GES Scores Whopping 52-percent Q3 Revenue Increase
November 5, 2016
The third quarter of this year was a huge one for Global Experience Specialists, scoring $287 million in revenues, compared with $189.9 million during the same quarter the year before, a whopping 52-percent increase.
“GES delivered strong third quarter revenue growth and the team did an excellent job driving the additional revenue to the bottom line,” said Steve Moster, who leads GES and its’ parent company Viad.
He added, “In addition, we completed an important strategic acquisition in mid-August that gives us a more meaningful presence in the large U.S. audio-visual services market. The acquisition of ON Services is well-aligned with our strategy to diversify our mix of event services toward higher-margin adjacencies and to expand our reach further into corporate events as we continue to position GES as the preferred global, full-service provider of live events.”
U.S. organic revenue increased 51.5 percent ($76.4 million), primarily due to positive show rotation of approximately $67 million, new business wins and base same-show revenue growth of 3 percent.
International organic revenue also increased 53.5 percent ($24.0 million) from the prior year quarter, primarily due to positive show rotation of approximately $18 million, new business wins and same-show growth.
One of the biggest shows in the U.S., the quadrennial MINExpo International, which is a GES client, was held in the third quarter in Las Vegas.
The show covered more than 840,000 net square feet, showcasing the latest mining equipment and technology from more than 1,900 exhibitors around the world.
The acquisition of ON Services also contributed revenue of $7.8 million, adjusted segment operating income of $0.5 million and adjusted segment EBITDA of $1.7 million during the 2016 third quarter, in line with prior guidance.
ON Event Services, a leading provider of live event audio visual production services that includes audio, video, lighting, mapping and scenic design, was acquired in August 2016.
GES fourth quarter revenue is expected to be relatively in line with the prior year quarter as continued underlying business growth and the acquisition of ON Services help to offset the expected impact of negative show rotation of about $15 million and unfavorable currency translation of approximately $10 million.
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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