At the ticket marketer and concert organizer CTS Eventim, the business runs unexpectedly after a strong start of the year.
Inquiring income from their own concerts and the expensive integration of acquired companies had the profit melted by almost a quarter in the second quarter. The ticket sales increased, and CEO Klaus-Peter Schulenberg records “current” at his annual goals. But he refers to difficult overall economic development.
The bottom line was that CTS earned almost 44 million euros in the second quarter, over 24 percent less than a year earlier, as the company announced in Munich on Thursday. The operating result adjusted by special items fell by around 9 percent to 100.2 million euros. Analysts had expected a significant increase in both values.
Although sales from ticket sales increased by more than 15 percent to a good 202 million euros, the proceeds from the group’s own events decreased by 4.5 percent to around 603 million euros. The turnover of sales stagnated across the group at almost 796 million euros. Here, too, analysts had expected a significant increase on average.
In addition, there were unexpectedly high costs: the integration of the recently taken over-the-art tickets of tickets and France Billet consumed on the result, and in the organizer business, the integration of the U-live companies according to the information was expensive. While the ticket marketing was able to increase its adjusted operational profit, the adjusted operational result of the organizer division broke up by almost 40 percent.
Management reported “challenging overall economic development”. Nevertheless, CTS Eventim achieved the highest sales in its history in the first half of the year with almost 1.3 billion euros. “The anniversary editions of the two signature festivals Rock am Ring and Rock im Park were again sold out,” it said. The adjusted operational profit, on the other hand, decreased by almost one percent to 200.5 million euros in the first six months.
Nevertheless, CEO Schulenberg states to increase the sales and the adjusted operational profit moderately this year. Last year, CTS Eventim had made sales of 2.8 billion euros and adjusted operational profit of a good 542 million euros.
Investors take flight at CTS Eventim share-nine-month low
The former stock market favorite CTS Eventim shocked its shareholders on Thursday with a drop in profits. The share price of the ticket marketer and event organizer temporarily dropped by more than 20 percent via Xetra and reached the lowest level in nine months with a good 79 euros. Ultimately, the minus was 16.91 percent to 82.55 euros. A steeper upward trend that started in autumn 2023 is likely to be history.
After a strong start of the year, the business ran unexpectedly weakly. Inquiring income from their own concerts and the expensive integration of acquired companies had the profit melted by almost a quarter in the second quarter. The net profit remained by a good 40 percent behind the market maintenance. Meanwhile, CEO Klaus-Peter Schulenberg records “current” on his annual goals.
The word “disappointment” runs like a thread through the comments from analysts. The adjusted operational result (EBITDA) was one third below the average market maintenance, Volker Bosse from Baader Bank noted in a first reaction. Both the ticket business and the live entertainment have burdened the results.
With regard to the front, Lara Simpson from JPMorgan referred to the fact that the company wanted to increase the adjusted operational result (EBITDA) this year. Last year it was at a good 542 million euros. However, the market maintenance is currently being significantly increased by 12 percent to 610 million. This expectation must now be corrected downwards, the expert predicted.
The previous attitude of analysts to CTS Eventim makes their disappointment understandable: Of 15 experts who, according to the Bloomberg news agency, recommend 10 its shares with “Add”, “Buy”, “Outperform” or “Overweight”, so positive. Five Augusters advise a neutral attitude, there are no negative assessments.
The company can look back on a remarkable stock of stock exchange: since 2010 the share price at the top has increased at a good 114 euros. The plus was a good 30 percent last year, and 2019 protrudes with a rally of 72 percent. Since 2020, however, the course -up course has been shaped by strong reset again and again – including this Thursday. The value in the Corona period was particularly weak.
Munich/Frankfurt (dpa-Afx)
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