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ots Ad hoc-Service: Dt. Entertainment AG <DE0005513907> DEAG grows in 1st quarter by 59%/e

Berlin (ots Ad hoc-Service) -

Ad hoc-announcement edited and sent by DGAP. The sender is solely
responsible for the contents of this announcement.
The DEAG (Deutsche Entertainment AG) was able to record
significant growth in sales this year for the first quarter,
traditionally the weakest season. Turnover grew by 59% over the same
period in the previous financial year, with sales revenue increased
from DM 15.5 million to DM 24.7 million. Earnings, although naturally
still reflecting the advanced expenditure always necessary at this
time of year in preparation for the entire season, also showed
considerable improvement in comparison with the first quarter of
1999. Earnings before interest, tax, and depreciation (EBITDA)
improved from DM -2.8 million in 1st quarter 1999 to DM -1.6 million
in the first three months of 2000.
The growth has been generated in all divisions of company
operations. * In the Theatres Division, the most profitable part of
the company's activities,the Variety Theatres in Berlin and Stuttgart
continued to record increasing attendance figures, and levels of
attendance were again above those of the previous year. The main
activity in this division followed the announcement on 28th February
of the acquisition of assets of STELLA. However, the musical business
will only be included in the consolidated results of the DEAG from
1st April 2000. * As in the previous year, the Artists & Tours and
the Urban Entertainment divisions were characterised by advanced
investments for the concert season. As with the Rolling Stones 1998,
and Westernhagen 1999, the DEAG is this year again presenting
absolute top acts in Germany with Tina Turner and Bon Jovi.
Furthermore, the numbers of shows and concerts staged in the 1st
quarter (including e.g. Sting, Pet Shop Boys, Michael Flatley's Feet
of Flames) showed a marked increase over the previous year. This has
made it possible to compensate to a significant degree for the rise
in costs which has resulted from the further growth in the concert
business for the next quarters. In all, it was possible to achieve a
growth in turnover of more than 75%. A further contribution towards
maintaining this rate of growth in the future is the agreement
reached at the end of March with Andre Rieu for a European tour
including more than 200 concerts planned over a four-year period. The
contract package also covers galas, sponsoring, TV-recordings and
extensive cooperation in e-Commerce - a milestone for the DEAG on the
way to offering a professional one-stop-shopping for performing
artists. * A further noteworthy event for the Urban Entertainment
division was the announcement on 22nd February of the acquisition of
the Loreley Freilichtbühne open-air venue, which will play an
important role in the future promotional strategy of the DEAG Group,
which now has a total of 15 venues all over Germany.
* An important development in the Media & Commerce division was
the agreement reached in early February for the Sunburst AG to
participate in Real Merchandising. This joint venture, originally
intended to concentrate primarily on the venue and concert business
of the DEAG, can now extend its coverage to include the musical
merchandising of STELLA. Another focal point for activities was the
preparation of the DEAG-Internet strategy, including, among other
things, pilot projects with Internet and Mobile Ticket Auctioning.
In view of the strong first quarter and the positive development
of the newly-integrated STELLA Musicals since the 1st April, the
Board of Management sees itself on course to meet its announced
target of achieving an annual turnover in 2000 of DM 500 million, or
nearly triple the figure for the previous year.
This ad hoc announcement and other information can be accessed in
the DEAG News Archive under www.deag.de/ir. If you have any further
questions contact: Dr. Martin Fabel, Tel. +49 (0) 30 810750
End of message
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Original content of: DEAG Deutsche Entertainment AG, transmitted by news aktuell

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