DEAG Deutsche Entertainment Aktiengesellschaft: DEAG posts strong organic growth in the first half of the year
DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft: DEAG posts strong organic growth in the first half of the year
DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft / Key word(s): Half Year Results
31.08.2017 / 08:00
The issuer is solely responsible for the content of this announcement.
DEAG posts strong organic growth in the first half of the year
– DEAG benefits from organic growth across all business divisions
– Significantly improved operating profitability confirms positive development
– Further growth impulses expected from Flying Music Group acquisition in the UK
Berlin, August 31, 2017 – DEAG Deutsche Entertainment AG (DEAG), Berlin (ISIN: DE000A0Z23G6, WKN: A0Z23G), listed in the Prime Standard, recorded a positive business performance in the first half of the year as expected. Sales in the first six months of the year rose by 14.4% to EUR 90.2 million (before consolidation: EUR 104.3 million) compared to EUR 78.9 million (before consolidation: EUR 85.9 million) in the prior-year period. By comparison, organic sales growth alone amounted to 33% in the first half of 2017, and almost 40% before consolidation, excluding the previous year’s sales (EUR 10.9 million) from Manfred Hertlein Veranstaltungs GmbH, which was sold in early 2017. The significant sales gains affected profitability as well; the operating result before interest and taxes significantly improved in the first half of 2017, rising by EUR 3.9 million to EUR 0.3 million compared to EUR -3.6 million the previous year (adjusted for the effect on earnings in connection with the Jahrhunderthalle transaction).
Successful events in the core markets of all DEAG divisions as well as ticket sales through the MyTicket sales channel contributed significantly. The first half of the year featured such spectator magnets as Disney on Ice, TINI (Violetta), Classical Spectacular, Kew the Music with James, Live at Chelsea with Ludovico Einaudi, Ed Sheeran, David Garrett, Craig David, Aerosmith, Iron Maiden, KISS and the open-air events “Matapaloz” at the Hockenheimring and Till Brönner.
With respect to the future course of business, DEAG expects the positive development to continue. In the second half of the year, too, the Group will benefit from its well-filled event pipeline with strong sales and high-margin events. The Rolling Stones concerts that are already sold out and the Anna Netrebko & Yusif Eyvazov performance at the Waldbühne in Berlin are examples of this. Promising Christmas events later in the year round off the agenda. The Christmas Garden programs in the Arts + Exhibitions division will be expanded from three cities last year to six in 2017 and 10 in 2018, responding to positive visitor feedback. More than half a million visitors are expected in 2017.
In view of the positive business development in the first half of the year, with the traditionally strong fourth quarter yet to come, the Executive Board is exceptionally optimistic about the continuing business trend in 2017. The full-year forecast is expected to be attained. CEO and DEAG founder Peter Schwenkow adds: “We’re already looking forward optimistically to 2018. Event pre-sales are quite promising. We also reached another important milestone with our recent acquisition of the British event promoter Flying Music Group. That will help us make better use of the growth opportunities in our second home market in the UK. We’re expecting significant growth impulses from our UK business for the upcoming year 2018.”
The full report on the first half of 2017 is now available on the company website.
DEAG Deutsche Entertainment AG (DEAG) is an integrated entertainment company and a leading provider of live entertainment in Europe with subsidiaries in its core markets. 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 at present, a steadily increasing part of which is sold via its high-turnover online distribution channel MyTicket.
Live events range from rock/pop, classics & 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.