Live music promoter based in Germany DEAG report a 72% increased revenue in the third quarter from pre-pandemic levels in 2019, another sign that live music has bounced back from the impact of the Covid-19 pandemic despite recent macroeconomic difficulties. .
DEAG, which hosts live events at 17 locations in core markets including Germany, the UK, Switzerland, Ireland and Denmark, raked in €101.7 million ($106 million) on revenue in the third quarter, up from 59.2 million euros in the same period of the year 2019 and a sixfold increase from 16.7 million euros last year.
“Revenue and operating profit have improved significantly year over year and year over year before the 2019 crisis,” DEAG said in preliminary earnings results released on Friday (November 25). ). DEAG will release its full quarterly earnings results on Wednesday (November 30).
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) skyrocketed 110% from level 2019 to €10.2 millionand up 134% from 4.3 million euros a year earlier.
The owner of Kilimanjaro Live Group attributes its performance to the lifting of Covid-19 restrictions in the markets where it operates and the companies the group has acquired since 2019, which have contribute to its finances.
In the first 9 months of the year, DEAG’s revenue increased 91% compared to 2019 levels to €235.1 millionand up most of tenfold from 24.1 million euros in the previous year period.
From January to September, the company’s EBITDA reached 20.3 million eurosincreased from 13.3 million euros in the third quarter of 2021 and increased 155% from the third quarter of 2019.
“We are extremely pleased with our performance in the third quarter. Despite the generally challenging economic environment, the excellent performance in the first six months of 2022 continued with strong momentum in the third quarter.”
Professor Peter LH Schwenkow, DEAG
The positive results led DEAG to reaffirm its revenue outlook for the coming year. more than 300 million euros, with EBITDA is also expected to improve.
“We are extremely pleased with our performance in the third quarter. “Despite the generally challenging economic environment, the outstanding development in the first six months of 2022 continues with momentum,” said Professor Peter LH Schwenkow, DEAG CEO, Professor Peter LH Schwenkow. high in the third quarter.
As live events continue to recover from the pandemic, the group has held several events and concerts in the recent quarter, including sold-out outdoor events. ‘Belladrum Tartan Heart Festival’ in the UK and ‘Sion sous les étoiles’ in Switzerland.
The electronic music festivals of DEAG NATURE ONE, Ruhr-in-Love and MAYDAY also proved successful after attracting around 100,000 hits.
The company says its list of more than 30 annual festivals attracts more than 580,000 visitors in Germany, the UK, Switzerland and Ireland.
“The year 2022 will be a record year for DEAG. The first quarter of 2023 has been characterized by high visibility. We expect our dynamic growth to continue beyond 2022.”
Professor Peter LH Schwenkow, DEAG
“We have successfully organized countless concerts and events, and recorded a record summer of ticket sales with 3 million tickets sold from June to August alone,” said Schwenkow. ” said Schwenkow, noting that the company is seeing “unrelentingly high demand for tickets to events and concerts”.
“The year 2022 will be a record year for DEAG. The first quarter of 2023 has been characterized by high visibility. We expect our dynamic growth to continue beyond 2022,” the executive added.
DEAG has made acquisitions over the past three years, winning a number of key live events and ticketing companies, including UK promoters and event organizers. United Kingdom Live Ltd. (in 2021), Gigantic Holdings (in 2019), Collective Form (purchase of shares in 2021), Swiss’s Live music production and live music entertainment (acquired majority of shares in 2019), Germany Concert C2 (bought 51% shares in 2019) and i-motion, German arm of US-based electronic music giant LiveStyle (which bought a 50.1% stake in 2019), among many others.
Fast-forward to 2022, DEAG says it has continued its M&A strategy, acquiring electronic music festival among other events Airbeat One’and Classic Open Air am Gendarmenmarkt, one of Germany’s most popular classical and crossover events.
These latest acquisitions have allowed DEAG to expand its event reach into the rock/pop, classical and jazz divisions.
The company’s strong earnings results are further proof that live music has bounced back after the industry was hit by Covid-19 restrictions that forced artists, promoters and organizers to postpone or cancel concerts around the world.
Earlier this month, the US-based concert giant live country many words delivered What it describes as “the biggest summer concert season in history” after more than 44 million people across nearly 50 countries attended the concerts it held in the third quarter alone.
It marked the highest quarterly attendance in the company’s history.
Ticketmaster owner revenue grew 63% year-over-year to $6.15 billion in the third quarter.
A recent study by market monitor Luminate (formerly MRC . data / Nielsen Music) shows that interest in live concerts in the United States alone is close to reaching pre-Covid levels. In a survey of US consumers 13 and older, 36% said they plan to attend a concert next year, while Google Luminate’s research shows that searches for the keyword “concerts” are close to pre-pandemic levels.
Global Music Business
