Ticketek is the leading ticketing company for live entertainment in Australia. It sells tickets online and by phone for concerts, theater, sports and other live events across the country. Ticketek was originally founded in Sydney in 1980 and has grown to become Australia’s dominant ticketing service over the past 40+ years.
In terms of ownership, Ticketek in Australia is part of TEG Live, a subsidiary of TEG Dainty. TEG Dainty is owned by the global entertainment, hospitality and lifestyle company called TEG. So the full ownership structure is as follows:
Ticketek Australia -> Owned by TEG Live -> Owned by TEG Dainty -> Owned by TEG
Some key quick facts about Ticketek’s ownership:
– Ticketek was acquired by TEG in 1999. Prior to that it was owned by News Corp Australia.
– TEG is headquartered in Sydney and operates companies across Australia, New Zealand, Asia, UK, Europe and the USA.
– In addition to Ticketek, other TEG companies include TEG Live, TEG Dainty, TEG MJR, TEG Van Egmond, Softix, TIXTrack and more.
– Majority owner of the TEG parent company is British private equity firm CVC Capital Partners.
– TEG reported over A$1 billion in revenue in 2019 prior to the Covid-19 pandemic.
So in summary, Ticketek is owned by Australian-based entertainment company TEG, which itself is majority owned by the global private equity firm CVC Capital Partners.
History of Ticketek Ownership
Ticketek has changed hands several times since it was founded in 1980:
– 1980: Ticketek is established in Sydney by Keith Williams and Brian Nebenzahl. The company sells tickets for sporting and entertainment events.
– 1984: News Corp Australia (then called News Limited) buys 50% of Ticketek. This gives them a controlling stake.
– 1989: News Corp Australia acquires the remaining 50% of Ticketek to gain full ownership.
– 1999: TEG purchases Ticketek from News Corp Australia for a reported $20 million AUD. This transitions the ownership to TEG.
– 2011: TEG sells a 70% stake in itself to CVC Capital Partners for $385 million AUD. This gives CVC Capital the controlling majority ownership in the TEG parent group.
– 2016: CVC Capital sells a minority 15% stake in TEG to the Growthpoint Group. CVC Capital maintains majority 55% ownership.
So for the past 20+ years, Ticketek has been owned by TEG which itself has been majority controlled by CVC Capital Partners since 2011. Prior to TEG’s acquisition, it was a News Corp Australia subsidiary for 15 years.
Ownership Timeline Summary
1980-1984 | Founded independently in Sydney |
1984-1989 | 50% owned by News Corp Australia |
1989-1999 | Fully acquired by News Corp Australia |
1999-Present | Owned by TEG |
2011-Present | TEG majority owned by CVC Capital Partners |
This history shows how Ticketek has evolved from an independent start-up into one of Australia’s most important entertainment services under the ownership of major media and investment corporations.
TEG’s Acquisition of Ticketek in 1999
TEG’s purchase of Ticketek from News Corp in 1999 was a key milestone in the ticketing company’s ownership history.
Some key points about TEG’s takeover:
– TEG reportedly paid around $20 million AUD to acquire Ticketek from News Corp in 1999.
– This provided TEG with an instant leading position in ticketing and helped expand their live entertainment footprint in Australia.
– Prior to this, TEG was primarily known for concert promotion and venue management, not ticketing services.
– Adding Ticketek enabled TEG to control more of the end-to-end event experience and ticketing logistics.
– Following the acquisition, Ticketek’s operations remained based in Sydney under TEG ownership.
– TEG retained the existing Ticketek management team and staff, providing continuity for the business.
– News Corp was able to divest its non-core ticketing asset to focus more on its core media businesses.
– TEG’s CEO at the time, Sir Paul Dainty, said the Ticketek acquisition helped establish TEG as the number one entertainment group in Australia.
So TEG’s strategic purchase of Ticketek from News Corp strengthened its position in live events and marked a new era for Ticketek under the stewardship of Australia’s largest entertainment company.
