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
A historic contract for 2010 FIFA World Cup South Africa TM
RESILIENT GROUP PERFORMANCE IN A CHALLENGING EVENT INDUSTRY MARKET
GL events had annual sales of €581.4 million for fiscal 2009, contracting 4% against the backdrop of a challenging event industry market that declined overall 10% to 20% for the full year. In this context, the impact of the particularly difficult economic climate in Spain and Italy represented revenue of €30 million or 5% of consolidated sales.
|Consolidated net sales (€ millions)||2009||2008|
This result reflects remarkable achievements by commercial and operational teams and confirms the pertinence of the Group's unique business model based on integration across all event activities, the acceleration of synergies and rapid international deployment.
Its expanding presence in markets with strong growth potential limited the impact of the slowdown in Europe in certain sectors. In this way, GL events delivered remarkable performances in South America and Africa, two strategic regions for 2009 and the years ahead.
EVENT SERVICES: RESISTS DOWNTURN, POSITIVE TRENDS AHEAD
Services had revenue of €256.4 million, declining 5.9% (-10.2% like-for-like*). This level reflected the successful efforts and commitment of the Group's commercial teams, particularly in international markets. As a result, margins for this division are now in back line with Group targets.
Major events in the 2009 fourth quarter
In the fourth quarter, Group highlights included the organisation of the Equita'Lyon horse show, the contribution of its different departments to the 1st Grand Lyon Film Festival Lumière 2009 with Clint Eastwood as guest of honour, the Tennis BNP Paribas Masters of Paris?Bercy, the Dubai World golf tournament championship, the Footecon International Football Forum in Rio de Janeiro and in December the provision of temporary installations for the Africa Cup of Nations in Angola. GL events also organised the Amway Japan Leadership Seminar held at the Paris Grand Palais in December.
A HISTORICAL CONTRACT FOR MORE THAN €40 MILLION FOR 2010 FIFA WORLD CUP SOUTH AFRICA TM
The Organising Committee of the 2010 FIFA World Cup South AfricaTM has awarded GL events-Oasys an historic contract for the provision of services to furnish installations for the ten sites that will host the matches of the World Football Cup.
Already a provider for the FIFA Confederations CupTM in June 2009 held in four South African cities and the Africa Cup of Nations in December in Angola, GL events had already been shortlisted in December as a "preferred bidder?.
This contract for an amount of more than €40 million represents among the largest ever awarded to a sole provider in this area. It also is the largest contract ever awarded to GL events to date. And with its partner, Oasys Innovation, GL events will also achieve additional revenue in South Africa of €20 million.
A contract further strengthening GL events' position with a promising pipeline of major events
This major contract highlights GL events' ability to contribute to the success of complex worldwide events covering multiple sites and fields of expertise: FIFA World Football Cups, World Rugby Cups, Grand Prix equestrian competitions, Formula 1 Grand Prix, Golf Tournaments, sailing, cycling, ski competitions..., ability and expertise of the Group recognised in 2009 by the top prize (Gold Award) granted by Sports Event Management in the Event Overlay & Facilities category for services provided for the FIFA Confederations Cup South Africa 2009TM.
These developments highlight the Group's strong position with a significant number of international events in the pipeline that include the Commonwealth Games (October 2010), the Asian Beach Games (December 2010) or the Test Events and the London Olympic Games (2011 and 2012) and with the Group's commercial teams already on the starting line.
In addition, by developing a new service offering, the Group will also actively participate in the Shanghai World Expo to ensure the management of pavilions for exhibiting countries such as Chile or Taiwan, with other contracts currently in the process of finalisation.
VENUE MANAGEMENT AND EVENTS: SOLID PERFORMANCES, DEVELOPMENT IN GROWTH SECTORS
Event Organisation had sales of €156 million, contracting 2.2% (-8.1% like-for-like).
Good performances in the tradeshow segment were in part offset by adverse market conditions in certain sectors, and notably the manufacturing and automobile industries. In this environment, despite a downturn in activity, the Bologna Motor Show held from 4 to 8 December 2009 was successful in maintaining its importance and attractiveness for exhibitors and visitors, consolidating its worldwide status over the long-term as a major automobile industry event.
Some of the Group's proprietary trade fairs positioned in sectors characterised by a greater resilience or positive growth trends such as the food industry or green technologies achieved revenue growth, highlighting the Group's ability to promote and successfully stage new events on the international scene.
The organisation of major events such as the Eiffage Group's national convention or the Opening Ceremony of the Francophone Games held in Lebanon contributed to maintaining revenue at satisfactory levels in 2009.
Venue Management, with the integration of new sites, Venue Management had annual revenue of €168.9 million, contracting 1.4% like-for-like. In 2009 The Group continued to expand its network of venues under management. Notable additions in the period included concession agreements for prestigious venues such as the Palais de la Mutualité in Paris or the World Forum Congress Centre of The Hague in the Netherlands.
Overall, revenue for Venue Management and Events in 2009 totalled €324.9 million, down 2.4% (-4.8% like-for-like). This division accounts for 56% of total consolidated sales.
In summary, 2010 is expected to provide the Group with opportunities to pursue the development of Venue Management and Events with the inauguration of the Hôtel Salomon de Rothschild and full-year contributions from management concessions recently awarded such as the World Forum Congress Centre of The Hague, the Amiens Mégacité Exhibition and Convention Centre, Palais de la Mutualité in Paris and the Brussels Convention Centre.
In addition, Services for events are expected to benefit from a favourable calendar offering significant commercial growth opportunities.
2009 annual results: Tuesday, 9 March (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