Viad’s 3Q Revenues Increase 36 Percent; GES’ U.S. Revenues Up 39 Percent
The third quarter was a good one in more ways than one for Phoenix-based Viad, as well as its divisions, including Global Experience Specialists in the U.S. and overseas.
Overall 3Q revenues for Viad were up 36.2 percent to nearly $300 million, compared with the same quarter in 2013, with GES in the U.S. scoring a 39.5 percent revenue increase to $168 million, and overseas the company pulled in a whopping 59 percent uptick to $64 million, compared with the same quarters in 2013.
Viad’s Travel and Recreation also saw a nearly 15 percent 3Q revenue increase to $73 million, compared with the same quarter last year.
Viad’s income before other items was $20.8 million, which nearly doubled, compared with $10.9 million during the same quarter in 2013.
“Both of our business groups delivered significant year-on-year growth with results that were in line with our prior guidance,” said Paul B. Dykstra, Viad’s president and CEO.
He added, “Our strong third quarter results reflect the benefit of positive show rotation, continued same-show growth and better than anticipated visitation to our new Glacier Skywalk attraction. The acquisitions of the West Glacier Motel & Cabins, the Apgar Village Lodge and related assets, and Blitz Communications also added to our revenues and profits during the quarter.”
The U.S. Marketing & Events Group’s revenue increase, which includes GES, primarily was driven by positive show rotation of approximately $34 million in revenue, a 3.4 percent increase in base same-show revenue and new business wins.
The international segment of the same group saw revenues increase just shy of $24 million, which also was driven by positive show rotation of approximately $14 million in revenue and new business wins.
The wins in both the U.S. and overseas that had a positive impact were the Mary Kay Seminar, SIBOS and Commonwealth Games in Scotland, according to GES’ president Steve Moster.
He added that some of the U.S. and international shows that rotated in and also had a positive impact were IMTS, SIBOS and Farnborough Air Show.
Also in the third quarter, Viad bought U.K.-based Blitz Communications, an audio visual (AV) services provider for the live events industry in the U.K. and continental Europe.
Boosting their portfolio even more, in the first month of the fourth quarter Viad made a double buy, scooping up housing services companies onPeak and Travel Planners.
Moster said of all the acquisitions’ impact on revenues; “Since we purchased Blitz Communications toward the end of the third quarter, the impact to revenues was nominal. For the fourth quarter, Blitz, onPeak and Travel Planners, are expected to add approximately $20 million in revenue.”
He added of the onPeak and Travel Planners recent buy, “The additions of Travel Planners and onPeak immediately launched GES as a leader in the event housing market and creates an opportunity to simplify the customer experience by dealing with one company across multiple offerings.”
As far as what’s on tap strategically for 2015, Moster said, “We are focused on our growth strategy, the margins of our core business and integrating Blitz and onPeak into GES.”