WORLD – Global events organiser ITE Group has announced a third-quarter dip in profits, but claims results are in line with expectations reflecting challenging conditions in one of its key markets, Russia.
The group’s revenue of £58m (US$90.34m), for the three months ending 30 June 2015 (2014: £73m), fell 17% on a like-for-like basis compared to the same period last year.
The company is pressing on with its diversification strategy and reports it is looking to take a majority stake in one of India’s largest privately owned conference and exhibition organisers, Mumbai-based Asian Business Exhibition and Conferences (ABEC).
“We have the opportunity over autumn to turn that into a 60% owned associate,” he added.
ABEC’s portfolio includes 60,000sq m of construction shows, education and fashion events.
“That will be a big for us, because being an associate is a bit like being a passenger in the car. It might well pave the way for us to develop more quickly in India in the future,” Taylor said. “India is one of the better performing economies at the moment.”
ITE Group chief executive Russell Taylor is, however, hopeful of a turnaround on the Russian market, pointing to internal reporting and IMF data which indicates a recovery in Russia during 2016, after the country’s trading environment stabilised during the first half of the current financial year.
“It will obviously have a delay on our results, but it’s certainly something to look forward to,” Taylor said.
He added that recent falls in China’s stock market hadn’t affected sales of the group’s Sinostar joint venture events, Chinacoat and SF China, scheduled for November.
The group said it remained confident in the outlook for the remainder of the financial year.
As of 10 July 2015, the business had contracted revenue of about £130m for the full year, which was 14% down on the previous financial year on a like-for-like basis.
ITE said it had a secured debt facility of £100m which gave the company a stable financial base to continue its diversification plans.