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DEAG reports positive business development in 2016 on the basis of preliminary figures

2017-04-13 13:47:21
DGAP-News: DEAG reports positive business development in 2016 on the basis of preliminary figures

DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft / Key word(s): Preliminary Results

13.04.2017 / 13:47
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Corporate News

DEAG reports positive business development in 2016 on the basis of preliminary figures

– Fourth quarter of 2016 best quarter in the last five years

– Revenue before consolidation was EUR 204.9 million in 2016

– EBIT significantly improved compared to the previous year

– Disproportionately strong organic sales and earnings growth in the UK

– Continued high sales level with further improvement in earnings expected for 2017

Berlin, April 13, 2017 – DEAG Deutsche Entertainment AG (DEAG), Berlin (ISIN: DE000A0Z23G6, WKN: A0Z23G), listed on the Prime Standard, has impressively proven the effectiveness of its business model with an impressive final spurt in the fourth quarter. In the last three months of 2016, DEAG generated almost half of total annual sales, for example, representing the strongest quarter in five years with sales of EUR 86.8 million (Q4 2015: EUR 53.9 million). As expected, Christmas activities were very successful towards the end of the year, particularly the Christmas Garden formats “Christmas at Kew and at Blenheim” and “Christmas Garden Berlin”. Other highlights in the fourth quarter were “Disney on Ice” and “Marvel Universe”, besides many large tours such as of the Red Hot Chili Peppers, Böhse Onkelz, David Garrett and others.

On the basis of preliminary, unaudited figures, DEAG generated sales of EUR 204.9 million in 2016 prior to consolidation and was thus roughly on the previous year’s level. The preliminary sales in 2016 after consolidation amounted to EUR 184.8 million (previous year: EUR 200.4 million). EBIT in 2016 amounted to EUR 0.5 million (previous year: EUR -26.2 million). Fully and finally considered are also the results of the audit by the German Financial Reporting Enforcement Panel (Deutsche Prüfstelle für Rechnungslegung).

Peter Schwenkow, CEO and founder of DEAG, comments: “Our strategy with a clear focus on family entertainment, rock/pop, classics & jazz, arts + exhibitions and ticketing has been proven right. In addition to our strong presence in the German-speaking countries, our UK business also paid off with disproportionate organic growth, now accounting for around 35% of DEAG’s total sales. We want to carry this momentum forward and expand our UK business to as much as 40% in the medium term.”

Also in 2017, DEAG will continue to develop its entertainment content at a high level, strengthening not only the event business, but also steadily increasing the volume of direct ticket sales. Due to the well-filled pipeline, the Executive Board is looking optimistically into the 2017 fiscal year. The company is planning to further improve earnings in the long term and strengthen its international market presence. In particular, the subsidiaries in the UK will continue to develop dynamically in 2017. In view of this positive business development, the Executive Board expects sustained high sales compared to the previous year. In addition to the expected organic growth, particularly through the use of synergies and the expansion of existing formats, external growth opportunities are also being selectively examined. For 2017, the Executive Board expects EBIT in the medium to upper single-digit million euro range.

The full report on the 2016 fiscal year will be available on the company’s website on April 28, 2017.

About DEAG

DEAG Deutsche Entertainment AG (DEAG) is an integrated entertainment company and a leading provider of live entertainment in Europe with subsidiaries in the GSA region and the United Kingdom. DEAG produces and profitably organizes a broad range of events and concerts. Its own distribution business, mytic myticket AG, which is also share-held by two large print and TV media companies, increases the company’s profitability and scales its business model. DEAG organizes about 2,000 concerts and events a year, selling more than 5 million tickets, a steadily increasing part of which is sold via its high-turnover online distribution channel MyTicket. Live events range from rock/pop, festivals (national and international), classical music & jazz, the strongly growing Family Entertainment division as well as Arts + Exhibitions. The festivals and family entertainment divisions are particularly fundamental for the further development of DEAG’s own content. Its network of strong partners allows DEAG to put itself in an excellent market position as an internationally active live entertainment group. DEAG shares (ISIN: DE000A0Z23G6 | WKN: A0Z23G | ERMK) are quoted in the Prime Standard segment of the Frankfurt Stock Exchange, which is the quality segment of the Deutsche Börse, the German stock exchange.

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