WHAT’S UP No. 6 • November 2005 AN INVESTOR AND PRESS SERVICE 0F CTS EVENTIM AG www.eventim.de EIN PRESSE- UND VERANSTALTERSERVICE DER CTS EVENTIM AG, MÜNCHEN www.eventim.de CTS EVENTIM STILL GROWING AT DOUBLE-DIGIT RATE CTS Shares – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – The performance of CTS shares during the Nine-month figures: Internet ticketing continues to boost growth reporting period was also very encouraging. In the first nine months of 2005, CTS EVENTIM AG further reinforced its posi- Shares reached a new all-time high of tion as leading ticket marketer for concerts, theatre and sports events, and as EUR 20.60 on 20.10.2005, and subse- a provider of live entertainment. Due quently stabilised at a high level. In order to Tickets (kumuliert)(accumulated) especially to strong growth in Internet enhance the attractiveness of shares even in Tsd. 2400 ticketing – 60 million visitors to the further, the Management Board proposed to www.eventim.de and www.getgo.de the Shareholders’ Meeting in August that the 1800 portals purchased 2.1 million tickets in share capital be increased using own funds, 1200 Q1-3 – the SDAX-listed company has kept and that a 1:2 share split be carried out. 600 to its projected growth track and once 320 0 Q1 Q2 Q3 Q4 again achieved a substantial improvement 2001 2002 2003 2004 2005 260 in profitability. 200 Outlook for 2005: increase in all key performance figures As at 30.09.2005, Group sales increased by 14.1% year-on-year to EUR183.0 mil- 140 lion (Q1-3/2004: EUR 160.3 million). CTS improved its EBIT by 50.4% to EUR 22.4 80 million (Q1-3/2004: EUR 14.9 million). The EBIT margin climbed from 9.3% to Oct/ 04 Nov/ 04 Dec/ 04 Jan/ 05 Feb/ 05 Mar/ 05 Apr/ 05 May/ 05 Jun/ 05 Jul/ 05 Aug/ 05 Sep/ 05 12.2%. CTS improved its EBITDA figure by 43% from EUR 18 million to EUR 25.8 Both these measures have now been imple- million, and its Group earnings by 95.9% from EUR 5.3 million to EUR 10.3 mented, with the 12 million new bearer sha- million. This results in earnings per share of EUR 0.43, compared to EUR 0.22 a res being credited to shareholder depots on year ago. The cash flow increased by 43.4% to EUR 19.2 million (Q1-3/2004: EUR 30 October 2005. The free float now com- 13.4 million). These figures mean that, in the seasonally weaker third quarter of prises 33.3% i.e. 7,992,000 bearer shares. 2005, CTS again improved all its key “We are confident that the reduced share in million € performance figures. The Management 250 30% price and improved liquidity will have positi- 224 Board is optimistic for the fourth quarter 200 223 14.1% ve effects on the future performance of our 11.6% 183 15% 150 8.9% 157 159 of 2005 and expects an increase in all 4.5% shares,” says Management Board Chairman 4.7% 2.1% 100 key performance figures for 2005. 0% Klaus-Peter Schulenberg. Current equity 50 -11.2% 66 research sees a target CTS share price of 0 15 -15% The current quarterly report is available 1999 2000 2001 2002 2003 2004 9 Mon. EUR 25 (Citiygroup, 17.10.05) and EUR 23 2005 for download at www.eventim.de Rev enue EBITDA margin (Berenberg Bank, 10.11.05). On 14.11., the /Investor Relations. closing price was EUR 20,10. Citigroup initiates coverage with a target share price of EUR 25 („buy“) CTS EVENTIM’s share price does not fully reflect the company’s growth potential, in our view. It is uniquely positioned to exploit the migra- tion to online ticketing. We expect the positive impact on its ticketing sales and margins to become increasingly apparent over the coming quarters, leading to a rerating of the stock. We initiate with a Buy/High Risk (1H) recommendation. (Analyst: Claus Roller; Tel.: +44 (0)20 79864423, [email protected]) The complete research report by Citigroup can be ordered as a pdf file from [email protected] 2 WHAT’S UP FOOTBALL WORLD CUP 2006 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Fans’ wish for a resale and transfer platform is fulfilled As the exclusive ticketing partner of the World Cup Organising Committee (OC) of the German Football Association (DFB), CTS has been working successfully for months on the techni- cal systems for selling the 3.2 million tickets for the 2006 Football World Cup. The OC has now accepted a long-stan- ding wish of many fans by permitting a resale and transfer plat- form on which ticket holders can sell or transfer their tickets Clearly in a good mood: Otto Schily (left) with host Klaus-Peter Schulenberg (right) in the new CTS building officially to other persons – legally and in accordance with OC on Bremen’s Contrescarpe. rules. At the start of November this year, CTS was commis- sioned to implement this new online platform, and will offer a SCHILY A GUEST OF SCHULENBERG simple and secure system with which personalised tickets can be sold at the original price or transferred to persons