Features
Germany: DEAG ‘On Track’ With Half-Year Results, Names Kornett Co-CEO
German live entertainment giant DEAG has reported its financials for the first half of 2023, and stated that the business was “fully on track to achieve its full-year targets,” which are revenues of more than €300 million ($323 million), and an “improved EBITDA,” which stood at €30.9 million ($33.3 million).
Revenue in the first half of 2023 stood at €123 million ($132.5 million), down about 8% compared to €133.4 million ($143.7 million) in the previous year, but almost double the amount of €63.9 million in the pre-corona year 2019.
EBITDA was over €5 million ($5.4 million), around half the amount of last year, when it stood at €10.1 million ($10.9 million) after six months.
See: DEAG Reports ‘Excellent First Half Of 2022’
“In 2023,” the company stated, “DEAG’s major tours and festivals are primarily scheduled for the third quarter.”
What is more, 2022’s half-year figures “still reflected rebound effects stemming from the pandemic, financial support from European funding programs, alongside significant events and tours in the second quarter of 2022.”
Throughout the ongoing fiscal year, DEAG plans to stage approximately 6,000 events across its key European markets. Its aim was “to surpass the previous year’s record of nine million tickets sold,” and to break the 10-million barrier – by mostly selling through the group’s proprietary ticketing platforms myticket, gigantic.com, and tickets.ie.
Some event highlights from 2023 – aside from a strong festival summer, which alone sold some 800,000 tickets – include “Disney on Ice,” and “Riverdance,” as well as concerts and tours with Sam Fender, Limp Bizkit, Rod Stewart, The Who, Iron Maiden, and Kiss, among others. The company also hailed its success in the area of spoken word and literary events with the international literature festivals “lit.COLOGNE” and “phil.COLOGNE”.
See: DEAG Classics Acquires Literature Festival Lit.Cologne in Germany
DEAG plans to ramp up its M&A activities in the second half of 2023, alongside organic expansion and the continuous development of its event pipeline, including proprietary event formats like Christmas Garden.
According to the latest earnings statement, “the company currently has several acquisitions in advanced stages of negotiation.” Head below for a selection of its most recent ones.
“Acceleration of further growth,” are also reflected in the composition of DEAG’s executive board, where company founder Prof. Peter L. H. Schwenkow will jointly be leading the business alongside Detlef Kornett as co-CEOs going forward.
Kornett will continue his role as head of international business affairs and marketing at DEAG, and will now add corporate strategy and growth to his objectives.
Kornett has been a board member of DEAG since 2014. His prior roles include MD of the Red Bull GmbH, as well as the president & CEO of Anschutz Entertainment Group (AEG)
in Germany for many years.
In other personell news, David Reinecke will take over the position of CFO from Roman Velke, who is leaving the company at his own request, with mutual consent, after five years. He will, however, “continue to support DEAG in an advisory capacity.”
Reinecke, who begins his new role in October, brings extensive global management experience in finance to the table. His most recent position was director of corporate finance and CFO at the neobank N26. Previous career milestones include roles at Red Arrow Studios (ProSiebenSat.1), Credit Suisse, and Morgan Stanley, where he served as Vice President in the Investment Banking/M&A division, and chief operating officer of the Frankfurt IBD office.
Christian Diekmann, responsible for the business in Germany, and Moritz Schwenkow, responsible for ticketing and technology, will continue as board members.
Prof. Peter L.H. Schwenkow, CEO of DEAG, commented, “Just in time for DEAG’s 45th anniversary, we are leading our company into a new, exciting era that will be characterised by profitable growth as well as innovation and expansion into European markets and ticketing. I am very pleased that the Supervisory Board has agreed to my personal request to expand Detlef Kornett’s position to the role of co-CEO. I welcome David Reinecke as the new CFO and at the same time thank – also on behalf of the Supervisory Board – Roman Velke for his excellent work and great commitment over the past years. We will use the combination of a competent team, excellent business and attractive market opportunities to fuel DEAG’s further growth momentum.”
Detlef Kornett added, “DEAG has already founded around 20 new companies or successfully integrated them after acquisitions in recent years. We want to continue our successful track record in our M&A activities, with a focus on further expansion into new European markets as well as acquisitions to expand our ticketing platforms. As one of the Europe’s leading live entertainment providers, we are excellently positioned and will continue the dynamic growth of previous years.”
The full Half-Year Financial Report will be published on 31 August 2023 on the company website in the “Investor Relations” section.
Some of DEAG’s recent acquisition’s below:
DEAG Acquires UK Live Limited Via Kilimanjaro Live
DEAG Acquires Majority In Danish Promoter CSB Island Entertainment