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 acquires Michael Drieberg’s Live Music Production
German live entertainment powerhouse DEAG has made its third promoter acquisition this month, announcing today it is to acquire a majority stake in Live Music Production (LMP) and Live Music Entertainment (LME), the leading concert organisers in Francophone Switzerland.
The acquisition sees the two companies – founded and owned by veteran promoter Michael Drieberg – become part of AIO Group, the DEAG subsidiary that includes Good News Productions, the market leader in German-speaking Switzerland, as well as the country as a whole.
Over a 20-plus-year career, Drieberg has organised shows by the likes of Johnny Hallyday, Sting, David Guetta and Zucchero, and his company offers “attractive events in the segments rock/pop, family entertainment, arts and exhibitions and classics jazz”, with a focus on French-speaking artists, says DEAG.
The group also owns the 2,000-capacity Salle Métropole venue in Lausanne and promotes the open-air Sion Sous les Étoiles festival in Sion, Canton Valais, which welcomes 40,000 visitors annually.
“We are gaining excellent access to the French-speaking market”
The acquisition of a majority stake in the Live Music companies follows similar deals with I-Motion, the German division of EDM conglomerate LiveStyle (formerly SFX Entertainment), and Stuttgart-based promoter C2 Concerts, earlier this month. DEAG alluded to several in-the-works European investments in its recent Q1 financial report.
Drieberg will continue to manage the businesses and, together his team and DEAG, is responsible for driving the growth of LME/LMP. Following the acquisition, for the Swiss market as a whole, DEAG expects profitable revenue worth around Fr. 35 million (€51.5m).
“With this investment, we are accelerating the strategic expansion of our business activities in Switzerland,” says Detlef Kornett, a member of DEAG (Deutsche Entertainment AG)’s executive board. “We are expanding our range of events to include first-class French-speaking artists and events and are gaining excellent access to the French-speaking market.”
Drieberg adds: “With DEAG, we are jointly establishing a network that offers all of us excellent growth opportunities. We have a long-standing, trusting relationship with [Good News CEO] Stefan Matthey and Good News Productions and look forward to expanding our joint activities.”
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