GES' Parent Company Sees Q2 Net Income, Revenue Increases
July 28, 2013
Viad, the parent company of Global Experience Specialists (GES), saw a Q2 uptick in net income this year to $6.3 million, compared with $6.1 million in the same period last year, as well as an increase in revenue to $249.3 million, compared with $246.5 million during the same period in 2012.
“Our results for the second quarter of 2013 were in line with prior guidance, despite extensive flooding in the Canadian province of Alberta during late June that impacted the Banff- and Jasper-based operations of our Travel & Recreation Group,” said Paul B. Dykstra, Viad’s chairman, president and CEO.
He added, “Overall, both of Viad’s business units posted solid results for the quarter, with consolidated revenue of $249.3 million and segment operating income of $10.9 million.”
The future is looking positive as well, with the Marketing & Events Group continuing to experience same-show growth, visitation to Banff and Jasper is improving after the floods and there are strong advance room bookings for Glacier Park and Alaska Denali Travel, Dykstra said.
The U.S. division of the Marketing & Events Group, of which GES is a part of, was down in the second quarter 2013 to $155 million, compared with $165 million during the same quarter in 2012.
Steve Moster, GES’ president, said the decrease was a result of negative show rotation, which will continue to impact revenues through the rest of the year.
Last year, for example, had two huge events, the biannual International Manufacturing Technology in Chicago and the London Olympics.
“This quarter was in live with guidance from the prior year,” Moster said.
International revenues in the second quarter, however, were up to $68.6 million, compared with $54.7 million during the same quarter last year.
“We had a large jump year over year in the second quarter,” Moster said. “The Paris Air Show happens biannually, and it was a big contribution to increase in revenue.”
This year has had some other wins so far as well, including renewals of big shows such as the E3 Expo and NAMA (National Automatic Merchandising Association) and winning some new business, he added.
In addition, GES has had a strong focus on their corporate events, including Microsoft and Mary Kay event, which is a new client.
Besides traditional events and trade shows, the Marketing & Events Group also worked on Random International’s “Rain Room” at the Museum of Modern Art (MoMA) in New York City at which people could literally walk through a room filled with rain and not get wet, as well as the “Harry Potter” exhibit in Tokyo that saw more than 100,000 attendees in the first 23 days since it opened.
Overall, though, show rotation is expected to have a net negative impact on full-year revenue of approximately $55 million. U.S. same-show growth still is expected to grow in the low single digits.
“In 2014, we’ll continue to see growth in the industry,” Moster said.
Dykstra added that the slower same-show growth was expected, compared with last year’s numbers.
“We are focused on delivering on our commitments for 2013, and believe we are well positioned to continue to grow our business and generate enhanced shareholder value in the coming years,” he added.
Partner Voices
Overview:
The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality.
In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way.
“We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.”
Amenities:
The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.
The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience
The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need.
Gold Key Members
The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events.
OCCC Events:
This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.
The Center’s top five events during their 2022-2023 fiscal year included:
AAU Jr. National Volleyball Championships 2023
200,000 Attendees
$257 Million in Economic Impact
MEGACON 2023
160,000 Attendees
$205 Million in Economic Impact
Open Championship Series 2023
69,500 Attendees
$89 Million in Economic Impact
Sunshine Classic 2023
42,000 Attendees
$54 Million in Economic Impact
Premiere Orlando 2023
42,000 Attendees
$108 Million in Economic Impact
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