The local market of festivals is expected to reach a value of over RON 600 million (EUR 126.3 million) against a string of big-name concerts and large events and over 1 million spectators this season, according to a study by consultancy company Frames, quoted by News.ro.

After such events as the Neversea and Electric Castle festivals, and the concerts of Ed Sheeran and Bon Jovi, which attracted a public of several hundreds of thousands, the season of festivals continues with festivals such as Untold, AfterHills, George Enescu and a Metallica concert.

Last year, the market reached RON 472.6 million (almost EUR 99.5 million), over RON 80 million (EUR 16.8 million) more than in 2017, according to the same source.

Compared to 2010, the evolution is even more significant.

“In 2010, the 366 companies in this sector, which includes the needed logistics, reported a turnover of RON 77.9 million (EUR 16.4 million). As the sector developed, the number of companies increased significantly, and reached 1,196 companies in 2017 and 1,238 companies in 2018,” the Frames analysis shows. The players on this market had a profit of RON 5.8 million (EUR 1.2 million) in 2010, RON 62.2 (EUR 13 million) million in 2017, and RON 87.9 million (EUR 18.5 million) in 2018.

The western Romania city of Cluj, where the Untold festival takes place, is considered a landmark in this sector. “Beyond increasing the tourism potential, Untold is a horizontal business, with tens if not hundreds of connected companies from which the entire city profits, from tourism operators to transporters, the food sector, and the authorities, from the taxes,” the Frames analysts say.

Untold SRL continues to be the main player on this market, with a turnover of RON 68.3 million (EUR 14.3 million) in 2018, up over RON 9 million (EUR 1.8 million) against 2017. The organizer of the Untold festival ended 2018 with a profit of RON 7 million (EUR 1.4 million), almost double compared to the previous year.

The second spot is taken by Constanţa-based company Global Records SRL, which had a turnover of RON 45.8 million (EUR 9.6 million) in 2018, up 13 million (EUR 2.7 million) against 2017, and a profit of RON 3.7 million (EUR 778,947). Another Cluj company, Festival Tickets Management SRL, ranks next, with a turnover of RON 26.9 million (EUR 5.6 million) and a profit of RON 2.3 million (EUR 484,210) in 2018.

At the same time, the turnover of the Neversea festival in Constanţa also increased to reach RON 25.2 million last year, up RON 7.4 million compared to 2017.

“The seaside festival has good chances of becoming an even greater business, a proof of it being the numerous public this summer. Its ideal location, the high number of tourists at the seaside, and the easy access, from the highway from Bucharest, will determine a significant evolution in the future, possibly above the Untold business, which has to deal with infrastructure problems (highways, accommodation places),” according to the Frames analysis.

Other top entertainment companies on the local market are Five'S International SRL, Sublime Events SRL, Livada Advertising SRL, OMP Events SRL and Afterhills SRL, the organizer of the festival of the same name in Iaşi, in northeastern Romania.

The Frames study also showed that the average turnover at industry level increased from RON 225,268 (EUR 47,424) in 2010 to RON 381,633 (EUR 80,343) in 2018, while net losses decreased from RON 22,883 (EUR 4,817) in 2017 to RON 18,134 (EUR 3,817) in 2018.

In 2018, the 1,238 companies active on this market employed 924 people, up from the 885 employed in 2017.

“The low number of employees comes as many of these events rely on volunteers and on outsourcing some services to other companies,” the analysis showed.

The Romanian entertainment market has a significant growth potential, and could reach RON 1 billion (EUR 21 million) in 2021-2022.

According to the same analysis, as a calendar of festivals held locally was established, there is the opportunity to add new ones, especially during periods not yet covered, such as the month of September or the winter season.

“There is still room for festivals in Romania. In September, a month with summer weather, the Christmas and New Year’s Eve period and the spring holidays of March 1 and March 8 create the premises of a business association with significant sales potential,” according to the analysis.

The Frames study included the yearly, unadjusted data reported by the companies to the Finance Ministry.

(Photo: Pexels.com)

editor@romania-insider.com