DEAG boss Peter Schwenkow says demand for event tickets is at “an extremely high level” after the business revealed a 55% jump in revenue for the first three months of 2023.

The German-headquartered live entertainment group reported revenues of €48 million for Q1, compared to €31m in the same period last year and €25.5m in the pre-corona year of 2019. The firm says that EBITDA of €3.1m represents almost a doubling of operating profitability, as 2022’s Q1 figure of €2.8m included significant funds from subsidy programmes.

It credited the expansion of its event formats and a diversified event pipeline for the results, as well, in addition to the companies it has acquired over the past four years. DEAG purchases in that time have included CSB Island Entertainment, Fane Productions, Gigantic.com, C² Concerts, Scottish promoter Regular Music, Ireland’s tickets.ie. platform, and German festivals Indian Spirit, Classic Open Air and Airbeat One.

The group also includes Kilimanjaro Group (UK), Wizard Promotions (DE), UK Live, My Ticket (DE, AT, UK) and Belladrum Tartan Heart festival (UK).

“Growth of more than 50% is above our plan and indicates that we are on track for a strong financial year”

“We are very pleased with the start to 2023,” says Schwenkow. “Growth of more than 50% is above our plan and indicates that we are on track for a strong financial year 2023. After the first quarter, we see ourselves on the way to achieving our annual targets of more than €300 million in revenue with a further improvement in EBITDA.”

Ticket sales reached four million, with successful productions including sold-out concerts with Ed Sheeran and Limp Bizkit, hit productions Riverdance and Disney on Ice, plus the “Christmas Gardens,” which drew two million visitors across 19 locations, and international literature festival Lit.Cologne, which pulled in 105,000 attendees.

Tens of thousands of tickets were also sold for Rammstein singer Till Lindemann’s winter 2023 European tour within the first 48 hours. DEAG has also reported strong demand for tickets for concerts in its new hip-hop and rap music segment, with 25,000 tickets sold for concerts by the likes of Samra, Tream and Jazeek – a double-digit percentage increase year-on-year.

“We have again seen demand for tickets at an extremely high level in the first three months,” notes Schwenkow. “We intend to continue developing our ticketing platforms and expand into new markets. We are in advanced discussions with potential companies and are confident that we will soon be able to announce further partners to the DEAG family. Together, we will grow, expand our event formats and bring enjoyment to visitors beyond their everyday lives.”

“One focus will be on the area of ticketing and expansion into new European markets”

DEAG is aiming to sell more than 10m tickets for around 6,000 events in 2023, with upcoming concerts including Iron Maiden, Kiss, the Scorpions, Rod Stewart, The Who and Sam Fender. More than 500,000 tickets have already been sold for its open-air festivals.

The company adds that its growth strategy continues to include the implementation of further acquisitions in the second half of the year, with several deals currently in the pipeline.

“One focus will be on the area of ticketing and expansion into new European markets,” states the report. “Due to its good operating performance and very solid financial basis, DEAG has already been able to arrange attractive financial terms for financing further business expansion in recent months.”

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It has been a strong week for touring power players on the stock market, with Live Nation, CTS Eventim and Madison Square Garden (MSG) Entertainment all seeing significant gains.

Billboard‘s Global Music Index increased 4.4% to 1,256.06, with 15 of the 21 stocks showing an upswing over the past week. Shares in concert giants LN and CTS were up 8.4% and 9.2% respectively, spurred by recent positive financial results for Q1 2023.

Live Nation posted revenue of $3.1 billion (€2.8bn) for the first quarter – up 73% on the corresponding period 12 months ago – with record results across all divisions. The earnings call prompted a notable uptick in the company’s share price, increasing from $66.76 to $75.91. The stock has since soared a further 12%, standing at $85.13 at press time, boosted by a bullish forecast by CEO Michael Rapino.

“What is clear as we look at our results and operating metrics is that global demand for live events continues to reach new heights – demand has been growing for a long time and is showing no signs of letting up,” said Rapino. “We expect to host a record number of fans this year, even against a 2022 comparison which benefited from rescheduled shows attended by 20 million fans.”

“The results show that live entertainment remains as popular as ever”

It is a similar story at pan-European giant CTS, which reported last week that ticket sales were up 58% on 2022, while consolidated revenue rocketed 163% year-on-year to €366.2m. Shares in the German-headquartered firm jumped 3% to €62.60 and have continued on an upward curve to €64.75.

