Corporate News

DEAG reports strong fourth quarter and significant increase in revenue and earnings in financial year 2021

- Revenue in the fourth quarter sextupled compared to the previous year / Approximately 82% increase in sales to approximately EUR 91 million in financial year 2021

- EBITDA in 2021 more than doubled from EUR 9.0 million to EUR 22.1 million (approximately +144%)

- Successful continuation of the M&A strategy

- Significant increase in revenue and further improvement in EBITDA expected in 2022

Berlin, 24 March 2022 - DEAG Deutsche Entertainment Aktiengesellschaft ("DEAG") reports on the basis of preliminary figures that its business developed very successfully in financial year 2021. Sales revenue amounted to approximately EUR 91 million after previously EUR 49.9 million (approximately +82%). Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by approximately 144% from EUR 9.0 million to EUR 22.1 million. Among other factors, a significant upturn in operating activities in the second half of the year was decisive for the increases in earnings and revenue, after the first half of the year was largely characterised by the COVID-19 pandemic and the related concert cancellations and postponements.

The situation in the UK in particular, DEAG's most important market outside Germany, has visibly returned to normal. Events are already taking place there at full capacity. But the company is also increasingly present again with physical events in DEAG's other core markets. In the fourth quarter, which was strong as planned, DEAG recorded very good Christmas business and strong advance sales for events in 2022, which are largely processed via DEAG's own ticketing platforms. Among other events, the successful Christmas Garden format was expanded from six to 18 locations in Germany, the UK, France and Spain. Furthermore, the companies acquired by DEAG as part of its M&A strategy in 2021 and the expansion of DEAG's range of services contributed significantly to the very good annual figures. In addition, DEAG also received inflows from subsidies and insurance payments on a significant scale in financial year 2021. Earnings before interest and taxes (EBIT) were around EUR 13 million (previous year: EUR 1.0 million) and Group earnings after taxes turned around from EUR -2.9 million to more than EUR 3 million. In the fourth quarter, sales revenue increased significantly from EUR 10.8 million to approximately EUR 66 million, nearly six times as much as in the previous year. EBITDA for the final quarter was reported at EUR 8.8 million, after EUR 13.3 million in the previous nine-month period.

In view of the significant recovery in its core markets, strong ticket sales and growth impulses from the companies acquired in 2021, DEAG expects a significant improvement in EBITDA and further revenue increases in 2022. DEAG has a very well-filled event pipeline and has already sold more than 5 million tickets for events in its core markets for the coming quarters.

Total assets rose to more than EUR 285 million as of 31 December 2021, up from EUR 186.5 million a year earlier. This increase is mainly due to already realised, above-average ticket sales for future events. Cash and cash equivalents in the Group more than doubled to more than approximately EUR 118 million at the end of 2021 (previous year: EUR 46.0 million). Due to the increase in total assets, DEAG's equity ratio was below 15% as of the balance sheet date, with a simultaneous significant increase in equity. Under the terms of the 2018/2023 corporate bond, the interest rate on the bond could increase accordingly by 0.5 percentage points to 6.5% p.a.

"DEAG has weathered the pandemic comparatively well over the past two years, which have not been easy for the entire live entertainment industry due to COVID-19," said Professor Peter L.H. Schwenkow. "We stand on strong legs, have successfully continued our expansion course in Germany and Europe and are currently experiencing an increasing return to normal for our business activities in all our core markets and high demand for tickets for concerts and events. We are excellently positioned for future growth with our broad portfolio of events and our strong financial position. Our ticket sales are at an above-average level and we have started the current year with plenty of tailwind. In the UK, booking levels are already back to pre-crisis levels and in our other core markets they are approaching 2019 levels again, the year before the corona pandemic broke out. We will offer visitors hundreds of events over the next few months and set off event fireworks."

DEAG plans to publish its Annual Financial Report for 2021 by end of March 2022 at the latest.

About DEAG

DEAG Deutsche Entertainment AG (DEAG) is a leading entertainment service company and provider of live entertainment in Europe. DEAG has been present with its Group companies at 15 locations in its core markets of Germany, the United Kingdom, Switzerland, Ireland and Denmark. As a live entertainment service provider with an integrated business model, DEAG has extensive expertise in the planning, organization, marketing and promoting events.

Founded in Berlin in 1978, DEAG's core businesses today include Rock/Pop, Classics & Jazz, Family Entertainment, Arts+Exhibitions and Ticketing. Family Entertainment and Arts+Exhibitions are the elementary building blocks for the further development of DEAG's own content.

Until 2019 - before the start of the COVID-19 pandemic -, more than 5 million tickets were sold annually for over 4,000 events - a continuously growing share of these were sold via the Group's own e-commerce platforms "MyTicket" and "Gigantic.com" for its own and third-party content.

Through its strong partner network, DEAG is excellently positioned in the market as an internationally active Live Entertainment service provider.

Investor & Public Relations
Axel Mühlhaus, edicto GmbH
Eschersheimer Landstraße 42
60322 Frankfurt am Main
Phone: 0049 69 905505-52
email: deag@edicto.de