DGAP-Adhoc: DEAG Deutsche Entertainment Aktiengesellschaft makes provisions for risks in the 2014 financial statements after breach of contract by Nürburgring


DEAG Deutsche Entertainment Aktiengesellschaft  / Key word(s): Preliminary
Results/Miscellaneous 

30.03.2015 16:19

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Ad hoc announcement in accordance with § 15 WpHG (German Securities Trading
Act)

DEAG makes provisions for risks in the 2014 financial statements after
breach of contract by Nürburgring

* Risk provisioning despite insurance cover and possible alternative
festival at the Schalke arena
* Further increase in sales revenues and adjusted EBIT during fiscal 2014
* Strong start of myticket and increase in the annual forecast for 2015 to
4.2 - 4.5 million tickets

Berlin, March 30, 2015 - DEAG Deutsche Entertainment Aktiengesellschaft
(ISIN code DE000A0Z23G6) states that capricorn NÜRBURGRING GmbH (CNG) has
failed to meet its contractual obligations as co-promoter and its payment
obligations for the planned Rock Festival at Nürburgring and has hence
committed a breach of contract. CNG, which is owned by a Russian investor,
has not participated at any time, contrary to the contractual agreements,
in the payments for artist fees and advertising measures. These were rather
borne completely by DEAG.

In the interest of the fans and in view of an economically sound solution,
DEAG is currently checking whether it is still possible to stage the
festival at Nürburgring. At the same time intensive talks are conducted
with the Veltins Arena in Gelsenkirchen about a possible relocation of the
Rock Festival to this stadium. The entire process is implemented with an
active involvement of the insurance company of DEAG: a decision whether the
Festival will take place at Schalke arena will be taken at short notice.

As a precautionary measure DEAG has nonetheless already made significant
provisions in the 2014 financial statements. However, DEAG has
comprehensive insurance cover for a case of breach of contract by CNG. This
extended insurance cover was concluded last year after the Russian investor
joined CNG and applies up to an amount of EUR 7.5 million.

The risk provisioning now made as well as the marketing expenses concerning
the launch of the own distribution platform myticket.de result in an
one-off special effect on earnings during the fiscal year of a total amount
of 3 million EUR. Marketing expenses for myticket.de were brought forward
to fiscal 2014 since the distribution platform has started significantly
better than expected. The marketing expenses for myticket.de originally
included in the 2015 budget were hence completely charged to expenditure
already in 2014. At present between 5 and 25 % of the tickets for major
large-scale events are sold through myticket.

The consolidated sales revenues before segment consolidation increased in
2014 according to preliminary results by around 15 % from EUR 174 million
to approximately EUR 201 million. After consolidation they rose to
approximately EUR 172 million after the previous amount of EUR 165.5
million. The EBIT before purchase price allocations and the above-mentioned
one-off special effects from risk provisions and marketing expenses for
myticket.de amounted, on the basis of preliminary results with a good
forecasting quality, to around EUR 9.0 million versus EUR 8.7 million
during the previous year. Final results will be submitted by DEAG on April
20, 2015.

For fiscal 2015 there are indications for a continuation of the strong
ticket sales, which represent also the basis for the ongoing successful
development of myticket.de. The Executive Board has, therefore, increased
its forecast and expects a significant double-digit rise in ticket sales to
4.2 - 4.5 million within the DEAG Group for the current year. This means
that this number of tickets is likely to be reached one year earlier than
originally planned.

DEAG Deutsche Entertainment Aktiengesellschaft
The Executive Board

Contact for further information:
Axel Mühlhaus
edicto GmbH
Tel: +49-69-90 550 552
Email: deag@edicto.de


30.03.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------
 
Language:     English
Company:      DEAG Deutsche Entertainment Aktiengesellschaft
              Potsdamer Straße 58
              10785 Berlin
              Germany
Phone:        +49-30-810 75-0
Fax:          +49-30-810 75-519
E-mail:       deag@edicto.de
Internet:     www.deag.de
ISIN:         DE000A0Z23G6
WKN:          A0Z23G
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
              Stuttgart
 
End of Announcement                             DGAP News-Service
 
---------------------------------------------------------------------------