MUNICH, Germany (CelebrityAccess) — German concert promoter and ticketing company CTS Eventim has walked back its investor guidance for 2020.
“Due to the current uncertainties surrounding the further development of the Corona crisis and its impacts, the Management Board takes the view that it is currently not possible to issue a sufficiently reliable and specific new forecast for the 2020 financial year.”
“In the 2019 Annual Report published in March 2020, the Management Board was still expecting a further improvement in the business performance of the Ticketing segment due to continuous expansion of Internet ticketing operations and progressive internationalization. However, the statements regarding the future outlook were made without considering the negative effects of the COVID-19 (“coronavirus”) epidemic on the future growth of the two segments and the CTS Group.”
“In many European countries, no events are currently being held due to government orders. From today’s perspective, the Management Board, therefore, expects a significant year-on-year decrease in revenues and earnings in the Ticketing and Live Entertainment segments for the 2020 financial year. However, that decrease cannot be quantified with any greater precision at present.”
CTS has expanded aggressively in recent years, acquiring regionally important ticketing and event production companies as part of a growth strategy.
However, unlike some of their rivals, CTS Eventim has actually managed to deleverage while doing so, leaving itself in a good position to weather the storm.
In 2019, the company managed to shed about a third of its outstanding debt, reporting just €60.6m at the end of their financial year. When measured against their reported cash on hand of €592.0m with a total debt to equity ratio of 12.6%.