RIMINI, ITALY – The President of Italian Exhibition Group, Lorenzo Cagnoni, and Managing Director, Corrado Peraboni, hereby announce that the Board of Directors of Italy’s leading international trade show organizer, listed since June last on Borsa Italiana S.p.A.’s screen-based stock exchange (MTA), has approved the Consolidated Financial Statement and Budget Plan which will be submitted for approval at the Shareholders’ meeting next June.
Main consolidated results of the 2019 financial period
The Group’s total revenues for the 2019 financial period amounted to 178.6 million euros, showing a double-digit growth of +11.8% compared to the 159.7 million euros in 2018. These results, despite a less favourable trade show calendar, which, in odd numbered years, does not include the “Tecnargilla” and “IBE” shows, continue to follow the growth trend registered at the end of 2018 (+22% compared to the previous year) and are proof of the effectiveness of the two-fronted strategies enacted to develop products already in portfolio and to further extend along external lines.
EBITDA1 and EBIT, positively impacted by 3.7 and 0.3 million Euros respectively following the application of the IFRS 16 accounting standard, reached Euro 41.9 million and Euro 24.0 million respectively, highlighting a considerable increase compared to the 2018 financial period (+35.7% and +25.9% respectively) which did not take the IFRS 16 into account. Keeping in consideration the effects of IFRS 16, the Group's net result is Euro 12.6 million, an increase of 16.1% compared to the previous year.
Net consolidated equity at 31st December 2019 stood at approximately 106.1 million euros compared to Euro 101.5 million at 31st December 2018.
Results by business area in the 2019 financial period.
The Group’s “core business”, which consists of directly organizing trade shows, represented 54.7% of overall revenues during the financial period with an organic growth that involved the main product leaders in the “Food & Beverage”, “Jewellery & Fashion”, Green & Technology” and “Tourism & Hospitality” categories, leading to a 6.7% increase in earnings (about +6.6 million Euros). In 2019, compared to the same period in the previous year, the Congress Event business line, which represents 8.7% of overall earnings, experienced a significant growth of +19.1% compared to 2018, mainly thanks to the larger congresses in terms of number of participants, the amount of space required and additional services requested. Earnings from the Correlated Services business line, which involves exhibition set-ups, catering and cleaning, amounted to 32.4% of the Group’s total revenues showing an increase of 39.2% compared to 2018.
The Parent Company, Italian Exhibition Group S.p.A., results and proposal for profit distribution
The Parent Company, Italian Exhibition Group S.p.A., closed its 2019 financial period with overall revenues of Euro 124.1 million, an EBITDA of Euro 36.0 million and a net profit of Euro 13.9 million. In 2019, at its facilities in Rimini and Vicenza, as well as further premises in Milan and Arezzo, IEG staged 48 directly organized or hosted trade shows and 190 congress events.
1 The EBITDA is represented by the operating profit (loss) including depreciation and amortisation expense. The EBITDA is a measure defined and used by the Group to monitor and assess the operating performance of the Group, but it is not defined in the context of IFRS standards; therefore it must not be viewed as an alternative measure for the assessment of the Group's operating result. The Company believes that the EBITDA is an important parameter for the measurement of the Group's performance as it allows to analyse the profitability of the same by eliminating the effects deriving from non-recurrent economic elements. As EBITDA is not a measure whose determination is regulated by reference accounting standards for the preparation of the Group's consolidated financial statements, the criterion applied for the determination of the EBITDA could not be consistent with that adopted by other groups and might, therefore, not be comparable to them.