Despite Ed Sheeran there were fewer visitors at the Sziget Festival in 2019 than in 2018

However, the festival did not end badly: for the second time in its history, there were more than half a million people on the Hajgyri Island (the venue of Sziget Festival). However last year's record attendance failed to be reached at the event. According to the company communication a total of 530 thousand people visited the festival this year during the 7 days of the festival. This is 35000 less than in 2018, when there were 565000 visitors. In spite of that, the largest Hungarian festival had its second most popular year this year (2019).

On the first day of this year's program, Ed Sheeran was the main attraction: 60000 people were curious about that concert alone. At the end of the concert, the crowd could just very slowly leave the festival area, the only narrow K-bridge leading out of the island was hard to bear the load. For this reason, the need to renovate and strengthen the bridge was discussed.

The majority stake in the organizing company (Sziget Kft.) was sold by the founders in 2017: 70 percent of the stake was bought by the American investment fund called Providence. The founders Zoltn Flp, Norbert Lobenwein, Kroly Gerendai and Gbor Takcs kept 30 percent to retain their management rights.

At the time of the sale, based on the 2015 business data, the value of Sziget Kft. was estimated at 12 billion Hungarian forints. Later it was adjusted upwards in the light of the 2016 business reports: the 70% share of Providence could reach 13,2 billion Hungarian Forints (HUF). The real price was not disclosed by the parties, but this year the G7 revealed that the American investment fund likely paid even more, around 15 billion Hungarian Forints (HUF).

(Source: forbes.hu)

More information about Sziget Festival:

In 2018, ticket prices were the following: the price of a single day ticket was 23900 HUF (altogether 480000 tickets), 3-day tickets were 59900 HUF (altogether 40000 tickets), while

the weekly pass was 99000 HUF (altogether 15000 passes). Early bird weekly passes could be purchased in advance for 89900 HUF (altogether 30000 early bird weekly passes).

In 2019, the price of a single day ticket was 26900 HUF (altogether 400000 tickets), but on 2 special days 28900 HUF (altogether 90000 tickets) must be paid. The weekly pass costs 109900 HUF (altogether 40000 weekly passes).

The indirect cost of the festival was 11,25 billion HUF in 2018 and 12,2 billion HUF in 2019. Direct costs per visitors were 8500 HUF in 2018 and 9000 HUF in 2019. In 2019, the organizers wanted to attract many visitors to make a profit of 1,5 billion HUF.

Task: Analyze and evaluate the performance of the Sziget Festival in 2018 and 2019 using different profitability indicators!