GL events annual financial results show revenues down 59.1% y-o-y

Global events solutions and services provider GL events has reported annual revenue of €479.4m, down 59.1% year-on-year. The Q4 result was even starker figure, denoting a 65.3% drop in revenues y-o-y to €112m. The Q4 figure, however, was up in relation to the third quarter of 2020. The Group was keen to sound upbeat about its potential for rebounding and hailed its winning bid for the 30-year management concession of the Sao Paulo Anhembi convention centre complex, announced earlier this month. Olivier Ginon, Chairman-CEO of GL events, commented on the financial results: “Activity for GL events was severely impacted by the health crisis in 2020 and for the first time since its creation, the Group will register a loss. In this unprecedented situation, GL events acted with agility and adaptability in addressing the operational and financial challenges. I wish to thank the Group’s employees who have demonstrated the flexibility, resilience and spirit of solidarity necessary for navigating the current anxiety-provoking period. “While activity certainly continues to be limited by governmental measures, particularly in France and Europe, and visibility reduced with respect to both vaccination rollout and the emergence of Covid-19 variants, I am nevertheless confident in the Group’s ability to get through this crisis and to rebound. Our fundamentals and cash position are solid. Our experience in China in 2020 has shown that a rapid recovery in business momentum may be expected as administrative restrictions are lifted. In addition, the Anhembi concession offers yet another illustration of the Group’s ability to win major new contracts to support future development.” In terms of the results of the separate Live, Exhibitions and Venues divisions of the Group, GL events Live reported annual revenue of €309.2m, down 48.5%, although its Q4 2020 revenue amounted to €84.5m, up 25.5% from the third quarter. In this quarter, the Group reported delivering services for the Zozo Tennis Championship in Japan and the annual Bpifrance Inno Generation Meeting (BIG). In China, the Group contributed to a number of events: Zibo, the first New Materials Industry International Expo, China ASEAN Expo, the Zhuhai International Design Week and the Greater Bay Area Industrial Expo. GL events also contributed to producing a number of exhibitions and corporate events in digital format in Turkey, China and France. In the quarter, work continued on the Tokyo Olympic Games and the Grand Palais Ephémère on the Champ-de-Mars of Paris and the Group produced grandstand seating for the Chambly stadium in Oise (France). GL events Exhibitions division had Q4 revenue of €8.5m, reflecting the cancellation of tradefairs and exhibitions. For the full year, the division’s revenue plummeted over 70% to €68m in relation to 2019. GL events Venues, meanwhile, reported revenue of €19.1m in Q4, up 2.5% from Q3 2020. In France, the division hosted a number of events including the Patrimonia exhibition in Lyon and the Amiens Fair. In Aichi, Japan, 13-16 November, GL events brought together 3,000 attendees per day for the 58th National Skills Olympics Competition in strict compliance with public health restrictions. The Group also organised the phygital version of the World Press Freedom Day 2020. Overall, the division recorded annual revenue of €102.2m for 2002, down from €341.4m in 2019. GL events also reported making safety the 5th commitment of its CSR policy. Think Safe thus finds its place alongside the Think People, Think Green, Think Local and Think Ethics priorities. The Group has accelerated its digital transformation. In 2020, the digital offering generated sales of €18m. GL events has also preserved cash by reducing its costs and making use of the support mechanisms implemented by the government and its banking partners and bondholders. The Group reports it has €370m in cash, to which may be added an additional €100m in the form of an undrawn revolving credit facility. A net loss attributable to Group equity holders of around €70m is now expected compared to prior guidance of €65m issued before the second administrative closures were implemented at the end of October 2020. The Group describes its 2021 calendar of events as “favourable” with the organisation planned for Sirha, the Biennial Rio de Janeiro International Book Fair, Global Industrie Lyon, and events and exhibitions initially planned for 2020 and moved forward to 2021, including the Olympic Games in Tokyo and the World Expo in Dubai. GL events Venues is continuing to renegotiate its contracts in France and international markets with all local authorities. To date, the Group has received support from several local and regional governments, with decisions still pending in certain cases. Citing its strong fundamentals, the Group said it “continues to be confident in its ability to come through this crisis and rebound as soon as public gatherings are once again authorised”.