GES Scores Whopping 52-percent Q3 Revenue Increase
The third quarter of this year was a huge one for Global Experience Specialists, scoring $287 million in revenues, compared with $189.9 million during the same quarter the year before, a whopping 52-percent increase.
“GES delivered strong third quarter revenue growth and the team did an excellent job driving the additional revenue to the bottom line,” said Steve Moster, who leads GES and its’ parent company Viad.
He added, “In addition, we completed an important strategic acquisition in mid-August that gives us a more meaningful presence in the large U.S. audio-visual services market. The acquisition of ON Services is well-aligned with our strategy to diversify our mix of event services toward higher-margin adjacencies and to expand our reach further into corporate events as we continue to position GES as the preferred global, full-service provider of live events.”
U.S. organic revenue increased 51.5 percent ($76.4 million), primarily due to positive show rotation of approximately $67 million, new business wins and base same-show revenue growth of 3 percent.
International organic revenue also increased 53.5 percent ($24.0 million) from the prior year quarter, primarily due to positive show rotation of approximately $18 million, new business wins and same-show growth.
One of the biggest shows in the U.S., the quadrennial MINExpo International, which is a GES client, was held in the third quarter in Las Vegas.
The show covered more than 840,000 net square feet, showcasing the latest mining equipment and technology from more than 1,900 exhibitors around the world.
The acquisition of ON Services also contributed revenue of $7.8 million, adjusted segment operating income of $0.5 million and adjusted segment EBITDA of $1.7 million during the 2016 third quarter, in line with prior guidance.
ON Event Services, a leading provider of live event audio visual production services that includes audio, video, lighting, mapping and scenic design, was acquired in August 2016.
GES fourth quarter revenue is expected to be relatively in line with the prior year quarter as continued underlying business growth and the acquisition of ON Services help to offset the expected impact of negative show rotation of about $15 million and unfavorable currency translation of approximately $10 million.