Original-Research: DEAG Deutsche Entertainment AG - von Montega AG

Einstufung von Montega AG zu DEAG Deutsche Entertainment AG

Unternehmen: DEAG Deutsche Entertainment AG
ISIN: DE000A0Z23G6

Anlass der Studie: Update
Empfehlung: Buy
seit: 03.06.2020
Kursziel: 5,80
Kursziel auf Sicht von: 12 months
Letzte Ratingänderung: -
Analyst: Henrik Markmann

DEAG had a good start to crisis year 2020

DEAG recently has published its Q1 report reflecting a good start to the
current financial year despite initial effects caused by the corona

Sales slightly above our expectations: Revenues were slightly up by 2.7% to
EUR 262m in Q1/20 and thus exceeded our expectations (MONe: EUR 24.5m)
despite initial negative effects caused by the “corona crisis”. Formats
such as “Disney on Ice” or the Christmas Gardens should have seen a
particularly pleasing development in the first quarter. “Disney on Ice”,
for instance, was additionally performed for the first time in Düsseldorf,
Stuttgart and Geneva and the Christmas Garden sites were doubled to six.
However, DEAG also hosted successful events in the rock/pop as well as
classics & jazz genres with well-known artists such as Papa Roach or Till

In terms of earnings, the company successfully increased its gross margin
to 26.9% (PY: 25.5%) and its EBITDA to EUR 1.2m (PY: EUR 1.0m). On the one
hand, this reflects the success of the higher-margin own events, such as
the Christmas Gardens. On the other hand, DEAG increasingly benefits from
the gradual expansion of its own “MyTicket” ticketing platform. As a result
of higher D&A due to right-of-use assets for leases (EUR 1.9m vs. EUR 1.0m
in the previous year) with interest expenses being at the prior-year level
(EUR 1.0m) net earnings of EUR -1.8m are lower than in the previous year
(EUR -1.4m). Liquid funds amounted to EUR 50.8m at the end of Q1/20. Thanks
to a smooth settlement by the pandemic insurance so far, DEAG has already
received funds in the medium single-digit million euros. Additionally, the
company has free credit lines of EUR 9.2m, which all in all provides the
company with a comfortable financial framework of EUR 60.0m.

New event formats compensate for sales losses, at least in part: As DEAG
cannot evade the current prohibition of events and gatherings, management
reacted quickly and has offered alternative event formats such as
“BW-Kulturwasen” in Stuttgart or “Stage Drive Kulturbühne“ in Frankfurt.
Concerts, readings, or films hosted as part of these events are taking
place in drive-in cinemas. However, they should have a significantly
smaller attendance. We have lowered our forecasts once again as we no
longer assume that some of the major events scheduled for September and
October will be taking place as initially planned given the development of
the last weeks. For instance, this year’s Böhse Onkelz tour is unlikely to
take place as scheduled, which should result in temporary sales losses for
DEAG. Based on the existing insurance coverage, however, this should not
have any adverse effect on earnings. We still assume that important events
in Q4/20, such as the Christmas Gardens, may take place and that advance
sales for events in 2021 will normalise.

Conclusion: DEAG had a good start to the crisis year, taking account of
circumstances. Based on the comfortable capital resources, the insurance
cover in place until the end of this year, as well as the good prospects
for the final quarter we consider DEAG to be well prepared to withstand the
adversities of the corona pandemic. We have slightly reduced our price
target to EUR 5.80 (previously EUR 6.00) due to revised forecasts and
confirm our buy rating.

+++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte. Bitte lesen Sie unseren RISIKOHINWEIS /

About Montega:

Montega AG is one of the leading independent and owner-managed German
research institutions with a strong focus on German SMEs. The Coverage
Universe includes stocks from the MDAX, TecDAX and SDAX as well as selected
second-line stocks and is constantly being expanded through successful
stock picking. Montega is an outsourced research provider for institutional
investors and focuses on publishing research as well as on organizing
roadshows, field trips and conferences. The company addresses long-term
oriented value investors, asset managers and Family offices primarily from
Germany, Switzerland and Luxembourg. The analysts of Montega are
characterized by excellent and frequent contacts to the top management,
in-depth market knowledge and many years of experience in the analysis of
German small and mid-cap companies.

Die vollständige Analyse können Sie hier downloaden:

Kontakt für Rückfragen
Montega AG - Equity Research
Tel.: +49 (0)40 41111 37-80

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

Event im Fokus

Termine 2021

10. Juni 2021:Fachkonferenz Immobilien

14./15. Juli 2021: Fachkonferenzen Beteiligungsgesellschaften & Consumer/Leisure

13./14. Oktober 2021: Fachkonferenzen Finanzdienstleistungen/Technologie

10./11. November 2021: Fachkonferenzen Software/IT & Branchenmix

„Je nach aktueller Covid-19 Situation und den bestehenden Vorschriften für Versammlungen entscheidet sich ca. 5 Wochen vor dem Termin, in welcher Form die Konferenzen stattfinden.“


Kaufen: Vectron Systems AG legt verstärkt Fokus auf Digitalgeschäft

Nachdem die Vectron Systems AG bislang insbesondere Kassensysteme verkauft hat, wird nun das Digitalgeschäft stärker in den Fokus rücken. Damit sollen die wiederkehrenden Einnahmen und die Wertschöpfung je Kunde deutlich erhöht werden. Über Cloud-Module können die Kunden nun mehrere digitale Services, die sie sonst über viele Einzelverträge abdecken, direkt mit dem Erwerb der Vectron-Kassen über den Fachhandel dazubuchen. Wir haben die Vectron Systems AG im Rahmen eines DCF-Modells bewertet und ein Kursziel in Höhe von 21,15 € ermittelt und vergeben das Rating KAUFEN.

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