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DEAG optimistic for 2020 as insurance pays out

MyTicket owner Deutsche Entertainment AG (DEAG) has provided an optimistic appraisal of 2020 despite it stating it is “currently impossible” to provide a detailed outlook for the current year due to the global live events blackout due to Covid-19.

In its interim results report for 2019, the Berlin-based entertainment firm reassured investors that any cancellations of current events and those in advance sales due to ‘force majeure’ are fully covered by insurance, including Covid-19.

DEAG claims the first events that have incurred losses have already been assessed and paid for through insurance.

It said: “For reasons of damage minimisation and in order to take fan interest into account, DEAG is in intensive contact with the artists and partners regarding postponement of the events.”

The firm added that more than 600 events have already been “almost completely” rescheduled to the coming quarters, and optimistically stated that “a change in the timing of sales and results is possible in the current financial year.”

Following the optimistic announcement on Tuesday, DEAG’s share price increased to €3.60 after falling from a 52-week high of €6.80 to a 52-week low of €3.04 due to the coronavirus.

Meanwhile, the company reported a strong fourth quarter in 2019, which saw its group sales increase by 31% to €62.1m compared to €47.4m in the same period of the previous year.

Its Q4 revenues accounted for 34% of total sales in 2019 compared with 24% the previous year. The firm attributes its EBITDA margin of around 10% to its strong ticketing business.

For 2019 as a whole, DEAG’s group sales amounted to around €199m before consolidation and €185.2m after consolidation. It said this almost completely compensated for the loss of sales from the deconsolidation of Raymond Gubbay and the significantly reduced number of Ed Sheeran concerts that were held.

DEAG said, despite the current situation, it plans to publish its annual financial report for 2019 no later than April 6.