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
Solid prospects for development
|Consolidated revenue (€ millions)||2008||2009||2010||Change (%) 10/09|
GL events had consolidated revenue in the 2010 first quarter of €190.9, an increase of 1.3% on the excellent first quarter of the prior year.
Despite an unfavourable base effect and market conditions that remained challenging, the Group registered good performances, reflecting once again considerable team efforts and confirming the relevance of the Group's strategy of providing an integrated offering worldwide across the three event industry activities: event organisation, venue management and event services.
Strong growth in strategic regions
In an event industry market that has still not yet shown real indications of a recovery, the Group continued to expand in the segment for large events and accelerated its international development.
In this context, the Group registered strong growth from international markets in the first quarter (up 54% from last year's first quarter) that account for 39% of consolidated revenue.
In Europe, while activities in the UK, Hungary and Italy continued to be impacted by difficult market conditions, the Group benefited from good performances by venue management in Belgium and the Netherlands. Spain in the first quarter offered clear signs of an upturn.
Excellent commercial performances were also achieved at strategic destinations and markets with high growth potential such as Brazil, a country where the Group continues to develop, and South Africa.
Services: a presence at major international events
Services for events had revenue of €79.5 million, advancing 13.0% (8.5% like-for-like*).
This remarkable performance was achieved notably in South Africa where the Group registered progress with the contract for the FIFA 2010 World Cup South AfricaTM and the continued integration of it subsidiary Oasys Innovation.
The Group also strengthened positions in its traditional markets, equipping and providing installations for several events including the RBS 6 Nations rugby championship, Open 13 tennis tournament in Marseille, etc.
For the 2010 first quarter, this division accounted for 41.7% of consolidated revenue.
Venue management and events: a promising portfolio of sites and events
Venue management had revenue of €56.5 million, up 23.6% (with organic growth of 21.8%). The Group benefited from the opening of the Brussels Convention Centre that has delivered excellent performances since its inauguration in September 2009, the integration of Palais de la Mutualité in Paris, the Amiens Mégacité Exhibition Centre and The World Forum Convention Centre of The Hague.
Event organisation had revenue of €54.9 million, down 24.3% (-31.5% like-for-like), though stable after adjusting for the effects of biennial events and notably the International Hotel, Catering and Food Trade Exhibition (SIRHA), the flagship industry event held in Lyon every odd year.
Overall, trade fairs in the first quarter registered satisfactory levels for reservations and space rental though with variations according to the sectors concerned.
Noteworthy accomplishments for events and projects in the first quarter for venue management and events included the organisation of the Beyonce concert at the HSBC Arena in Rio de Janeiro, Foodapest in Hungary (an international B2B food and drink exhibition), the Lyon International Fair and the fashion industry trade fairs Prêt-à-porter Paris and Première Vision.
Venue Management and Events had sales of €111.4 million in the first quarter, down 5.7% (12% like-for-like) and accounted for 58.3% of consolidated revenue. This division accounts for 58.3% of total consolidated sales.
Prospects for sustained growth in 2010
The Group will once again be a contributor in the second quarter to the FIFA 2010 World Cup South AfricaTM, the 2010 Shanghai World Expo and the 2010 Commonwealth Games of Delhi (with a €7 million contract already signed plus others currently under negotiation) as well as prestigious events in France such as the organisation and provision of installations for the Saut Hermès equestrian show at the Grand Palais in Paris.
In 2010, the Group expects to accelerate its development in Venue Management and Events with the inauguration of the Hôtel Salomon de Rothschild, positive growth trends for the Brussels Convention Centre and full-year contributions from The World Forum Congress Centre of The Hague, the Amiens Mégacité Exhibition and Convention Centre and the Palais de la Mutualité in Paris.
The outlook for revenue in consequence remains positive with momentum expected to accelerate over the coming quarters, particularly in international markets. On this basis, the Group anticipates sustained revenue growth in 2010.
Combined General Meeting, 30 April 2010, 9.30 a.m. - Lyon Convention Centre
2010 half-year results, Thursday, 29 July 2010 (after the close of trading)
* Comparable structure and exchange rates
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