GES' Parent Company, Viad, Q3 Revenues Drop 23 Percent, Same-show Revenue Up 5.2 Percent
Global Experience Specialists’ parent company, Viad, saw a 23-percent drop in third-quarter revenues from $307.5 million in the same quarter in 2012 to $236.5 million this year, primarily because of negative show rotation.
U.S. segment revenue for the Marketing & Events Group was $120.5 million, with an operating loss of $3.7 million, compared with 2012 Q3 revenue of $168.4 million and an operating loss of $585,000.
Even with negative show rotation of approximately $57 million impacting Q3 earnings, same-show growth was positive in the third quarter.
“Our results for the quarter are in line with where we thought they would be,” said Steve Moster, GES’ president.
Paul B. Dykstra, Viad’s chairman, president and CEO, said, “Despite this headwind, the Marketing & Events Group posted solid results for the quarter, with same-show revenue growth of 5.2 percent and continued progress against our margin improvement initiatives.”
Marketing & Events Group international segment revenue also saw a decrease in the third quarter this year to $40.3 million with an operating loss of $4.2 million, compared with 2012 third quarter revenue of $67.8 million and operating income of $3.4 million.
Negative show rotation of approximately $13 million impacted results for the quarter, as well as absence of revenue earned in 2012 in support of the Summer Olympic Games in London.
Show rotation may not have been on GES’ side this quarter, but they scored several wins recently.
“The wins we had are substantial,” Moster said.
As one example, he added, “We’re excited about extending and expanding our relationship with Advanstar.”
A few more wins include Penton Media’s group of shows and International Council of Shopping Centers, as well as some wins overseas with PennWell for all of its Middle East-based shows and i2i Events Group in the United Kingdom.
Though the third quarter was challenging, the fourth quarter is expected to see a slight positive impact from show rotation.
Cost-cutting in the Marketing & Events Group also will continue, according to Moster.
Some of those measures include labor management, facility consolidation and also more efficiency at facilities, he added.
For the full year, Moster said overall same-show growth has slowed, with last year seeing an uptick of 6.5 percent overall, this year likely will end up with a lower single-digit number for same-show growth.
That trend will continue into next year, he added.
“Looking at the economy, specifically in the U.S., there’s uncertainty on where it’s headed,” Moster said. “We’re forecasting low single-digit growth going into 2014.”