DEAG achieves positive business performance in challenging environment in first half of 2024

Corporate News

DEAG achieves positive business performance in challenging environment in first half of 2024

• Revenue up 8.2% on the previous year to around EUR 133 million
• EBITDA of EUR 3.1 million in line with planning
• Demand for tickets to events in second half of the year at a high level
• M&A activities significantly intensified; further acquisitions planned in second half
• Further sales growth expected for the year as a whole despite challenges, EBITDA planned to be at least at the previous year’s level

Berlin, 29 August 2024 – DEAG Deutsche Entertainment Aktiengesellschaft (“DEAG”) saw its business develop positively in the first half of financial year 2024 – despite a weak overall economic environment in Europe, a serious market shakeout in the festival and open-air sector, weather-related event restrictions and significant investments in DEAG’s corporate structures and further growth.

Revenue in the reporting period rose by 8.2% from EUR 122.7 million to EUR 132.7 million. At EUR 3.1 million (previous year: EUR 5.1 million), EBITDA was largely in line with planning. This already includes expenses in connection with the reorganisation of the Executive Board in the first half of 2024 and integration costs for companies acquired. In addition, the Executive Board approved investments in future organic and inorganic company growth in the area of digitalisation and modernisation of DEAG’s IT infrastructure, particularly in the entire area of ticketing, and these were taken into account in the reporting period. EBITDA adjusted for non-recurring effects amounted to more than EUR 4 million. For the year as a whole, DEAG expects EBITDA to be at least at the previous year’s level despite the challenges mentioned above and additional expenses for ESG reporting. A year-on-year increase in revenue is planned for 2024 as a whole. DEAG’s high density of events in the quarters that lie ahead is also reflected in contract liabilities, which, at EUR 103 million as of 30 June 2024 were nearly 50% higher than the previous year’s figure of EUR 69 million.

In Germany, the reporting period was characterised by a decline in economic output and restrained private consumer spending. The European Football Championship in Germany in June and July, a highly successful international event that attracted a great deal of media attention, also led to a decline in demand for other leisure and entertainment offerings during the tournament period. There has also been a market shakeout in the festival and open-air market across Europe, forcing hundreds of festivals to close. However, DEAG's festivals - particularly in the EDM segment - have held their own very well on the market.  In addition, heavy rainfall and storms took place throughout Germany and large parts of Europe in the summer, which coincides with DEAG’s important annual festival season. This meant that many events had to be cancelled completely or could only be held with lower capacity utilisation due to the weather conditions. A number of DEAG events were also affected by this in the second quarter and were therefore unable to reach their usual level. This resulted in a significant reduction in revenue, but the expenses for the insured events were still incurred in full. Despite this, DEAG increased its revenue, further expanded its own event formats, successfully continued its Buy & Build strategy and recorded strong ticketing business. The company is therefore optimistic for the second half of 2024 with a high density of events. With a high level of available liquidity of EUR 97 million at the end of the first half of 2024, DEAG has a solid financial basis for a successful, expansive development.

After entering the Spanish market in the fourth quarter of 2023, DEAG continued its international growth trajectory in the first six months of financial year 2024 and acquired three companies. The Festivals segment was further strengthened by the acquisition of a majority stake in black mamba Event & Marketing GmbH. Among other events, the company organises the “Sputnik Spring Break,” one of the largest open-air festivals in eastern Germany. Furthermore, the leading position in the area of the Spoken Word and Literary Events in the UK was expanded with the acquisition of “How to Academy” and live entertainment activities were extended by acquiring the event organiser “ShowPlanr.” In addition, an investment in District Live, DEAG’s booking division that specialises in Hip-Hop, significantly expanded and strengthened the centre of excellence in the area of Hip-Hop. DEAG also intends to expand its M&A activities in the further course of the year and is currently in promising talks with a number of companies. One focus is on the area of ticketing and further expansion into other European countries.

In 2024, DEAG is aiming to generate around half of its consolidated revenue with its own event formats, for which an increasing share of tickets will be sold via the Group’s own ticketing platforms myticket.de, myticket.at, myticket.co.uk, gigantic.com and tickets.ie. As of the end of June 2024, the number of tickets to concerts and events sold in 2024 and 2025 rose by 18% to 5.8 million. An increase to around 11 million tickets is expected for the year as a whole, compared to the more than 10 million tickets sold in 2023.

In the first half of the year, DEAG organised a number of concerts and tours by artists such as AC/DC, Andreas Gabalier, Alice Cooper and UB 40 as well as many events for the whole family such as Disney on Ice, the Harlem Globetrotters or, in the Spoken Word & Literary Events segment, events like the international literature festival lit.COLOGNE, the event series “An Evening with...” or the new reading show “Letters Live.” In addition, DEAG had a good festival summer even despite the bad weather, with its strong established brands and open-air and EDM (Electronic Dance Music) events such as NATURE ONE, Airbeat One, Ruhr-in-Love, Sion sous les étoiles and Belladrum Tartan Heart, which will once again delight more than 800,000 visitors between the end of June and the beginning of September, despite the external circumstances.

The second half of the year is characterised by a high density of events. DEAG is organising concerts by Craig David, Lenny Kravitz, James Blunt, Slipknot, Fontaines D.C. and Böhse Onkelz, new exhibitions such as “Tim Burton’s Labyrinth” and, for the first time in Hamburg, the new ELB.lit literature festival, which will feature readings by stars of the literary and entertainment scene such as Frank Schätzing, Jean-Luc Bannalec and Hape Kerkeling.

Detlef Kornett, Group CEO of DEAG: “We defied the difficult market environment in the first half of the year. Unfortunately, the bad weather affected some of our events, which is also reflected in our key financial figures. However, we remain confident for the second half of the year and for 2024 as a whole. DEAG’s second half of the year will be strong, as expected, our event programme is diversified and our calendar of events is tightly packed. Visitors can look forward to hundreds of great events of all genres and sizes. We are also investing heavily in staff, new technologies and our platforms in order to further improve the customer experience and offer our customers first-class entertainment. Despite the challenges mentioned, we expect revenue to continue to rise and EBITDA to at least the previous year’s level for the year as a whole.”

The full Half-year Report 2024 will be published in the Investor Relations section of the company’s website over the course of the day on 30 August.

About DEAG

DEAG Deutsche Entertainment Aktiengesellschaft (DEAG), a leading entertainment service company and live entertainment provider, produces and promotes live events of all genres and sizes in Europe. With its Group companies, DEAG is present at 23 locations in its core markets of Germany, the UK, Switzerland, Ireland, Denmark and Spain. As a live entertainment service provider with an integrated business model, DEAG has extensive expertise in the conceptualisation, organisation, promotion and production of live events.

Founded in Berlin in 1978, DEAG‘s core business areas today comprise Rock/Pop, including Urban and Electronic Dance Music, Classics & Jazz, Family Entertainment, the Spoken Word & Literary Events, Arts+Exhibitions, Ticketing and Entertainment Services. Live Entertainment for all generations and Arts+Exhibitions are important building blocks for the further development of DEAG‘s own content.

More than 10 million tickets for DEAG’s own and third-party content to around 6,000 events are sold each year – a steadily growing share of these are sold via the Group’s own ticketing platforms myticket.de, myticket.at, myticket.co.uk, gigantic.com and tickets.ie.

Investor & Public Relations
Axel Mühlhaus, edicto GmbH
Eschersheimer Landstraße 42
60322 Frankfurt/Main, Germany
Phone: 0049 69 905505-52
e-mail: deag@edicto.de