DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft: DEAG continues on its expansion course and acquires an interest in a German promoter

Corporate News

DEAG continues on its expansion course 
 

- Majority stake in C² CONCERTS GmbH (Stuttgart) acquired

- Consequent continuation of its buy-and-build strategy

- C² CONCERTS rounds off DEAG's regional coverage in Germany

- High synergy potential in the live entertainment and ticketing business
 

Berlin, 3 June 2019 - DEAG Deutsche Entertainment Aktiengesellschaft (DEAG), Berlin, ISIN: DE000A0Z23G6, Ticker: ERMK, listed in the Prime Standard, has announced to acquire a 51% majority interest in the promoter C² CONCERTS. C² CONCERTS has been a successful local promoter in Baden-Württemberg, musical producer and tour operator for more than 20 years. The promoter offers a broadly diversified portfolio in the divisions of Rock/Pop, Family Entertainment, Arts+Exhibitions and Classics & Jazz and holds some of the rights to its content. With around 200 events and around 400,000 tickets sold in 2018, the highly profitable C² CONCERTS achieved turnover of EUR 7 million. By acquiring a stake in C² CONCERTS, DEAG also expects the additional annual tickets to stimulate growth in the ticketing business via myticket.

DEAG has been working successfully with C² CONCERTS on a basis of trust for many years. The Christmas Garden in Stuttgart, which was held for the first time in 2018 and attracted over 125,000 visitors, was a complete success of this cooperation. In the future, the format will also be offered at two further locations in southwest Germany. Due to the close cooperation in the past, the Management Board expects rapid integration into the DEAG Group and implementation of synergies.

"The even closer cooperation with C² CONCERTS in the future will give us the opportunity to continue growing profitably with an extended value-added chain. This step completes our regional coverage in our core market of Germany and, in addition to Berlin, Hamburg, Munich, North Rhine-Westphalia and Frankfurt/Main, we are now also represented in Southwest Germany. In addition, we see significant synergy potential in the live entertainment and ticketing business," said Prof. Peter Schwenkow, CEO of DEAG. Christian Doll, Managing Director of C² CONCERTS, added: "With DEAG, we are looking forward to intensifying our cooperation with a first-class partner in the live entertainment business. Both sides will benefit from this." With a view to the future, the Executive Board of DEAG believes that medium-term sales growth of C² CONCERTS as part of the DEAG Group to over EUR 10 million is realistic.

About C² CONCERTS

After 17 years of intensive cooperation, Christian Doll and Christian Ludewig founded C² CONCERTS GmbH together in 2010. Initially operating primarily as a local concert promoter and regional full-service provider in the Stuttgart area, Christian Doll, as Managing Partner with sole responsibility, consistently expanded the company's fields of activity from the very beginning. As a producer of children's and family musicals, he profitably expanded the company's portfolio to include the Family Live Entertainment segment, starting in 2013. In 2014, he continued on his expansion course and established his company as a nationwide tour organizer (The Harlem Globetrotters, Angelo Kelly & Family and others). In 2015, the US industry magazine Pollstar, for the first time lists C² CONCERTS among the 100 most successful organizers worldwide. With an excellent national and international network, Christian Doll has also been a member of the Board of the Federal Association of the Event Industry since 2016 (formerly bdv, since 1/1/19 BDVK).

About DEAG

DEAG Deutsche Entertainment Aktiengesellschaft (DEAG) is a leading entertainment service company and a provider of Live Entertainment in Europe with subsidiaries in its core markets. DEAG produces and profitably organises a broad range of live entertainment events and concerts. As a Live Entertainment service company with an integrated business model DEAG has extensive expertise in the organisation, marketing and holding of events, as well as in ticket sales via its own ticketing platform 'MyTicket' for its own and third-party content. The highly scalable business model of MyTicket strengthens DEAG on its way to increasing profitability. DEAG promotes around 4,000 concerts and events a year and currently sells more than 5 million tickets, of which a steadily increasing share is sold via its high-turnover ticketing platform MyTicket.

Founded in Berlin in 1978 and listed since 1998, DEAG's core businesses include Rock/Pop, Classics & Jazz, Family Entertainment and Arts+Exhibitions. The Family Entertainment and Arts+Exhibitions divisions in particular are of great importance to the further development of DEAG's own content. With its strong partner network, DEAG is excellently positioned in the market as an internationally active Live Entertainment service company.

DEAG shares (ISIN: DE000A0Z23G6 | WKN: A0Z23G | ERMK) are listed in the Prime Standard of the Frankfurt Stock Exchange, the quality segment of Deutsche Börse.

IR contact

cometis AG
Claudius Krause
Phone: +49-611-20585528
email: deag@cometis.de