“The results show that live entertainment remains as popular as ever,” said CEO Klaus-Peter Schulenberg. “Our customers have high expectations when it comes to buying tickets – especially for tours featuring top acts – and we have comfortably met these expectations. Both in Germany and internationally, we are pursuing organic growth and anticipate that our business performance will continue on its successful course.”

But it was MSG Entertainment, which reported a 4% year-on-year rise in revenues to $201.2m for the fiscal 2023 third quarter – its first as a standalone company following its spin-off from Sphere Entertainment – that experienced the biggest uplift. Shares leapt a huge 19.4% amid rumours it is negotiating a $1 billion deal to sell the former Hulu Theater, as Guggenheim initiated coverage of the company with a buy recommendation. The share price increased a further 2% today to $36.54.

“With the completion of our spin-off, MSG Entertainment begins its new chapter as a standalone, pure-play live entertainment company,” said executive chairman and CEO James L. Dolan. “We remain confident in the strength of our assets and brands and believe that we are well-positioned to create long-term value for shareholders.”

“We remain confident that this next chapter for our company will drive long-term shareholder value”

Shares in Sphere Entertainment also improved 6.1% last week and a further 1% today to $24.97. The firm reported an operating loss of $70.3m for fiscal Q3 on revenues of $363.3m.

“As we approach the opening of Sphere in Las Vegas, we remain confident that this next chapter for our company will drive long-term shareholder value,” said Dolan.

Billboard also reports that share prices for HYBE, SM Entertainment, YG Entertainment and JYP Entertainment have increased by an average of 75% year to date.

Elsewhere, Anghami, the largest music streaming service in the Middle East and North Africa (MENA), which acquired Dubai-based event management company Spotlight Events, climbed 1.7% and stands at $1.26.

UK-based music company ATC, which listed on the Aquis Growth Market in London in December 2021, has also seen its share price rise from 90p (€1.03) to 92.5p over the past month. The firm bettered its own expectations to record a profit on revenue of £12.1 million (€13.9m) in its first full year as a a public company.

“We are delighted with the progress we have made in our first year as a PLC, delivering 33% top line growth and profitability earlier than expected, whilst also investing in a number of important strategic developments for the group,” said ATC Group plc CEO Adam Driscoll.

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CTS Eventim chief Klaus-Peter Schulenberg says “live entertainment remains as popular as ever” after the company reported strong growth for the first quarter of 2023.

In its Q1 results, the pan-European giant revealed it has sold 18 million tickets so far in this year – representing a 58% increase on the 11m sold in the same three-month period in 2022 when the market was still impacted by the pandemic.

Consolidated revenue rocketed 163% year-on-year to €366.2 million, while normalised EBITDA increased by 221% to €76m. The numbers also compare favourably to the last pre-Covid year of 2019, when CTS generated revenue of €282.7m and €57.1m EBITDA.

CTS’ share price reacted favourably to the results, rising 3% to €62.60. The German-headquartered business posted record consolidated sales of €1.924 billion in 2022 – 33% up on its previous best year of 2019.

“We are pursuing organic growth and anticipate that our business performance will continue on its successful course”

“In the first quarter of 2023, CTS Eventim has maintained its successful trajectory following the record year of 2022,” says Schulenberg. “The results show that live entertainment remains as popular as ever. Our customers have high expectations when it comes to buying tickets – especially for tours featuring top acts – and we have comfortably met these expectations. Both in Germany and internationally, we are pursuing organic growth and anticipate that our business performance will continue on its successful course.”

The company’s ticketing segment garnered revenue of €148.3m in Q1 ’23 (previous year: €76.5m) – 42% higher than in the first quarter of 2019 (€104.5m). Normalised EBITDA stood at €67.8m (previous year: €27.2m), up 62% on the Q1 2019 (€41.9m). The firm credits the performance of its core market of Germany, with the Italian, Austrian, Swiss and Brazilian markets also driving growth.

Elsewhere, quarterly revenue in its live entertainment division leapt to €223.8m (2022: €65.1m/2019: €182.2m). Normalised EBITDA in the segment came to €8.2 million, down from €15.2m in 2019, as 2022 corresponding quarter saw a €3.5m loss. “Higher preparatory costs and implementation costs for festivals weighed heavily on normalised EBITDA in the first quarter of 2023,” the company notes.

CTS’ portfolio includes festivals such as Rock am Ring, Rock im Park, Hurricane, Southside, and Lucca Summer, and venues including the Lanxess Arena in Cologne, the KB Hallen in Copenhagen, the Waldbühne in Berlin, and the Eventim Apollo in London. Eventim was the world’s third largest promoter in 2022, according to Pollstar data.

