the two principles, if you take all the drama from the press, aside those are the two things we wanted to make sure that we weren’t stuck paying the same price in 2020 if we had a 31% refund rate on a festival.”

Despite the devastating impact Covid-19 has had on Live Nation’s, and the wider industry’s, business, Rapino told investors touring had “not had a structural change”, with both fans and artists keen to get back to shows as soon as it’s safe to do so.

“Artists keep calling me daily saying, ‘When can I go? When’s it going to be safe? When are we going to go? I am dying to go. I got new music. I want to drop new music,’” he added.

“So I think this is why we believe long term – regardless of what quarter we exactly scale at – that the business will be stronger than ever, with the creative push by all these artists who need to get on the road to drive their new music.”

 


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Eventim half year results show significant gains

CTS Eventim released its latest financial results today (23 August), which indicate significant growth in revenue and earnings in the first six months of 2018. Of all its divisions, live entertainment saw the biggest gains with revenue rising 36 per cent to €429.1 million, and EBITDA (earnings before interest, taxes, depreciation and amortisation) up 57.4 per cent to €28.5 million.

The news follows an already successful first quarter, details of which were released back in May, and despite market conditions including fewer major tours and presales “due to the FIFA World Cup.”

In the first half of 2018, group revenue for the company rose to €606.6 million, up 24.2 per cent from €488.5 million over the same period in 2017. Normalised EBITDA climbed to €94.1 million, up 12.5 per cent on last year.

Eventim’s ticketing division reported revenue increases of 3.1 per cent to €183.4 million, and a normalised EBITDA of €65.6 million, slightly higher than last year. This, the company says, is despite the expense of implementing GDPR regulations throughout its operations. In all, the company sold 22.4 million tickets, with web ticketing volume up almost 10 per cent.

“This is a clear indication that we are well-equipped for further growth – not only in our present markets, but also beyond”

Commenting on the news, CEO Klaus-Peter Schulenberg explained the boost in revenue and earnings was down to both live entertainment and ticketing. “Our strong Live Entertainment business and our online ticketing operations played a major role here.”

Last year, the company hit revenue in excess of €1 billion for the first time ever. Commenting on the news, CEO Klaus-Peter Schulenberg says, “this is a clear indication that we are well-equipped for further growth – not only in our present markets, but also beyond.”

 


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