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 NÃRBURGRING 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 StraÃe 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 ---------------------------------------------------------------------------
DGAP-Adhoc: DEAG Deutsche Entertainment Aktiengesellschaft makes provisions for risks in the 2014 financial statements after breach of contract by Nürburgring
| Source: EQS Group AG