DEAG rapped for financial irregularities

Deutsche Entertainment AG (DEAG) has been criticised by Germany’s Financial Reporting Enforcement Panel (FREP) for allegedly misrepresenting its financial strength in its 2014 full-year and 2015 half-year fiscal reports. According to German business weekly WirtschaftsWoche, FREP took issue with DEAG’s 2014 financial report describing “very good presales” for its three new festivals, Rock im Revier, Rockavaria and Rock in Vienna – when, in fact, less than a month before the festivals were due to kick off, “not even half of their costs were covered by ticket sales”. The launch of the new festivals led to a €17.8m million loss in 2015, which on Friday was revised retroactively to -€26.2m as a result of FREP’s investigation. Only Rock in Vienna remains following the cancellations of Rock im Revier and Rockavaria.

More on IQ here https://www.iq-mag.net/2017/05/deag-substantially-overstated-financial-success-frep/#.WQmx69ryuM9

DEAG plans expansion in the UK

Deutsche Entertainment AG (DEAG), the parent company of Kilimanjaro Live and classical music promoter Raymond Gubbay Ltd, has signalled that it plans to expand it activities in the UK, despite Britain’s vote in June to leave the European Union. In its financial results for the first half of 2016 (H1), Peter Schwenkow, chairman of the German concert/festival promoter and ticket agent, praised “better-than-expected” growth from its British subsidiaries and said, “despite ‘Brexit’, the English market remains highly attractive to DEAG”, adding that he is “examining opportunistic acquisition opportunities” in the UK. Schwenkow told IQ that he expects “continued dynamic growth” in the UK in 2017, chiefly from “six major rock tours [currently] in preparation”.

DEAG posts loss for 2015

Deutsche Entertainment AG (DEAG)’s financial results for 2015 were heavily impacted by the one-off expenses incurred by the launch of three new music festivals, according to its just-published 2015 annual report. The Berlin-based concert promoter reported an increase of revenue of 16 per cent, up from €172.6 million to €200.4 million. However, earnings before interest and taxes (EBIT) decreased from €9.1m to a loss of €17.8m. The launch of the three festivals – Rock im Revier in the Ruhr district, Rockavaria in Munich and Rock in Vienna, headlined by Metallica, Muse and Kiss – amounted to around €23m in non-recurring expenditure.

DEAG’s MyTicket Expands into UK Market

UK promoters have yet another ticketing service to consider after DEAG launched its MyTicket platform in London, recently. In partnership with its subsidiary, Kilimanjaro Live, MyTicket.co.uk launched on 30 June becoming a purchase hub for all events in the UK with ties to the DEAG group.

MyTicket.de has been running in Germany for six months and in the first quarter of DEAG’s current business year processed 5% of the group’s tickets sold online. The UK operation will sell tickets for both Kilimanjaro and Raymond Gubbay Ltd (another subsidiary of the German live entertainment conglomerate). Kilimanjaro stages around 350 events a year, including Ed Sheeran’s record-breaking three sold-out nights at Wembley Stadium; and arena tours by Peter Gabriel, Wet Wet Wet, Nitro Circus and Andrea Bocelli.

Raymond Gubbay, meanwhile, is recognised as one of the UK’s leading promoters of classical events, staging in excess of 500 performances annually, with its Christmas season at the Royal Albert Hall among its best known.

DEAG states that its UK affiliates sell about 1.2 million tickets per year. The launch of MyTicket.co.uk will now merge those companies’ sales activities, ahead of plans to open the platform to third party providers next year.

Hinting at even greater ambitions for the ticketing division, DEAG founder Peter Schwenkow adds, “With MyTicket we are considerably expanding our value chain and are equally successful in the United Kingdom as in the G/S/A countries. With the attractive content within DEAG group, we can rely on excellent conditions for an ongoing rapid growth for our ticketing platform.”

http://www.ilmc.com/index.php/news/newshome/2753-deag-s-myticket-expands-into-uk-market

DEAG snaps up Kilimanjaro

Live promoters and Sonisphere organiser Kilimanjaro has announced a that Germany's DEAG will take a controlling stake in the business. Confirming the new deal, founder Stuart Galbraith, who will continue to run his firm as well as offering expertise to the new parent company, said "This is an exciting time for Kilimanjaro. We have always operated as an independent promoter and this deal allows us to continue to do so whilst benefiting from the support and reach of being affiliated with an organisation such as DEAG. We already have a lot of exciting projects in place for 2014 and this deal will mean that our customers and supporters can expect the same and more in 2015. It's a time for growth and investment in our core regular projects whilst looking for interesting opportunities wherever they arise". Detlef Kornett, Executive Board Member of DEAG, added: "This is a further strong stride into the UK market for us with a strong and well respected partner helping us to double our turnover in this market. We are also hoping that opportunities with exciting artists and tours for Germany, Austria and Switzerland will arise".

Wizard joins DEAG, ABC with CTS

Ossy and Olliver Hoppe's Wizard Promotions have joined the DEAG group, selling a 75.1% stake to the German giant. In separate news, Andre Bechir's new ABC Productions has offloaded a 80% stake to CTS Eventim.