CTS facing €1m revenue impact after ticket fee defeat
CTS Eventim has told investors to expect a “limited” decline in revenue of around €1 million in its 2018 financial results, after Germany’s highest court ruled the ticket seller could not continue to charge a €2.50 fee on print-at-home tickets.
Eventim took its case to the Federal Court of Justice (Bundesgerichtshof, BGH) in Karlsruhe following defeats in the district court of Bremen, then the higher regional court of Bremen, in September 2016 and June 2017, respectively.
The BGH ruling brings to an end the legal tussle between the company and the North Rhine-Westphalian Consumer Association (NRW) in Germany, although a similar lawsuit has yet to be settled in neighbouring Austria. Canadian promoter Evenko is similarly facing legal action in Quebec for charging ‘delivery’ fees on digital tickets.
“CTS Eventim acknowledges the BGH judgment and will implement it accordingly”
In a statement, an Eventim spokesperson says the decision will have “only a moderate financial impact”, as the ruling is “confined to ticket orders for which a [email protected] fee of €2.50 is charged”. “These,” they add, “represent a mere thousandth of group revenue” – around €1m.
While downplaying the financial impact of the ruling, the company says it could have a negative impact on its venue partners. “Proceeds from [email protected] make it possible for numerous venues in Germany” – many of which are publicly owned – “to offer their visitors an additional, very convenient and secure option for gaining admission,” adds the spokesperson.
“CTS Eventim acknowledges the BGH judgment and will implement it accordingly,” the company’s statement concludes. “As soon as the detailed grounds for judgment are released, the company will make the appropriate adjustments to its [print-at-home] Ticketdirect service.”
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