German concert company Deutsche Entertainment Aktiengesellschaft (DEAG) revealed that after the first 9 months of 2020, they have managed to remain profitable in spite of the worldwide pandemic.
According to financial filings by DEAG, the company’s bottom line took a major hit this year, with sales of just €39 million in the first 9 months of 2020, down from €123.1 million in 2019.
However, despite the revenue shortfall, DEAG reported EBITDA of €300,000 for the first 9 months, which they attributed to significant cost reductions, as well as a quick pivot to new show formats. For the full year, the company said they expect to break even.
DEAG’s bottom line was also bolstered by insurance payments of €10 million for cancelled or postponed events, the company said.
“In view of the COVID-19 pandemic, we are comfortable with our results for the first nine months of 2020. Although large parts of our visible operational business are currently suspended, the DEAG team is working behind the scenes to continue our growth course successfully as the pandemic ebbs away and finally comes to an end. The breakthrough in the development of vaccines in November brings tailwind for our entire industry. We have significantly reduced our cost base and are taking advantage of available promotion and support programs in our core markets,” said Prof. Peter L.H. Schwenkow, CEO of DEAG.
“We are currently already planning for the opening of the market and a new start in live entertainment. In addition to our core markets of Germany, Switzerland and the UK, we are also present in Ireland through our joint venture ‘Singular Artists’. We are seeking contact with artists and management, preparing the expansion of our successful formats and developing new offers,” Schwenkow added.
DEAG touted a new partnership between their MyTicket ticketing platform and Gigantic.com, which handle a significant share of the ticket sales for its own events and third-party content. The company also highlighted a new, exclusive multi-year partnership between the Jahrhunderthalle in Frankfurt/Main, which is operated by DEAG, and MyTicket starting on 1 January 2021 which DEAG expects to add as many as 450,000 ticket sales a year.
Additionally, the deal also includes naming rights sponsorship for the Jahrhunderthalle, a 4,800-capacity concert venue in Frankfurt.