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ots Ad hoc-Service: Dt. Entertainment AG
DEAG grows in 1st quarter by 59%
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Berlin (ots Ad hoc-Service) -
DEAG grows in 1st quarter by 59%
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 ----------------------------------------------------- Internet: http://recherche.newsaktuell.deOriginal-Content von: DEAG Deutsche Entertainment AG, übermittelt durch news aktuell