DEAG Reports Strong Fourth Quarter & Year-End Figures
Deutsche Entertainment Aktiengesellschaft (DEAG) published preliminary fourth-quarter and year-end results, indicating a successful return to business.
Sales revenue in 2021 increased by approximately 82% to €91 million ($100 million) from €49.9 million ($54.8 million) in the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by approximately 144% from €9 million ($9.9 million) to €22.1 million ($24.3 million).
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“Among other factors, a significant upturn in operating activities in the second half of the year was decisive for the increases in earnings and revenue,” according to DEAG’s earnings summary, “after the first half of the year was largely characterized by the COVID-19 pandemic and the related concert cancellations and postponements.”
DEAG’s strongest market outside of Germany is the UK, where live events have been less restricted than elsewhere. But the company stated that it is also “increasingly present again with physical events in DEAG’s other core markets.”
The fourth quarter of 2021 was as “strong as planned,” and DEAG recorded a good Christmas business as well as strong presales for events in 2022, which are largely processed via DEAG’s own ticketing platforms.
Among other events, the successful Christmas Garden format was expanded from six to 18 locations in Germany, the UK, France and Spain. Furthermore, the companies acquired by DEAG as part of its mergers and acquisition strategy in 2021 and the expansion of DEAG’s range of services contributed significantly to the positive figures.
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In addition, DEAG also received inflows from subsidies and insurance payments on a significant scale in financial year 2021.
Earnings before interest and taxes (EBIT) were around €13 million ($14.3 million), up from €1 million in the previous year. Fourth-quarter group earnings after taxes turned around a loss of €2.9 million ($3.2 million) to over €3 million ($3.3 million). Sales revenue in Q4 increased almost sixfold from €10.8 million ($11.9 million) to approximately €66 million ($72.5 million). EBITDA for the final quarter was reported at €8.8 million ($9.7 million), after all of the previous nine months amounted to €13.3 million ($14.6 million).
“In view of the significant recovery in its core markets, strong ticket sales and growth impulses from the companies acquired in 2021, DEAG expects a significant improvement in EBITDA and further revenue increases in 2022,” the earnings statement reads.
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DEAG, by its own admission, has already sold more than 5 million tickets for events in its core markets for the coming quarters. Above-average sales for future events are also the main reason for a total assets increase to more than €285 million as of Dec. 31 (up from €186.5 million a year earlier). Cash and cash equivalents in the Group more than doubled to more than approximately €118 million at the end of 2021 (previous year: €46.0 million).
DEAG founder Prof. Peter L.H. Schwenkow commented, “DEAG has weathered the pandemic comparatively well over the past two years, which have not been easy for the entire live entertainment industry due to COVID-19. We stand on strong legs, have successfully continued our expansion course in Germany and Europe and are currently experiencing an increasing return to normal for our business activities in all our core markets and high demand for tickets for concerts and events.
“We are excellently positioned for future growth with our broad portfolio of events and our strong financial position. Our ticket sales are at an above-average level and we have started the current year with plenty of tailwind. In the UK, booking levels are already back to pre-crisis levels and in our other core markets they are approaching 2019 levels again, the year before the corona pandemic broke out. We will offer visitors hundreds of events over the next few months and set off event fireworks.”