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ots Ad hoc-Service: Dt. Entertainment AG
DEAG Europe\047s largest live entertainment provider with half a billion revenues after take-over of the profitable assets of Stella
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Berlin (ots Ad hoc-Service) -
Within the scope of an asset deal over DM 40 million DEAG has acquired the profitable parts of the Stella business, free of old liabilities, including production facilities worth several million DM. The following productions have been taken over: Cats, The Phantom of the Opera, Disney's The Beauty and the Beast, Starlight Express, Disney's The Hunchback of Notre Dame as well as the complete production of Dance of the Vampires starting on 31 March 2000.
The provisional insolvency proceedings of Stella AG which had been pending since 26 November 1999 were concluded last night - subject to the approval of the creditors' - with the administrator in the insolvency proceedings deciding in favour of DEAG. DEAG won the deal against numerous competitors, including the Dutch Stage Holding and the US live entertainment giant, SFX Entertainment.
Although Stella AG has been back to profitable operations since October 1999, DEAG will implement a restructuring programme and set a clearly targeted course based on the following concept: - reduction of the musical running times to render the overall programme more attractive, - concentration on four musical-cities with six locations, - leases reduced by more than DM 35 million, - strengthening of the unique distribution system with its strong trade partners.
The future focus will be clearly on the musical without - as was the practice of Stella AG - diverting profits from the core business to other areas, such as real estate project development.
This asset deal makes DEAG the largest live entertainment provider on the European continent. At the same time, the DEAG Board of Management increased its revenue forecast for the year 2000 from DM 250 to DM 510 million. It thus reaches the targets it set for itself at the IPO three years ahead of schedule. Despite the restructuring expenditure incurred this year in an amount of around DM 7 million, the profit forecast is likewise adjusted upward to an EBITDA of DM 33 million and to an EBIT of DM 21 million.
"This asset deal is a sensational and unique opportunity for DEAG", stresses DEAG CEO Peter Schwenkow. "Together with the existing concert, variety and venue business of DEAG, we now have, with the profitable assets of Stella, almost seven million valuable customers. This takes us to a new dimension of live entertainment. And the synergies which can be tapped on the costs and earnings side have not yet been taken into account in our forecasts!"
More details will be disclosed at press and analyst conferences called at short notice: - DVFA Conference, Sheraton-Hotel am Airport, Frankfurt/Main, 9h30 - Press Conference, Park Hyatt Hotel, Hamburg, 13h00 - Press Conference, Grand Hyatt-Hotel, Berlin, 17h00
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Original-Content von: DEAG Deutsche Entertainment AG, übermittelt durch news aktuell