CTS Eventim AG & Co. KGaA Q2 Earnings Call Highlights

CTS Eventim AG & Co. KGaA (ETR:EVD) reported higher revenue, earnings and ticket volumes for the first half of 2026, supported by growth in Live Entertainment, continued expansion in Ticketing and an initial contribution from its LA28 Olympic Games ticketing contract.

Group revenue rose 17% from the prior-year period to €1.5 billion, while adjusted EBITDA increased 12.4% to €225 million. EBIT grew 15.3%, and first-half earnings per share climbed 34% year over year to €1.25, aided by both operational performance and an improved financial result.

Chief Financial Officer William Willms said the company’s first-half results were in line with expectations and reflected “continuous course of profitable growth.” The adjusted EBITDA margin was 14.9%, compared with 15.5% a year earlier. Willms attributed the decline to business mix, as the lower-margin Live Entertainment segment represented a larger portion of group revenue.

Ticketing Growth Offset Stage Entertainment Change

Ticketing revenue increased 14% in the first half. Excluding the impact of a previously reported change in the Stage Entertainment partner business, Ticketing revenue growth was nearly 20%, according to the company.

CTS Eventim sold 81 million retail tickets during the first six months, slightly above the prior-year level and enough to offset the effect of the Stage Entertainment change. Seventy percent of retail ticket volume was generated outside Germany, underscoring the company’s increasing international exposure.

Adjusted EBITDA in Ticketing rose 3.4%. Management said margins and earnings were consistent with internal expectations despite investments in its operational excellence program, which is intended to support the company’s ambitions through 2030.

Willms said the program is focused first on scaling the organization and then on costs. The company is addressing duplicated processes, interfaces and reporting systems created during a period of rapid growth and acquisitions. It expects temporary incremental expenses in 2026, including investments in technology platforms and artificial intelligence, with efficiency benefits expected to begin in 2027.

Vice President of Investor Relations and Corporate Development and Strategy Marco Haeckermann said the program’s incremental quarterly expense in the first half was in the low- to mid-single-digit millions of euros, a level that investors could use as a reference point for the second half.

LA28 Contract Begins to Contribute

The company and its joint-venture partner AXS serve as exclusive primary-ticketing partners for the Los Angeles 2028 Olympic Games. CTS Eventim said the first ticket-sale window, or “drop,” in the second quarter contributed a low- to mid-double-digit-million euro amount of revenue at margins of roughly 20% to 25%.

Haeckermann said the first drop involved around 4 million tickets. He added that the arrangement is more complex than the company’s regular retail-ticketing business and operates more like a business-to-business framework.

Over the three-year term running from 2026 through 2028, the company expects the LA28 contract to generate revenue in the low triple-digit millions of euros, with profitability between 20% and 30%. Management said the timing and size of ticket-sale windows are determined by the International Olympic Committee and are therefore not fully under CTS Eventim’s control.

The second ticket drop was nearing completion at the time of the call. Management said it had proceeded successfully from a technical standpoint but said it was too early to provide financial details.

Live Entertainment and Venue Operations Advance

Live Entertainment revenue rose more than 18% to nearly €1.1 billion, marking the first time the segment exceeded €1 billion in revenue during the first half of a year. Adjusted EBITDA increased to €53 million from €34 million in the prior-year period, lifting the segment’s margin to 5%.

The company attributed the improvement to a strong portfolio of shows and festivals, particularly in Germany and Italy, a turnaround in its U.S. promoter business and contributions from venues. Management said quarterly margins can vary based on the scheduling of shows and related expenses, but it sees the broader margin trend moving in the right direction.

Among operational highlights, CTS Eventim cited sold-out Rock am Ring and Rock am Park festivals, which featured Linkin Park, Limp Bizkit and Iron Maiden. The company said two-thirds of tickets for the 2027 editions have already been sold. It also highlighted the launch of Eros Ramazzotti’s world tour and the start of concert activity at Milan’s Unipol Dome.

Venue operations generated €70 million in revenue and €29 million in adjusted EBITDA. The Unipol Dome’s startup phase temporarily weighed on event-business margins in the second quarter, but management said margins would have been slightly above the prior-year level excluding the ramp-up effect. The venue hosted its first music concerts in the spring after the Olympic ice hockey tournament and is expected to begin contributing to operating results in the third quarter.

CTS Eventim said net investment in the Milan venue is expected to be above €400 million, subject to final contributions from the City of Milan and other parties. The company is evaluating potential financing partners for the venue as part of a broader strategy that could also support future venue investments.

Guidance Maintained; Investor Relations Change Announced

Management maintained its outlook for higher revenue and EBITDA for the full year, while Willms said the company remains cautious given the geopolitical environment. Additional updates are expected at the company’s Capital Markets Day on Nov. 20 at the Unipol Dome in Milan.

The financial result improved to a positive €20 million in the first half, primarily due to a €27 million positive effect from translating non-current U.S. dollar-denominated receivables into euros. This was partly offset by lower interest income and higher interest expense.

CTS Eventim also said the integration of See Tickets has been completed and that it no longer expects further integration costs. Separately, the company said it will discontinue the Highfield Festival and continues to review other festivals in its portfolio.

Willms announced that Haeckermann will leave the company after September at his own request. CTS Eventim said it is discussing a replacement and expects to announce a successor soon, with a transition period planned.

About CTS Eventim AG & Co. KGaA (ETR:EVD)

CTS Eventim AG & Co KGaA operates in the leisure events market in Germany, Italy, Switzerland, Austria, the United Kingdom, Sweden, the United States, Finland, Spain, Denmark, the Netherlands, and internationally. The company operates through two segments, Ticketing and Live Entertainment. The Ticketing segment produces, sells, brokers, distributes, and markets tickets for concerts, theatre, art, sports, and other events. It markets events (tickets) through EVENTIM.Web and using its network platform, EVENTIM.Net; in-house ticketing products through EVENTIM.Inhouse; sport ticketing products through EVENTIM.Tixx; and self-service products for promotors through EVENTIM.Light, as well as provides a solution for ticket sales and admission control through EVENTIM.Access.