CTS’s Internet Wonder

If anyone needs convincing that the Internet is the biggest wonder of the modern world, it certainly isn’t Germany’s CTS Eventim managing director Klaus-Peter Schulenberg, who has just seen his company announce vastly improved profits on the back of online ticket sales.

First quarter earnings from ticketing have rocketed 82 percent year-on-year to euro 4 million (US$5.03 million), and the number of visits to the eventim.de and getgo.de portals rose by 50 percent to 18 million, with sales also up by the same percentage. The gross profit margin from all ticketing activities was 54.3 percent.

Last year, CTS sold 2.3 million tickets online (up 53 percent on 2003’s 1.5 million), driving the sectors earnings up from euro 3.7 million to euro 9.2 million – an increase of 146 percent. The gross margin in the ticketing segment was 55.8 percent (previous year: 46.3 percent).

“Every time the company sells a ticket by Internet it makes five euros, but a ticket sold through the box offices only makes one euro,” explained Susanne Jahrreiss of Engel & Zimmermann, which handles CTS financial public relations.

German business analysts are already predicting CTS will soon be using the cash to further expansion in the Eastern bloc. The company already has the contract to sell the 3 million tickets for next year’s World Cup soccer.

Group revenues for the quarter are up 27.3 percent to euro 53 million (US$66.6 million), with earnings before tax and interest leaping 71.2 percent to euro 8.1 million (US$10.1 million). The EBIT margin rose to 30.5 percent.

At euro 9.2 million, the EBITDA was 64.6 percent higher than the previous year’s figure (euro 5.6 million). Group earnings were up 78.9 percent to euro 3.4 million.

In the live entertainment segment, which includes roughly half-shares in FKP Skorpio, Marek Lieberberg, Peter Rieger, Dirk Becker, Semmel Concerts and Argo Concerts, turnover rose 22.6 to euro 40.8 million and earnings before interest and tax jumped 61.5 percent to euro 4.1 million.

— John Gammon