EEurope’s largest ticketing and events group, CTS Eventim, reports significant growth in sales and earnings after the first six months of this year. As the M-Dax group announced on Thursday, revenue rose by 39 percent to around one billion euros compared to the same period last year. The operating result (adjusted Ebitda) amounted to 170.8 million euros, 39 percent more than after six months last year. The bottom line was an increase of 85.3 million euros.
With a view to the significant increase, however, the group refers to the corona restrictions for concerts and other events that were still in force in the first half of last year. Sales in the second quarter increased by a total of 10 percent. Operating profit shrank by 5 percent, a consequence of around 25 million euros in corona aid from the state booked in this quarter. If the effect is calculated out, there would be an increase of 27 percent. Half-year sales were also 47 percent above the 2019 level.
The significant increases are a result of various major tours in the first half of the year with stately ticket prices or the World Championships in Athletics in Budapest. According to Eventim, 23 percent more online tickets were sold than in the same period last year. Various stars have been on tour in Europe recently, including Bruce Springsteen, Harry Styles and Beyoncé. In contrast to tours by Herbert Grönemeyer, Roger Waters or Hans Zimmer, the organizers of the first three were not an Eventim company, but world market leader Live Nation. By selling tickets via its platforms in various countries, the group also earns money from the fees for shows from organizers that do not own a majority of the group. Eventim also operates the “Fansale” resale platform and two large venues in Germany, the Lanxess Arena in Cologne and the Waldbühne in Berlin.
Expensive events, lucrative ticketing
The market power of the group with a strong presence in all three key value-added areas in the live business is repeatedly criticized. Ticketing is particularly profitable. Although the division only accounts for a comparatively small part of the group’s sales, it always generates an impressive margin: sales up to the end of June were EUR 284.6 million, with an Ebitda margin of 43 percent and thus EUR 122.3 million, 48 percent more than in the same period last year. The situation is different with regard to self-organized tours and festivals. The Eventim network includes 34 organizers in 15 countries, not least festivals such as Rock am Ring / Rock im Park or Southside / Hurricane are carried out by Eventim companies. In the first half of the year, the division had a turnover of 751 million euros (39 percent more than in the same period of the previous year), the margin was 6 percent after 7 percent in the previous year. In the second quarter there was also a drop from 9 to 8 percent.
—
— (–)
For detailed view
Festivals and concerts are generally not a particularly high-margin business. Recently, their implementation has become even more expensive due to the general price increases. In some cases, costs are observed to be more than 30 percent higher, Eventim boss Klaus-Peter Schulenberg explained in an interview with the FAZ at the end of March. Thanks to “successful cost management”, the margin has only fallen by one percentage point, it is now said. The ticket prices, which in some cases increased significantly as a result, sometimes led to fewer crowds at festivals. This sometimes shows up on tours. Only with stars do prices of more than 100 euros usually not deter fans from buying.
The prime example is Taylor Swift. In July, Eventim even requested registration in advance for ticket sales for the Germany concerts of their “Eras Tour”. On the day of sale, receipts for the sales were sent by drawing lots. The Swift effect will show up in the Eventim figures in the third quarter. The Germany concerts in Gelsenkirchen, Hamburg and Munich are scheduled for July 2024. In Munich and Gelsenkirchen, the FKP Scorpio agency, which is majority owned by Eventim, acts as the local organizer. The independent Karsten Jahnke Konzertdirektion is responsible for Hamburg. The part of the 243 million euros in compensation due to Eventim that the federal government has to pay in the course of the arbitration proceedings as a result of the failed car toll is also booked in the third quarter. Eventim announced that it wants to use part of a foundation to promote young musicians. It is not yet known how much money will go into it.
In any case, there is no lack of optimism. The group is now also forecasting “moderately” higher sales in the event sector than in the previous year, whereas a slight decline had previously been expected. Eventim referred to the large number of self-organized concerts and tours as part of the live business restarting after the pandemic.
#Eventim #billion #euros #sales #year