Italian Exhibition Group closed with a profit in 1HY
Thanks to the excellent results at the beginning of the year and the measures adopted to counter the crisis
The Board of Directors of Italian Exhibition Group S.p.A.(IEG) - the holding of Rimini and Vicenza Fairs - has approved today the Half-Yearly Financial Report as at June 30, 2020. The excellent performance of the events organized in the first two months of the year, which recorded overall growth for the third consecutive year, the outbreak of the COVID-19 health emergency, which caused the suspension of trade exhibitions and congresses starting from the end of February, the decisive measures adopted by the Group to protect the safety and health of the staff and combat the financial and economic impacts of this serious crisis are the salient facts that have characterized these first six months of 2020 and have produced the results that will be hereinafter presented.
The total revenues of the IEG Group in the first half of 2020 stood at € 61.8 million, down by 38.1% compared with the € 99.9 in the same period of 2019. The excellent performance recorded in the first two months of the year, which generated an overall organic growth of € 2.4 million (+2.4%), was suddenly halted by the spread, also in our country, of the COVID-19 pandemic which caused an overall reduction in revenues of € 40.3 million (-40.3%) compared with the first half of 2019.
The EBITDA stood at € 15.6 million, down by 41.5% (€ -11.1 million) compared with the same period of the previous year. EBITDA Margin, for the reasons explained above, remains in positive territory, i.e. 25.3%, with only a 1.4 percentage point decrease (26.7% was the index value as at June 30, 2019). As mentioned above, EBIT also remained in positive territory – € 3.4 million against € 17.8 million in the first half of 2019 (-80.8%) – despite the absence of business operations in the second quarter and a non-recurring write-down of intangible assets for about €2.6 million.
Pre-tax results amounted to € 10.8 million – down by € 4.4 million compared with the first half of 2019 (- 29.0%) – benefiting from a positive result of the financial operations for € 7.7 million (against a loss of € 2.7 million in the first half of 2019) achieved primarily following the restatement, for € 9.3 million, of payables for put options provided to the minority interests of some subsidiaries. The Group’s result for the period amounted to € 9.4 million, down € 1.4 million (-13.1%) compared to the same period of the previous year. The result for the period attributable to the Parent Company’s shareholders amounted to € 9.8 million compared to € 9.7 million in the first six months of 2019, up by € 0.1 million (+1.2%).
However, even excluding the positive net contribution of the non-recurring items, this result would have been positive at € 3 million (-67.7% compared with the first half of 2019). As at June 30, 2020, the net financial position stood at € 104.8 million, substantially unchanged versus the € 104.5 million of the position as at December 31, 2019.
Beginning on August 18, the IEG conference-related activities have resumed at the Palacongressi in Rimini, for the important cultural event “Meeting for Friendship Amongst Peoples” – although in a “special edition” to comply with the current measures for containing the spread of the pandemic – which will be followed, from August 27-29, by the national convention ANMCO - Associazione Nazionale Medici Cardiologici 4 Ospedalieri [Italian Association of Hospital Cardiologists].
Regarding the measures aimed at guaranteeing financial stability, in addition to those already implemented, in July, taking advantage of the opportunities offered by the “Liquidity Decree”, the Parent Company has entered into loan agreements with Intesa San Paolo S.p.A. and Cassa Depositi e Prestiti S.p.A., covered by SACE guarantees, for a total of € 50 million. Thanks to these initiatives, the Group currently has sufficient liquidity, in addition to granted and not drawn down credit lines for a total amount of at least € 62 million.
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