Global integrated event industry group, GL events has announced a 77% jump in its overall revenues for 2022 to €1.315bn.
The annual financial statements for the fiscal year ended 31 December 2022 also show EBITDA of +40% and a net profit of €64.4m, up from €27.6m for 2021.
Olivier Ginon (pictured), chairman-CEO of GL events Group, commented: “GL events further reinforced its position in the world of events by achieving a record performance in 2022. Bolstered by its unique strategic positioning in this period of business recovery, revenue and net profit attributable to the Group reached all-time highs, even though China remained largely locked down in throughout the past year.
“This annual performance (financial and ESG) was made possible by the unwavering commitment, professionalism and entrepreneurial spirit of our teams, to whom I express my special thanks. This confirms the relevance of our strategic choices, our business model and the strong commitments made to support our employees over time.
“Having demonstrated its resilience, GL events also strengthened its balance sheet in 2022. Our adaptation plan, skills in operational execution and sound financial management contributed to better-than-expected cash flow and a significant reduction in our net debt. “As a result, with GL events now stronger and fully focused on the future, I am confident in its ability to achieve all targets in 2023 and the years ahead.”
The increase in revenues to €1.315bn – a record performance – was made possible by twofold and threefold increases in revenue in Europe and the Americas respectively, more than offsetting the decline in Asia still adversely impacted in 2022 by lockdown measures remaining in force.
The Group said 2022 had experienced a strong rebound in its activities and a realignment of its geographical and business mixes. Fixed costs were reported “under control”, with a limited increase of 2% compared to 2019. As a result, the Group's EBITDA margin rose to 12.8% in 2022. Stronger growth by the Live division driven by mega events such as the COP 27 in Sharm el-Sheikh, Egypt and the FIFA 2022 World Cup both contributed to this.
Net profit attributable to Group shareholders amounted to €57.1m, compared with €18.0m in 2021 and represented a net margin of 4.3%, a 1.9 % increase on the previous year.
The Group's ESG performance also improved significantly with a 2022 carbon assessment highlighting a 22% decrease in CO2 emissions compared to the data published in 2019.
Divisional performance
In terms of revenue and profitability by division, the Group reported revenues at GL events Live set a new record with growth driven by mega events, such as the Moto GP and Formula E in Indonesia, the Saudi Cup, the Commonwealth Games in Birmingham, the World Athletics Championshiops and the FIFA 2022 World Cup, as well as COP 27 in Sharm el-Shekikh, Egypt. Live’s revenue rose 98% to €851.7m, an increase of 88% like-for-like.
This division, the most resilient during the Covid-19 crisis period, recorded a 55% increase in EBITDA compared to 2021 and a 28% increase compared to 2019 to € 93.1m. The business of the sale and rental of structures also continued to display positive momentum with growth of 15% in 2022 (46% like-for-like) and was strengthened by the addition of Field & Lawn Ltd, acquired by the Group in May 2022 GL events Live's current operating margin was 5.8%.
GL events Exhibitions, meanwhile, registered a marginal, 4% decline in revenue in 2022. This division was characterised by mixed performances in the period which included a gradual recovery in Europe and South America, an unfavourable biennial effect and reduced activity in China. In particular, because of Covid 19 restrictions, only two exhibitions were held in China during the year. Major exhibitions (Global Industrie, Piscine Global Europe, CFIA, Sepem, Hyvolution, Eurobois, Première Vision, etc.) continued to recover, with performances – in terms of both the number of attendees and exhibitors – up compared to 2021 or to the last editions held. Annual revenue for 2022 ended the year at €138.5m compared to € 144.5m in 2021.
The current operating margin of 13.1% was notably impacted by reduced activity in China and an unfavourable biennial effect.
GL events Venues had annual revenue of €325m, with growth of 95% in 2022 and 109% like-for-like. Business activity has gradually recovered to pre-pandemic levels and is now nearly on par with 2019. During the year, the division benefited from a strong recovery by major French (Paris, Lyon, Toulouse and Strasbourg), European (Budapest and Brussels) and international (Brazil and Chile) destinations.
GL events Venues' profitability is illustrated by a a current operating margin of 10.9%, up 4.6 points compared to 2021.
GL events said that based on the positive momentum of the 2022 results, the Group intends to resume its long-term growth trajectory in 2023, benefiting in particular from the continuing rebound of exhibitions in Europe and the gradual recovery of its activities in China, which are expected to more than offset the lower volume expected for mega events in 2023 compared with 2022.
Additionally, the Group plans to invest significantly in a larger capital spending programme (in the range of €80m to €85m) with €35m to allocated for the refurbishment of the Anhembi site in São Paulo, Brazil.
Despite a number of uncertain market conditions, the Group said it was expecting for 2023:
- growth in revenue of 5%;
- an improvement in the Group's margin rate.
The Board of Directors proposed the payment of an annual dividend of € 0.35 per share. The dividend will be submitted to the shareholders for approval at the General Meeting to be held on 27 April 2023 in Lyon.
