As an integrated Group operating in all event professions, GL events works in three major segments:
event organisation, event venue management and services for fairs, congresses and events.
© Odile Decq architect / Felice Varini – Altitude 150
New developments in Shanghai and Brazil
|Net sales (€ millions)||2006||2005||Change|
|Second quarter||125,5||119,5||+5,0 %|
GL events had sales of €251.9 million in the 2006 first half, up 14.5% over the first six months of 2005. Second quarter were buoyant with GL events' international expansion marked by three major successes including the addition of a new venue in Shanghai (Pudong exhibition centre) to the portfolio of venues under management. These successes were accompanied by 5% growth in sales.
VENUE AND EVENT MANAGEMENT: +35,7%
€112.1 million or 44.5% of total sales (versus 37.5% in the 2005 first half)
+35,7% (+3.7% at comparable structure and exchange rates)
Sales benefited from the addition of the Padua exhibition park and the event organization management companies, Performance and Kobé.
Noteworthy in the second quarter included the:
- Hosting of the ASME Turbo Expo and the 2006 World Congress on GI Cancer in Barcelona, the Industria, Securex and Chemexpo trade fairs in Budapest, and the Convention of French Mutual Insurance Companies in Lyon;
- And the organization of the 112th Congress of the French Society of Ophthalmology in Paris, the inauguration of the Caisse Epargne head office in Paris and the 29th French National Convention of Occupational Medicine and Health in Lyon.
GLOBAL SERVICES: SOLID SALES VOLUME IN THE FIRST HALF
€139.8 million or 55.5% of total sales (versus 62.5% in the 2005 first half)
+1.7% (+2.4% at comparable structure and exchange rates)
Global Services generated solid sales volume in the first half of €139.8 million. In addition to organic growth of 2.4%, this division enabled GL events to invoice additional services in part included under Venue and Event Management sales.
The division contributed to major events such as the Cannes film Festival, the 50th F1 Grand Prix of Barcelona (contract renewed until 2011), the Preview trade show in New York, the World Football Cup Football and Eurosatory in Paris.
In the second half the Group will participate in many events including: the International Exhibition for Automotive Industry in Budapest, Biennale de la Danse, World Congress of Emulsions 2006, the Convention of the French Society of Internal Medicine (SNFMI) in Lyon, the Asian Games in Doha Qatar, etc.
In light of the growth of the first half and the quality of orders for the period, the Group maintains its guidance for 2006 sales growth of more than 12%.
In addition, the contribution of the Venue and Event management to Group sales is increasing as planned which should improve GL events' margins.
ACQUISITION OF FAGGA, A BRAZILIAN EVENT ORGANIZATION SPECIALIST
GL events is in the process of finalizing the acquisition of Fagga Eventos, a leading South America and event organization specialist (conventions, exhibitions, corporate events). Based in Rio de Janeiro, Sao Paulo and Salvador de Bahia, Fagga Eventos organizes major events Brazil, and in particular proprietary and co-proprietary trade shows, such as Expo Construçao (Building & Construction), Sustentavel (Sustainable Development), Expo Logitica (Transport & Logistics) or the highly prestigious International Book Fair that attracts more than 800,000 visitors.
In line with GL events' development strategy, this acquisition offers a perfect fit with the concession recently awarded for the Riocentro exhibition centre that is currently not an owner or organizer of events. With sales of €9 million (BRL 24 million) and a net margin of more than 13%, Fagga Eventos is a particularly well-run operation that through GL events will gain access to additional resources to pursue its growth. The two majority shareholders and managers of the company are committed, in partnership with GL events, to pursue together growth opportunities of the Group in this country.
PUDONG EXPO - SHANGHAI EXHIBITION AND CONVENTION CENTRE
GL events was selected by the city of Shanghai to manage and promote the exhibition and event venue located in the new Pudong district, the city's and country's financial centre. Launched in 2005, Pudong Expo has a total available exhibition and event space of 14.450 m², including 2 large halls of 5.000m². This contract should generate sales of approximately €12 million over the five-year concession period.
GL events' presence in Shanghai, one of the world's most financially dynamic cities, perfectly illustrates the Group's strategy of focussing on strong growth and highly attractive destinations.
ASIAN GAMES 2006 OF DOHA
GL events has just been awarded a contract for the installation of the Sponsors Village of the Asian Games, providing a showcase for the top athletes of the Asian continent to be held between the 1st and the 15th of December 2006 in Doha Qatar. This contract should generate minimum sales of $4 million.
With Fagga Eventos, Rio Centro, the Pan American Games, the ICC Cricket World Cup, the Asian Games of Doha and Shanghai, GL events again confirms the effectiveness of its teams and business model based on a comprehensive offering of integrated services covering the complete range of event industry needs.
2006 first-half earnings: 12 September 2006 (after the close of trading)
GL events, bringing people together
Managing Director Corporate Finances and Administration : Erick ROSTAGNAT
Telephone : + 33 4 72 31 54 20
Fax : + 33 4 26 20 42 00
Email : email@example.com
Code ISIN : FR0000066672
Code Bloomberg : GLO FP
Code Reuter : GLTN.PA
Code FTSE : 581
Erick Rostagnat - Managing Director Corporate Finances and Administration:
Tel : +33(0)4 72 31 54 20