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GL events — Earnings Release 2013
Jan 28, 2014
1368_iss_2014-01-28_ded734ba-f9f4-48f8-aba7-b270079294f2.pdf
Earnings Release
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Sales growth at constant exchange rates
Positive outlook for 2014 Equity interest acquired in Strasbourg Evènements
| Revenue (€m) | 2013 constant fx* |
2013 Reported basis |
2012 Reported basis |
|---|---|---|---|
| First quarter | 216.8 | 214.7 | 231.6 |
| Second quarter | 224.1 | 217.6 | 203.4 |
| Third quarter | 170.0 | 160.1 | 161.4 |
| Fourth quarter | 222.8 | 216.7 | 227.8 |
| Total FY | 833.7 | 809.1 | 824.2 |
*constant fx* = at constant exchange rates (calculated at 2012 exchange rates)
Continuing growth momentum excluding currency effect
Annual sales at constant exchange rates (calculated at 2012 exchange rates) came to €833.7 million, reflecting positive commercial momentum outpacing overall market trends.
Consolidated figures were significantly impacted by the depreciation of selected currencies relative to the euro, and in particular the Brazilian real, the Turkish pound and the South African rand, generating a net negative currency effect of approximately €25 million.
In line with the preceding financial communications announcement, GL events Group had consolidated sales of €809.1 million, compared to €824.2 million in 2012. This represents a decline of 1.8% on a reported basis and 1.2% like-for-like* .
Solid performances in France, strong growth in Brazil
Sales in France grew 1.1%, accounting for 49% of total revenue. In Europe, 2013 sales were impacted by an unfavourable comparison base from the 2012 London Olympic Games. In Italy, despite poor economic indicators for certain sectors which in particular led to the cancellation of the Motor Show of Bologna (annual estimated sales: €6 million), activity remained stable in relation to FY 2012, highlighting the solidity of the Group's local operations. In Turkey, sales rose 42% over one year (64% in local currency), with this operation now representing a base for promoting its notoriety across all of Eastern Europe.
Brazil remains a strong driver for Group sales in South America. Driven by the WYD Rio 2013, the Confederations Cup and the Brazilian acquisition of LPR (sales of €15 million), sales volume exceeded €100 million for the year, up 98% in local currency and 54% based on consolidated data. This result is fully in line with Group targets for this country and the business objectives announced for €500 million in cumulative sales for 2013-2016 (at 2012 exchange rates).
* like-for-like defined as at constant structure and exchange rates
By Business Unit
| Revenue (€m) | 2013 constant fx* |
2013 Reported basis |
2012 Reported basis |
|---|---|---|---|
| Live | 428.3 | 411.4 | 440.2 |
| Exhibitions | 164.8 | 161.5 | 136.0 |
| Venues | 240.6 | 236.2 | 248.0 |
| Group | 833.7 | 809.1 | 824.2 |
*constant fx* = at constant exchange rates (calculated at 2012 exchange rates)
While sales volume for GL events Live was significantly impacted by the unfavourable comparison base from the Olympic Games, the quality of services once again provided by the Group confirmed its position as a partner of choice for major global events (Confederations Cup, WYD Rio 2013, Sotchi test events).
GL events Exhibitions' performances were once again driven by the success of SIRHA and Première Vision's different international editions. In response to demand by local players in the world of fashion and textiles, Première Vision Istanbul will be launched in October 2014 within the framework of a new biannual B2B event destined for fashion industry professionals across the entire Eastern Europe and Middle East region.
GL events Venues will contribute €236.2 million to Group revenue. This business unit is expected to fully benefit from growing contributions in Paris from Maison de la Mutualité and Palais Brongniart.
Creation of "LIVE! By GL events"
Alice Evénements, Market Place and Package, GL events Group's event communications consulting agencies, joined forces to create a new agency combining their full range of expertise in France at international markets. This new entity, "LIVE! by GL events", with a staff of 100 that began operations on 1 January of this year, plans to organise more than 250 events in 2014.
Equity interest acquired by GL events in Strasbourg Evènements
On 16 and 20 December 2013, Strasbourg's deliberative bodies (City Council, Metropolitan Area Urban Council) ruled on the modification in the share capital of Strasbourg Evénements, the semi-public managing company for the Music and Convention Centre and Exhibition Park. These bodies have thus approved the choice of GL events Group to become a new partner of Strasbourg Evénements by acquiring a 47% capital stake.
This equity partnership will provide Strasbourg Evénements with the resources to:
- enable it to meet the challenges of constantly increasing international competition in an optimum manner;
- secure the launch of new installations planned for the end of 2016 and that have entailed investments of more than €300 million by the Strasbourg Metropolitan Area Urban Council;
- preserve the role of local authorities in setting strategic priorities while benefiting from GL events' expertise in managing and marketing large-scale event installations.
Strasbourg Evénements currently has annual revenue of €17 million. GL events' position as an equity partner with 47% capital and voting rights interest will be finalised no later than 30 June 2014. The innovative nature of this model exemplifies the close and necessary interaction between local authorities investing significantly to promote the attractiveness of their region and GL events' expertise for supporting and securing these investments subject to fierce international competition.
2014 outlook and the FIFA World Cup
The Group will publish full annual results on 5 March 2014 after the close of trading. In line with initial guidance communicated in the press release of 15 October, 2013 EBITDA is expected to remain in line with the level reached in 2012 (unaudited figures).
With a range of event solutions adapted to an evolving economic climate, GL events intends to maintain commercial momentum in 2014 for all its business lines, benefiting from renewed growth in selected mature markets and participation in key global events such as the FIFA World Cup in Brazil, the upcoming Commonwealth Games in Glasgow, and the World Cup Finals for Show Jumping and Dressage in Lyon.
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Upcoming events: Annual results, 5 March 2014 (after the close of trading)
Erick Rostagnat Tel.: +33 (0)4 72 31 54 20 [email protected]
Investor Relations Media relations Stéphanie Stahr Tel.: +33 (0)1 45 96 77 83 [email protected]
ISIN FR0000066672 - Bloomberg GLO FP - Reuters GLTN.PA - FTSE 581