Shares of CTS (NYSE:CTS) surged by 4.5% today after the company released its preliminary fourth-quarter results, which exceeded analysts' expectations. The robust performance was attributed to significant growth in both its Ticketing and Live Entertainment segments.
The company announced that its 2024 sales reached approximately €2.8 billion, marking a 19% increase year-over-year (YoY) and surpassing the FactSet consensus by roughly 5%. Adjusted EBITDA for the year also saw a healthy uptick, coming in at €542 million, a 22% YoY rise and about 4% higher than the consensus estimate of €519 million.
In the Ticketing segment, CTS reported sales of close to €880 million for 2024, a 23% increase from the €717 million recorded in 2023. This segment's adjusted EBITDA was €417 million, reflecting a 21% growth with an impressive EBITDA margin of approximately 47%.
The Live Entertainment segment also posted strong results with an 18% YoY sales increase to €2.0 billion, up from €1.7 billion the previous year. This segment's adjusted EBITDA grew by 24% to €126 million in 2024, compared to €101 million in 2023.
Investors reacted positively to the news, driving the stock upward in today's trading session. The full audited annual report for 2024 is scheduled to be published on March 27, 2024, which may provide further insights into the company's financial health and future outlook.
Today's stock movement reflects the market's favorable response to CTS's ability to outperform expectations and deliver substantial growth amidst a challenging economic environment. With both core segments of the business demonstrating strong performance, investors seem to be optimistic about the company's trajectory heading into the next fiscal year.
