DEAG Back In Profit

Having seen the 2008 balance sheet suffer because of euro 6.8 million ($9.18 million) worth of writedowns, DEAG chief Peter Schwenkow will have been delighted by his entertainment company posting a euro 4.8 million ($6.38 million) profit for the last financial year.

In 2008 reducing the book value of assets, including those caused by Johannes Wessels and Carlos Fleischmann taking back full ownership of their companies, turned pre-tax earnings of euro 3.7 million into a euro 3.1 million loss.

Even without Wessels and Music Pool and Fleischmann’s Creative Talent, Schwenkow believes he has a “leaner” company. Music Pool became Live Nation’s German office two months ago.

In 2009 the EBITDA jumped about 73 percent to euro 6.4 million and earnings before interest jumped from a euro 3.1 million loss to a euro 4.8 million profit.

Apart from trimming costs, the improvement is also thanks to shows by acts such as Bruce Springsteen, Peter Maffay, Tina Turner and Bryan Adams.

However, the acquisition of Raymond Gubbay’s UK-based business has arguably made DEAG Europe’s market leader in the field of classical music and this is where Schwenkow will be looking for further growth in 2010.

2009’s classical highlights included Jessye Norman, Anna Netrebko, Philippe Jaroussky and David Garrett plus sold out “Classical Spectacular” shows in London’s Royal Albert Hall.