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: 01.12.2020 
Kursziel: 4,10 
Kursziel auf Sicht von: 12 months 
Letzte Ratingänderung: - 
Analyst: Henrik Markmann 
 
DEAG closed Q3/20 with positive EBITDA despite significant negative effects 
due to corona crisis 
 
Last Friday, DEAG published its Q3 report. As expected, the financial ratios 
were strongly impacted by the COVID-19 pandemic and therefore well below the 
prior-year figures. DEAG has confirmed its annual targets until the end of 
December despite the extension of the "lockdown light" in Germany. 
 
[TABLE] 
 
Q3/20 sales fell strongly by -87.4% yoy to a mere EUR 7.4m. Given that DEAG 
had to either cancel or postpone all major events in Q3/20 due to the 
corona-related restrictions in the live entertainment industry this did not 
come as a surprise. We had already anticipated a substantial decline as well 
(MONe: EUR 4.5m). CTS Eventim and Live Nation, the two much bigger 
competitors, also had to post a significant downturn in sales in Q3/20 of 
-92.0% and -95.1% yoy respectively. On the bottom line, DEAG suffered a 
significant decline in EBITDA of -87.2% yoy in Q3/20 (MONe: -83.5% to EUR 
0.8m). However, the company remained in positive territory at EUR 0.6m 
thanks to a stringent management of selling, general and administration 
expenses as well as a comprehensive insurance coverage (EBITDA CTS: EUR 
-15.0m; Live Nation: EUR -384.5m). Liquid funds remained stable after nine 
months at EUR 41.6m (30.06.2020: EUR 39.9m), not least because of the 
heavily reduced SGA costs (-48.7% yoy to EUR 4.3m) as well as raising of 
external capital of some EUR 2m. 
 
Although the "lockdown light" has been extended until the end of December, 
DEAG confirmed its annual target, thus expecting EBITDA to at least break 
even. As the company had already reported an EBITDA of EUR 0.3m after nine 
months and is expected to receive insurance benefits in the final quarter 
due to the cancelled ??zChristmas Gardens" plus the financial assistance in 
November and December announced by the German government, we stick to our 
forecast of a full-year EBITDA of EUR 0.8m. Whilst there is still no 
visibility as to when the live entertainment industry will see a revival 
next year, DEAG already has a sales basis of over EUR 100m resulting from 
events already planned. In combination with vaccines that will become 
available soon as well as reliable rapid tests, DEAG should be well 
positioned with a view to 2021, which is why we keep our forecasts 
unchanged. 
 
Conclusion: The weak operating development in Q3/20 is not surprising and 
already priced in by the heavy drop in share price. Having in mind the 
foreseeable recovery in 2021 and 2022 we stick to our turnaround scenario 
and confirm our buy recommendation with an unchanged price target of EUR 
4.10. 
 
+++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss 
bestimmter Börsengeschäfte. Bitte lesen Sie unseren RISIKOHINWEIS / 
HAFTUNGSAUSSCHLUSS unter http://www.montega.de +++ 
 
About Montega: 
 
Montega AG is one of the leading independent 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: 
http://www.more-ir.de/d/21904.pdf 
 
Kontakt für Rückfragen 
Montega AG - Equity Research 
Tel.: +49 (0)40 41111 37-80 
Web: www.montega.de 
E-Mail: research@montega.de 
 
=------------------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.

(END) Dow Jones Newswires

December 02, 2020 04:16 ET (09:16 GMT)