CTS Eventim, the German concert promotion and ticketing company, surpassed €2 billion in annual revenue for the first time in 2023. Revenue jumped 22% to €2.36 billion ($2.53 billion at average exchange rates in 2023), while normalized earnings before interest, taxes, depreciation and amortization (EBITDA) rose 32% to 501.4 million euros ($542.7 million).
Earnings per share rose by a third to 2.86 euros ($3.05) from 2.12 euros ($2.29) in 2022. In light of the record performance, the company's executive and supervisory board will propose to the annual meeting of shareholders a dividend of 137.3 million euros ($148.7 million at the current exchange rate). The largest dividend payment in the history of CTS Eventim is equal to 50% of net income.
“These outstanding results are proof that live entertainment is once again leading the arts and creativity sectors,” said CEO Klaus-Peter Schulenberg in a statement. “We owe it primarily to the creativity of the artists who delight their fans around the world day in and day out. Thanks also to the countless supporters who, with their boldness and entrepreneurial spirit, organize events and create unforgettable experiences. And last but not least, our team and our technologies ensure that live cultural events can thrive and that everyone involved can make a living from their work.”
Live entertainment revenue rose 18.9% to 1.68 billion euros ($1.82 billion). The company showed higher costs in 2023 and “partially” passed those costs on to the market, Schulenberg wrote in annual report. As a result, normalized EBITDA decreased by 1.8% to €117.0 million ($126.6 million). The label cited a boost it received from new North American partnerships with Mammoth and AG Entertainment, created to sign international acts for US and global tours. Another partnership, The Touring Co, a promotion partnership Walter McDonald announced in December 2023, will help CTS Eventim expand into North America in 2024.
In the ticketing sector, revenue rose 32% to 717.3 million euros ($776.4 million) and EBITDA rose 47% to 384.4 million ($416.1 million). The number of online tickets sold rose 19.6% to 82.9 million from 69.3 million in 2022. The company credited the ticketing platform's reliability in handling high demand for concerts by Taylor Swift, Rammstein, Bruce Springsteen, Coldplay, Apache 207 and Paul McCartney. International expansion also provided a boost to ticketing growth: In 2023, CTS Eventim, together with Sony Music Latin Iberia, acquired the ticketing companies Punto Ticket in Chile and Teleticket in Peru.
CTS Eventim's annual results are further proof that concert activity is booming after the lifting of COVID-19 restrictions. The company's total revenue was 63.4% higher than in 2019, the last full year before the pandemic temporarily halted the tourism industry. Live entertainment revenue last year was 70.1% higher than 2019 and ticket revenue was 48.9% higher. While CTS Eventim is up nearly two-thirds from before the pandemic, its growth rate is about a third slower than Live Nation, the world's largest concert promoter and ticketing company, which grew revenue by 93, 9% from 2019 to 2023.
In 2024, CTS Eventim expects “modest growth” in total revenue and believes EBITDA will remain at the level seen in 2023. Demand is “steadily increasing,” Schulenberg wrote, and the company expects the recent drop in inflation to deliver “new, consumption-driven drive for future growth.”
CTS Eventim shares rose 5.1% to 77.50 euros ($83.96) on Tuesday (March 26). The stock gained 5.0% in 2023, slightly below the 8.0% rise in the MDAX, an index of shares traded on the Frankfurt Stock Exchange.
Here is a recap of some financial metrics for CTS Eventim's 2023 earnings results:
- Revenue €2.36 billion ($2.53 billion)
- Normalized EBITDA €501.4m ($542.7m).
- Ticket revenue €717.3m ($776.4m) and EBITDA €384.4m ($416.1m).
- Concert revenue of €1.68 billion ($1.82 billion) and EBITDA of €117.0 million ($126.6 million).
from our partners at https://www.billboard.com/business/touring/cts-eventim-earnings-2023-revenue-up-post-covid-touring-boom-1235641686/