DEAG grows strongly in the first half of the year and intends to issue a bond
– Group sales increase by 34% to EUR 118.0 million, group EBIT rises by 263% to EUR 8.1 million
– Company plans to issue a bond in the second half of the year to finance further growth
– Reduction of minority interests to increase earnings per share
Berlin, 29 August 2018 – DEAG Deutsche Entertainment Aktiengesellschaft (DEAG), Berlin, ISIN: DE000A0Z23G6, Ticker: ERMK, listed in the Prime Standard, achieved significant growth in sales and earnings in the first half of the current financial year on group level based on preliminary figures. In the first half of 2018, DEAG group recorded a 34.2% increase in revenues to EUR 118.0 million after EUR 87.9 million in the previous year. Earnings before interest and taxes (EBIT)* amounted to EUR 8.1 million compared to EUR 2.2 million in the previous year. Adjusted for the effect of the acquisition of 49% of DEAG Classics AG and the sale of Raymond Gubbay Limited with a profit on deconsolidation of EUR 5.3 million, operating EBIT amounted to EUR 2.8 million after EUR 0.3 million in the same period of the previous year, taking into account the business unit Austria.
The company plans to issue a bond to finance its further development and to diversify its financing structure. DEAG has mandated IKB Deutsche Industriebank AG, Düsseldorf (“IKB”) for this purpose.
A number of event highlights contributed to its positive development. For instance, DEAG had a successful first half year with the open-air events, rock/pop tours, classical events, theatre productions and events for the entire family as well as the ticketing business in its core markets.
DEAG’s operations are thus well on target for 2018 as a whole. Besides its positive development, measures were also taken to increase the earnings per share attributable to shareholders by reducing minority interests. For example, DEAG acquired 49% of DEAG Classics AG and now holds 100% of the shares. Furthermore, DEAG bought back 24.9% of the shares in MyTicket AG and now holds 75.1% of the company. DEAG also underscored the growth focus of its business in the UK by acquiring 100% of the shares of the “Belladrum” Festival in Scotland, which sold out for the ninth consecutive year in 2018.
With a well-filled pipeline of events and over 2 million tickets already sold, DEAG has a solid basis for further development in the financial year. The Executive Board confirms the sales and earnings forecast for the full year 2018.
The full report for the first half of 2018 will be published on the company’s website in the course of 31 August 2018.
* EBIT (earnings before interest and taxes) is calculated as described in the group financial statements of DEAG for the financial year 2017 (see 2017 annual report of DEAG, p. 37, downloadable under www.deag.de).
DEAG Deutsche Entertainment Aktiengesellschaft (DEAG) is a leading entertainment service company and a provider of Live Entertainment in Europe with subsidiaries in its core markets. DEAG produces and profitably organises a broad range of live entertainment events and concerts. As a Live Entertainment service company with an integrated business model DEAG has extensive expertise in the organisation, marketing and holding of events, as well as in ticket sales via its own ticketing platform ‘MyTicket’ for its own and third-party content. The highly scalable business model of MyTicket strengthens DEAG on its way to increasing profitability. DEAG promotes around 4,000 concerts and events a year and currently sells more than 5 million tickets, of which a steadily increasing share is sold via its high-turnover ticketing platform MyTicket.
Founded in Berlin in 1978 and listed since 1998, DEAG’s core businesses include Rock/Pop, Classics & Jazz, Family Entertainment and Arts+Exhibitions. The Family Entertainment and Arts+Exhibitions divisions in particular are of great importance to the further development of DEAG’s own content. With its strong partner network, DEAG is excellently positioned in the market as an internationally active Live Entertainment service company.
DEAG shares (ISIN: DE000A0Z23G6 | WKN: A0Z23G | ERMK) are listed in the Prime Standard of the Frankfurt Stock Exchange, the quality segment of Deutsche Börse.