As anticipated all year, Viad Corp., parent company of GES, had a rough third quarter compared to the previous year, due to negative show rotation.
Revenue for the company was $236.5 million, compared to $307.5 million in the third quarter of 2012, and operating income amounted to $24.6 million, compared to $34.2 million in the same quarter a year ago.
Results for GES, which generates the largest portion of revenue for Viad, were similar. Revenue for the marketing and events group amounted to $156.5 million, down about a third from the third quarter of 2012 when revenue for the group was $230.3 million. The group showed an operating loss for the quarter of $7.9 million compared to an operating income of $2.8 million last year.
Among other things, last year’s third-quarter results included revenue from the International Manufacturing Technology Show and the London Summer Olympic Games.
Nevertheless, the quarterly results were fairly close to what they had been forecast with the negative show rotation estimated earlier to amount to $70 million at GES.
“Overall, our financial results are in line with expectations,” says GES President Steve Moster.
Moster also emphasizes the “wins” GES had during the third quarter by signing on new business or re-signing other events.
GES recently has re-signed contracts with Advanstar, including some new events it had not serviced in the past, like Licensing Expo, and renewed contracts with Penton Media and the International Council of Shopping Centers.
Moster says that, while it is too early to create a formal forecast for 2014, he is estimating a 4-percent return on margin for GES and positive show rotation in the neighborhood of $60 million to $65 million.