CTS QB 2/01 Englisch.Qxd 20.08.2001 11:58 Uhr Seite 2
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CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 2 Six-Month Report 2001 01.01. – 30.06.2001 CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 3 Corporate structure of CTS EVENTIM AG and its subsidiaries >> Status: 30.06.2001orwort CTS EVENTIM AG 100.0% 80.0% GSO Holding GmbH, Vierte Herrengraben 31 89.9% Medusa Beteiligungsverwal- Schwegenheim Verwaltungsgesellschaft mbH, tungs-Gesellschaft Nr.52 mbH, Hamburg Frankfurt /M. 100.0% GSO Gesellschaft für Software- entwicklung und Organsation Marek Lieberberg Konzertagentur 100.0% Marek Lieberberg Konzertagentur 51.0% mbH & Co. KG, Schwegenheim GmbH & Co. KG, Frankfurt/M. Holding GmbH, Frankfurt/M. 100.0% 100.0% 10% GSO Verwaltungsgesellschaft Marek Lieberberg Konzert- Dirk Becker Entertainment 73% mbH, Schwegenheim agentur Verwaltungs GmbH, GmbH, Cologne Frankfurt/M. 75.0% Ticket Express Ges. zur Herstell- ung und zum Vertrieb elektroni- Peter Rieger Konzertagentur 100.0% Peter Rieger Konzertagentur 60.0% scher Eintrittskarten mbH, Vienna GmbH & Co. KG, Cologne Holding GmbH, Cologne 100.0% 66.6% CTS Computer Ticket Service Peter Rieger Konzertagentur Semmel Concerts Veranstaltungs- 50.2% Betriebsgesellschaft mbH, Berlin Verwaltungs GmbH, Cologne service GmbH, Bayreuth 100.0% eventim Online Holding GmbH, Scorpio Konzertproduktionen 50.2% Bremen GmbH, Hamburg 50.2% 50.2% 50.2% ARGO Klassik GmbH, ARGO Concerts GmbH, ARGO Konzerte Nürnberg Würzburg Würzburg GmbH, Nuremberg CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 4 Key figures >> as at 30.06.2001 CTS EVENTIM Aktiengesellschaft, Munich 30.06.2001 30.06.2000 // TDM // TDM Sales 150,621 39,259 Gross return on sales 20,407 8,401 Personnel expenses 11,521 6,043 Operating profit before depreciation // EBITDA 6,608 383 Depreciation 6,586 2,905 Operating profit // EBIT 22 – 2,522 Profit/loss from ordinary business operations // EBT 4,013 – 2,023 Consolidated net income/loss for the quarter 187 – 1,973 Cash flow 4,083 – 346 DM DM Earnings per share* 0.02 – 0.16 Qty. Qty. Number of employees** 305 180 of whom temporary 63 28 * Number of shares: 12 million. ** Number of employees at end of quarter (active workforce). CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 5 Foreword Dear shareholders, employees and friends, _ Key software prowess The Madonna tour also showed how Rarely in recent years has an event in the rock and pop scene important it is to have efficient IT systems that enable tickets to been anticipated with such excitement as the world tour by be sold fast and smoothly. Madonna, the American superstar. The four concerts that she gave in the Max Schmeling hall in Berlin in mid-June of this CTS has significantly improved its presence in this sector. We year were an absolute mega-event – for fans, the media and also took over ShowSoft GmbH, Bremen, one of the leading for CTS EVENTIM. The German concerts were organised by European providers of ticket management systems, from the our subsidiary, the Marek Lieberberg concert agency, with CTS Messerknecht Group. This acquisition, the due diligence for managing all ticket sales. which was successfully concluded in early July, is an important step in securing CTS’s technological leadership in the ticketing The marketing operation for this top event proved to be a tough field. The highly skilled personnel at ShowSoft now enable us test for the CTS Internet platform, a test that was passed with to engineer IT solutions internally. The upshot is that ShowSoft flying colours. Never before had so many tickets been sold within will help us achieve considerable reductions in our IT develop- such a short period through www.eventim.de as for Madonna’s ment expenses. “Drowned World Tour”. We are pleased that to have recruited Dr. Rainer Bartsch as When advance ticket sales began, 40 percent of all tickets were Director of Research and Development as from 01.08.2001. sold via the Internet in a matter of hours – proof for the efficiency Dr. Bartsch was formerly IT Manager and Chief Developer for of our web platform and for the latent growth potential of online ticketing software within the Messerknecht Group. By taking ticketing. these steps, CTS has created the resources for mastering tech- CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 6 nological challenges such as mobile ticketing (booking by mobile added to our Live Entertainment segment by acquiring a majority phone using WAP and UMTS technology). holding in Dirk Becker Entertainment GmbH, a company domiciled in Cologne. _ Network of partnerships more densely woven The second quarter saw CTS EVENTIM continuing to grow its network of As you can see, we at