DEAG Deutsche Entertainment Aktiengesellschaft: DEAG sets the course for sustainably profitable growth
DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft: DEAG sets the course for sustainably profitable growth
DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft / Key word(s): Miscellaneous
14.11.2017 / 11:00
The issuer is solely responsible for the content of this announcement.
DEAG sets the course for sustainably profitable growth
– Following the acquisition of the Flying Music Group, the expansion course in the UK is to be continued
– M&A opportunities in the UK are being reviewed on an ongoing basis
– Direct business activities in Austria have been discontinued
Berlin, 14 November 2017 – DEAG Deutsche Entertainment AG (DEAG), Berlin, (ISIN: DE000A0Z23G6, WKN: A0Z23G), listed in the Prime Standard, continues to consistently implement its strategy for profitable business development. As a consequence, DEAG will concentrate in the future even more strongly on the growth markets of Germany, the UK, and Switzerland while the company discontinued its direct activities as a local promoter in Austria at the end of September.
After Germany, the UK is increasingly developing into DEAG’s second home market. With its British subsidiaries Kilimanjaro Holdings Ltd. and Raymond Gubbay Ltd., as well as the Flying Music Group Holding Ltd. which was acquired in the middle of August 2017, DEAG is now one of the leading promoters and theatre producers in the UK. In 2017, the profitable UK business will contribute 40% to the Group’s total turnover. The Management Board is keen to continue the current expansion course and wants to extend the range of successfully established events, such as the Christmas Garden formats, which will be held in Edinburgh, Scotland, for the first time in 2017. Furthermore, additional growth opportunities are being assessed through targeted M&A activities in the UK.
DEAG will present live entertainment events in Austria from Germany and in cooperation with independent and well-established Austrian promoters in the future. Furthermore, as part of its business focus, the Management Board has decided to end its direct activity as a local promoter in Austria via its subsidiary BLUE MOON Entertainment and thus to close this business division. However, DEAG will continue to conduct sales activities in Austria via the company’s own ticketing platform myticket.at.
Detlef Kornett, member of the Management Board and responsible for DEAG’s international business, comments: “We aim to continue to grow profitably internationally. With the changed market strategy for Austria, we are transforming ourselves from a rival competitor into an attractive supplier of high-quality entertainment formats. Furthermore, we see good conditions in the UK, Germany and Switzerland, and will continue our expansion strategy. Our recent acquisition of the British Flying Music Group in August 2017 expanded our international portfolio of events. This will enable DEAG to continue to grow, especially in the area of family entertainment, but also in musicals and theatre events.”
“The clear premise of our expansion plans is always sustainable profitability. Discontinuing our direct business activities in Austria, we will improve lastingly our Group earnings in the future,” adds Chief Financial Officer Ralph Quellmalz.
DEAG Deutsche Entertainment AG (DEAG) is a leading entertainment service company and a provider of live entertainment in Europe with subsidiaries in its core markets. DEAG produces and profitably promotes a broad range of live 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 promotes about 2,500 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 eCommerce platforms “MyTicket”.
Live events range from rock/pop, classics & jazz, the strongly growing Family Entertainment division as well as Arts + Exhibitions. The family entertainment division is 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.