DGAP-News DEAG Deutsche Entertainment Aktiengesellschaft: DEAG profitable in the first 9 months of 2020 and sets operational course for further company growth
DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft / Key word(s): 9 Month figures
DEAG profitable in the first 9 months of 2020 and sets operational course for further company growth
- EBITDA after nine months at EUR 0.3 million - sales of EUR 39 million
- Robust financial base with high liquidity and fixed sales base for 2021
- Slightly positive EBITDA targeted for 2020 as a whole
- DEAG positions itself for a new start of the market
Berlin, 26 November 2020 - DEAG Deutsche Entertainment Aktiengesellschaft ("DEAG," ISIN: DE000A0Z23G6, stock exchange symbol: LOUD) has demonstrated its resistance to the COVID-19 pandemic and the associated decline in sales even after nine months in financial year 2020. After nine months, Group sales amounted to EUR 39 million (previous year: EUR 123.1 million). Sales of EUR 7.4 million were generated in the third quarter (previous year: EUR 59.2 million). EBITDA in the reporting period amounted to EUR 0.3 million, compared to EUR 8.0 million in the previous year. EBITDA of EUR 0.6 million was achieved in the months July to September, during which the entire live entertainment industry continued to be hit extremely hard by the pandemic, as in the previous quarter (previous year: EUR 4.9 million). This solid result was based on new event formats, significant cost reductions and DEAG's insurance coverage. Overhead costs were reduced once again in the third quarter and are now 48 percent below the original level.
DEAG has reacted quickly and consistently to changing market conditions in recent months by developing and successfully implementing new event concepts. The Group's own 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 for DEAG. Additional sales potential of around 450,000 tickets per year is unlocked by the new, exclusive multi-year partnership between the Jahrhunderthalle in Frankfurt/Main, which is operated by DEAG, and MyTicket starting on 1 January 2021. Among other tasks, this partnership will provide for multi-channel ticketing sales for events exclusively via MyTicket and also includes the naming rights sponsorship for the Jahrhunderthalle. Moreover, MyTicket has further expanded the range of functions it offers in the course of the COVID-19 pandemic. With new features such as the intelligent hall plan with "Organic Social Distancing" function, the requirements of the federal and state governments in the area of ticketing are being perfectly implemented. At the same time, DEAG is positioning itself for the reopening of the entertainment market in the coming quarters and the complete market normalisation from 2022 on.