CTS Eventim shares fall on Wednesday, official event bans cause revenue slump

While Germany stocks closed higher on Wednesday, one of the worst performers was CTS Eventim AG as its shares were down 7.07% to 34.720. Due to the numerous events that were postponed as a result of the coronavirus pandemic, the earnings and revenue of the company were significantly lower compared to the results of the previous fiscal year.

The company has stated that the bans and restrictions imposed as preventive measures during the pandemic have seriously affected the earnings of CTS Eventim. The imposed changes mean that all live events are put on hold at the moment. This is an issue not only for Germany but also for all other international markets that work with CTS Eventim.

The company has reported a revenue of €184.6 million for the first quarter of 2020. These results show a drop of 34.7%, compared to the revenue of €282.7 million for the same period of the previous fiscal year.

The beginning of 2020 marked a strong start for the company as it joined forces with different companies, expanding its international-market presence even further. However, the COVID-19 pandemic imposed restrictions on numerous events, which directly affected the earnings of the company. The revenue of the ticketing division for the first quarter of 2020 amounted to €79.0 million, which marks a 24.4% fall when compared to the revenue of €104.5 million for the past year.

In many major markets where CTS Eventim operates, politicians introduced vouchers as a tool that will allow promoters to avoid losses from issuing refunds. This new solution has been accepted in Germany, Italy and Austria and other European countries are considering imposing similar measures.

Analyst stock price forecast and recommendation

According to Investing.com, the 7 analysts who provided a 12-month stock price forecast for CTS Eventim AG have an average price target of 40.860, with a high estimate of 47.000 and a low estimate of 30.000.

The same media also provides recommendations for the CTS Eventim AG stock. Out of the 7 analysts who have participated in the poll, 2 have rated the company’s stock as “Buy” and 1 – as “Sell”. The remaining 4 analysts are neutral when it comes to the rating of CTS Eventim AG’s stock.