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All good points. DC needs to stop promising timescales he can’t be certain of. In his defence these are complex deals to put together and I’d rather they concentrated on getting a better cut for lvcg than just completing a deal at any cost, so I can live with missed timescales IF it leads to a better deal for us. But of course the best thing to do is not over promise in the first place.

I’m lobbying the company to set a clear dividend policy now so that shareholders can see the value/benefit once retained earnings start to be accrued, and of course as the biggest shareholder he would benefit the most (and very few shareholders would complain about him taking cash out of the company in that way, so win win for everyone). Hopefully the point when retained earnings is reached will become clear when the brokers note is out.

Extension of Frankfurt can be done for a further 4 years for “no further payments”. Also it may be that future festivals at different venues will not be done by the same consortia, giving an opportunity to give a better cut to lvcg.

9 Dec 21 RNS “The event is a joint venture agreement between a number of parties which is the usual format for this type of festival. The European partners consist of; KPE - a 50% subsidiary of LVCG, who are the Touring Promotor, PKE who are the Promotor and DB Stadium - the stadium partner. The Korean partners are SBS who are responsible for broadcasting and streaming in Korea, artist sourcing and their two consulting companies one of which is SSD Media Group. KPE has the optionto extend the festival annually for up to a further four years for no further payments.”

Thanks for confirming that everyone can see exactly what you posted :-)

Guess some people are naturally awkward, something that social media/bulliten boards reinforce. I mean the whole “I didn’t ask about future events, why did you say something about future events” comment just sums it up. There’s certainly a deliberate attempt to spread misleading information especially on the merchandising deal.

But here is the reality. asimpleinvestor has tried to mislead and say that “suggesting something to be profitable is just hearsay and supposition.” However, the RNS of 1 July states “ Overall the event is expected as reported in our recent 2021 Report and Accounts to be profitable” so it not just what DC is saying on investors calls, that is a stement that’s been through the Nomad.

That’s two misleading statements he has made. Will he admit that. I doubt it.

Its misleading to suggest that KPE are responsible for the costs of the merchandising. There are no costs to KPE for this. That’s not only covered adequately by the RNS, but it’s also been covered in the various investor events.

Equally (as KNIGEL points out) I would expect that the profit figure for lvcg for future events will be revealed in the forthcoming brokers note too, based upon what was delivered at Frankfurt.

Exactly KNIGEL. There’s been a clear statement that the event is profitable, so it’s it just supposition or hearsay. Its also important to break down the revenue streams, because for KPE they don’t all break down in the same way.

Take merchandising. There’s no investors capital being risked as they have an experienced partner in to deliver. Unusually they got a minimum revenue guarantee from the partner and all the risk of delivery and overstocking etc rests with the partner. There was a clear statement that the minimum revenue guarantee figure was met. So for that element, costs = zero and revenue = £350,000. In future they will also get revenue from allowing the artists merchandising to be sold. They won’t be taking any risk on producing that or overstocking either.

2 Mar 22
Highlights
· Sale of merchandising at the KPOP.Flex concert and fan fest taking place in Frankfurt on 14 and 15th May 2022
· Minimum guarantee due to the Licensor from the Licencee
· Use of KPOP.FLEX and FLEXEY names and associated logos to develop, manufacture, advertise and sell certain approved goods granted by LVCG to Nylon Merchandising Limited
· 75% of Net profit from the sale of all merchandise at the festival, online and off-site is payable to LVCG with 25% payable to the Licensee
· Intellectual property (IP) for the merchandise remains with LVCG 

Still waiting to find out, but there is already information in various RNS on that already if you take account of the various revenue streams and what’s been said. (I’ve not done any conversion between € $ or £.). But I personally doubt if it will be broken down into these streams as doing so is likely to be commercially confidential.

Ticket revenue. 65000 tickets at an average of €86. Gives €5.6 million. You have to take off the financing costs which we know is $1.75m for day 1, but we don’t know what the costs were for day 2, but likely to be less as we were told the breakeven for day 2 was lower. We know that Frankfurt 23 will be less contribution from KPE to the costs.

Merchandising. We know that the minimum revenue guarantee to KPE (£350,000?) was met, but difficult to work out what total revenue was based upon. The various merchandise sellers will have taken their cut including profit for them too, so likely a decent revenue figure. Not bad from a standing start, creating the brand, and only organic advertising. Likely to be more at future events, especially if they start selling the band merchandising.