Earlier this year, CTS announced it is expanding in North America through a joint venture with US promoters Mammoth Inc and AG Entertainment Touring. The company said the partnership will utilise the promoters’ resources and networks to sign ‘top-level’ acts for US and global tours.

It has also teamed with German wholesaler Lekkerland and prepaid and payment provider Epay to turn petrol stations into advance ticket sales points.

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Live Nation posted revenue of $3.1 billion (€2.8bn) for the first quarter of 2023 – up 73% on 12 months ago – as CEO Michael Rapino hailed a breakout year for the new generation of headline artists.

The results prompted a notable uptick in Live Nation’s share price, increasing from $66.76 to $75.91 at press time.

Operating income was $143 million, with AOI at $320m, while losses narrowed from $0.39 a share in Q1 2022 to $0.25 year-on-year.

The company posted record results across all divisions, with ticket sales of almost 90 million tracking more than 20% ahead of the same period last year, driven by a record number of stadium shows and “continued strong growth” in arena tours, leading Rapino to declare that 2023 was “off to a tremendous start”

“For the first time in three years, all of our markets are fully open,” he said. “The common theme we are seeing around the world is that live experiences are a high priority for fans. What is clear as we look at our results and operating metrics is that global demand for live events continues to reach new heights – demand has been growing for a long time and is showing no signs of letting up.

“We expect to host a record number of fans this year, even against a 2022 comparison which benefited from rescheduled shows attended by 20 million fans.”

“This is the real breakout year where the world and the consumer are truly global”

Speaking to investors on the company’s earnings call, Rapino said the business was “firing on all cylinders”.

“To be sitting here today above and beyond last year’s numbers, shows the global strength of the business, and it also shows the global strength of the business from the amphitheatre and the stadium to the club to the festival,” he said. “We’re looking at all territories around the world, firing on all cylinders.”

Its concerts division was responsible for the lion’s share – $2.3bn – of revenue, up from $1.2bn y-o-y, while ticketing leapt from $480m to $678m to $678 million. Rapino stressed that the numbers were not just being powered by heritage acts, but by new headliners from around the world.

“Six of the top 10 artists were younger artists,” he said. “You look at Lollapalooza, Coachella with Bad Bunny, Karol G, Rosalia, Blackpink, BTS, Billie Eilish. I mean, there’s just a host of great new talent every year coming up, filling the pipe. We didn’t know Luke Combs was going to be selling stadiums out this year, two years ago. We had no idea Bad Bunny was going to be the largest selling artist last year.

“We’re also seeing this encouraging new supply strategy where for many years, it was all about US or UK-based artists that filled the charts and fill the stadium and most other talent was domestic. It might have been big in Canada, it might have been big in area, but it didn’t travel.

“This is the real breakout year where the world and the consumer are truly global. Now, you can see artists coming from Latin America and Korea and becoming global superstars. So we think that alone gives the next kick to the supply chain for the next 10 years of young talent from, it will be from India, South Africa, it’s going to be everywhere overnight finding their way to TikTok and Spotify and other places to become these global stars that are selling arenas and stadiums out in their markets.”

“There’s no concern that somehow AI can never replace the live experience”

Rapino added that Ticketmaster is expected to deliver record activity, with around 600 million tickets managed globally this year, while LN’s sponsorship business was on track for double-digit AOI growth.

In addition, Rapino addressed the recent launch of Live Nation’s music-led destination experience company Vibee, describing the premium business as a “huge opportunity”.

“We think there’s a great opportunity overall to launch more products and services that can provide a better premium experience for the customer,” he said. “So this would just be an extension and a continual strategy towards what we call the premium experience.”

The firm’s president and CFO Joe Berchtold, meanwhile, touched upon the thorny subject of artificial intelligence, suggesting its implications for Live Nation were only positive.

“I think it’s all upside for us,” he said. “There’s no concern that somehow AI can never replace the live experience. For us, I consider it an infrastructure tool for both efficiency and effectiveness. So if you think about using AI on recommendations, much better marketing much better individual recommendation in terms of making you aware of shows that you might want to go to.

“Clearly, we’re using machine learning now to help inform models on suggesting pricing that we were just talking about. AI is just the same thing to the next level of data input through that machine learning process.”

Live Nation has also announced the return of its annual Concert Week from 10-16 May. The programme offers fans $25 all-in tickets to more than 3,800 shows across North America.

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