Sales Drop, Margin Rises for DEAG in H1

Prof. Peter Schwenkow
Till Brönner
– Prof. Peter Schwenkow
Founder and CEO of DEAG
Deutsche Entertainment AG (DEAG) recorded sales of €63.9 million in the first half of 2019, compared to €118 million the previous year, a drop of almost 46%. The operating EBITDA margin rose from 3.6% to 4.9% year-on-year.
Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to €3.1 million from €4.2 million in the same period in 2018.
The German live entertainment giant stated in its H1 earnings report, that “the decline in sales is mainly attributable to the seasonal postponement of certain events. For example, the 12 stadium shows with Ed Sheeran in the UK were held in the second quarter of 2018. His ‘Divide’ tour is the most commercially successful tour of all time. In 2019, the six concerts with Ed Sheeran organised by DEAG fall in the third quarter.”
DEAG also banks on big July and August concerts by the likes of Böhse Onkelz, Foreigner, Stereophonics, Limp Bizkit and Toto to cheer investors up in Q3, for which the company is forecasting sales of around €55 million, which would mark increase of more than 60% over the previous year. 
In addition, DEAG expects 2019 to be one of the strongest fourth quarters in company history with an above-average growth in earnings. “Ticketing and the profitable event formats in the Christmas business are expected to contribute to this,” the earnings report states.
DEAG's Christmas Garden
Michael Clemens
– DEAG’s Christmas Garden
One of the group’s most reliable ticket sellers

DEAG is has been focused on expanding successful, profitable formats in all business segments to grow its business organically. The “TimeRide” format, a virtual reality time travel experience, will expand from one location (Cologne) to five (Dresden, Munich, Berlin and Nanchang in China). DEAG’s popular “Christmas Garden” format will be offered in six cities instead of three in 2019, including additional European countries. 
By its own admission, DEAG will distribute more than half a million tickets for these events almost exclusively via its MyTicket platform.
Aside from organic growth, DEAG continues to pursue its strategy of acquisition and integration. After completing four transactions in Switzerland and Germany in 2019, the company plans to make further acquisitions in H2 to strengthen both its portfolio and existing value creation.