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DEAG AG: 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

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

Communicating persons: Prof. Peter Schwenkow (CEO), Christian Diekmann (COO/CDO), Detlef Kornett (CMO), Ralph Quellmalz (CFO)

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