GES' Parent Company Sees Q2 Net Income, Revenue Increases
Viad, the parent company of Global Experience Specialists (GES), saw a Q2 uptick in net income this year to $6.3 million, compared with $6.1 million in the same period last year, as well as an increase in revenue to $249.3 million, compared with $246.5 million during the same period in 2012.
“Our results for the second quarter of 2013 were in line with prior guidance, despite extensive flooding in the Canadian province of Alberta during late June that impacted the Banff- and Jasper-based operations of our Travel & Recreation Group,” said Paul B. Dykstra, Viad’s chairman, president and CEO.
He added, “Overall, both of Viad’s business units posted solid results for the quarter, with consolidated revenue of $249.3 million and segment operating income of $10.9 million.”
The future is looking positive as well, with the Marketing & Events Group continuing to experience same-show growth, visitation to Banff and Jasper is improving after the floods and there are strong advance room bookings for Glacier Park and Alaska Denali Travel, Dykstra said.
The U.S. division of the Marketing & Events Group, of which GES is a part of, was down in the second quarter 2013 to $155 million, compared with $165 million during the same quarter in 2012.
Steve Moster, GES’ president, said the decrease was a result of negative show rotation, which will continue to impact revenues through the rest of the year.
Last year, for example, had two huge events, the biannual International Manufacturing Technology in Chicago and the London Olympics.
“This quarter was in live with guidance from the prior year,” Moster said.
International revenues in the second quarter, however, were up to $68.6 million, compared with $54.7 million during the same quarter last year.
“We had a large jump year over year in the second quarter,” Moster said. “The Paris Air Show happens biannually, and it was a big contribution to increase in revenue.”
This year has had some other wins so far as well, including renewals of big shows such as the E3 Expo and NAMA (National Automatic Merchandising Association) and winning some new business, he added.
In addition, GES has had a strong focus on their corporate events, including Microsoft and Mary Kay event, which is a new client.
Besides traditional events and trade shows, the Marketing & Events Group also worked on Random International’s “Rain Room” at the Museum of Modern Art (MoMA) in New York City at which people could literally walk through a room filled with rain and not get wet, as well as the “Harry Potter” exhibit in Tokyo that saw more than 100,000 attendees in the first 23 days since it opened.
Overall, though, show rotation is expected to have a net negative impact on full-year revenue of approximately $55 million. U.S. same-show growth still is expected to grow in the low single digits.
“In 2014, we’ll continue to see growth in the industry,” Moster said.
Dykstra added that the slower same-show growth was expected, compared with last year’s numbers.
“We are focused on delivering on our commitments for 2013, and believe we are well positioned to continue to grow our business and generate enhanced shareholder value in the coming years,” he added.