CTS Eventim was founded in the late 1980s in Munich, south Germany, and came to the stock market via an IPO in 2000. The secret is in the name – CTS stood for Computer Ticket System and the company is a global leader in online ticketing services for leisure events – sporting activities, concerts, cinemas and a wide variety of other venues. Through Eventim and other brands, they also part-own venues and promote events – Londoners will know them through their ownership of the Hammersmith Apollo which was originally the UK’s largest cinema. We have been investors for Columbia Threadneedle funds for decades and have met the management frequently. Through acquisition, targeted marketing and organic growth they have built an impressive portfolio of brands and events throughout the world: it now operates in over 25 countries selling over 300m tickets a year. The business model is hugely supportive for clients – offering slick software for ticket purchase, secure financial transactions, a white-label solution with packaging opportunities for accommodation or other services.
The company recently produced strong Q2 results, better than the market expected, following on from a strong first quarter. Whilst we do not track quarterly results in detail, as our views are longer term, this has provided a useful support for the share price. At the same time, CTS management are merging two of their promotions businesses, Peter Rigeer Konzertagentur and Dreamhaus, which will increase efficiently and impact. They have now consolidated See Tickets, another acquisition, reaffirming their successful M&A strategy. Success at the Paris Olympics and Paralympics, where they were one of the lead providers, has been followed up by signing the Los Angeles Olympics in 2028….and the recent Adele tour has provided a useful fillip.
CTS was a business which suffered dramatically during COVID lockdowns, as the events from which they get revenue were cancelled. But the business model has proved resilient, bouncing back sharply and winning market share.
Investment risks
The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. There is no guarantee that dividends will continue to increase.
The value of your investment is dependent on the supply and demand for the shares of the Investment Trust rather than its underlying value. the value of your investment will not be the same as the value of the Investment Trust’s underlying assets.
Investments in smaller companies carry a higher degree of risk as their shares may be less liquid and investment values can be volatile.
The mention of a stock is for the purpose of illustration and should not be considered as a recommendation to buy or sell the stock.
Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater.
Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.
