(BFM Bourse) – The events specialist saw its revenues increase by 19% in the first half of the year thanks to an increase in activity of 158 million euros linked to the Olympic and Paralympic Games.
The Olympic and Paralympic Games have strongly supported GL Events’ activity in the first part of 2024. The French group specializing in events has notably provided temporary stands and fitted out the Palace of Versailles.
Which inflated, in the first half of 2024, the revenues of its “live” activity dedicated to institutional, sporting and corporate events. This division alone recorded a growth in its revenues of 35% over one year to 497 million euros, a turnover which includes 158 million euros of revenues linked to the Paris Games over the period. The company also specifies that another 150 million euros of turnover linked to the Games must still be recognized.
This increase in business volumes led to a 256% jump in the current operating income of the “live” division, to 35 million euros, for a margin that went from 2.6% to 6.9%. The first half of 2023 had however been penalized by contracts without margin and by a significant loss experience on projects.
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Profitability remains stable
At the group level as a whole, GL Events’ revenues increased by 19% to €821 million in the first half and by 21% on a comparable basis. The “exhibitions” division (trade fairs) saw its turnover decline by 21% to €113 million, penalized by an unfavorable calendar in terms of trade fairs. The “venues” division (management of performance halls, convention centers and exhibition parks) recorded growth of 18%.
Current operating income increased by 21% to 81 million euros while the corresponding margin was stable over one year, at 9.8%. The improvement in the “live” division, which remains the least profitable of the group’s three divisions, was offset by the decline in profitability of the other two divisions.
Net profit stood at 39 million euros, up 24% over one year.
Following this publication, GL Events confirmed that it was targeting revenue growth of more than 9%. The group had raised its target in July, when it published its first-half revenues, whereas it had previously expected growth of around 7%.
According to TP ICAP Midcap, management also indicated on Wednesday evening that it anticipates a 13% growth in its gross operating profit for 2024, after a 16% increase in the first half.
On the Paris Stock Exchange, the market appreciates the publication of GL Events. Around 3 p.m., the share jumped 14.15% to 19.20 euros.
TP ICAP Midcap praises “once again solid” results. “Ultimately, 2024 promises to be another very good year for the group with highs that should once again be exceeded. Despite this, the stock continues to trade very far from its historical multiples (nearly 40% discount based on operating profit multiples)”, says the research firm, which has logically renewed its buy recommendation.
Julien Marion – ©2024 BFM Bourse
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