DEAG Deutsche Entertainment Aktiengesellschaft: DEAG records significant increase in sales and earnings in the third quarter of 2021

Corporate News

DEAG records significant increase in sales and earnings in the third quarter of 2021

- 126% increase in sales from EUR 7.4 million to EUR 16.7 million

- EBITDA rises by over 600% from EUR 0.6 million to EUR 4.3 million

- Strong increase in sales and earnings also expected in the fourth quarter of 2021

Berlin, 22 November 2021 - DEAG Deutsche Entertainment Aktiengesellschaft ("DEAG") recorded a significant upturn in its operating business in the third quarter of financial year 2021 following a period in which the first six months were still heavily affected by the COVID-19 pandemic and the related concert cancellations and postponements. Sales in the third quarter of 2021 increased significantly by 126% from EUR 7.4 million to EUR 16.7 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 617% from EUR 0.6 million to EUR 4.3 million. The increase in sales in the third quarter is largely due to the operating business in the UK, DEAG's most important market outside Germany. Concerts in the UK are already taking place again at full capacity. DEAG organised sold-out concerts and tours there with the "Gorillaz", among other artists. The first events have also been held in Germany. The situation continues to brighten in all of DEAG's national markets for the company and the entire live entertainment industry, even if this is taking place at a slower pace.

DEAG continued to show resilience to the pandemic in the first nine months. Sales revenues amounted to EUR 24.1 million. In the 9-month period 2020, in which at least the first quarter was only slightly affected by the pandemic, revenues were EUR 39.1 million. EBITDA after the first nine months 2021 amounted to EUR 13.3 million compared to EUR 0.3 million in the same period of last year. Earnings before interest and taxes (EBIT) increased from EUR -5.5 million to EUR 7.3 million and net income after taxes from EUR -8.5 million to EUR 1.7 million.

The Group's own ticketing platforms, the companies acquired in 2021 as part of DEAG's acquisition and integration strategy together with the provision of new services by DEAG besides the actual core business of entertainment also contributed significantly to the increase in earnings. Furthermore, the increase in earnings is due to the enormous cost-cutting programme in the Group as well as inflows from subsidy programmes, which DEAG has taken advantage of in all national markets, and DEAG's continued full insurance coverage.

The fourth quarter of 2021 will reflect the Christmas business with Christmas events in Germany and other European countries as well as strong advance sales for events in 2022. Furthermore, DEAG has expanded the successful Christmas Garden format to a total of 18 locations - eight of them in other European countries - in the 2021/2022 season. New additions include the locations in Cologne, Frankfurt/Main, Hanover and abroad in Paris, Barcelona and Windsor Park in London. Based on these, the significant revival in the UK and growth impulses from the companies acquired in 2021, DEAG expects another significant increase in earnings with high visibility in the fourth quarter of 2021.

Prof. Peter L.H. Schwenkow, CEO of DEAG: "DEAG and the entire live entertainment industry are finally gaining momentum again after well over a year without concerts and events. We look forward to offering our visitors hundreds of concerts and events in the months to come and expect to achieve a significant increase in earnings in the fourth quarter. In the meantime, the situation with the epidemic in Europe is leading to a daily reassessment of the current situation in all national markets. We are adequately protected against possible risks arising for us from the currently rising corona figures by extensive measures taken by the respective country governments and our insurance coverage. Our very robust financial position and a uniquely high event density for 2022 show our excellent positioning for growth in the coming year."

The complete Quarterly Financial Statement is available for download on the company's website.

About DEAG

DEAG Deutsche Entertainment AG (DEAG) is a leading entertainment service company and provider of live entertainment in Europe. DEAG has been present with its Group companies at 15 locations in its core markets of Germany, the United Kingdom, Switzerland, Ireland and Denmark. As a live entertainment service provider with an integrated business model, DEAG has extensive expertise in the planning, organization, marketing and promoting events.

Founded in Berlin in 1978, DEAG's core businesses today include Rock/Pop, Classics & Jazz, Family Entertainment, Arts+Exhibitions and Ticketing. Family Entertainment and Arts+Exhibitions are the elementary building blocks for the further development of DEAG's own content.

In 2019 - before the start of the COVID-19 pandemic -, more than 5 million tickets were sold annually for over 4,000 events - a continuously growing share of these were sold via the Group's own e-commerce platforms "MyTicket " and "Gigantic.com" for its own and third-party content.

Through its strong partner network, DEAG is excellently positioned in the market as an internationally active Live Entertainment service provider.

Investor & Public Relations
Axel Mühlhaus, edicto GmbH
Eschersheimer Landstraße 42
60322 Frankfurt am Main
Phone: 0049 69 905505-52
email: [email protected]

Public link

Please use the above public link if you want to share this noodl on another website.