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
Growth momentum remains strong in fourth-quarter: +23.9%
The strong growth in the first nine months continued in the fourth quarter. Group revenue in the last quarter of 2010 reached a record €219.7 million, up 23.9% from one year earlier (+19.4% like-for-like*).
|Consolidated revenue (€ millions)||2009||2010||Change %|
Bolstered by this strong fourth-quarter, consolidated revenue in fiscal 2010 grew 25.1% (+16.2% like-for-like) to €727.2 million. France accounted for approximately 50% of Group revenue, Europe 25% and regions outside Europe 25%.
This record year was marked by GL events' presence at major worldwide sports events (2010 FIFA World Cup South AfricaTM, the Commonwealth Games, competitions of the Equestrian World Cup, major golf competitions), the organisation of high-level international events and the start of operations for new event venues in France (Palais de la Mutualité, Palais Brongniart, Hotel Salomon de Rothschild, the Amiens Mégacité Exhibition and Convention Centre) and Benelux (Brussels, The Hague).
Revenue from Services for the full year rose 34% (+24% like-for-like) to €343.4 million (47.2% of total consolidated sales).
For venue management and event organisation revenue grew 18% (+9.8% like-for-like) to €383.8 million (52.8% of total consolidated sales).
These good performances and market share gains highlight the strength of the Group's strategy based on international expansion, a quality portfolio of premium venues under management, integration and increasing synergies across all business lines.
MORE THAN 20% GROWTH IN EARNINGS BEFORE TAX (unaudited data)
Confident in its growth prospects, Group efforts and investments in 2010 focused both on human resources to recruit, train and deploy its teams, and on its portfolio of assets and equipment, as it prepares for major sports and political events in the line up for 2011-2012.
Profitability for venue management and event organisation nevertheless remained under pressure from the combined impact of capital expenditures relating to the opening of event venues (€2.5m) and difficulties strictly limited to operations in Hungary (loss of €3.2m), two factors that will disappear in 2011.
Furthermore, as previously announced, the transformation of the cost structure resulting from the disposal of real estate assets at 2009 year-end is expected to weigh on operating profit (€3m).
In light of all of the above, GL events expects growth in earnings before tax of more than 20%.
After record growth in 2010, trends anticipated for 2011 should enable GL events to achieve growth in sales of more than 5% to approximately €770 million, including contributions from acquisitions announced since December 2010.
Based on the business mix, the Group's objective is to achieve improvements in the margins of its different operations.
• Cautious optimism for economic recovery in Europe;
• A favourable agenda for events organised, staged or serviced by GL events;
- SIRHA (the International Hotel, Catering and Food Trade Exhibition) organised from 22 to 26 January, that experienced significant gains for all indicators (number of exhibitors and visitors, international attendance, media coverage);
- The 1st edition of the Doha Motorshow held from 26 to 29 January had more than 80,000 visitors;
- The AFC Asian Cup 2011 (January 2011 in Qatar) that once again highlighted the Group's expertise and commercial coverage in strong developing markets;
- The next G8 and G20 summits and the first political meetings relating to French presidential elections in 2012;
• Growing contributions from venues integrated in the network since last year, with further calls for tender to come for cities where the Group is not yet present;
• Continuing momentum by Group teams in pursuing commercial development in strong growth markets, and notably Brazil.
2010 annual results: 8 March 2011 (after the close of trading)
* Like-for-like: 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