Last week, Germany-based live music promoter CTS Eventimpublished its H1 results, reporting H1 revenues of EUR €1.021 billion, a 39% increase compared with the prior-year period.
This week, it’s the turn of another Germany-based promoter, DEAG Deutsche Entertainment Aktiengesellschaft (DEAG).
DEAG reports that it is “fully on track” to achieve its full-year revenue target of over €300 million. The company also says that it is “set to enhance its M&A activities” in the second half of 2023 as it looks to expand its presence in Europe.
According to DEAG, “the acquisition of promoters, ticketing platforms, and unique events are central to DEAG’s expansion strategy”. DEAG adds that it “currently has several acquisitions in advanced stages of negotiation”.
In terms of H1 finances, DEAG reports that its revenue in the first half of the year reached €123 million, up €10.4 million compared to €133.4 million in the previous year.
That H1 revenue haul was also €59.1 million more than the €63.9 million that it generated across the first six months of the “pre-corona year” of 2019.
DEAG’s EBITDA was over €5 million in H1, compared to EUR 10.1 million in the same period of last year.
As of June 30, 2023, DEAG’s available cash and cash equivalents totaled approximately €80 million.
DEAG says that it plans to stage approximately 6,000 events across its key European markets this year.
Additionally, the company says that its aim is to surpass the previous year’s record of 9 million tickets sold, by reaching a new milestone of 10 million tickets sold.
Most of these ticket sales will be sold through the company’s ticketing subsidiaries, myticket, gigantic.com, and tickets.ie.
DEAG says that its major tours and festivals are “primarily scheduled for the third quarter” of 2023.
The promoter and ticket seller notes that the half-year figures from the prior year (2022) “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”.
The company also announced on Thursday (August 31) that its founder and CEO Prof. Peter L. H. Schwenkow and Detlef Kornett will jointly lead the company together as co-CEOs going forward.
Kornett will continue to head off International Business Affairs and Marketing at DEAG and, together with Prof. Schwenkow, he will oversee Corporate Strategy and drive further growth.
Kornett has been a Board member of DEAG since 2014. His prior roles include being the Managing Director of Red Bull GmbH, as well as the President & CEO of the Anschutz Entertainment Group (AEG) in Germany for many years.
His responsibilities extended to overseeing diverse areas such as sports, proprietary event formats, and even the conception and development of venues like O2 London, the Mercedes-Benz Arena Berlin and the Barclays Arena in Hamburg.
“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.”
Prof. Peter L.H. Schwenkow, DEAG
Meanwhile, effective October 1, 2023, David Reinecke will take on the position of Chief Financial Officer. He succeeds Roman Velke, who, after five years as CFO, is leaving the company at his own request with mutual consent.
Velke will continue to support DEAG in an advisory capacity. Reinecke brings to the role extensive global management experience in Finance, particularly in capital markets and investor relations, garnered from his previous roles across cities such as New York City, Los Angeles, London, Frankfurt, and Munich.
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 leads the expansion of the Christmas Garden, and Moritz Schwenkow, responsible for ticketing and technology, will continue as board members in what DEAG calls “a highly experienced and newly reorganized Management Board”.
Prof. Peter L.H. Schwenkow, CEO of DEAG said:: “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.”
“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.”
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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.”
Over the course of this fiscal year so far, DEAG has organised events such as “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 other artists.
DEAG also organised open-air events in the genres EDM (Electronic Dance Music), Classics & Jazz and Rock/Pop and welcomed more than 800,000 visitors to its festivals between late June and early September.Music Business Worldwide
