DEAG continues profitable growth, raises forecast for 2018
- Group revenue increased by 41 % over last year to EUR 153 million in the first nine months (previous year: EUR 108 million)
- Group EBIT rose by EUR 651 % over last year to EUR 8.2 million in the first nine months (previous year: EUR 1,1 million)
- Traditionally weaker Q3 with first positive EBIT contribution since 2012
- Strong Christmas business expected in fourth quarter
- Executive Board raises forecast for financial year 2018
Berlin, 22 November 2018 – DEAG Deutsche Entertainment Aktiengesellschaft (DEAG), Berlin, ISIN: DE000A0Z23G6, ticker: ERMK, listed in the Prime Standard, continued its growth course of the current financial year. According to preliminary figures, revenue in the third quarter of 2018 rose significantly by 65% from EUR 21.2 million to EUR 34.9 million compared to the previous year. Earnings before interest and taxes (EBIT*) improved significantly year-on-year from EUR -1.2 million to EUR 0.1 million. For the first time since 2012, DEAG thus achieved a positive EBIT in the traditionally weaker third quarter of the financial year. In the first nine months of 2018, DEAG recorded revenue growth of 41% to EUR 152.9 million, up from EUR 108.1 million in the previous year. EBIT in the first nine months of 2018 amounted to EUR 8.2 million compared with EUR 1.1 million in the previous year.
In terms of strategy, DEAG also continued along its chosen path and increased its stake in The Classical Company AG to 100% at the beginning of the fourth quarter. This is another step towards successively reducing minority shareholdings by increasing the shareholding and thus increasing the earnings per share attributable to the shareholders. In the reporting period DEAG had already taken over minority interests held by third parties in the Classics & Jazz and Ticketing divisions. In view of the fact that the calendar of events for 2019 is already filled to capacity, DEAG intends to continue to grow profitably and to profit from high-margin, high-turnover projects in all areas. In particular, the Arts+Exhibitions, Family-Entertainment and Ticketing business divisions offer above-average and highly profitable growth potential. At the end of October 2018 DEAG successfully placed a corporate bond with a volume of EUR 20 million to finance growth.
Due to the very positive development of the first nine months of 2018, with revenue of EUR 152.9 million and EBIT of EUR 8.2 million alongside the well-filled calendar of events for the traditionally strong fourth quarter, the Executive Board expects EBIT of at least EUR 10 million for 2018 as a whole with sales revenues of over EUR 200 million.
The full nine-month report for 2018 will be published on the company’s website on 30th November 2018 as published in the financial calendar.
DEAG Deutsche Entertainment Aktiengesellschaft (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 organises a broad range of live entertainment events and concerts. As a Live Entertainment service company with an integrated business model DEAG has extensive expertise in the organisation, marketing and holding of events, as well as in ticket sales via its own ticketing platform ‘MyTicket’ for its own and third-party content. The highly scalable business model of MyTicket strengthens DEAG on its way to increasing profitability. DEAG promotes around 4,000 concerts and events a year and currently sells more than 5 million tickets, of which a steadily increasing share is sold via its high-turnover ticketing platform MyTicket.
Founded in Berlin in 1978 and listed since 1998, DEAG’s core businesses include Rock/Pop, Classics & Jazz, Family Entertainment and Arts+Exhibitions. The Family Entertainment and Arts+Exhibitions divisions in particular are of great importance to the further development of DEAG’s own content. With its strong partner network, DEAG is excellently positioned in the market as an internationally active Live Entertainment service company.
DEAG shares (ISIN: DE000A0Z23G6 | WKN: A0Z23G | ERMK) are listed in the Prime Standard of the Frankfurt Stock Exchange, the quality segment of Deutsche Börse.
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