Streaming. Broke even. With the plans for more notice on the streaming, to do their own filming, do that closer to the event, include special behind the scenes footage/events and to include more of each artist as well as the potential for live streaming, this could be a very significant revenue stream in the future.

Sponsorship. None so far as the festival was inside timings for annual budgets as well as advertisers would have been taking a punt on how successful it would be. We know they are in discussion with multiple brands for next years concerts so this could be another significant revenue stream.

Then there is the €200,000 management fee and anything they got from running the Korea fest over the weekend.

So we already know that they are tuning up the format to be more profitable for LVCG in the future. Will be interesting to understand what they are negotiating for future events too, perhaps an all up deal with SBS for the series of festivals being planned?

Sentiment on AIM can change faster than tintin flip flops his position. And that’s fast ;-)

For people that are not interested, the trolls sure do an awful lot of gobbling off. Indeed they comment incessantly. Latest is acknowledging that KPOP is a worldwide phenomenon and an area that is due to grow globally, but that a $20 billion company like Live Nation dosen’t need LVCG to help them exploit the market. Yet that’s exactly what is happening. The $20 billion pound company is in a deal with LVCG to exploit the KPOP festivals being established. And anyone looking at the history of Live Nation will see that they grow by aquisition. Plenty of examples out there. Chimes with comments that LVCG are building a highly attractive asset to be sold.

The question is what are LVCG contributing? Well for starters they designed the concept of the KPOP fest, bringing KPOP acts that ordinarily themselves would not gain enough traction to fill a big stadium, into a format that can fill a stadium. LVCG have also put together the consortium that provides the stadium, the merchandising, the filming and selling the tickets (and yes that includes the $20 billion Live Nation) and it was LVCG that put the KPOP bands and the consortium together to bring the kpopfest into being. And it was LVCG that negotiated with SBS to provide the supply of KPOP acts for the festival, which includes a mix of big names and start up KPOP acts. So LVCG own the rights to the format, the sponsorship, the marketing etc for the future and are now engaged in tuning this model up (so LVCG make more profit) and rolling this out worldwide (2 concerts for 2022 secured already).

Meanwhile exactly the same trolls have gone from saying that KPOP is a niche thing where’s there no money to be made, that LVCG will never do a KPOP festival, to saying that it will be cancelled, to saying that even if it goes ahead they will only get an handful of tickets sold and then saying that they won’t repeat the success…. Anyone might think they had an agenda, but the reality is that the first kpopfest has proved that there is a market for this and that its profitable.

https://seoulspace.com/top-20-kpop-entertainment-companies-best-of-2022/
K-pop is still bigger than ever. It is growing every day, not just in Asia but all around the world. Furthermore, Kpop Entertainment companies are reporting all-time high profits, and K-pop groups are getting global exposure. Therefore, Korea’s main asset still continues to be K-Pop as Kpop Entertainment companies continue to find new talent. Now, most of these KPop companies/agencies are looking to expand outside of Korea and into other Asian markets as well as North America and Europe.

https://www.telegraph.co.uk/business/2022/08/08/formula-one-stuck-slow-lane-electric-rival-races-ahead/

Interesting article by the Technical Manager of Jaguar racing about the growth of formula e. With a 5 + 5 year contract to run the race in Cape Town and an expanding global audience, along with the sustainability credentials, this is only going to get bigger.

https://www.fastcompany.com/90770341/how-formula-e-the-all-electric-alternative-to-formula-1-is-driving-ev-innovation

Miton were content to increase their holdings in the placing. Why would they do that if they weren’t convinced about significant developments to come?

“The city of Cape Town will be the very first Southern African city to host the Formula E race. Formula E is a single-seater motorsport championship for electric cars that’s held across 12 destinations in five continents.

The first race is set to take place in February 2023 with a predicted 33 000 spectator base (based on previous races in similar cities), and for the Cape Town e-Prix, 10 000 of these spectators are projected to be international arrivals, which is ideal news for the tourism industry. Another 10 000 are forecast to be domestic spectators from outside Cape Town. Tourism Update reports that all this will bring in an estimated R2 billion and more than R500 million in media exposure for the city.

