CTS QB 2/01 Englisch.Qxd 20.08.2001 11:58 Uhr Seite 2
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. shows net earnings of DM 6.6 million (previous year: DM 0.4 million). Depreciation totalling _ Investments In the first half of 2001, the CTS DM 6.6 million as at 30.06.2001 was heavily Group invested around DM 5.5 million in additional affected by DM 2.8 million instalment in goodwill expenses for, and improvements to the ticket sales depreciation. software, in hardware equipment for the connected box offices, in Internet applications and in other in- The main influences on Ticketing division results tangible assets. These investments will enhance the are seasonal factors, increased personnel expen- efficiency of the CTS Group still further, and keep ses, advertising expenses associated with brand the company aligned with technological advances. CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 10
_ Marketing The first quarter of 2001 already ment segment, in particular, the number of employ- featured a broad-based promotion campaign ees increased as a result of acquisitions by 99 to specifically aimed at increasing awareness for the 117 employees on 30.06.2001. Group expenses for EVENTIM brand among ticket sellers. The cam- personnel increased by DM 5.5 million relative to paign was taken into its next stage during the the year-ago period. second quarter of 2001. The campaign is expected to have positive impacts on the new ticketing _ Notes on the figures The comparative figures channels – Internet and call centres –, especially for the preceding year pertain to the consolidated during the second half of 2001. financial statement as at 30 June 2000 and take account of the participating interest in the Marek _ Workforce growth Compared to the same peri- Lieberberg concert agency that has been con- od of the previous year, the number of employees solidated in the Live Entertainment segment since was increased by 125 from 180 to 305 as at 1 June 2000. 30.06.01 (at end of period). In the Live Entertain-
>> Number of shares held by members of the company organs
Management Board members No. of shares Supervisory Board members No. of shares
Klaus-Peter Schulenberg (Chairman) 8,370,000 Edmund Hug (Chairman) 600
Volker Bischoff 102,000 Dr. Peter Haßkamp 465
Thomas Vogt 350 Dr. Peter Versteegen 0 CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 11
Balance sheet assets (US GAAP)
>> Consolidated balance sheet as at 30.06.2001 CTS EVENTIM Aktiengesellschaft, Munich
30.06.2001 31.12.2000
// DM // DM
A// Fixed assets
I Intangible assets 73,697,995 71,281,115
II Tangible assets 5,850,408 5,479,243
III Financial assets 3,005,002 1,038,345
82,553,405 77,798,703
B// Current assets
I Stocks 27,663,263 5,939,116
II Receivables and other assets 56,350,119 44,260,643
III Securities 5,000 5,000
IV Liquid assets 80,391,793 57,421,716
164,410,175 107,626,475
C//Prepaid expenses and accrued income 1,852,423 188,398
Total assets 248,816,003 185,613,576 CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 12
Balance sheet equities and liabilities (US GAAP)
>> Consolidated balance sheet as at 30.06.2001 CTS EVENTIM Aktiengesellschaft, Munich
30.06.2001 31.12.2000
// DM // DM
A// Shareholders equity
I Subscribed capital (EUR 12,000,000) 23,469,960 23,469,960
II Capital reserves 69,118,445 69,118,445
III Profit/loss carried forward – 344,405 – 4,163,987
IV Consolidated net income 187,261 3,819,582
VDifference arising from consolidation 122,358 122,370
92,553,619 92,366,370
B// Reserves for shares held by minority interests 11,451,715 8,658,888
C//Provisions 14,095,827 12,330,274
D//Liabilities 130,712,000 72,248,287
E// Deferred income and accrued expenses 2,842 9,758
Total equity and liabilities 248,816,003 185,613,576 CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 13
Income statement (US GAAP)
>> Consolidated income statement 01.01.– 30.06.2001 CTS EVENTIM Aktiengesellschaft, Munich
30.06.2001 30.06.2000
// DM // DM
1_ Sales 150,620,658 39,259,183
2_ Production expenses for services performed in generating the sales revenue 130,213,578 30,858,341
3_ Gross return on sales 20,407,080 8,400,842
4_ Research and development expenses 237,196 223,633
