“Next year’s festival could only be held with significant cost cuts and under current conditions, we are unable to carry it out at the standard to which people have been accustomed”, CEO Tamás Kádár said in a statement.

Mayor Ciprián Farkas of Sopron, where the event is held, said he understands the decision, but hopes that the Sopron could host the festival again soon.

Of Hungary’s three major music festivals, only Sziget closed with a profit this year, while VOLT and Balaton Sound were slightly below expectations, Kádár said in August.

Festival directors Zoltán Fülöp and Norbert Lobenwein announced in June that they were stepping back from operational duties and handing over management of the festival portfolio to the majority owner, US investment fund Providence, which acquired a 70% stake in the company in 2017.