BERLIN (CelebrityAccess) — After reporting a rosy first quarter, Germany entertainment company DEAG reported sharp declines in earnings for the first half of 2019.
Financial filings by DEAG reported sales of 63.9 million for the first half of 2019, down sharply from 118.0 million the company generated during the same time period in the previous year.
Earnings before interest, taxes, depreciation, and amortization slid sharply as well, with DEAG reporting 3.1 million compared to EUR 4.2 million on a comparable basis, Margins improved, however, up to 4.9% from 3.6% in the previous year.
DEAG attributed the revenue hit to “the seasonal shift of individual events” noting that last year’s results were buoyed by the performance of Ed Sheeran’s Divide Tour, while Sheeran’s DEAG shows in 2019 fell within their 3rd fiscal quarter.
In addition, other concerts, including by the rock and pop bands Böhse Onkelz, Foreigner, Stereophonics, Limp Bizkit and Toto in July and August instead of impacting in the first half-year results, leading DEAG to anticipate one of their best-ever Q3 and Q4s in 2019.
“DEAG expects this year to record one of the strongest fourth quarters in its corporate history and disproportionate earnings growth. In particular, ticketing and profitable event formats in the Christmas business should contribute to this.
Despite the slow first half, DEAG is accelerating its acquisition plans. So far this year, the company has already made multiple investments in Switzerland and Germany, including the acquisition of MEWES Entertainment Group, and said it plans to make further major acquisitions this year, but is taking a wait-and-see approach while the disorganized mess of Brexit sorts itself out.
“DEAG is observing very closely in the UK possible effects of the current discussions about the Brexit,” DEAG said.