TEG Acquisition Impact on Ticketek
Positives | Negatives |
– Provided strong industry expertise via TEG in entertainment | – Loss of diversity via separation from News Corp media business |
– Allowed growth leveraging TEG’s assets and relationships | – Risk of over-reliance on TEG’s broader business |
– TEG investment helped expand capabilities | – Potential conflicts via being owned by an active competitor |
In summary, while the TEG takeover provided many benefits, it also resulted in Ticketek’s future being tied directly to the fortunes of TEG’s wider group. This has only deepened over time as TEG integrated Ticketek into more of its operations.
CVC Capital Partners Majority Ownership Since 2011
In 2011, TEG sold a 70% controlling stake in its overall business to CVC Capital Partners for $385 million AUD. This resulted in the British private equity firm becoming the new majority owner of Ticketek via its ownership of TEG.
Key facts about CVC Capital’s majority acquisition of TEG:
– CVC Capital Partners is one of the world’s leading private equity and investment advisory firms.
– It has over $122 billion in funds raised, with 96 companies worldwide in its portfolio.
– The $385 million purchase gave CVC Capital 70% ownership of the TEG parent group.
– TEG’s founder and CEO Sir Paul Dainty kept a 30% minority stake and continued leading the firm.
– CVC Capital saw TEG and Ticketek as long-term growth investments.
– The deal provided TEG with extra capital and resources to fund expansion plans.
– It likely resulted in a shift to more financially-driven decision making at TEG and Ticketek.
So while day-to-day operations have been unchanged, the CVC Capital takeover fundamentally altered TEG and Ticketek’s ownership structure by introducing a new controlling entity focused on financial returns.
Impact of CVC Capital Partners Ownership of TEG/Ticketek
Positives | Negatives |
– Provided capital for TEG and Ticketek to grow | – Likely increased focus on profit over other goals |
– Supports ambitious long-term investments | – Private equity model can lead to cost cutting |
– Brings global expertise in events and ticketing | – Added financial reporting pressures |
CVC Capital’s majority stake in TEG has been a double-edged sword. While it has enabled major investments to expand TEG and Ticketek’s operations, the private equity ownership model also brings pressures to maximise short-term financial returns. This will likely shape Ticketek’s strategy and direction going forward as TEG’s owner.
Ongoing Focus Areas for Ticketek
Looking ahead, Ticketek is likely to focus on the following areas, reflecting its ownership situation as part of a major entertainment and private equity group:
– Leveraging technology to sell more tickets and enhance events. Ticketek will keep investing in leading ticketing platforms to drive sales.
– Expanding data and insights capabilities. Ticketek’s vast ticketing dataset offers significant potential value.
– Improving operational efficiency. This will be an ongoing emphasis to maintain profit margins for its financial owners.
– Developing new revenue streams. Ticketek will look to expand offerings beyond basic ticket sales to deliver incremental income.
– Pursuing partnerships and acquisitions. TEG and CVC Capital’s resources provide funding to support deals to expand.
– Extending brand reach. Ticketek will aim to secure more exclusive ticketing rights deals with venues, promoters and events.
– Driving growth across Australia, New Zealand and Asia. Ticketek’s geographic expansion will likely continue, increasing its scale and clout.
With the financial backing of major entertainment and investment firms, Ticketek remains in a strong position to strengthen its leadership in ticketing across multiple countries and verticals in the years ahead.
Key Competitors to Ticketek
Despite its dominant market position, Ticketek faces competition from several ticketing companies in Australia:
– Ticketmaster – Owned by Live Nation Entertainment, this is Ticketek’s largest and main competitor in Australian ticketing. Ticketmaster has exclusive deals with some venues and events.
– Moshtix – Founded in 2007 and headquartered in Melbourne, Moshtix has grown to become a respectable competitor. It focuses on pop culture events.
– Eventbrite – A major global ticketing platform that has expanded into Australia for smaller/medium sized events and communities.
– Oztix – One of Australia’s original ticketing companies. Caters to more independent events and smaller scale gigs.
– Ticketbooth – A relative newcomer since 2015. Offers a DIY ticketing platform and mainstream inventory.
Ticketek is widely seen as the leader in Australia’s live entertainment ticketing industry. But growing competition from established players and agile startups ensures Ticketek cannot be complacent. These challenger brands will look to disrupt the status quo.
