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DEAG reports successful start to fiscal year 2017

2017-05-31 14:42:41
DGAP-News: DEAG reports successful start to fiscal year 2017

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

31.05.2017 / 14:42
The issuer is solely responsible for the content of this announcement.

Corporate News

DEAG reports successful start to fiscal year 2017

– Sales and EBIT in Q1 2017 above expectations

– Gross margin 45% higher – operating EBIT margin increased by 15%

– Significantly improved profitability in core markets the basis for confirmation of the 2017 forecast

– The fully placed capital increase creates the financial basis for further growth

Berlin, May 31, 2017 – DEAG Deutsche Entertainment AG (DEAG), Berlin, (ISIN: DE000A0Z23G6, WKN: A0Z23G), listed in the Prime Standard, has gotten off to a successful start to fiscal year 2017. Sales of EUR 19.5 million in the first quarter of 2017, traditionally the weakest quarter of the year in the live entertainment industry, were in line with expectations (previous year: EUR 31.3 million). The seasonal difference in how sales were distributed is also due to the European Soccer Championship in the second quarter of 2016. This sports event resulted in higher sales in Q1 and Q4 in 2016. Thanks to very profitable business in the core markets and in the main business areas, the operating profit margins improved significantly compared to the previous year. Gross profit from sales amounted to EUR 6.1 million (previous year: EUR 6.7 million). This corresponds to an improved gross profit margin of 31.4% (previous year: 21.7%). Adjusted for the effects of the Jahrhunderthalle transaction, the operating result before interest and taxes for the first quarter of 2017 amounted to EUR 0.2 million, roughly equal to the previous year’s level.

“For us, 2017 has been going according to plan. Our activities in the UK in particular and in the domestic market have developed quite positively across the board. In view of the good start to the second quarter and the well-filled event pipeline, DEAG will also be offering high-caliber, high-turnover and high-margin events in the quarters to come. These include, among others, the open air event “Matapaloz” at Hockenheimring that is likely to attract 70,000 visitors, top acts such as Iron Maiden, Anna Netrebko and Aerosmith and the German tour of The Rolling Stones that is already sold-out. The Family Entertainment division will continue the strong growth of the previous quarters. The very successful, in-house Christmas Gardens are also being extended to other locations due to the positive response. For 2017, DEAG expects around 830,000 visitors at seven locations. In addition, the company’s own ticket sales through the online sales platforms MyTicket will contribute to the sustained improvement in profitability,” commented Peter Schwenkow, CEO and founder of DEAG.

Based on the business development to date and the apparent strong second quarter the Executive Board is optimistic about the future course of the business in 2017 and confirms its forecast. Furthermore, DEAG is currently in advanced negotiations with another event organizer based in the UK. DEAG has laid the financial foundation for further growth with the capital increase that was fully placed in May 2017.

The complete report on the first quarter of 2017 will be available for download on the company’s website in the course of the day.

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 at present, 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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Claudius Krause
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