CTS Eventim Revenue Up 39% in First Half of 2023
Written by djfrosty on August 24, 2023
German concert promoter CTS Eventim says successful tours by Herbert Grönemeyer, Hans Zimmer and P!nk led an “encouraging” first half of 2023 and provide “a cause for optimism” in the second half of the year. Six-month revenue increased 39% to 1.02 billion euros ($1.1 billion at the average exchange rate in the period), marking the first time CTS exceeded 1 billion euros for any six-month period, the company announced Thursday (Aug. 24). Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 39% to 170.8 million euros ($185 million).
Looking ahead, CTS Eventim’s leadership expects both full-year revenue and EBITDA to increase compared to 2022. Pre-sales for Taylor Swift’s Eras Tour were the company’s “absolute top seller for the current year” and will hit the company’s third-quarter financial statements, according to the earnings press release. Additionally, CTS Eventim’s acquisition of a majority stake in French ticketing company France Billet will not be reflected in the financials until the acquisition is completed.
The company has fully recovered from “market distortions caused by pandemic-related catch-up effects” and is experiencing “healthy organic growth” augmented by developing and expanding business segments, CEO Klaus-Peter Schulenberg said in a statement. “The breadth and depth of our portfolio and the successful internationalization of our business are the key drivers of our strong and stable growth,” he added.
CTS Eventim’s live entertainment segment posted revenue of 751 million euros ($812 million), up 39% from the prior-year period, and EBITDA of 48.5 million euros ($52 million), a 21% increase. About 50 million euros ($54 million) of that revenue came from the United States, where CTS Eventim launched a partnership with promoter Michael Cohl in 2020.
Ticketing revenue increased 41% to 284.6 million euros ($308 million) and normalized EBITDA improved 48% to 122.3 million euros ($132 million) due to “a broad range and large number of successful events and tours,” primarily in Germany, Italy and Austria. The company sold 34.3 million web tickets in the first half of the year, 6.4 million more than the prior-year period.
Shares of CTS Eventim dropped 1.1% to 58.35 euros ($63.07) on Thursday. Year-to-date, the stock is down 2.1%, which the company attributes to “the change in risk perception among institutional investors” as “global equity markets trended sideways in the first half of 2023.” CTS Eventim’s shares have had their own trajectory in recent months, however, losing 18% of their value since the company’s allegedly anticompetitive behaviors attracted criticism from German television host Jan Böhmermann in June.