Eventim Shrugs Off Economic Gloom

Its live music business may be struggling to match last year’s record-breaking results, but CTS Eventim’s overall trading figures suggest the company is shining through the economic gloom.

Revenues for the CTS-owned Medusa Group, a collection of live music promoters that includes Marek Lieberberg, Folkert Koopmans, Dirk Becker, Peter Rieger and Peter Pracht, are 3 percent down at euro 223.1 million, but the company has run fewer tours than it did in 2007.

Medusa’s earnings before interest and tax (EBIT) are down 27 percent from euro 19.4 million to euro 14.1 million, but production costs and deposits for upcoming events account for euro 2 million of the shortfall.

However, the company’s Internet ticketing business is booming and more than compensated for the shortfall. The number of units sold has grown 30 percent, producing revenues of euro 71.1 million (29.5 percent up on 2007) and pre-tax profits of euro 16.7 million, 28.5 percent up on 2007.

The CTS Group Web sites, especially the online portals at eventim.de and getgo.de, logged more than 139 million users in the first three quarters of 2008.

By the end of September, the company sold 5.6 million tickets, compared with the 4.3 million it sold in the first nine months of last year.

Despite the cost of setting up the new partnership with Live Nation and integrating a major slice of Finnish ticketing company Lippupiste, which it bought in September, Eventim’s overall revenues are up 3.7 percent to euro 292 million and group earnings are up 5.9 percent, from euro 15.5 million to euro 16.4 million.

Eventim chief financial officer Volker Bischoff expects the fourth quarter, traditionally the best in the live music and ticketing businesses, will see the company beat the euro 47 million it made last year.

The company’s efforts remain focused on further growth in Internet ticketing, implementing the long-term partnership with Live Nation and continuing international expansion.

The recent purchase of the majority of Lippupiste looks to have paved the way for acquisitions in the neighbouring Baltic states. CTS vice president for legal and business affairs Rainer Appel previously told Pollstar the Finnish deal is the ideal platform for expansion in that direction.

The company also expects to start operating in Norway and Denmark in 2009.