Gratifying first-half result for the MCH Group

The consolidated operating income of the MCH Group during the period under review, from 1 January to 30 June 2011, is CHF 225.3 million (same period previous year: CHF 242.1 million). With a consolidated group profit of CHF 25.2 million, the profit margin is 11.2%.

The balance sheet structure as per 30 June 2011 shows a balance sheet total of CHF 708.9 million (31 December 2010: CHF 645.4 million) with current assets of CHF 262.5 million (CHF 213.1 million) and fixed assets of CHF 446.4 million (CHF 432.3 million) on the assets side. The liabilities side accordingly shows outside capital of CHF 394.0 million (CHF 392.7 million) and group equity, including minority interests, of CHF 314.9 million (CHF 252.7 million). As a result of the new buildings under construction in Basel, the balance sheet total is considerably higher than for previous years.

With the less busy exhibition schedule in the absence of Swissbau, which is only held in even years, the operating income and profit are below those of the previous year but higher than those for the first-half of 2009. In view of the still varied economic setting, the first-half result can thus be regarded as highly gratifying.

In the first half of 2011, operating income of CHF 165.2 million was generated by the exhibitions run by the MCH Group itself, accounting for 73.3% of the group's overall operating income. As a result of the effects mentioned before, operating income from the MCH Group's own exhibitions is down CHF 25.3 million on the figure for 2010 but is CHF 12.1 million above the figure for 2009.

In the MCH Infrastructure (rental business) and MCH Event Services business fields, operating income was boosted still further by comparison to previous years. Compared with 2010, the operating income from rental business was increased by CHF 1.6 million to CHF 14.1 million, amounting to 6.3% of overall operating income. Operating income in the Event Services field rose by CHF 6.9 million compared with 2010, to stand at CHF 46.0 million, accounting for 20.4% of overall operating income in the first half of 2011.

At the exhibition sites in Basel, Lausanne and Zurich, 14 MCH exhibitions and 18 third-party exhibitions were held, attracting approximately 7500 exhibiting companies and more than one million visitors.

Impact of the currency crisis
The overvaluation of the Swiss franc compared with the euro and the US dollar has not had any significant influence on the first-half result for 2011, since the strong franc had only a limited direct influence on the domestic exhibition business. Corresponding currency losses were, however, incurred in MCH Event Services' foreign business. This also has to be expected in the second half of the year – depending on developments in the exchange markets. In addition, the strong franc compared with the US dollar will have a direct impact on Art Basel Miami Beach in the group's exhibition business.

A permanent overvaluation of the Swiss franc will also indirectly affect domestic exhibition business. It will create (additional) drawbacks for Switzerland as a location by comparison with the euro countries and will lead to increased price pressure on the part of foreign exhibitors. In the case of domestic exhibitors, the problems of export-oriented sectors will rub off on the exhibition business – companies will (be forced to) further scrutinise and cut back on their marketing budgets and trade fair participation, for example. It is impossible to say how strong this impact will be.

Seasonal fluctuation
In view of the major seasonal fluctuations in the exhibition business, it is impossible to extrapolate the first-half result on a linear basis and draw conclusions regarding the expected annual result. In addition to this, the summer months, when no events are held, fall in the second half of the year. The second six months will thus be considerably weaker than the first half, and also reduce earnings on account of currency turbulences. The MCH Group is expecting an annual profit below the figure for the first-half result.

MCH Beaulieu Lausanne SA
MCH Group Ltd. intends to set up a new company, MCH Beaulieu Lausanne SA, and to subsequently merge this with Beaulieu Exploitation SA. This will enable MCH Group Ltd. to acquire the minority of 7.5% of the shares holding in Beaulieu Exploitation SA, which are not yet in the hands of the MCH Group.

Contact
MCH Swiss Exhibition (Zurich) Ltd. Wallisellenstrasse 49 8050 Zurich Tel. 058 206 50 00 Fax 058 206 50 50 info@messe.ch