Analysis
Big is beautiful?
Two exhibition giants recently announced good numbers in their first half group results,
which follow acquisitions and structural change
Informa: Integration
of UBM complete and
growth in profit and
revenues
reported (3.4% underlying) and adjusted
operating profit growth of 48% (8.2%
underlying).
The 2019 H1 revenue overall figure was
put at £1,407.6m compared to £957.1m for the
same period in 2018.
The Group reported statutory operating
profit up 65.5% to £248.3m (H1 2018:
£150.0m).
Stephen A. Carter, Group Chief Executive,
said: “A year on from the acquisition of UBM,
the enlarged Informa Group is performing to
plan, delivering a further period of growth in
revenue, adjusted operating profit, free cash flow and dividends.”
Carter added: “Despite previously identified
headwinds in our Fashion and Middle East
businesses, we continue to grow consistently
in Events and Exhibitions. This puts us on
track to deliver our targets for 2019.”
With the AIP and digestion of UBM
completed on schedule, teams combined,
leadership confirmed,
brands aligned, the Group
expects to deliver £50m
cost synergies in 2019,
with more than £20m
realised in H1.
GL events reported a 9% rise in revenues
and a ‘significant’ improvement in
profitability for its first half of 2019. Total
revenue for the period was up at €596m.
Olivier Ginon, Chairman-CEO of the
Group, stated: “GL events has finalised four
acquisitions in China since the beginning of
the year.”
EBITDA grew 24% to €100m, current
operating income 31% to €70m, and net
income attributable to shareholders 35% to
€35m, the Group reported, adding that it had
met its annual targets for revenue growth
of 10%.
Sales from international markets
accounted for 43% of total revenue
compared to 49% at the end of the 2018 first
half, the Group said, noting the decrease largely reflected the concentration of mega
events in H2 2019.
Operating margin was 11.7% compared to
9.7% for the 2018 first half.
GL events Live revenues however,
dropped 3% to €275.4m in relation to the
first half of 2018. Last year’s revenues
included €50m from contracts for mega
events, while, in 2019, mega events are
concentrated in the second half.
Positive trends were registered by the
major tradeshows organised by the Group
(SIRHA, Global Industrie, Première Vision,
Be Positive, CFIA).
The CIEC Union exhibitions (Build+Decor
in Beijing, the China International Door
Expo and Beijing Fabric Wallpaper Expo)
and the spring edition of Fashion Source
contributed to H1 revenues and also the
margin.
Revenue from the Venues division grew
6.5% in relation to H1 2018. The Lyon destination benefits from a positive biennial
effect and the other destinations also
registered growth in revenue: Brazil, Paris,
Barcelona and Budapest.
Events held during the period at the
venue network included: Industry Days and
Agro/Mashexpo in Budapest; Kingfomarket,
SAP Hariba and Cinéeurope conventions
in Barcelona; The Global Entrepreneurship
Summit in the Hague, and The Automec,
Batimat, and Expo Mafe exhibitions at Sao
Paulo Expo.
The first half was marked by the
integration of venues in France (Reims, Caen
and Saint-Etienne) and in international
markets (Johannesburg) as well as ongoing
preparations for the operational launches
of the Asian sites (Aichi & Canton). These
factors explained the marginal decrease in
the operating margin in relation to H1 2017.
Net debt was stable in relation to 31
December 2018 at €378m.
GL events Exhibitions (€m) 30/06/2019 30/06/2018 30/06/2017
Revenue 147.1 98.7 101.1
Current operating income 32.5 13.4 15.8
Operating margin (%) 22.1% 13.6% 15.7%
International exhibitions, events and
information group Informa’s first half results
to 30 June 2019 highlighted continued growth
and completion of its 12-month Accelerated
Integration Plan (AIP), including the
integration of the UBM business.
Strong revenue growth of 47.1% was
GL events: First half sees
revenues grow 9%
w w w.exhibitionworld.co.uk
Issue 4 2019
47