DEAG Deutsche Entertainment Aktiengesellschaft: DEAG increases 2008 sales by 39% - focus on core business implemented

DEAG Deutsche Entertainment Aktiengesellschaft / Final Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Berlin, April 30, 2009. DEAG Deutsche Entertainment AG (ISIN DE  005513907)
managed to gain market shares in fiscal 2008 and increased its sales by 39
% versus prior year to EUR 109.5 million. Revenue growth was mainly driven
by the domestic artists, the subsidiary in Switzerland as well as the newly
added activities of the British subsidiary Raymond Gubbay Limited. As a
result of the acquisition of the latter, DEAG has become the market leader
in the field of classical music events in Europe. Moreover, DEAG Music had
a very successful business in Q4/2008 and will continue this development in
fiscal 2009.
 
Earnings before interest, taxes, depreciations and amortizations (EBITDA)
amounted to EUR 3.7 million (prior year: EUR 6.7 million) in a very
difficult general economic environment. As announced at the end of last
year, DEAG has clearly focused its business portfolio on its profitable and
less risky core business by selling shareholdings and ending contractual
obligations. This is reflected amongst others by write-downs in a total
amount of EUR 6.9 million, of which EUR 5.0 million were unscheduled. In
this way the company has prepared its balance sheet structure for the
challenges of a live entertainment industry, which will be consolidated in
the upcoming months, being in line with  international market leaders
Ticketmaster and Live Nation. These depreciations and amortizations without
cash impact result in a burdening of earnings before interest and taxes
(EBIT) of EUR -3.1 million (prior year: EUR 5.6 million) during the
reporting period.
 
The result before minority interests from continued operations amounts to
EUR - 5.0 million (prior year: EUR 3.5 million). The loss from discontinued
operations is EUR -5.2 million. Overall, the consolidated financial group
statements include unscheduled amortizations of goodwill and intangible
assets in an amount of EUR 8.7 million. This will result in a considerable
relief of results in the upcoming years.  Group result for the year amounts
to EUR -11.1 million (prior year: EUR 1.1 million). The consolidated equity
ratio amounts to 29 % (prior year: 48%). Net cash from operating activities
of EUR 5.9 million (prior year: EUR - 3.3 million) was generated. Liquid
assets increased by EUR 8.0 million to EUR 22.1 million.
 
The adjustment of the business portfolio - together with further cost
savings - will result in a stabilization of the group result. At the same
time the growth potential of the classical music area, the domestic artists
and the labels and music publishers is to be tapped. The company assumes
that it will increase its operating result in 2009 and close with a
positive overall result. First indications are already included in revenues
and EBIT for Q1/2009, which will be higher than for the prior year period.
 
The complete annual report will be posted at www.deag.de during the day. 
 
DEAG will organize a conference call for journalists and analysts on May 4,
2009 at 11 am CEST to comment on the financials for fiscal 2008 under
telephone number +49 30 726 16 71 81.
The necessary access pin can be obtained from edicto GmbH, tel.: +49 69 905
50 55 0.
 
For further information please contact

edicto GmbH
Im Gründchen 18a
61389 Schmitten
Germany
Tel.: +49 6084 948 590
eMail: deag@edicto.de


Contact:
Edicto GmbH
Axel Mülhaus
Im Gründchen 18a
D-61389 Schmitten
Tel: +49(0)6084/94 85 90
Fax: +49(0)6084/94 85 92 
Email: deag@edicto.de


30.04.2009  Financial News transmitted by DGAP
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Language:     English
Issuer:       DEAG Deutsche Entertainment Aktiengesellschaft
              Potsdamer Straße 58
              10785 Berlin
              Deutschland
Phone:        +49 (0)30 / 810 75-0
Fax:          +49 (0)30 / 810 75-519
E-mail:       info@deag.de
Internet:     www.deag.de
ISIN:         DE0005513907
WKN:          551390
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Stuttgart, München, Hamburg, Düsseldorf
 
End of News                                     DGAP News-Service
 
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