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 continuing growth, on track with target:
+8.4% (+6.8% Like-for-Like)
Marginal decline (-2.9%) in 3rd quarter linked to calendar of events
At 30 September 2012, the Group had revenue of €596.4 million (up 8.4% with 6.8% like-for-like (1) growth) with international markets accounting for 53%. The marginal decline in the third quarter mainly reflects the biennial nature of the international book fair of Rio de Janeiro (Bienal del Libro – €13 million in sales), that like Sirha, is organised in odd years.
In the third quarter, GL events:
- Staged major conferences and forums, particularly in the medical sector (Forum for Neuroscience and the Ophthalmology Congress in Barcelona, the Congress of Neurosurgery and the International Congress on Cell Biology in Rio de Janeiro;
- Organised or staged trade shows: Première Vision in Paris, Moscow and New York, Tradexpo, Rio Oil & Gas, Interseg in Sao Paolo, the new edition of the CFIA food industry packaging and technologies trade fair in Casablanca (Morocco), the Omnivore World Tour in New York, Montreal, Sao Paulo;
- Provided event overlay solutions for the British Grand Prix Formula 1 World Championship of Silverstone in the UK, the EXPOCRUZ International Fair of Santa Cruz in Bolivia, and several music festivals in the UK and Brazil.
The Group also pursued its development by leveraging:
- Its European leadership, to maintain a good volume of recurrent business;
- Its positions in the most attractive business tourism destinations such as Brazil, Turkey, Africa, the Middle East and China;
- A full line-up for the world's largest global events: RIO +20 summit, the African Cup of Nations, UEFA Euro 2012 Football Cup and the London Olympic Games.
|CONSOLIDATED REVENUE (€ millions)||2010||2011||2012||Change (reported basis) %||Change (like-for-like1) %|
|TOTAL NINE MONTHS||507.5||550.0||596.4||+8.4%||+6.8%|
(1) Organic growth defined as at constant structure and exchange rates
In line with the Group's strategic ambitions, particularly in Brazil, Turkey and Africa, International Markets delivered robust growth of 44% with revenue exceeding €120 million.
Revenue in Europe, grew 2% with strong momentum in the United Kingdom and Spain, a steady performance from Italy and a €4 million drop in sales from operations in Hungary (-33%). Trends are more positive for these latter two countries with events programmed for 2013, though the Group remains cautious and has adopted measures for reducing overhead and direct costs to lower the breakeven point for the operating entities.
GL events Live had nine-month revenue of €320 million (€87.2 million in the 3rd quarter), up 13.5% like-for-like, driven notably by event overlay and facilities services for equipping major sports events such as the London Olympic Games. The acquisition of Serenas, Turkey's leading PCO, also contributed to growth that reached a total of 19.9%.
The 17.4% like-for-like drop in revenue for GL events Exhibitions, (following an increase of 72.2% between 2010 and 2011) reflects mainly the biennial nature of major trade fairs, and notably Sirha and the Rio de Janeiro International Book Fair. Trends were positive for the performance of other trade fairs in the B-to-B segment while momentum for the B-to-C segment was less buoyant. At 30 September, GL events Exhibitions had revenue year-to-date of €107 million (€30.6 million in the 3rd quarter).
GL events Venues had revenue of €169.4 million (€43.6 million in the 3rd quarter, up 15.4% like-for-like, with highlights of the period including the reopening of the Palais de la Mutualité, the acquisition of the management concession for the Ankara's Convention Centre, and the good performance of the Barcelona site that remains highly attractive for the Anglo-Saxon corporate segment.
|CONSOLIDATED REVENUE(€ millions)||9 months|
|Change (reported basis) 9 months 12/11||Change (like-for-like) 9 months 12/11|
|GL events Live||291.1||266.8||320.0||+19.9%||+13.5%|
|GL events Exhibitions||78.0||134.2||107.0||-20.3%||-17.4%|
|GL events Venues||138.5||149.0||169.4||+13.7%||+15.4%|
At the end of the third quarter, the seasonality of large trade fairs and events, the terms of the payment agreement for the London Olympic Games contracts (payables and receivables) and capital expenditures in Rio de Janeiro for the Riocentro and the hotel development projects, significantly impacted the Group's net financial debt that reached €317 million.
In the fourth quarter, the contract for the Olympic Games was settled in the beginning of October and the high level of commercial activity contributing to a net source of funds (negative WCR) will positively impact the financial structure. On that basis, a return to a normalised level at 31 December 2012 may be expected, before factoring in the impact of the proposed capital increase.
In the fourth quarter, GL events Live will be present in Dubai as a contributor to the organisation of the International Jewellery Show and the World Parachuting Championships and in Lyon within the framework of the city's new edition of the Festival of Lights.
GL events Exhibitions will organize the Shanghai edition of the Première Vision fabrics show, the football sector event, Footecon in Rio de Janeiro, and the Bologna Motor Show, the new edition of Salon Piscine, City Events in Lausanne and the editions of the Omnivore World Tour in San Francisco, Istanbul and Sydney.
GL events Venues will stage, among others, the Brazil Trade Summit in Rio de Janeiro, the Pollutec environmental technology trade show in Lyon, the Móvil Forum conference for corporate innovation and mobility technologies in Barcelona, along with a number of concerts at the end of the year, in particular in Rio de Janeiro, along the lines of the performance of the top DJ, David Guetta.
The Group's long-term commitment to and leadership in equestrian events was also reaffirmed by the organisation, staging and equipping of the Equita Lyon at Eurexpo whose teams have furthermore contributed to its selection for the World Cup finals in the first half of 2014.
These good commercial performances to date combined with current orders will contribute to the Group's ability to achieve continuing balanced and profitable growth in 2012. On that basis, GL events confirms its targets for growth in annual revenue of more than 5%.
2012 annual revenue: 29 January 2013 (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 : firstname.lastname@example.org
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