DEAG set to return to stock market

German live entertainment powerhouse DEAG has confirmed its intention to return to the Frankfurt Stock Exchange in Q1 2024.

The group plans a listing and offering consisting of a capital increase of €40-50 million, together with an additional offering of existing shares from the holdings of current shareholders.

The company first went public in 1998 and delisted in January 2021 in the wake of the pandemic after accepting a takeover offer from its largest single shareholder Apeiron Investment Group and its Malta-based subsidiary Musai Capital.

Berlin-headquartered DEAG says the proceeds from the re-IPO will be primarily used to further accelerate its growth “in line with its Buy & Build acquisition strategy”, with a focus on “high margin” ticketing businesses and live entertainment opportunities.

As part of the move, DEAG plans to restructure the business into two new segments – live entertainment and ticketing and service – with a key part of the strategy being to drive more of DEAG’s ticket sales through its own ticketing platform. The firm intends to appoint an additional independent supervisory board member within six months of the listing.

“We believe that there is an enormous growth potential in our business,” says DEAG co-CEO Detlef Kornett. “From driving ticket sales toward our own ticketing platforms to acquiring companies which increase synergies within our group and strengthen our strategy of expanded growth in both our live entertainment and ticketing and services businesses, the road ahead of us is paved with opportunity.”

“The foundation of our business stands on our strong historical growth, as shown by the ever increasing number of events we offer since 2019”

The transaction is expected to consist of an admission to the prime standard on the regulated market of Frankfurt Stock Exchange, plus an offering of new shares together with an amount of existing shares from the holdings of current shareholders.

DEAG subsidiaries include Kilimanjaro Group (UK), Wizard Promotions (DE), UK Live, My Ticket (DE, AT, UK) and Belladrum Tartan Heart festival (UK). The live entertainment group announced a “consolidation break” in early 2023 after acquiring 15 companies in the previous two and a half years, including Scottish promoter Regular Music, Ireland’s tickets.ie. platform and German festivals Indian Spirit, Classic Open Air and Airbeat One, along with CSB Island Entertainment, Fane Productions, Gigantic.com and C² Concerts.

In its most recent financial results, released last November, DEAG trumpeted a “new level of revenue and earnings” after revenue leapt by 73.3% from €123.1m to €213.3m, compared to the last pre-Covid year of 2019.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) also rose significantly. The company was aiming for revenue of more than €300m for 2023 as a whole. In 2022, DEAG achieved revenues of €324.8m and an EBITDA of €30.9m.

“The foundation of our business stands on our strong historical growth, as shown by the ever increasing number of events we offer since 2019 – recurring revenues from over 30 festivals, intellectual property created from children’s musicals to lightrails and our hallmark New Year’s Eve event at the Brandenburg Gate,” adds Kornett.

“We continue to expand our existing, and capitalise on new, business opportunities and develop strategies to complement this business growth in our existing and new markets. As we have shown in the past, we will look to the future with full confidence at the prospects for our business.”

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