VIP newsletter September07.indd - VIP-Booking

VIP newsletter September07.indd - VIP-Booking

VIP- News - S e p t e m b e r 2 0 0 7

CTS Eventim – Half Year Results 2007

Manfred Tari

Where have all the fantasies gone? The

CTS Eventim share used to be an investors

darling. In recent years the share price

only ever went up. But since SES Research

(as reported in the previous VIP-News issue)

released a very critical report about

CTS Eventim on July 10, the share price is

under pressure.

Even reasonable half year results haven’t

put the share price back on the road of

valorisation. In the first six months (H1-

2007) CTS Eventim gained a revenue of

about 213.6 million Euros. But as SES Research

already pointed out, the ROCE (Return

on Core Equity) is under pressure. In

the current business report the Company

reported that the EBIT (Earnings Before

Interests and Taxes) for H1-2007 is 27 million

Euros,a drop of about 10,1 percent on

the 30.1 million for the same period the

year before (H1-2006). The same goes for

the EBITDA, in H1-2006 33.4 million Euro,

compare to 30 million Euro in the current

first half year, a decrease in this category

of 10.3 percent.

Nevertheless CTS Eventim emphasized

that the current results are in line with expectations

as last years business had been

extraordinary, due to the very positive effect

of handling tickets sales for the FIFA

World Cup. The ticketing division was and

still seems to be the preferred CTS Eventim

profit centre. The adjusted results (without

the FIFA World Cup) for the Ticketing

division indicate a revenue rise of about

40.1 percent. While H1-2006 produced a

turnover of about 25.7 million Euros in this

segment, the current half year results are

36.1 million Euro. The EBIT increased about

78% from 4.8 million to 8.6 million Euro, as

EBITDA the company declared 11 million


In the s Live-Entertainment segment CTS

Eventim gained a turnover gain of about

36.7 percent. In the same period last year

the turnover was 131.9 million Euro, this

year the company reported 180.3 million

Euro. Also the profit results are in line with

this development with the EBIT at 18.4 million

Euro, the EBITDA is 19.0 million Euros.

However, these results did not lead to a

rise in the share price on the stock market.

Since the beginning of July 2007, where

the CTS share archived a 52 week high at

38.33 Euros the share price is falling. On

September 14 it was just 26.55 Euro. In

terms of the market capitalization this is

‘only’ 637.20 million Euros, compared to

919.92 million when the share reached it’s

peak. This means the market cap shrunk

within the last three months by about

282.72 million Euros.

SES Research predicted a price target of

about 19 Euro for the share. The price target

predicted by Prior Börse in May 2007

was 45 Euro. Apparently the forecast by

SES Research is a bit closer to the current

share price than the one by Prior Börse. - User generated content for

CTS Eventim goes Web 2.0. The latest

feature embedded within the online site enables concertgoers

to comment on shows and festivals they

visited. To stimulate the participation

figures CTS Eventim undertake weekly

raffles where users can win tickets. According

to a press release more than

5000 users posted a comment in the

first week when the service went online.

What is a bit strange is that the

press release was published on August

30. But looking at the top ten

of the user comment charts reveals

that first postings had already been

done on July 21 (Nokia – Night of the

Proms in the SAP Arena or on July 10

(Ärzte Statt Boeller – New Years Eve

Show 2006/2007). Also a bit surprising

is that comments for an open

air concert where the sound wasn’t

that superb were not mentioned in

the postings.

Well, let’s see where this will lead.



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