Amanda Kotze-Nhlapo, who is Chief Convention Bureau Officer at South African Tourism, said that the formal strategic partnership with e-Movement will provide the industry with the opportunity to showcase to the world South Africa’s readiness to host global events and welcome travellers to the destination.

Kotze-Nhlapo added that Formula E had become a fast-growing motorsport event in terms of spectator audience and global TV audience being broadcast in more than 190 territories. The race is also televised globally to an estimated audience of 411 million viewers.”

https://ilovesouthafrica.com/news/formula-e-coming-to-cape-town-next-year-when/

https://www.tourismupdate.co.za/article/formula-e-generate-r2bn-revenue-cpt

Following confirmation that Cape Town will host the ABB FIA Formula E World Championship motorsport event in 2023, South African Tourism has entered into a formal strategic partnership with the race, e-Movement for the next three years.

“This partnership will provide us the opportunity to showcase to the world South Africa’s readiness to host global events and welcome travellers to our destination,” said Chief Convention Bureau Officer at South African Tourism, Amanda Kotze-Nhlapo.

She said, through the partnership with Formula E – an electric motorsport event held across 12 destinations in five continents – Cape Town would be the first Southern African city to host a Formula E race for the next five years.

The first race will take place in February 2023 as part of Season 9. The Formula E event has a projected 33 000 spectator base (based on previous races in similar sized cities), and for the Cape Town e-Prix, 10 000 are projected to be international spectators spending more than seven nights in South Africa.

Another 10 000 are projected to be domestic spectators from outside Cape Town. This will bring in an estimated R2 billion (€117m) in economic impact and more than R500 million (€29.4m) in media exposure.

Kotze-Nhlapo said Formula E had become a fast-growing motorsport event in terms of spectator audience and global TV audience being broadcast in more than 190 territories. The race is also televised globally to an estimated audience of 411 million viewers.

“Through this partnership, the Season 8 race, London e-Prix, took place this past weekend and SA Tourism had an activation stand to promote the Cape Town e-Prix. The event was broadcast on SABC and SuperSport over the weekend and the 60 seconds version of the Live Again! TVC was flighted during the race,” she said.

One of Formula E's fastest circuits yet
The track is predicted to be one of the fastest in the series and Cape Town will join the likes of Monaco, Mexico City, Berlin, London and New York as city centres hosting an ABB FIA Formula E World Championship race.

The Cape Town e-Prix will start at the Green Point precinct’s Vlei Road, where the field of world-class drivers will race with Signal Hill as a backdrop. Then it’s a left turn into Helen Suzman Boulevard, and another left into Granger Bay Boulevard, presenting the racers with two sharp chicanes. Drivers will then head along the oceanfront on Mouille Point’s Beach Road, before taking a sharp left turn into Fritz Sonnenberg Road and a final right to reach the finish line.

Alberto Longo, Co-founder and Chief Championship Officer, Formula E, said: “We’ve had a very positive response within our ecosystem of teams, drivers and sponsors about coming to Cape Town, so we are delighted that the City is joining our Season 9 calendar.”

Some bricklive pop up events in Battersea ahead of bricklive in the park

https://batterseapowerstation.co.uk/whats-on/detail/bricklive

Bruce Parker-Forsyth MD of LCSE in interview with SABC about the preparations for the Cape Town Formula E and efest events. Been planning for over 2 years, so anyone saying it will all be last minute dot com is clearly just full of something. A lot of preparation going in for this event that the trolls are claiming has been “cancelled”. Big step up in publicity coming from the sounds of it. Remember that LCSE receive a £350,000 management retainer in the lead up to the event and that this is a 5 year contract with a 5 year option.

https://www.youtube.com/watch?v=6WzMMmQlCNc

KNIGEL the trades at 14:32 of 145k and 100k look like buys. Those trades went through before the MMs dropped the ask and narrowed the spread. Bid stayed at 3.5. Drop was aligning the live ask with what the MMs were advertising.

Miton added 5,500,000 and back to 10%.

Go back to Jan 21 and you will find a Heads of Terms with Messe Frankfurt for the E-fest in Cape Town. LVCG already have a relationship with them on the bricklive side, so are used to working with them.

Worth noting that Messe Frankfurt are organising Boatica 22 in Cape Town in October, which shows that they have a good presence in the region. Its also a reminder that LIVE Nation isn’t the only potential suitor for the eventual sale of the business.

https://boatica.howler.co.za/events/boatica-2022-b92d