CTS are working intensively to translate partners for entertainment ticketing. into reality our vision of being European market leader in two fields, namely as a leisure and Internet portal on the Internet and At the end of May, a contract was concluded with Brigitte- as a corporate group in the Live Entertainment sector. Online, the website of Brigitte, the women’s magazine. Cooperation agreements, some exclusive, were also signed, Yours sincerely, including deals with two industry giants, Universal Music Germany and Sony Music, as well as with Mitfahrzentrale.de (a portal for ride sharing), Goldstar TV (a music channel on TV) and the magazine TV Movie (published by Bauer). The partnership with SevenOne Club & Shop GmbH, a member Klaus-Peter Schulenberg company of ProSieben Sat.1 Media AG, is being significantly Chairman of the Management Board, CTS EVENTIM AG extended: CTS is now the exclusive partner for marketing and selling tickets, not only for the ProSieben television company, but also for the Sat.1 and Kabel 1 TV channels. We have also CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 7 CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 8 Financial report _ Group development: further acquisitions After first two quarters compared to the stronger quar- our purchase of a 50.2 percent holding in the ters of the second half of the year, the second separate companies in the ARGO Group (ARGO quarter was a very successful one for the Live Concerts GmbH, Würzburg, ARGO Konzerte Nürn- Entertainment division. Sales from live events berg GmbH, and ARGO Klassik GmbH, Würzburg) received a major boost from the successful open- in the first quarter of 2001, the Live Entertainment air festivals – Rock am Ring and Rock im Park –, segment was extended during the second quarter the Hurricane Festival and the sold-out Madonna of 2001 by acquiring a 73 percent stake in Dirk tour in Berlin. Becker Entertainment GmbH, Cologne, through our Medusa holding company. Dirk Becker Entertain- Second-quarter ticketing sales were increased by ment GmbH was founded in April 2001 and operates 9.7 percent from DM 15.4 million in 2000 to primarily in North-Rhine Westphalia as a local con- DM 16.9 million in Q2/2001. In addition to steady cert organiser. In the second quarter of 2001, Dirk growth through conventional box-office channels, Becker Entertainment GmbH presented internatio- Internet and call centres have played a dispropor- nal stars from the world of rock and pop, such as tionately large role in boosting sales. However, the Chris Rea, the Eagles, Mark Knopfler and Bon Jovi. full potential of these new sales channels was not fully exploited in the first six months of 2001, since _ Sales: 283 percent increase on year-ago figure market launch of EVENTIM is not expected to to DM 150.6 million Second-quarter sales grew exert an impact until the quarters that now follow. from DM 39.3 million last year to DM 150.6 million this year. Sales by segment (before consolidation _ Internet In the first six months of 2001, Internet of DM –1.2 million between the segments) were sales were increased by 72 percent relative to the DM 16.9 million in the Ticketing segment and previous year. Internet sales account for approx. DM 134.9 million in the Live Entertainment seg- 9 percent of total ticketing sales (previous year: ment. Despite the slower sales typical for the 6 percent). In the year to 30.06.01, the total num- CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 9 ber of visits to the CTS Internet portal reached building, and the fact that the growth potential of 3.1 million, compared to 1.1 million in the same the new sales channels have not been exploited to period last year. the full as yet. _ Income situation: EBITDA very encouraging at Group EBIT improved during the first half of 2001 DM 6.6 million Due to the small gross profit mar- from DM –2.5 million in 2000 to DM 22,000 in gins in the tour organising business, the powerful 2001. Pre-tax earnings (EBT) and consolidated net growth of the Live Entertainment segment once income were positively affected in the first quarter again impacted on the Group profit margin of of 2001 by income from bringing in participant 13.5 percent. In the medium term, gross margin is interests of the ARGO Group. expected to improve due to synergies in the Live Entertainment segment. EBT was improved in the first half of 2001 to plus DM 4 million, compared to DM –2.0 million in the The EBITDA (EBIT before depreciation) as at same period last year. Consolidated net income as 30.06.01 developed positively due to the successes at 30.06.2001 was DM 0.2 million, an improvement achieved by our Q2/2001 tour operations and now of DM 2.2 million on the previous year’s figure.