Rekom sales skyrocket by 91.2%

The largest nightlife company in Northern Europe, Rekom, saw revenue soar by 91.2% last year, led by the UK division.

Copenhagen-headquartered Rekom Group recorded revenue of DKK 2.2 billion (US$322 million) in 2022.

The nightclub operator said the results are in line with expectations and shows a ‘robust business model even at a time where the world is marked by inflation and economic uncertainty’.

Rekom said 2022 began with the on-trade shut across the Nordic region. Pandemic restrictions were lifted in Denmark at the end of January, while in Finland, nightclubs reopened in March.

Rekom CEO Adam Falbert said: “When we – in the lead up to Christmas 2021 – were hit by yet another round of Covid-19 lockdown in Denmark, Norway and Finland, it was a tough blow to both us and our guests. We had just got back to business in the autumn of 2021.

“But once again, our employees showed what they are made of. So, when we reopened last year in February and March, they were ready – and without them, we simply would not have been able to deliver at the level we did and continue to.”

UK drives sales

The company’s Rekom UK arm accounted for 38% of the group’s total revenue in 2022, at £97.8m (US$120.7m). The division’s number of sites increased from 42 to 52 last year.

Rekom Group acquired Deltic, the UK’s largest nightclub group, in December 2020. Following the deal, Deltic became known as Rekom UK.

Rekom attributed its ‘strong’ growth in the UK to the opening of new Scandinavian-themed venues, Heidi’s Bar and Proud Mary, in Cardiff and Birmingham, respectively.

Denmark contributed a revenue of DKK 751m (US$109.7m), Norway’s revenue reached DKK 474m (US$69.2m) and Finland reported DKK 146m (US$21.3m) in revenue.

Peter Marks, chairman of Rekom UK, said: “I’m delighted to report positive results from Rekom Group and am pleased to highlight that our UK division is currently the group’s strongest-performing division.

“We are mindful however that this year’s performance lays in part due to an initial post-lockdown surge, after which we saw guest numbers normalise in recent months.

“Saying that, although we are not immune to the pressures the sector has faced and continues to face, we are confident that with a relevant and engaging business offering, we can continue to evolve and develop both our brand and estate throughout 2023.”

Two-thirds of the company’s revenue comes from outside of Denmark. Rekom said it had shifted from becoming a Danish nightlife operator to Northern Europe’s largest nightlife group in just a few years. The UK is now Rekom’s largest market.

Falbert added: “We are very satisfied with the result for 2022 – especially considering the challenges that 2022 has also offered. In 2019 – before Covid-19 – we had a revenue of just below DKK 800m [US$116m], and the vast majority was generated in Denmark.

“Today we are an international corporation with more than 6,850 employees and a revenue of more than two billion Danish kroner, primarily earned outside of Denmark. And we still have the ambition, desire, and ability to become even bigger.”

2023 outlook

Rekom said it expects 2023 to be the year where it becomes an international nightlife operator.

The company has a positive outlook for the year ahead and will ‘continue its growth both organically and through acquisitions in existing markets over the coming years’.

However, growth in 2023 is expected to be moderate due to geopolitical and macroeconomic uncertainties.

Therefore, Rekom expects revenue of between DKK 2.3bn (US$336m) and DKK 2.5bn (US$365m) in 2023, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) to reach between DKK 465m (US$67.9m) and DKK 515m (US$75m).

A third of nightclubs in the UK shut for good in 2022, according to new figures.