who are Otto Schily visits CTS EVENTIM: on 3.11, the German close to the ticket holder. This fan-friendly option is scheduled Minister of the Interior was in Bremen to find out about for launch on 1 February 2006. Between 12 December 2005 the ticketing systems for the 2006 World Cup. He showed and 15 January 2006, the third phase of ticket sales for the 64 particular interest in ticket personalisation, which will World Cup matches will be run at the www.FIFAworldcup.com provide enhanced security in the stadiums. website. CTS cooperates via ticketverkauf.de with Schlecker With a broad range of products trust and confidence that has been established in the stationary that includes far more than just retail trade. pastilles and creams, the web- shop of the Schlecker drugstore chain is growing into one of the With Schlecker via ticketkauf.de and CTS EVENTIM to CATS largest eCommerce sites on the German web. Through its coope- and Co. ration with CTS EVENTIM and via the ticketkauf.de portal, As various studies have shown, it is women in particular who are Schlecker customers can now obtain tickets from Europs’s biggest taking the lead as far as online ticket purchases are concerned. The ticket portfolio, comprising about 70,000 different concerts, plays clientele of www.schlecker.com is predominantly female and middle- and sports events. aged – for CTS EVENTIM a customer group with a special affinity for musicals. Integration of the entire product range of www.eventim.de A virtual shop counter with no limits into the portal enables users not only to order tickets easily and con- Since launching the webshop portal in early 2000, Schlecker has veniently for CATS, Phantom of the Opera, etc. CTS EVENTIM also continuously expanded the range of products available from its offers a broad range of glamorous shows, wonderful concerts, thril- online store, which includes not only standard drugstore articles ling sports events and spectacular rock gigs. All other services pro- but also multimedia products, toys and books. The response from vided by Germany’s biggest ticketer are also available: fast, secure customers buying online has been good, due to the high level of ordering, reservation of specific seats, up-to-date news of events, coverage enjoyed by the company, on the one hand, and to the and fair prices. 3 WHAT’S UP CORPORATE TICKETING WITH THAT CERTAIN EXTRA BENEFIT – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Customer event with value added features: the new Corporate Tickets division at CTS EVENTIM gives companies an all-in package deal Companies organising special events for customers and employ- Exclusive offer for select customers ees will receive even better support from CTS in future: with With an extensive mailing campaign, CTS EVENTIM is presenting immediate effect, package deals with special ticket blocks and the new division to approximately 7,000 German companies, its many interesting extras can be booked, ranging from travel servi- sales partners and a number of public personages. ce, catering or Meet & Greet to hotel and flight bookings. An exclu- The superb response from customers during the launching phase sive selection of top events and services can be found at indicates that this new field of business will enjoy excellent accep- www.eventim-corporate.de. Specialists from CTS Corporate Ticketing tance. Further information on current events and the services provide exclusive advice and assistance. On request, eventim-corpo- provided by the Corporate Tickets division are available from rate will organise not only the ticketing for company celebrations and the service team under +49 (0)421 3666-555, or online at customer events, but will also coordinate the entire event. www.eventim-corporate.de. CTS EVENTIM launches the pilot phase of ‘ticketdirect’, an innovative and very user-friendly ticket delivery system – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Faster and more convenient: the new ‘ticketdirect’ solution ena- Enormous market potential bles customers wanting to see their favourite stars live not only to CTS EVENTIM anticipates strong demand for the new solution: book tickets from their home PC, but also to print them out. ‘ticketdirect’ means that the selling phase for tickets will be Dieses Ticket ist nur gültig als kompletter DIN A4-Ausdruck. Straightaway, with no frills. The CTS extended until shortly before the event, since there will no need Bitte beim Einlass vorzeigen. Buchungsdaten Herrn Ticketnummer: 1 von 1 portals will be offering this new con- to send tickets by post. The new delivery method allows fans to Max Mustermann Auftragsnummer: 332627786 Musterstraße 17 Buchung: 14.11.2005 19:27 66666 Musterhausen MASTER ************0004 q HIER FALTEN SIE DAS ZWEITE MAL q HIER FALTEN SIE DAS ZWEITE MAL cept from December onwards.