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GL events — Earnings Release 2015
Oct 20, 2015
1368_iss_2015-10-20_0372b732-9752-4ef6-a6d3-ae73fa72612e.pdf
Earnings Release
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2015 third-quarter sales: +3.5% Nine-month sales: +1.4% to €671.8m
Sustained commercial momentum
| Consolidated revenue (€ millions) |
2014 | 2015 | Change 15/14 |
|---|---|---|---|
| Q1 | 219.3 | 250.2 | +14.1% |
| Q2 | 245.4 | 216.7 | -11.7% |
| Q3 | 197.9 | 204.9 | +3.5% |
| Total nine months | 662.6 | 671.8 | +1.4% |
GL events, the integrated event industry group, had €204.9 million in revenue in the 2015 third quarter, bringing consolidated sales at 30 September 2015 to €671.8 million with organic growth of 1.5%.
Strong growth from GL events Exhibitions, 5 th consecutive quarterly gain for GL events Venues
Following a first-half impacted by a strong base effect from the Football World Cup's nonrecurring contribution (€74 million in revenue), the third quarter benefited from positive momentum for both Exhibitions and Venues.
| 9-month revenue (€ millions) |
2014 | 2015 | Change 15/14 |
|---|---|---|---|
| Live | 372.8 | 334.8 | -10.2% |
| Exhibitions | 111.5 | 139.8 | +25.3% |
| Venues | 178.3 | 197.2 | +10.6% |
| Consolidated total | 662.6 | 671.8 | +1.4% |
The GL events Live business unit had revenue in the quarter of €113.3 million compared to €115.3 million in the 2014 third quarter (-1.7%). After a significant contraction in the second quarter reflecting the base effect from the Football World Cup, this business unit returned to a satisfactory level of growth, by combining a presence at Jumbo Events (Pan Am Games in Toronto, African Games in the Congo), the significant programme of trade shows of September as well as events with a more regional dimension (Rio International Sailing Regatta 2015, the Deauville American Film Festival, the Voiles de Saint-Tropez regatta).
After a particularly dynamic start of the year, the GL events Exhibitions business unit again registered strong growth in the third quarter (+20.2% to €39.7 million), driven in particular by the success of the Biennial Rio de Janeiro International Book Fair and the continuing development of Première Vision's different brands.
GL events Venues achieved its fifth consecutive quarterly gain with growth in revenue of 4.6%. This sustained performance reflects the sites' improved occupancy rates and the quality of the Group's network, based on long-term positions developed through full-fledged event hubs for community life and exchange. Other noteworthy developments included the continuing turnaround in Hungary and the Auto Show at Eurexpo Lyon that offered a 45,000 m2 showcase for 45 brands and the unveiling of more than 90 innovations.
In terms of the geographic sales mix, international markets accounted for 49% of total Group revenue at 30 September 2015 compared to 51% for France that registered 12% growth in sales compared to the last year's same period.
2015 fourth-quarter outlook
The fourth quarter boasts a significant line-up of European and international events. These include in particular the production of the annual meeting of the IMF and the World Bank from 5 to 12 October in Lima, the organisation, hosting and production of Equita Lyon and the associated horse show jumping competitions, the first edition of Sirha-Rio from 14 to 16 October, the selection round of the Bocuse d'Or and the World Pastry Cup, Sirha and Première Vision in Istanbul, COP 21 in Paris.
Resulting in a currency effect on sales of €15 million at 30 September 2015, the €/Real exchange rate is expected to have an additional impact on sales in the fourth quarter of €9 million.
Based on the current order book and negotiations for new business in progress, GL events is expecting near-zero growth for the 2015 full-year. For the record, this would nevertheless represent average rate of organic growth for the 2014-2015 period of approximately 7%.
2016 outlook
A new site under management: GL events Venues will begin pre-marketing for the Valenciennes metropolitan region exhibition and convention centre, after being awarded a management contract for 9 years. This 17,000 m2 site is scheduled to commence operations in January 2017 and generate €18 million in revenue over the 9-year term of the contract.
In Rio de Janeiro, the HSBC Aréna concession was renewed for 30 years. This site which hosts sports and corporate events and concerts generates more than BRL 18 million in revenue per year.
As previously announced, GL events will be actively involved in the upcoming Olympic Games in Rio de Janeiro by providing very complex hospitality services for different sites and events, television stations and international federations.
In addition, the Group will for the first time have a significant presence at the upcoming European Football Cup to be hosted in different French cities in June/July of next year.
Upcoming events: 2015 annual revenue: 19 January 2016 (after the close of trading)
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Erick Rostagnat Tel.: +33 (0)4 72 31 54 20 [email protected]
Investor Relations Media Relations Stéphanie Stahr Tel.: +33 (0)1 53 48 80 57 [email protected]
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