DEAG’s Q3 Results

Deutsche Entertainment Aktiengesellschaft (DEAG) reported a drop in year-on-year revenues, which were to be expected. It was still “a very good operating performance in the first nine months of financial year 2023,” according to the German company’s Q3 earnings statement.

To highlight this, the statement begins with a comparison to the pre-corona year 2019. Compared to the first three months of that year, revenues increased by 73.3% from €123.1 million ($135.2 million) to €213.3 million ($234.3 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) “also rose significantly,” according to DEAG’s earnings statement, from €8 million ($8.8 million) in the first nine months of 2019 to €13.8 million ($15.2 million) – a 72.5% increase in the first nine months of the current financial year.

Compared to last year’s Q3 results, revenues dropped from €235.1 million ($258.3 million), roughly a ten-percent decrease. Last year’s EBITDA after three quarters amounted to €20.3 million, so the decrease to the current result is around 47%.

Looking at the third quarter by itself, rather than all three quarters combined, DEAG generated revenues of €90.7 million ($99.6 million), roughly a ten-percent decrease compared to €101.7 million ($111.7 million) in Q3/2022. EBITDA dropped by 15% from €10.2 million ($11.2 million) to €8.7 million ($9.5 million).

A decrease after the post-pandemic gold-rush was to be expected, according to DEAG, which stated, “While the 2022 result was still influenced by various catch-up effects, DEAG has now reached its post-pandemic level thanks to its consistent development. For the full year 2023, DEAG continues to aim for revenue of more than €300 million and remains committed to its goal of high operating profitability.”

DEAG also stated that it “now generates around half of its consolidated revenue from its own event formats, the tickets for which are sold mainly and, in many areas, exclusively via its own ticketing platforms.”

See: DEAG Fully Acquires EDM Promoter I-Motion

Some event highlights in the reporting period include festivals Nature On, Mayday, Syndicate, and Airbeat One, as well as tours and concerts by Kiss, Iron Maiden, Die Ärzte in Switzerland, but also Ludovico Einaudi, Donny Osmond, The Sisters of Mercy, and Rod Stewart in the UK.

Prof. Peter Schwenkow, CEO of DEAG, commented, “DEAG’s growth in 2023 exceeds our expectations. Without acquisitions in the current year and without significant catch-up effects as in 2022, the company has reached a new level of revenue and earnings compared to the pre-pandemic period. We are particularly pleased with the development in the ticketing and services businesses. DEAG is succeeding in selling an increasing share of tickets for concerts and events via its own ticketing platforms. The share of sales by third parties is also increasing. We will continue on our successful growth path, as M&A will remain a building block of our strategy. We are in advanced discussions with potential companies and will continue to establish new companies abroad.”

Subscribe to Pollstar HERE