CTS EVENTIM AG / Alliance
14.01.2008
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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CTS EVENTIM becomes a 'global player' in the ticketing industry
CTS software to be used on all continents / World annual sales expected to
increase to more than 100 million tickets / Exclusive 10-year agreement
with Live Nation / Long-term partnership in Europe, America, Asia, Africa
and Australia / Market leaders forge alliance
Munich, 14 January 2008. CTS EVENTIM AG, for years the market leader in
Germany and Europe in the ticketing field, will operate worldwide in
future, thus becoming a 'global player' in the ticketing industry. This
quantum leap is made possible by a long-term partnership deal concluded
with Live Nation Worldwide, Inc., the worlds biggest live events company.
CTS Eventim and its ticketing software will be positioned in all the key
European markets, in America, Asia, Africa and Australia. 'This opens up
new dimensions for our company. We will be expanding our international
business on a large scale within a short period', enthused CEO Klaus-Peter
Schulenberg at a press conference in Munich. By the year 2014, CTS Eventim
expects the partnership to generate up to 60 million extra tickets a year
and additional annual revenues of between 100 and 120 million Euros.
Foundations laid for global expansion
On 20 December 2007, the Management Board of CTS Eventim AG, listed in the
SDAX index, signed long-term and largely exclusive partnership agreements
with Live Nation Worldwide, Inc. (USA). Los Angeles-based Live Nation (NYE:
LYV) is the worlds biggest live events company. In the first nine months
of 2007 alone, it organised and produced more than 20,000 live events with
a total attendance exceeding 48 million. 'This is an alliance between two
market leaders. Live Nation dominates the events industry worldwide,
whereas we are Europes leading ticketing company. The partnership model
will create enormous synergies and options for the future', says
Klaus-Peter Schulenberg.
Europe: presence in all key countries
In future, CTS will be present in all the key European markets. Until now,
the Group has had subsidiaries in 17 countries. The most recent takeover by
CTS was of Italian market leader TicketOne in May 2007. The latter company
is based in Milan and markets around 13 million tickets annually, and
handled the entire ticketing operation for the XXth Olympic Winter Games in
Turin. In December 2006, CTS announced the takeover of 51 percent of the
shares in Zritel o.o.o. in Moscow. Zritel ('Spectator') is Russias biggest
private-sector provider of ticketing services and operates the Kontramarka
and Parter ticketing systems. The new collaboration with Live Nation gives
CTS an excellent basis for expanding its current network and for entering
markets in many other European countries from 2009 onwards. The exclusive
agreement for Great Britain, especially, is extremely valuable. 'The
barriers to market entry in England, specifically, are particularly great.
With LN, we are now in a superb position to successfully enter an
attractive market', Schulenberg commented.
North America: ten-year licence deal
In addition to the key markets in Europe, the partnership will also be
focused on America and Canada. Experts estimate the ticketing volume in the
United States at several hundred million tickets annually, more than 70
million of which are for concerts alone. 'We have found our ideal partner
in CTS. In terms of technology, Eventim is the most advanced ticketing
platform in the world. Together we will expand on our current market
position and implement our innovative ideas. This is absolutely a win-win
situation', added Michael Rapino, President and CEO of Live Nation. From
2009 onwards, Live Nation will be using the CTS software in North America
under an exclusive ten-year licence. The CTS Group will receive licence
fees on a per-ticket basis. Tickets will be sold via the Internet as well
as through the stationary box office network. Schulenberg: 'America has
huge potential. Our strengths in Internet ticketing, above all, will play a
major role in this context. By granting the licence, we are simultaneously
eliminating the risks and costs involved in establishing a presence of our
own'. CTS Eventim will also be granting Live Nation a licence to the
ticketing software for the events business in Mexico, South America, Japan,
Australia, New Zealand and South Africa.
Internet: dominated by CTS Eventim
By entering into this newly agreed partnership, CTS EVENTIM AG is
rigorously pursuing its established expansion strategy. Within the next two
years, the Group will acquire a presence in almost all the European markets
in which it has been absent hitherto, reinforcing its position as European
market leader and second-ranking company worldwide. Online business is
growing at a disproportionate rate all over the world in 2007, the Group
logged around 200 million visitors to its various Internet platforms. In
the 2006 business year, CTS EVENTIM was responsible for the entire
ticketing operation for the Football World Cup in Germany, when it was able
to demonstrate the enormous efficiency and performance of its software. The
CTS system handled sales of more than 3.5 million tickets, as well as
enquiries from more than 100 million people from all over the world. Since
January 2007, with its new www.fansale.de platform, CTS Eventim has also
been providing Germanys first-ever resale facility for legally and
securely swapping or reselling tickets. Speaking in Munich, Klaus-Peter
Schulenberg noted that, 'With our new alliance with Live Nation, we are now
establishing the ideal conditions for assuming a leading market position in
the ticketing industry within the near future, not just in Europe, but also
worldwide'.
For further information contact:
Engel & Zimmermann AG, Business Communication Agency
Hermann Zimmermann, Tel. +49 (0)89 89 35 63 3
info@engel-zimmermann.de
DGAP 14.01.2008
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Language: English
Issuer: CTS EVENTIM AG
Contrescarpe 75 A
28195 Bremen
Deutschland
Phone: +49 (0)421-36 66-233
Fax: +49 (0)421-36 66-290
E-mail: investor@eventim.de
Internet: www.eventim.de
ISIN: DE0005470306
WKN: 547030
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-News: CTS EVENTIM becomes a 'global player' in the ticketing industry
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