Features
CTS Eventim Assures Investors Of Future Viability Amidst Q3 Losses
– CTS Eventim
Logo.
Through new technologies, robust partnerships and strong leadership established during the first nine months of 2020, live events giant CTS Eventim states it has reinforced “its future viability in the midst of the coronavirus crisis.”
“We have been convinced since the outbreak of the pandemic that the stresses imposed on our company must be seen as a trial of our strengths. That is the basis on which we act. There is no such thing as standstill,” commented CTS Eventim CEO Klaus-Peter Schulenberg during the presentation of his company’s Q3 results.
These show that group revenues between Jan. and Sept. 2020 fell by 78.7% year-on-year to €228.7 million ($271 million).
At this point in time last year, the company had turned over €1.074 billion.
“Thanks to strict cost management and income from insurance compensation,” the normalized EBITDA figure came in at € -17.7 million ($ -21 million), down from €177 million at this point in time last year.
Looking at the third quarter of 2020 only, group revenues declined by 92% year-on-year, from €378.0 million in Q3/2019 to €30.2 million. Normalized EBITDA dropped to € -15 million ($ -18 million) from €65.2 million in Q3/2019.
As usual, CTS Eventim also displays its earning for both its main business segments separately.
Revenue in the ticketing segment for the first nine months of 2020 declined by 65.1% year-on-year, from €306.9 million to €107.2 million. Normalized EBITDA fell from €119.2 million to € -12.7 million.
In the third quarter alone, revenues dropped by 82.4% from €106.6 million to €18.7 million, while normalized EBITDA came in at € -11.3 million, down from €44.8 million in Q3/2019.
In the live entertainment segment, revenue in the first nine months of 2020 was 83.7% lower year-on-year, and stood at €127,3 million (Q1-3/2019: €781.4 million). Normalized EBITDA amounted to € -5.1 million, compared to €57.8 million in Q1-3/2019. “This includes €43.3 million in income from insurance compensation,” according to CTS Eventim’s earnings statement.
In the third quarter alone, revenues fell 95.5% from €276.9 million to €12.4 million year-on-year. Normalized EBITDA was € -3.7 million (Q3/2019: €20.4 million).
– CTS Eventim
CEO Klaus-Peter Schulenberg
In response to the Covid crisis, CTS Eventim adjusted its cost structure and boosted efficiency, which saved the company “a double-digit million figure,” according to the earnings statement.
Investments were reduced to a minimum, voucher schemes ensured liquidity in those countries that offered them. “As per Sept. 30, 2020, total cash and cash equivalents amounted to €798.7 million,” the company informs.
Schulenberg intends to bank on CTS Eventim’s strengths, which are “technology and industry know-how.”
It recently entered into a strategic ticketing partnership with the European Handball Federation (EHF) for the 2022 and 2024 European Handball Championships.
CTS Eventim’s sports-facing business also inked long-term partnership deals for ticketing and other services with two of Germany’s long-standing soccer clubs, Werder Bremen and Hannover 96, who are going to utilize CTS Eventim’s ticketing system.
It its outlook for 2020, CTS Eventim states: “Given the major uncertainties that continue to surround the future course of the coronavirus crisis and its impacts on the 2020 financial year, the management is still of the opinion that it is impossible to provide a definite forecast for the year as a whole.
“It was for that reason that it withdrew its forecast for the 2020 financial year as early as 3 April 2020. As was communicated at that time, the Management Board expects revenue and earnings in 2020 to be significantly lower year-on-year in the Ticketing and Live Entertainment segments.”