SecondCompared to a year ago, concerts are larger and more epidemic-friendly, but far from normal business: this is how the state of the local concert and event industry can still be summarized.This finding is also reflected in the business data of Europe’s largest ticketing and event group CTS Eventim on the contrary. Compared with the same period last year, sales in the second quarter increased by 228.1% to 45.7 million euros. However, the period from April to June last year was also more affected by the pandemic, resulting in sales of only 13.9 million euros. In comparison: In 2019, the M-Dax Group reported sales of approximately 414 million euros for the same period.
Compared with the normal period, the ticket business with significantly higher profit margins had sales of 36.1 million euros (plus 283.7%) in the second quarter, which was higher than the sales of cost-intensive activities-11.5 million euros (plus 81.5%). However, the organizers belonging to the group also mainly organize large-scale tours or festivals, such as Rock am Ring, Southside or Hurricane, which did not happen after the 2021 crisis.
The key to the problem is the distance rule
In turn, the function of the ticketing section event Mainly as a service provider for small and large non-group organizers from various fields. Eventim is the leading supplier here, so tickets for the beach chair series concerts are also sold on the Eventim platform. Last but not least, the assistance received in November and December of approximately 102 million euros also contributed to the 99.1 million euros in operating profit in the second quarter. Most importantly, shareholders accounted for approximately 52 million euros. After the data was released at noon on Wednesday, the share rose by less than 1% after falling by about 11% last week.
The semi-annual report stated that the “cost reduction and efficiency enhancement measures implemented last year” are still continuing. Among other things, jobs in the ticketing department and live broadcast area have been cut. For the latter, this “essentially” affects temporary workers. Eventim’s boss Klaus-Peter Schulenberg explained when introducing the data that “the apparent increase in ticket sales” shows people’s desire for culture. At the same time, the group is ready to “restart the live entertainment business”. In addition to saving expenses, the company also used the crisis to “further consolidate and broaden its market position through a series of far-reaching strategic measures.” Eventim announced in early August that it would build Italy’s “largest and most modern” multifunctional hall in Milan. In addition, at the end of July, together with former Live Nation manager Jason Miller established the Asian market branch.Ton.
Hamburg launches 2-G option
Eventim still dare not make predictions. In fact, due to the increase in the number of open-air activities that have occurred or are occurring in July, August or September, due to the epidemic-related restrictions, the third quarter may increase significantly year-on-year. Quarterly, especially in ticketing. But due to capacity constraints, especially due to distance requirements, these are rarely profitable businesses for organizers; the open-air season is coming to an end. Most planned international tours have long since been postponed until 2022. However, in view of this, Schulenberg called on politicians to define clear framework conditions “so that they can carry out economic activities again in the future.”
In early July, he said in an interview with FAZt: “I hope that in the fourth quarter we can see a full chamber concert without any distance or masks.” Maybe this will start in November-of course, using the 3-G rule.
In order to make the event full again, the possibility of people recovering from Covid 19 disease or being vaccinated needs to be restricted. In Hamburg, the Senate decided on Tuesday to adopt such a “selection model,” according to which organizers and restaurant operators can only accept vaccinated and recovered people. For example, there is no need to keep a distance, but medical masks must still be worn in indoor furnishings. For example, the capacity limit for concerts still exists.
Another method was also promoted by the Event Management Forum on Tuesday, which organized the Federal Concert and Event Industry Association (BDKV), again stipulating that the 3-G rule should be retained. However, in the future, only PCR testing will be accepted, and rapid antigen testing will not be accepted. According to this principle, clubs in Baden-Württemberg should be allowed to reopen at full capacity.
Before that, wearing a mask on the dance floor was also mandatory. After discussions between the club scene, Dehoga and the state government, this is no longer necessary on the dance floor or seating area. However, the prerequisite for full utilization is to have a “sufficient” ventilation concept, and the industry should also develop a “sample hygiene concept.”
