Earnings: GES and Spiro Report Year-Over-Year Revenue Growth in Q1
May 6, 2024
Viad Corp., a global provider of exhibition management and experiential marketing services, reported first quarter (Q1) 2024 revenues of $273.5 million, an increase of $12.7 million or 4.9% from Q1 2023.
For Q1, GES, which includes Spiro, reported revenues of $236.3 million, compared with $228.1 million in the same period last year. GES reported an increase of $8.1 million or 3.6% year-over-year, which the company attributed to continued underlying growth that more than offset a $4 million decline due to the timing of major non-annual shows.
Context: GES is a global exhibition management and experiential marketing company offering a range of services to event organizers and brands through GES Exhibitions and Spiro. GES Exhibitions is a global exhibition and trade show management business that partners with exhibition and conference organizers as a full-service provider of strategic and logistics solutions throughout North America, Europe and the Middle East. Spiro is a global experiential marketing agency that partners with brands around the world to manage and elevate their experiential marketing activities.
Q1 trade shows: From January to March, GES produced a number of major U.S. trade shows, including:
- GES and onPeak supported the HAI HELI-EXPO 2024, held Feb. 27-29 at the Anaheim Convention Center. The association trade show drew 15,000 industry professionals and more than 600 exhibiting companies. HAI announced a new association name, Vertical Aviation International (VAI) and a rebranding of HELI-EXPO as VERTICON. View a video here.
- GES supported the World of Asphalt and AGG1 Aggregates Academy & Expo, held March 25–27 at the Nashville Music City Center. The event drew 400 equipment manufacturers, and the exhibit floor encompassed more than 207,000 square feet, a 14,000 square-foot increase compared to 2022’s event. Read the post-show release here.
- GES executed Questex’s International Beauty Show (IBS New York) and the International Esthetics, Cosmetics, & Spa Conference (IECSC New York), held March 3-5 at the Javits Convention Center. The co-located shows featured more than 500 brands, showcasing their newest products and innovations in the nearly 100,000 square feet of exhibit space. Read the post-show release here.
Recent activations: In recent months, Spiro worked with a number of global brands to produce events and activations, including:
- Metamates event for 6,000 Meta employees in London. Read more about the program here.
- Partnering with SAUDI AIRLINES & CSM Sport & Entertainment, Spiro delivered an exhilarating fan experience and brought bespoke content to life for 25,000 excited race fans at Formula E’s Diriyah E-Prix.
- Last fall, GES produced Future Proof: The World’s First Wealth Management Festival, held Sept. 10-13, 2023, in Huntington Beach, Calif. Read more about the event here.
Deeper dive: GES adjusted EBITDA of $18.9 million increased $2.2 million year-over-year, which company officials said was primarily due to higher revenue and improved margin. Viad invested $20.7 million in capital expenditures for Q1, including $4.3 million for GES.
What they are saying: Steve Moster, Viad’s president and CEO, commented, “We delivered solid first quarter results that were in line with our expectations. GES continues to deliver strong profitable growth, with a 70 basis point year-over-year improvement in its Adjusted EBITDA margin.”
ENN Related: EARNINGS: GES AND SPIRO PARENT COMPANY VIAD POSITIVE ON 2024 AFTER DOUBLE-DIGIT REVENUE GROWTH IN Q4 2023
2024 Outlook: GES expects revenues of $260-$280 million, with EBITDA of $34.5 to $38.5 million for Q2 and revenues up in the low double-digits for the full year with EBITDA of $80 to $90 million.
Looking ahead: "With accelerating business activity ahead and signs of robust demand for our extraordinary experiences at both Pursuit and GES, our favorable full year outlook remains unchanged,” Moster said. “We continue to expect year-over-year consolidated adjusted EBITDA growth of approximately 16% to 30% in 2024 with strong free cash flow.”
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Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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