5_ Distribution costs 14,237,000 7,573,523
(of which goodwill depreciation) 2,832,546 758,281
6_ General administrative expenses 6,308,134 2,502,345
7_ Other operating income 2,902,348 1,622,686
8_ Other operating expenses 2,504,638 2,246,464
9_ Operating profit (EBIT)) 22,460 – 2,522,437
10_ Income from bringing in participations 3,087,751 0
11_ Financial result 903,132 498,956
12_ Income from ordinary business operations (EBT) 4,013,343 – 2,023,481
13_ Taxes on income (including deferred taxes) 519,995 – 976,379
14_ Net income/loss for the first half-year 3,493,348 – 1,047,102
15_ Net income/loss attributable to minority interests – 3,306,087 – 925,588
16_ Consolidated net income/loss 187,261 – 1,972,690 CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 14
Cash flow statement
>> Consolidated cash flow statement 01.01.– 30.06.2001 CTS EVENTIM Aktiengesellschaft, Munich
30.06.2001 30.06.2000
// DM // DM
1_ Consolidated net income/loss for the quarter 187,261 – 1,972,690
2_ Shares belonging to other company partners 3,306,087 925,588*
3_ Depreciation on assets 6,585,680 2,905,436
4_ Additions to asset value – 150,000 0
5_ Addition to provisions for pensions 84,484 19,927
6_ Income from bringing in participations – 3,087,751 0
7_ Tax income from deferred taxation – 2,843,207 – 2,224,542
8_ Cash flow 4,082,554 – 346,281
9_ Cash flow from operating activities 29,524,743 2,800,142
10_ Cash flow from investment activities – 5,985,995 – 31,862,839
11_ Cash flow from financing activities – 2,609,712 72,867,573
12_ Increase in funds 20,929,036 43,804,876
13_ Funds as at 01.01. 57,421,716 7,878,145
14_ Increase/decrease in funds due to change in consolidations 2,041,041 2,355,098 **
15_ Funds as at 30.06. 80,391,793 54,038,119
* Unlike in the 02/2000 quarterly report, the share in current profits on the part of minority interests was disclosed under net increase or decrease in funds from ongoing business activities (business operations in association with cash flow from financing activities). ** The change in funds caused by the change in entities consolidated was disclosed under ‘Cash flow from operating activities’. CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 15
Outlook
_ Building a leisure-centred brand CTS EVENTIM efforts in the marketing of cinema tickets and of has achieved a great deal already – a mere 18 sports events. In the football ticketing field, our months after going public on the Neuer Markt of new partnership with the Sat.1 television company the German stock exchange, it is now Germany’s is generating additional new opportunities. An leading ticketing company in the field of cultural important item further up on our agenda is to and sports events, as well as being one of the expand our international operations in both the major players in the Live Entertainment industry. Ticketing and Live Entertainment segments.
That will not suffice, however. Our goal is unchang- _ Forecasts for 2001 reiterated On the basis ed, namely to be the consumer’s preferred contact of business results in the first half of the year, for all forms of leisure organisation. This goal can the CTS Management Board continues to expect only be attained by expanding our existing activi- group sales in 2001 to total around DM 290 million. ties and by entering new fields. This would signify a gain of more than 120 percent For example, the company will be intensifying its on the previous year (DM 129.6 million).
>> Our service for investors:
Financial data on the Internet www.eventim.de/ investorrelation
E-mail for shareholder questions [email protected]
Investor Relations Department Tel. +49(0)18 053836846 CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 16 CTS QB 2/01_englisch.qxd 20.08.2001 11:58 Uhr Seite 1
CTS EVENTIM AG Munich Dingolfinger Strasse 6 Berlin Bleibtreustrasse 32 www.eventim.de 81673 Munich 10707 Berlin [email protected] Germany Germany Tel. +49 (0)894 160 040 Tel. +49 (0)308 870 890 Fax +49 (0)894 160 045 Fax +49 (0)308 870 8920
Hamburg Süderstrasse 79 Düsseldorf Königsallee 60 f 20097 Hamburg 40212 Düsseldorf Germany Germany Tel. +49 (0)402 374 1001 Tel. +49 (0)211 890 3675 Fax +49 (0)402 374 1005 Fax +49 (0)211 890 3676