The Board of Directors of Italian Exhibition Group S.p.A (IEG), a company listed last June on the Milan Stock Exchange organized and managed by Borsa Italiana S.p.A., approved, on today’s date, the half-yearly financial report as at June 30, 2019.
Main consolidated results in the first half of 2019
The total revenues of the IEG Group amounted to € 99,932 thousand, growth of 29.3% over the € 77,309 thousand in the same period of the previous year. This result augments the significant growth already recorded at the end of 2018 (+ 22% over the previous year) and confirms IEG’s ability in development and integration projects.
EBITDA1 , following the application of IFRS 16, which generated a positive effect of approximately € 1.9 million, and EBIT reached € 26,575 thousand and € 17,691 thousand respectively, growth compared to the 2018 values, which did not reflect the effects of IFRS 16, which stood at € 17,039 and € 11,801 thousand respectively.
Without taking account of the effects of the aforementioned accounting standard, EBITDA1 and EBIT therefore recorded increases of + 44.8% and + 49.6% compared to the same period in the previous year, also confirming the further strengthening in the ability to manage operating costs and stabilise the efficiencies already achieved in the second part of the previous year.
The Group’s net result, albeit feeling the effects of the higher financial management expenses due to the application of IFRS 16 amounting to € 330 thousand and other expenses connected to the figurative payables from put options, stood at € 10,679 thousand, growth of 40.2% compared to € 7,618 thousand in the first half of 2018.
As at June 30th, 2019, the net cash financial situation, therefore without taking into account the higher payables of roughly € 32 million as a result of IFRS 16, financial payables for any future put options of € 15.8 million and derivative financial instruments for € 5.9 million, totalled € 66.5 million compared to € 66.9 million as at June 30th, 2018 and € 49.2 million as at December 31st, 2018. The latter increase is due primarily to the changes in Net Working Capital resulting from the seasonal cycle (around € 4.6 million), investments (€ 5.7 million) and the distribution of ordinary dividends which took place in May (€ 5.6 million).
The consolidated shareholders’ equity as at June 30th, 2019 came to approximately € 105.2 million, compared to € 102.5 million as at December 31st, 2018.
Results by business segment in the first half of 2019
The significant growth in revenues in the period derives from the positive results achieved by each business line and the increase of roughly € 22.6 million compared to the same period of the previous year is due to both the purely organic growth (up € 7.4 million equal to + 9.6%) and the change in the scope of consolidation. The latter takes account, for an amount of around € 15.2 million, of the revenues resulting from the acquisitions of stand fitting activities carried out last year (FB international in the US in March and Prostand – Colorcom in Italy in September 2018) and the arithmetic sum (with balance close to zero) of multiyear events or held in a different half from that of the previous year.
In particular, the Group’s “core business”, comprised of the direct organisation of trade show events, accounted for 53.7% of total revenues during the half, and recorded an increase of 6.6% compared to the previous year. This increase is attributable to the main leading products in the “Food & Beverage” and “Jewellery & Fashion” categories. The seasonal nature of the trade show calendar has a negligible impact and relates, in particular, to the Koinè event (biennial event in odd years) in February 2019.
The Convention Events business line, which accounts for 7.6% of total Group revenues, recorded an increase of 26% (up € 1.6 million) compared to the first half of 2018, thanks to the holding of larger conventions in terms of the number of participants, convention areas used and additional services required.