DEAG targets strong Q4 after sales dip

DEAG targets strong Q4 after sales dip

German music promoter DEAG remains confident of a strong end to the year despite experiencing a dip in sales in the first half of 2019.

The company, which owns a controlling stake in the UK's Kilimanjaro Live, recorded sales of €63.9 million (£57.9m) in the first half of 2019, compared to €118m (£107m) in the previous 12 months, according to its latest financial results. 

DEAG attributed the decline to Ed Sheeran's 2018 UK stadium tour (co-promoted by Kilimanjaro) falling in the second quarter of 2018. The six Sheeran concerts organised by DEAG fall in the third quarter of 2019. 

The firm is forecasting sales of around €55m (£50m) in the third quarter through shows with acts such as Böhse Onkelz, Foreigner, Stereophonics, Limp Bizkit and Toto, which would represent an increase of more than 60% on the previous year. In addition, DEAG is projecting one of the strongest fourth quarters in company history and above-average growth in earnings.

Its projections are based primarily on organic business expansion. DEAG's TimeRide VR entertainment experience will be expanded from one to five locations, while its Christmas Garden attraction will be offered in six cities instead of three in 2019, including other European countries for the first time.

The group is also increasing the number of its Christmas Circuses from two to three locations. DEAG will distribute more than half a million tickets for these events almost exclusively via its MyTicket platform.  

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