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Investing.com -- CTS Eventim reported stronger-than-expected third-quarter earnings as solid margins in its ticketing and live entertainment units helped offset slower revenue growth, and the company reaffirmed its forecast for the year.
Shares in the company jumped over 8% on Friday.
Consolidated revenue rose 3.5% to 854.2 million euros. Adjusted EBITDA increased 13.8% to 137.3 million euros, lifting the group’s adjusted margin to 16.1% from 14.6% a year earlier. The company said the gains came despite last year’s quarter benefiting from temporary factors.
The adjusted EBITDA figure was 7.5% higher than the consensus estimate, according to Kepler Cheuvreux analyst Craig Abbott.
"Whilst this alone will likely come as a relief to investors, the beat was driven by the Live Entertainment (LE) division, which reported a significant increase in Adj. EBITDA, both YOY and especially sequentially after the very weak Q2 result," he noted.
The ticketing division posted a 2.1% rise in quarterly revenue to 211 million euros. Adjusted EBITDA grew 8.1% to 91 million euros, with the margin improving to 43.1% from 40.7%. Eventim said the segment continued to perform well even without the one-off benefits tied to the 2024 Paris Olympics that lifted results a year earlier.
The live entertainment unit improved its profitability after a soft first half. Revenue in the segment increased 5.5% to 663 million euros, while adjusted EBITDA jumped 27% to 46.3 million euros. The margin rose to 7% from 5.8%, helping the division narrow most of its earlier shortfall.
For the first nine months, revenue rose 6% to 2.15 billion euros and adjusted EBITDA increased 4.7% to 337.9 million euros. The company reiterated that it expects moderate increases of 5% to 15% in full-year revenue and adjusted earnings, supported mainly by its ticketing business.
Chief Executive Klaus Peter Schulenberg said the quarter again showed the company was growing while creating long term value, citing improvements in technology systems, process efficiency and the integration of acquisitions.
(Pratyush Thakur contributed to this report.)