Viad 2Q Revenues Up More Than 3 Percent Driven By U.S. Marketing/Events Group
July 29, 2012
Viad chalked up its eighth consecutive quarter of growth with second-quarter revenues for this year up 3.3 percent to $246.5 million, compared with $238.7 million during the same period last year.
Net income also was up to $6.1 million in the second quarter this year, compared with $4.5 million during the same period last year.
Positive second-quarter revenue results were driven by the U.S. Marketing & Events Group that saw an increase of 15 percent to $165.5 million, compared with $150.2 million during the same period last year.
International results for the Marketing & Events Group dipped more than 18 percent, however, from $67 million during the second quarter last year to $54.7 million during the same period this year.
The Travel & Recreation Group posted good second-quarter numbers with a 23 percent revenue increase to $29.5 million this year, compared with $24 million last year.
“Both of our business groups performed at a high level in the second quarter of 2012,” said Paul B. Dykstra, Viad’s chairperson, president and CEO. “Consolidated revenues for the quarter increased 3.3 percent to $246.5 million, while total segment operating income increased 6.4 percent to $10.5 million, primarily reflecting strong execution in both segments and traction gained in our on-going initiatives to expand margins and profitability in our Marketing & Events Group.
A good indicator of recovery within the trade show industry is that U.S. base same-show revenues were up 6.1 percent in the quarter, he added.
Increases on the U.S. Marketing & Events Group were driven primarily by net positive show rotation revenue of approximately $5 million, base same-show growth, new business wins and a focus on margin improvement, according to Viad officials.
“During the quarter, GES produced the WINDPOWER Conference and Exhibition in Atlanta on June 3-6,” Dykstra said.
He added, “This was the first of five annual events awarded to GES by the American Wind Energy Association in a notable contract win in the fourth quarter of 2011. We are gratified to have won this business and we look forward to a very successful collaboration in the coming years. All in all, we are pleased with the results of the quarter.”
Revenue dips in the international Marketing & Events Group primarily were driven by net negative show rotation revenue of approximately $14 million.
In addition, foreign exchange rate variances had an unfavorable impact on revenue and operating income of $2.7 million and $117,000, respectively, as compared with the 2011 quarter.
The future looks brighter, though, with Viad’s U.K.-based Melville GES unit scoring a large number of projects for the 2012 London Summer Olympic Games.
Revenue increases in the Travel & Recreation Group were driven by the additions of Alaska Denali Travel, the Banff International Hotel and the St. Mary Lodge & Resort, as well as an increase in visitor traffic across all of the attractions at the company’s Brewster unit.
“We look forward to building on the momentum achieved in the first half of 2012 throughout the remainder of the year,” Dykstra said.
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
Add new comment