Ticketek’s Competitive Advantage
Despite the competition, Ticketek maintains several key advantages in the Australian marketplace:
– Strong brand reputation and recognition from 40+ years of operations.
– Excellent relationships with major venues, promoters, sports leagues and entertainment companies.
– Unrivaled access to the biggest concerts, shows, arts, family events and live sports.
– Advanced technology and analytics capabilities backed by TEG and CVC Capital resources.
– End-to-end ticketing, payments, data, marketing and live event technology solutions.
– Australia’s largest entertainment ticketing sales and distribution network.
– Economies of scale.
Ticketek’s long-standing role as Australia’s premier ticketing company provides it the incumbency advantage against both existing and future competitors in the industry. Its market position remains very formidable.
Recent Performance of Ticketek
The last few years have been an uneven period, dominated by the severe impacts of the COVID-19 pandemic since early 2020:
– In 2019, prior to COVID, Ticketek reported processing 25+ million tickets annually and generated over $1 billion in sales.
– Ticketek’s business was devastated in 2020 at the height of the pandemic as nearly all events were cancelled. TEG enacted major cuts.
– Trading conditions remained extremely challenging in 2021 as lockdowns and restrictions continued. Transaction volumes were down 90% at one point based on Ticketek reports.
– Performance started to recover in 2022 as live events resumed. But Ticketek’s sales remain below pre-pandemic levels.
– Currently the business is in rebuild mode. But the long-term fundamentals and growth drivers appear positive as events activity picks up.
It has been an incredibly difficult few years for Ticketek. However, with the worst of the pandemic likely over, Ticketek and the live events industry look poised for a rebound. This bodes well for its recovery and financial performance moving forward.
Ticketek Key Performance Stats
2019 | 25+ million tickets sold | $1+ billion ticket sales |
2020 | Sales down 75% | Major cost cutting |
2021 | Sales down 90% at low point | Events slowly resume |
2022 | Trading improves | Gradual recovery underway |
In summary, Ticketek has weathered an immensely difficult period over the last 3 years. But with events coming back, the company looks set for better performance again.
Future Outlook and Direction
Ticketek appears well-positioned for strong post-pandemic growth in the coming years:
– Pent-up demand for live events following 2+ years of disruption bodes well for ticketing volumes.
– The company expects to benefit as Australasia’s leading ticketing network when activity ramps back up to normal levels.
– Ticketek’s investments in digital ticketing infrastructure during the downturn will enable quicker scalability.
– Blockchain and other emerging technologies provide opportunities to further innovate the ticket buying experience.
– Ongoing venue expansion and new events being added across sports, arts and family entertainment point to a robust pipeline.
– Geographic growth opportunities remain in New Zealand and other Asian markets.
– Strategic acquisitions could bolster capabilities and talent.
Under its well-resourced TEG and CVC Capital ownership, Ticketek looks primed to reinforce its dominance in Australasia and deliver strong growth as the industry enters a new post-COVID era.
Future Focus Areas
Meeting post-COVID demand surge | Increasing digital ticket sales |
Data analytics platform development | Targeted Asia Pacific expansion |
Emerging technology integration e.g. blockchain | Delivering enhanced fan experiences |
The future is bright for Ticketek as it readies itself for the high-growth years ahead under the guidance of TEG and CVC Capital Partners ownership.
Conclusion
In summary, Ticketek is owned by TEG which itself has been majority controlled by private equity firm CVC Capital Partners since 2011. This ownership situation evolved from Ticketek’s origins as an independent start-up in the 1980s, to becoming part of News Corp Australia, then being acquired by entertainment giant TEG in 1999.
The resources and industry expertise provided by both TEG and CVC Capital Partners have helped develop Ticketek into a leading ticketing business across Australia and New Zealand. This looks set to continue driving growth following the severe COVID-19 impacts over the past few years.
While challenges and competition exist, Ticketek remains in a very strong overall position in Australasian ticketing under its current ownership model. TEG and CVC Capital Partners have a vested interest in ensuring Ticketek consolidates its market leadership in the post-pandemic entertainment industry recovery.