Stocks of MDAX have surged by 10%, triggering a question: should investors hop on the bandwagon to avoid missing the current rise?
In an exciting development for the live entertainment industry, CTS Eventim has exceeded analysts' expectations for the second quarter, reporting a significant increase in revenue and adjusted EBITDA.
The German ticketing and live entertainment company, known for its popular events such as Bruce Springsteen in Spain and the Rock am Ring, Rock im Park, Hurricane, Southside, and Nova Rock festivals, reported revenues of 793.6 million euros for the second quarter, marking a 21.6% increase from the previous year. This impressive growth was driven primarily by the live business, which saw a 19.7% increase during the same period.
The company's adjusted EBITDA grew even more significantly, reaching 110 million euros, a 23.3% increase compared to the previous year. Analysts had estimated adjusted EBITDA to be 106 million euros, but CTS Eventim managed to surpass this estimate.
The positive performance has led the management to revise its outlook for the current year, expecting a "significant" increase in EBITDA compared to the previous year. The company's next expected milestone is to surpass a market capitalization of 5 billion euros, anticipated within the next 1-2 years depending on market conditions.
The stock of CTS Eventim has responded positively to these developments, with a 10% increase on Thursday. The stock's recovery trend has continued since the sell-off at the end of July/beginning of August, and it reached a new record high above 90 euros. BÖRSE ONLINE has recommended purchasing CTS Eventim's stock with a price target of 105 euros.
The takeover of the British ticketing service provider See Tickets, completed in June, had a positive effect on the company's performance. CTS Eventim's operational performance has also been noteworthy, with "very good" festival pre-sales for the coming year reported.
The breakout to the upside is a clear bullish signal for CTS Eventim's stock, making it an appealing option for momentum-driven, short-term investors. However, long-term investors may also find CTS Eventim's operational performance worth investigating.
For those interested in investing in CTS Eventim, the WKN for the company is 547030. As always, it is recommended to conduct thorough research and consult with a financial advisor before making any investment decisions.
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