Tarsus Group's Same-show Cycle Revenues Up 18 Percent for 2012
U.K.-based Tarsus Group ended 2012 on a high note, with not only an increase in revenues, compared with 2010 - its same-show cycle year, but also the company completed its “Project 50/13” early, in which 50 percent of its revenues would be derived from emerging markets by the end of 2013.
“2012 was a landmark year with the early completion of Project 50/13,” said Neville Buch, Tarsus’ chairman.
He added, “The next phase of our growth strategy – ‘Quickening the Pace’ - will focus management on accelerating the Group’s earnings growth by leveraging our high-quality portfolio into fast-growth markets alongside selective strategic acquisitions.”
For the full-year 2012, revenues were up 18 percent to £51.5 million ($77.3 million), compared with 2010.
By comparison, with biennial mega-events the Dubai Airshow and Labelexpo being on off years, 2012 revenue saw a drop from the £61.7 million ($92.5 million) in revenues that was posted in 2011.
Pre-tax profit rose to £8.4 million ($12.6 million) in 2012, however, compared with £3 million ($4.5 million) in 2011.
The U.S. show portfolio performed particularly well in 2012.
Labelexpo America took place in September 2012 in Chicago and saw good results, with revenues up 14 percent, compared with the 2010 event.
The February 2012 and August 2012 OFFPRICE Shows that run during Las Vegas Fashion Week also saw increases, with revenues up 7 percent and 3 percent, respectively.
The big winner in the U.S. was Tarsus Group’s medical division that continued to grow in leaps and bounds, with revenues increasing by 20 percent.
The growth is driven by the division’s education program, including those delivered online. The online programs were launched two years ago and their revenues have now overtaken those from the physical programs.
In the emerging markets, several first-time shows under Tarsus ownership were up, compared with their previous editions,, including Ideal Home, up 50 percent; Zuchex, up 16 percent; Eurasia Plan, up 36 percent; and, in its second iteration under Tarsus, the Recycling, Environment Technologies and Waste Management International Fair revenues grew 19 percent.
In Dubai, the events there also had a good year, with GESS revenues up 15 percent and Middle East Business Aviation revenues up 21 percent.
China and India also saw all the Tarsus events held there score revenue increases.
"2012 ended up better than we had expected. We generated good momentum in 2012 and this has continued into 2013," said Tarsus Managing Director Douglas Emslie.
He added, "We are looking to quicken the pace with 3 things – firstly continuing to replicate our major brands. We have just bought GZ auto in China and have announced new events in Indonesia and Turkey in 2014 – one of the first times a China brand has been exported. Secondly we are seeing strong organic growth in our major products – Dubai Airshow, Labelexpo and Medical (anti-aging). Finally, we will accelerate that growth with bolt-on acquisitions where we feel we can add value."
This year looks to continue the upward revenue trend:
· Forward bookings for 2013, on a like for like basis, are currently 16 percent ahead of those for 2012 (as adjusted for biennials and acquisitions).
· Acquisition of 51 percent of Indonesian exhibition organizer PT Infrastructure Asia agreed in January 2013 and completed last week
· GZ Auto (February 2013) was a record show in its first run under Tarsus ownership, with revenues up 23 percent, compared with its previous edition
· OFFPRICE (February 2013) revenues up 6 percent
· Labelexpo Europe (September 2013) and Dubai Airshow (November 2013) both tracking ahead of previous events.
Emslie said the company is looking to further expand into the U.S., China, Southeast Asia and Turkey.
"We have made a good start to 2013 and are experiencing strong momentum and sales progress,” Buch said. “We are increasingly confident we can deliver an excellent outcome for 2013, particularly as we are operating in growth markets.”
Emslie added, "The major markets in which we operate are all growing and we expect this to benefit us in the second half of 2013 and 2014."
Now that Project 50/13 has been completed, the core focus of “Quickening the Pace” will be to accelerate earnings per share growth, according to Tarsus officials.
This will be driven by a combination of the geographical replication of our major brands into fast growth economies; organic growth from the existing portfolio; tight cost control; and selective bolt on acquisitions in the U.S. and emerging markets.