VIP newsletter April07.indd - VIP-Booking

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VIP- News - A p r i l 2 0 0 7 Business News Manfred Tari mt@vip-booking.com It appears that there weren’t too many bookkeepers at ILMC 2007. Straight after the Conference there was a rush for ad hoc releases by the corporate concert companies. All five stock market listed companies had to report something, sometimes big, sometimes small news, but something! So please see for yourself how these Live Music companies performs-ed on the stock markets: The Lion Tamer as Impresario With the 2006 business report released on March 27 CTS Eventim has once again topped itself. The company achieved the best results since CTS undertook the IPO on February 1, 2000. With only 108 pages, this report is 28pages less than the Live Nation report. But CTS Eventim returns a higher profit than Live Nation. The company reported group earnings of 23.5 million Euro (2005/ 15.9) generated out of a turnover of 342.9 million Euro (2005/ 256.2). In the long term retrospective CTS Eventim has doubled its revenue when you consider that for 2000 the reported turnover was 156.5 million euro. The earnings per share rose from 0.66 in 2005 to 0.98 Euro. The management will propose payment of a dividend of 0.49 Euro per share to its share holders at the annual general meeting to be held on June 8, which is a total amount of 11.8 million Euro. About 20 million should be invested for the expansion of the Company. The Ticketing unit gained a revenue of about 99.3 million Euro (2005/ 64.3) and Earnings before Interests & Taxes (EBIT) of 31.1 million Euro (2005/ 19.3). The Live Entertainment unit raised the revenue from 194.6 in 2005 to 247.2 million Euro. CTS Eventim meanwhile employs a staff of 720. The top earner was Klaus Peter Schulenberg with income declared at 911,536 Euro. In Germany it is still quite unusual that the stock market listed companies report on the income of top managers. While in the US the Sarbanes Oxley Act is compulsory for Public companies, the German stock market listed companies only have to follow recommendations that are given within the German Corporate Governance Codex. In the outlook for 2007 CTS Eventim announced maintaining an expansion policy that mainly focuses on the “systematic acquisition of European ticketing providers outside of Germany”. In terms of content fields to drive the ticketing business forward CTS Eventim would also like to expand into sports areas such as Formula One, Winter Sports, Handball and of course Football. Something often underestimated is the fact that Schulenberg managed to assemble most of the leading German promoters such as Koopmanns, Lieberberg, Rieger and Semmelmann under one roof and still keeps them there. Currently the share price is 30.12 Euro, twelve months ago it was 27.93 Euro. Efforts and the Wish for More The DEAG share is rising. So far the company has only released a preliminary report for the business year 2006. With revenue of 83 million Euro DEAG is doing better than the year before whenit was 66 million Euro. The turnover of DEAG is adjusted and does not include sales figures of Marshall Arts and the venue Berlin Wintergarten in the last quarter 2006. The prognosticated EBIT is expected to be 3.0 million Euro. DEAG furthermore informed that in 2006 the company had been able to reduce debts and loans of about 29 million Euro. For 2007 DEAG predicted a revenue target of about 100 million Euro and EBIT of about 6 million Euro. Currently the figures for 2005 are under a routine scrutiny by the German Office of Auditing (Deutschen Prüfstelle für das Rechnungswesen). The audited business report is expected to be released around April 20. First Berlin currently recommends a ‘Buy’ for DEAG shares and predict a share price target of 3.05 Euro. SES Research expects a share price target of about 2,70 and maintains its recommendation to ‘Buy’. Currently the share price is 2.03 Euro. 6 VIP-BOOKING.COM
VIP- News - A p r i l 2 0 0 7 Shopping and a Speculative Element Mama Group PLC is progressing. The company issued three press releases that indicate that something is happening. The first was released earlier in March, announcing that Mama had bought a 75 percent stake of the music publishing company Pollination Music Limited at the purchase price of £140,000. The Pollination catalogue includes worldwide publishing rights for, amongst others, producers such as Tore Johansson (Franz Ferdinand and The Cardigans ) and Valgeir Sigurdsson(Bjork) and the composer Carsten Kroeyer. The company also administrate repertoire for Paul Oakenfold and Perfecto Music. On March 30 Mama announced their intention to acquire the Hammersmith Apollo from Live Nation for £13 million. To finance the deal Mama intends to issue 240,000,000 ordinary new shares for 5 Pence each, worth around £12 million. According to the company these shares will supposedly be bought mainly by institutional investors. Mama furthermore declared that the number of new shares to be issued could be reduced depending on negotiations with the banks. Whatever the minimum number of shares to be placed on the market would be around 160,000,000 worth about £8 million. »The Hammersmith Apollo is a landmark venue in London and an important location for live music and live entertainment« - Adam Driscoll/Dean James To obtain the backing for this deal Mama have called a shareholders extraordinary general meeting to be held on April 25. In a joint statement Adam Driscoll and Dean James, Co-Chief Executives of Mama said: “The Hammersmith Apollo is a landmark venue in London and an important location for live music and live entertainment ranging from gigs by multi-platinum award-winning recording artistes such as the Pet Shop Boys, Bruce Springsteen and Travis through to plays and comedy tours such as Little Britain and Ricky Gervais. The Apollo represents an excellent addition to our expanding live music division”. The capacity of the Hammersmith Apollo is 5035 persons. In the annual business report 2006 by Live Nation the venue is listed under assets with a 125 years lease due to expire on March 24, 2089. Sometimes these sorts of deals have something in common with science fiction, haven’t they On March 23, between these two news releases, Mama released a statement referring to the raised share price. While for the last seven months it had constantly remained at a level just a little above 3 Pence, the share price jumped from March 23 and the following days up to 7 Pence. Within this ad hoc release Mama confirmed that negotiations for a possible take over were going on. Meanwhile the share price came down again to 6.59 Pence. A Call for Patience On March 29 Sanctuary the shareholders of Sanctuary undertook their Annual General Meeting. One of the outcomes was the company report that the former 360 degree strategy is definitely now history. The Recorded Product, Merchandising and Artist Services Company sectors will operate autonomously from as stand alone units. Besides this Sanctuary declared that it would restructure its division Recorded Product in the US to better serve the market demands there. Nevertheless the main message of Sanctuary was: “We confirm that we are making good progress with our programme of strategic disposals. As we have previously stated, it will be 2008 or later before there is a return to overall profitability.” Currently the share price for SGP is 12.75 Pence. Sanctuary 7 VIP-BOOKING.COM
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VIP newsletter April07.indd - VIP-Booking

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