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| DEAG on track for the full year after first half of 2019


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DEAG on track for the full year after first half of 2019

  • Group sales in H1 of around EUR 64 million, Group EBITDA margin rises to 5% thanks to optimised ticketing business and profitable product mix 
  • Sales shift from Q2 to Q3 due to planned large-volume events
  • Very strong start to Q3; acquisitions from H1 will contribute to sales for the first time 
  • Probably one of the strongest fourth quarters in the companys history 
  • Further acquisitions planned for the second half of the year 

Berlin, 29 August 2019 – DEAG Deutsche Entertainment Aktiengesellschaft (DEAG), Berlin, listed in the Prime Standard, ISIN: DE000A0Z23G6, Ticker symbol (NEW): LOUD, has announced its preliminary figures on its operating performance in the first half of 2019. Based on these results, the DEAG Group recorded sales of EUR 63.9 million in the first half of 2019, compared to EUR 118.0 million in the previous year. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 3.1 million compared to EUR 4.2 million on a comparable basis. The operating EBITDA margin was 4.9% after 3.6% in the previous year.  

The decline in sales is mainly attributable to the seasonal postponement of certain events. For example, the 12 stadium shows with Ed Sheeran in the UK were held in the second quarter of 2018. His “Divide” tour is the most commercially successful tour of all time. In 2019, the 6 concerts with Ed Sheeran organised by DEAG fall in the third quarter. Additional concerts will also be held in July and August with Rock and Pop bands such as Böhse Onkelz, Foreigner, Stereophonics, Limp Bizkit and Toto. For this reason, the company is forecasting sales of around EUR 55 million in the third quarter, an increase of more than 60% over the previous year. In addition, DEAG expects this year to be one of the strongest fourth quarters in company history and above-average growth in earnings. Ticketing and the profitable event formats in the Christmas business are expected to contribute to this.  

This assumption is primarily based on organic business expansion. By expanding successful, profitable formats in all business segments, DEAG is continuing its organic growth as planned in the second half of the year. Among other events, the successful “TimeRide” format will be expanded from one to five locations. The successful “Christmas Garden” format will also be offered in six cities instead of three in 2019, including other European countries for the first time. In addition, the Group is increasing the number of its Christmas Circuses from two to three locations. Of particular significance is the fact that DEAG will distribute more than half a million tickets for these events almost exclusively via its MyTicket platform.  

Besides the very successful Christmas Village in Kiel, Wuppertal and Hamburg will also be added to the line-up in the winter of this year.  

Besides organic growth, DEAG is also pressing ahead with its acquisition and integration strategy. The Group already successfully completed four transactions in Switzerland and Germany in 2019. These include the majority holding in the MEWES Entertainment Group to position itself even more broadly in the “Schlager und Volksmusik [German folk music] segment. In the second half of the year, the company plans to make further acquisitions to strengthen both its portfolio and existing value creation. In this context, DEAG is closely monitoring the possible effects of the current discussions about the announced Brexit in the UK. 

In view of the successful start to the current quarter and the emerging growth opportunities, the Executive Board confirms its forecast for 2019 as a whole