| €mn | H1 2005
IFRS | H1 2004
IFRS | Change | Reported H1
2004 |
| Net sales |
220,1 |
181,7 |
+21,1% |
181,7 |
| EBIT |
17,2 |
12,7 |
+34,8% |
14,4 |
| As % of sales |
7,80% |
7,01% |
- |
7,95% |
| Net financial expense |
(0,5) |
(0,6) |
- |
(0,9) |
| Extraordinary items |
- |
- |
- |
(0,7) |
| Pre-tax profit |
16,7 |
12,1 |
+36,8% |
12,8 |
| Tax |
(5,9) |
(4,0) |
- |
(4,2) |
| Net income of fully consolidated companies |
10,7 |
8,2 |
+31,4% |
8,6 |
| Amortization of goodwill |
- |
- |
- |
(0,9) |
| Minority interests |
(1,0) |
(0,3) |
- |
(0,4) |
| Net income |
9,7 |
7,8 |
+23,8% |
7,3 |
| As % of sales |
4,41% |
4,29% |
- |
4,01% |
A first half marked by strong sales and earnings
In the 2005 first half, GL events achieved further gains in sales and earnings.
Group net sales increased 21.1% to €220.1 million.
IFRS EBIT was €17.2 million, surging 34.8% on the 2004 first half restated according to IFRS. This performance was driven notably by gains of the more profitable Venue and Event Management business whose share of total sales in the 2005 first half increased to 37.5% versus 26% the same period last year.
Global Services performed well in the first six months. Despite the absence of major sports events in 2005 (versus the 2004 first half with the Athens Olympic Games which generated €15 million), the Group confirmed the pertinence of its business model as a partner for major events. IFRS EBIT was €4.1 million versus €6.6 million in 2004 (IFRS). This trend, reflects adverse seasonal effect on the first half and the charge linked to a provision for litigation entered in the subsidiary BS Vision.
Venue and Event management benefited from the strong contribution from Market Place, the consolidation of Hungexpo and Chorus and the now fully operational Barcelona international convention center (CCIB). IFRS EBIT of Venue and Event Management totalled €13.1 million versus €6.1 million in the 2004 first half (IFRS).
Effective management of Group financial charges contributed to a pre-tax profit of €16.7 million, up 36.8%. After tax and minority interests (notably of Hungexpo), Group net income increased 23.8% to €9.7 million.
A growth business that will remain the focus of GL events investment
Growth prospects for event communications are particularly strong in the medium-term and GL events' intends to take advantage of this trend. To this purpose, the Group will pursue investments through targeted acquisitions to increase its network of venues and strengthen its know-how and geographical coverage in this sector.
As a global event industry provider, it is already able to propose a comprehensive range of solutions. This is a competitive market advantage and a source of value for customers.
2005 outlook
For the full year, the Group confirms guidance for sales of more than €410 million with Venue and Event Management expected to account for one third of Group sales. The seasonal effect is expected to have a positive impact on Global Services in the second half. GL events' goal is to increase the contribution of this business to earnings in relation to the prior period.
Olivier Ginon, Chairman remarked "These excellent first half performances provide further confirmation of GL events' ability to maintain profitable growth and the validity of our business model of pursuing upstream integration to develop organizational capabilities, engineering and hospitality services for all events to cover the complete event organisation process from the design of an event to its realization."
Upcoming events:
- 2005 third-quarter sales, 26 October 2005 (after trading hours),
- 2005 sales, 7 February 2006 (after trading hours),
- 2005 annual earnings, 14 March 2006 (after trading hours).
