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Randy Phillips steps down as LiveStyle CEO

Randy Phillips, the man who helped to salvage SFX Entertainment post LiveStyle rebrand, is stepping down as the company’s chief executive, as first reported by Billboard.

Phillips will stay on at LiveStyle as a consultant to investors, as the company prepares to sell off several of its assets.

The former LiveStyle boss will now focus on managing US boy band Why Don’t We, whom he states “are really starting to take off”.

Phillips took over the running of Robert Sillerman-founded SFX Entertainment in early 2017. The company had become insolvent two years after launching and Phillips was brought onboard to turn it around as the company emerged from bankruptcy. He led the dance music behemoth, rebranded as LiveStyle, for three years.

In just one year, Phillips turned losses of US$30 million into earnings of $20m.

Randy Phillips, the man who helped to salvage SFX Entertainment post LiveStyle rebrand,  is stepping down as the company’s chief executive

“I was given my mission and I fulfilled my mission,” says Phillips. Under his leadership, LiveStyle sold assets including Paylogic to Vivendi and a minority stake in Rock in Rio to Live Nation and axed the US-leg of festival Mysteryland.

During Phillips’ tenure, LiveStyle made a number of high-profile hires, including Hard Events founder Gary Richards (president, North America), ex-Universal Music Group executive Chris Monaco (chief revenue officer) and NRG Productions founder Neil Ryan (senior vice president and head of North America production).

Prior to his work at LiveStyle, Phillips served as chief executive of AEG Live.

LiveStyle produces dance music festivals including Electric Zoo, Defqon.1 and Awakenings, operating through promoters and entertainment companies including Made Event and All My Friends in the United States, ID&T in the Netherlands and majority DEAG-owned I-Motion in Germany.

SFX founder Sillerman was recently charged with fraud in relation to his online publishing business, Function(x).

 


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DEAG plans further EU expansion for strong H2

German live event powerhouse Deutsche Entertainment AG (DEAG) forges on with its buy-and-build strategy, after reporting a decline in sales for the first half (H1) of 2019.

Despite reporting a strong start to 2019, sales in the first half of the year are down, with operating earnings before interest, taxes and amortisation (EBITDA) also decreasing, from €4.2 million in 2018 to €3.1m.

In its 2019 H1 financial report, DEAG attributes the decline in sales of almost 46%, from €118m in H1 2018 to €63.9m, to the “’seasonal postponement’ of certain events”. For example, DEAG organised twelve high revenue-generating Ed Sheeran shows in the second quarter of last year, whereas the company’s six Sheeran concerts in 2019 fall in the third quarter.

DEAG attributes the decline in sales to the “seasonal postponement of certain events”

Q3 2019 is forecast to be successful all round, with concerts by Böhse Onkelz, Foreigner, Stereophonics, Limp Bizkit and Toto expected to contribute to revenues of €55m, 60% more than the same period last year.

DEAG also says it plans to continue its 2019 buying spree, adding to recently acquired controlling stakes in Stuttgart-based C2 Concerts, Swiss concert organisers LMP and LME, LiveStyle’s German arm I-Motion and Schlager powerhouse Mewes Entertainment.

Finally, the use of the DEAG-owned MyTicket platform to distribute more than half a million tickets will also contribute to “one of the strongest fourth quarters in company history”.

 


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DEAG buys into LiveStyle German arm

Deutsche Entertainment AG (DEAG) is acquiring a majority 50.1% interest in I-Motion GmbH, the German division of electronic music behemoth LiveStyle.

The joint venture is the second DEAG announcement this month, following the company’s takeover of Stuttgart-based promoter C2 Concerts on 3 June.

DEAG alluded to in-the-works investments in its recent Q1 financial report. The executive board estimates that the additional sales potential from the LiveStyle deal will total €15 million annually.

I-Motion has organised electronic music events for over 25 years and sells 200,000 tickets annually. The promoter’s festivals include Mayday, Nature One and Ruhr in Love. Nature One took the best festival gong at the 2018 German Live Entertainment Awards (LEAs).

“Our German subsidiary always knows how to set new accents in the field of events and entertainment, and profits from our international network,” comments LiveStyle executive vice president and chief financial officer, Chuck Ciongoli.

“With DEAG, we now have a strong partner at our side who can look back on a wealth of experience in this market. We are convinced that both sides will benefit from our new relationship and are looking forward to a long-term partnership.”

“With DEAG, we now have a strong partner at our side who can look back on a wealth of experience in this market”

DEAG chief executive Peter Schwenkow expects that the partnership with I-Motion will stimulate growth for DEAG’s ticketing business via MyTicket, with growth opportunities including expanding Mayday in the UK and Switzerland.

“The key execs at I-Motion feel that DEAG is a great fit for them and I know it will be a great partner for LiveStyle in Germany,” says LiveStyle president and chief executive Randy Phillips.

LiveStyle, the US-based parent company of I-Motion, claims to be the world’s largest promoter of electronic music. The company formed following the collapse of Robert Sillerman’s SFX Entertainment in 2016.

The company promotes events across the Americas, Europe, Australia and Asia. Its North American business units include AMFAMFAMF, Made Event, React Presents, Disco Donnie Presents and Life In Color, as well as the brands Electric Zoo, Spring Awakening, the FriendShip, and All My Friends Music festival.

In Europe, LiveStyle operates through Monumental and Q-Dance in the Netherlands and ID&T in Belgium.

 


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