Ieg, financial statements for the first nine months of 2020
Stop of exhibition activity brings total revenues to -46.8%
For Italian Exhibition Group (Ieg), the company born from the merger of the Rimini and Vicenza fairs, the first nine months ended on 30 September 2020 with total revenues of 68.2 million euros, down 46.8% compared to to 128.3 million in the same period of the previous year. "The excellent results achieved in the first two months of the year, which substantially determined the organic growth of the period equal to 2.6 million Euros (+ 2%), were canceled out by the effects of the pandemic", explained the group in a note.
Ebitda (gross operating margin) for the first nine months is still positive and stands at € 9.1 million, down by 70.3% compared to the € 30.6 million in the same period of 2019, while the result of the period attributable to the shareholders of the parent company, which benefited from non-recurring net income of € 6.5 million, shows a profit of € 1.6 million against the € 8.4 million of the first nine months of last year . The net financial position at 30 September 2020 amounted to 116.7 million euros, showing an increase in net debt of 12.2 million euros compared to 31 December 2019. The core business of the group, consisting of the direct organization of exhibitions trade fairs, in the first nine months of the year accounted for 66.3% of total revenues, equal to 45.2 million euros, and reveals a decrease of 22 million euros (-32.7%) compared to the same period of 'last year.
As regards the third quarter, historically characterized by less intense trade fair and congress activity in the summer months, the total revenues of the group amounted to 6.4 million euros, down by 77.4% compared to 28.4 million in the same period. of 2019. "This significant contraction is attributable to the pandemic", explains a press release, the main effects of which were the inability to carry out the Vicenza Oro September exhibition on a regular basis, replaced by the new hybrid event Voice-Vicenza Oro International Community Event, the halving of the number of conferences (15 compared to 30 in the first nine months of 2019) and the sharp reduction in captive and third-party activity on the related services front.
"The in-depth analysis of the feasibility of the integration operation with the Bologna Fiere Group continues with determination", underlined Ieg. On October 15, the two companies signed a non-binding term-sheet, concerning a transaction integration on the basis of an exchange ratio equal to 1: 1 and according to the procedures yet to be defined between the parties.
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