Ticketing services and live entertainment company CTS Eventim will target the Asian market in its recovery plans, after it revealed a 67.1% year-on-year decline in revenue for the first half of its 2021 financial year.
Consolidated revenue fell to €65.3m (£55.89m/$76.59m) in the six months to June 30, with the previous year at €198.5m. However, normalised earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €79.4m, up from a loss of €2.7m last year.
The ticketing side of the business saw revenue fall by 43.9% to €49.6m, but normalised EBITDA was up from €1.3m to €64.2m. In the live entertainment segment, revenue fell 84% to €18.3m.
However, in the period April to June, the company witnessed a rise in revenue as confidence grew in booking tickets, following the impact of the pandemic.
Revenue was up by 228.1% to €45.7m in the three months to June 30, while normalised EBITDA for this period improved from a loss of €16.2m to a positive figure of €99.1m. CTS noted that the latter was boosted by the German November and December assistance under a coronavirus aid programme, by €102m.
In the second quarter of 2021, ticketing revenue increased by 283.7% from €9.4m to €36.1m, while normalised EBITDA amounted to €77.6m, though this included €73m in support from the German government.
The live entertainment sector saw an improvement in revenue as it jumped by 81.5% year on year. Normalised EBITDA was €21.4m, with the previous year at €1.9m, with German coronavirus support contributing €29m to these earnings.
“CTS Eventim is optimally positioned for the return of live entertainment,” CTS chief executive Klaus-Peter Schulenberg said. “Ticket sales are recovering, which confirms our view that people are yearning for live entertainment after a year and a half of the pandemic.
“However, politicians must set out a framework so that it is economically viable for events to be held again. The government support is very helpful but the industry wants to finally be able to earn its money by returning to work.”
Schulenberg also set out how the Eventim Live promoter network will be making its debut in Asia through Eventim Live Asia, which will be headquartered in Singapore.
The new company will focus on growing live entrainment markets including China, Japan, South Korea, Hong Kong, Singapore, Taiwan, Thailand, Indonesia, Vietnam, Malaysia and the Philippines.
“CTS Eventim has taken the coronavirus crisis as an opportunity to further strengthen and broaden its market position by undertaking a number of major strategic initiatives,” Schulenberg said.
“Going forward, we will be better positioned than ever before, especially internationally, to be able to impress our customers with our services, expertise and technology in the live entertainment business.”
Image: ActionVance on Unsplash
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