(BFM Bourse) – The Lyon-based group specializing in events saw its turnover jump 77% last year to 1.315 billion euros in published data, a record.
A comeback worthy of the great sporting classics. Hit by the health crisis, with revenues divided by 2.5 in 2020 then down 37% in 2021 compared to 2019, GL events took its revenge last year with a spectacular rebound.
The event specialist from Lyon, which offers a range of services ranging from engineering to logistics to the implementation of events in the field, thus generated a turnover of 1.315 billion euros in the whole of 2022. This amount marks an increase of 77.4% over one year and 12% compared to the 2019 financial year, the last before the pandemic which had logically put a number of conventions, congresses or cultural events on hold. and sports. Like-for-like, annual growth was 73.5%.
An “exploded” objective
As TP ICAP Midcap points out, the group has “exploded” its annual objective, since the company was aiming for growth over one year limited to 55%.
The group has quite simply reached the highest level of activity in its history. And this despite the negative impact of China, which experienced a year 2022 weighed down by confinements linked to the zero-Covid policy. Excluding China from the scope, growth reached 92% over one year and 16% compared to 2019.
“GL events delivered a record year in 2022, above all expectations. After a long period marked by the health crisis and its direct impact on our events sector, 2022 was the year of confirmation of the The reopening of our event spaces and the return of major international events have enabled our employees to demonstrate all their talent and professionalism, particularly during events with a global reach such as the Football World Cup and COP 27”. developed Olivier Ginon, the CEO of the company quoted in a press release.
By division, “Live”, the largest division of the group which brings together the business of corporate, sports and institutional events, recorded growth of 98% over one year and 42% compared to 2019, to 852 million euros, thanks in particular to the holding of major sporting events and the COP 27.
The “Exhibitions” division, which manages a portfolio of trade fairs in the food, culture and even construction sectors, on the other hand, shows a decline of 4% over one year and 40% compared to 2019, penalized by China. Finally, the “Venues” division, which manages a network of 50 event sites, has increased by 95% over one year and is back to a level of activity close to the pre-crisis level (-5% compared to 2019).
Towards a little less margins than in 2019
In the fourth quarter of 2022 alone, GL Events published revenues of 510.5 million euros, up 68% over one year and 58% compared to the same period of the 2019 financial year.
On the Paris Stock Exchange, the market appreciates the point of vigorous activity delivered by the company. Around 10:25 a.m., the GL Events share thus took 7.42% to 19.98 euros.
The company will release its annual financial results on March 8. “Given the evolution of the mix, it should be noted that the margins will logically not reach the heights of 2019. Despite this, the results which will be published at the beginning of March should be of good quality and in clear improvement compared to last year. “, emphasizes TP ICAP Midcap.
The group confirmed its two objectives for the year ended December 31, namely to generate free cash flow of more than 100 million euros and “continue to reduce debt”. As a reminder, at the end of the first half of 2022, debt leverage (net debt relative to gross operating income over 12 rolling months) was less than 3 (2.97).
The company should then give its outlook for 2023. In terms of activity “the basis of comparison should logically be more difficult, particularly in the Live division despite many events (Rugby World Cup and Paris 2024 Olympics)”, rating TP ICAP Midcap.
“Nevertheless, at the same time, the group could also benefit from the rebound in activity in China (+40% estimated) and the resumption of its flagship trade shows in France, in particular SIRHA (whose attendance is better than in 2019) and Global Industries. In this sense, if the volumes could be lower than this record year, the margins should on the other hand be better”, develops the research department. The latter maintained its buy recommendation on Friday and raised its target price to 25 euros (against 22 euros previously).
Julien Marion – ©2023 BFM Bourse
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