Greater sales through its MyTicket division helped Deutsche Entertainment AG (DEAG) achieve a lift in organic sales in the first quarter of 2019.
The Berlin-based group said organic growth of sales was up 24 per cent year-on-year in the first three months of the year, although the overall figure of €25.5m was down slightly due to the absence of contributions from Raymond Gubbay Ltd, following the sale of its shares in the promoter to Sony Music Entertainment in June 2018.
The results were welcomed by investors, with DEAG’s share price just short of its highest point in the last four years at €4.65.
DEAG said its quarterly figures were boosted by live events such as ‘Disney on Ice’ and Flying Music’s Thriller Live’, while attractions such as Christmas Gardens in Hanover were also a success.
The group added that it is “increasingly distributing” tickets for its own events via its fully-owned MyTicket ticketing division. It completed its acquisition of MyTicket in January, buying up Axel Springer’s 24.9 per cent of shares.
Its Entertainment Services segment, which includes MyTicket, achieved sales of €11.9m during the period, which was up 14 per cent compared to Q1 2018.
The Live Touring segment achieved sales of €15.4m, down 31 per cent year-on-year because of the distribution of Raymond Gubbay, one of the leading promoters of popular classical music in the UK.
While it recorded a gross profit of €6.5m – up on 2018 – an increase in distribution and administration costs and other operating income and expenses meant earnings before interest, taxes (EBIT) was down from €340,000 to just €35,000.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to €1.0m, which was up on the €800,000 achieved in Q1 2018.
However, the company reported a loss of €1.0m in its result after taxes from continued operations.
Looking ahead, DEAG said it expects continued growth in sales and EBITDA in 2019, as a result of the investments in its three core markets of Germany, UK and Switzerland.
The group will also begin to work with Swiss ticket software provider SecuTix this summer, which it said will save “considerable” costs.
Image: energepic.com
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