* Positive results cap successful 2007 business year
* Consolidation program continues
Deutsche Messe AG achieved earnings of EUR 2.6 million in 2007, underscoring its status as one of the world's leading exhibition organizers even in the face of a difficult climate for the industry.
"It was an intensive and successful year for Deutsche Messe", declared Managing Board Member and CFO Stephan Ph. Kühne in Hannover, following a Wednesday meeting of the group's Supervisory Board, which was apprised of the results.
Growing events contributed to the positive result last year, as did numerous internal process optimization measures. "Deutsche Messe is in good shape following the 2007 financial year," concluded Kühne.
Kühne emphasized: "Despite a tough environment for a number of our events, we were able to significantly improve the essential coefficients. We also continued our consolidation and optimization program intelligently and at the same time intensively."
Deutsche Messe AG increased its sales by 22 percent year on year for a total of EUR 286 million. Domestic sales were up 23 percent, reaching a total volume of EUR 251 million. Foreign sales were up 14 percent, for a total volume of EUR 35 million. Following a loss of EUR 8.7 million in 2006, the 2007 financial year yielded net income of EUR 2.6 million after taxes.
At the same time Deutsche Messe was able to significantly reduce its credit drawdown in 2007 by EUR 26 million to EUR 129 million. "This means that, since 2001, our enterprise has succeeded on its own strength in reducing the debt level by 50 percent," stated Kühne. Cash flow improved by 85 percent to EUR 46 million. Earnings before taxes, interest and depreciation (EBITDA) were up 20 percent year on year for a total of EUR 43 million.
2007 was a year of considerable progress for Deutsche Messe in its consolidation course, demonstrating the company's élan and dynamism, declared Kühne. Together with its highly motivated staff, the enterprise plans to take further steps to enhance its own competitiveness. Public subsidies to other exhibition companies in Germany are responsible for a substantial distortion of the competitive framework in that country, leading to insufficient margins in the exhibition sector.
Worldwide, Deutsche Messe produced a total of 111 exhibitions in 2007, with 54 of these taking place abroad and 43 occurring in the form of guest events. The company counted a total of 25,345 exhibitors at its events - an increase of more than 2,000 compared with 2006. The number of visitors at all events rose from 1.8 million in 2006 to 2 million in 2007.
The amount of net display space grew by 15 percent to reach a total of 1.4 million square meters.
The main factor in the positive results for 2007 involved substantial growth rates not only for Deutsche Messe-owned events, but for guest events as well.
- Hartwig von Saß -
More reports from this category all copyright automobilsport.com.
