DEAG reports a successful 2019
Deutsche Entertainment AG (DEAG) has reported a successful 2019, despite a drop in revenue and profit.

For financial year 2019 as a whole, DEAG’s Group sales amounted to some €199 million before consolidation and €185.2 million after consolidation.

As DEAG informs in its earnings report, "this almost completely compensated for the loss of sales from the deconsolidation of Raymond Gubbay Ltd. and the significantly reduced number of Ed Sheeran concerts that were held."

2019 group revenues declined by about 7% compared to 2018, when DEAG turned over €213 million before, and €200.2 million after consolidation.

EBITDA for the full year 2019 amounted to €14.1 million, including expenses of around €0.5 million incurred for the preparation and execution of aforementioned acquisitions.

DEAG has been on an acquisition spree last year, acquiring a total of five businesses between June and December. Those acquisitions have only been included in the 2019 sales on a pro rata basis.

Two further acquisitions originally planned for the fourth quarter of 2019 were postponed until 2020 due to the Brexit issue which was not resolved at that time.

Q4 was still strong for DEAG, though. The group generated sales of €62.1 million, a 31% rise compared to the same period of 2018.

Q4 revenues thus accounted for 34% of total sales in the financial year 2019. EBITDA for the period was €6.2 million, compared to €4.2 million in the previous year.

For the current financial year 2020, DEAG had originally aimed for double-digit growth in sales and EBITDA. Due to the Coronavirus scare, however, it is currently impossible to provide a detailed outlook for the current year for the reporting date.

As DEAG informs, "any cancellations of current events and those in advance sales due to force majeure are fully covered by insurance (including Covid-19) with one of the largest insurance groups worldwide.

"The first events that have incurred losses have already been assessed and paid for. For reasons of damage minimisation and in order to take fan interest into account, DEAG is in intensive contact with the artists and partners regarding postponement of the events.

"Currently, more than 600 events have already been almost completely rescheduled to the coming quarters. Accordingly, a change in the timing of sales and results is possible in the current financial year."