GES' Parent Company, Viad, Q3 Revenues Drop 23 Percent, Same-show Revenue Up 5.2 Percent

October 24, 2013

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.”

Add new comment

Partner Voices
Overview: The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality. In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way. “We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.” Amenities: The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.  The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need. Gold Key Members The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events. OCCC Events: This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.  The Center’s top five events during their 2022-2023 fiscal year included:  AAU Jr. National Volleyball Championships 2023 200,000 Attendees $257 Million in Economic Impact MEGACON 2023 160,000 Attendees $205 Million in Economic Impact Open Championship Series 2023 69,500 Attendees $89 Million in Economic Impact Sunshine Classic 2023 42,000 Attendees $54 Million in Economic Impact Premiere Orlando 2023 42,000 Attendees $108 Million in Economic Impact