MyTicket owner Deutsche Entertainment AG (DEAG) has reported a profit of €300,000 (£268,000/$357,000) over the first nine months of 2020 to September 30, despite COVID-19 causing major detriment to the entertainment industry.
The German company has reported sales of €39m, compared to €123.1m in the first nine months of 2019, resulting in earnings before interest, tax depreciation, and amortisation (EBITDA) of €0.3m.
DEAG’s EBITDA in Q3 fell to €0.6m from €4.9m in the same quarter last year. It said in a statement that it expects EBITDA to at least break even for the full year 2020, despite the recent significant COVID-19-related restrictions in its core markets.
It credits its “solid position” to new event formats, significant cost reductions and insurance coverage, which it claimed “fully covered” it for coronavirus-related disruption back in March. In addition, overhead costs were reduced once again in the third quarter and are now 48 per cent below the original level.
Peter L.H. Schwenkow, chief executive of DEAG, said: “In view of the COVID-19 pandemic, we are comfortable with our results for the first nine months of 2020. Although large parts of our visible operational business are currently suspended, the DEAG team is working behind the scenes to continue our growth course successfully as the pandemic ebbs away and finally comes to an end.”
The firm’s ticketing platforms, MyTicket and Gigantic.com, which handle a significant share of the ticket sales for its own events and third-party content, are becoming “increasingly important” to the firm, DEAG said.
It said the multi-year partnership between the Jahrhunderthalle in Frankfurt/Main, which is operated by DEAG, and MyTicket starting in January 2021 will likely bring additional sales potential of around 450,000 tickets per year. It added that this partnership will provide for multi-channel ticketing sales for events exclusively via MyTicket and also includes the naming rights sponsorship for the Jahrhunderthalle.
MyTicket has also further expanded the range of functions it offers in the course of the COVID-19 pandemic. With new features such as the ‘Organic Social Distancing’ function, allowing for the requirements of the federal and state governments in the area of ticketing to be implemented.
Schwenkow added: “The breakthrough in the development of vaccines in November brings tailwind for our entire industry. We have significantly reduced our cost base and are taking advantage of available promotion and support programmes in our core markets. We are currently already planning for the opening of the market and a new start in live entertainment.
“In addition to our core markets of Germany, Switzerland and the UK, we are also present in Ireland through our joint venture ‘Singular Artists’. We are seeking contact with artists and management, preparing the expansion of our successful formats and developing new offers.”