DEAG to return to Frankfurt Stock Exchange after three years

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DEAG Deutsche Entertainment is set to return to the Frankfurt Stock Exchange in the first quarter of this year after delisting in 2021.

The event organiser and owner of My Ticket and Gigantic wants to raise money for further growth by returning to the stock market. Berlin-headquartered DEAG has posted strong financial figures since the COVID-19 pandemic and boosted revenue through M&A action. It has completed 12 acquisitions since 2021, including a recent deal with Dutch EDM business I-Motion.

DEAG delisted in early 2021 because of the pandemic’s negative impact on the live entertainment industry. It said its time as a private company has allowed it to transform its focus onto the highly profitable ticketing business and increase EBITDA margin.

The company posted revenue of €324.8m (£278.7m/$353.8m) and EBITDA of €30.9m in 2022 – well above pre-COVID levels. It said late last year that it expects to generate revenue of more than €300m during 2023.

Room for growth

“We believe that there is an enormous growth potential in our business,” said DEAG co-chief executive Detlef Kornett.

“From driving ticket sales toward our own ticketing platforms to acquiring companies which increase synergies within our group and strengthen our strategy of expanded growth in both our Live Entertainment and Ticketing and Services businesses, the road ahead of us is paved with opportunity.

“The foundation of our business stands on our strong historical growth as shown by the ever increasing number of events we offer since 2019 – recurring revenues from over 30 festivals, intellectual property created from children’s musicals to lightrails and our hallmark New Years’ Eve event at the Brandenburger Gate.”

Once the relisting is complete, DEAG will alter the business into two new segments ‘Live Entertainment’ and ‘Ticketing and Services’. The latter includes the lucrative and brands.

COVID-19 recovery

DEAG’s Ticketing and Services business currently has over one million monthly users and over 820 content partners. In 2022 the revenue generated by the Ticketing and Services business almost tripled compared to the pre-COVID 2019 figure.

The company has increased the share of its own event tickets sold via its own platforms from one million out of 5.3 million tickets (19%) in 2019 to a targeted three million out of 10 million in 2023 (30%) and targets a continued mid-term increase in this percentage.

“We continue to expand our existing, and capitalise on new business opportunities and develop strategies to complement this business growth in our existing and new markets,” said Kornett.

“As we have shown in the past, we will look to the future with full confidence at the prospects for our business.”

The transaction is due to consist of an admission to the Prime Standard on the Regulated Market of Frankfurt Stock Exchange along with an offering of new shares.

An additional number of existing shares from the current shareholders will also be involved.

These will consist of a private placement and public subscription offer which is expected to complete by the end of March at the latest.

DEAG currently promotes more than 5,000 live events each year and sells more than 10 million tickets annually as a result. The group has run offices in its core markets of Germany, the UK, Switzerland and Ireland for more than 40 years.