MCH Group | Ad hoc announcement pursuant to Art. 53 LR | MCH Group half-year Closing
August 31 2022 - 1:00AM
MCH Group | Ad hoc announcement pursuant to Art. 53 LR | MCH Group
half-year Closing
MCH Group half-year Closing:First half
of 2022 still marked by Covid, prospects of positive
development
- In the first quarter of 2022, business activity – with the
exception of the Experience Marketing segment – was still largely
at a standstill due to the Covid-related restrictions.
- In the second quarter, the event business picked up noticeably
and we expect a further normalisation of the pandemic situation and
a positive development of business activity.
- Compared to the same period last year, we were able to more
than triple operating income to CHF 185.6 million. The operating
result before interest, taxes, depreciation and amortisation
(EBITDA) is almost balanced at CHF -3.2 million. The half-year loss
amounts to CHF -13.2 million.
- Another Group loss is expected in the second half of the year.
However, EBITDA will continue to improve, and we expect the
full-year result will also be positive even without any special
income.
Significant increase compared with the same period last
year
Compared with the same period of the previous year, we were able
to more than triple our operating income to CHF 185.6 million in
the first half of 2022. Nevertheless, the pandemic-related impact
on the first half of 2022 is significant, as MCH Group overall lost
a significant double-digit million amount in sales, with a
correspondingly large impact on the result. The Experience
Marketing segment recorded an increase in operating income to CHF
128.3 million in the first half of 2022 compared with the same
period of the previous year. This segment's share of the group's
overall result rose from 56.3% to 69.1%. In the Community Platforms
segment, operating income almost tripled year-on-year to CHF 55.6
million thanks to the second quarter. This segment accounts for 30%
of the group's total result.
The consolidated net loss for 2022 is CHF -13.2 million. The
consolidated result improved significantly by CHF 16.2 million
compared with the same period last year. EBITDA for the first half
of 2022 amounts to CHF -3.2 million (first half of 2021 CHF -17.4
million). Due to the half-year loss, cash and cash equivalents
decreased from CHF 113.7 million to CHF 100.5 million in the first
half of 2022 and equity fell to CHF 34.5 million.
Outlook for the second half of the year
In the second half of the year, “Paris+ par Art Basel”, staged
by Art Basel for the first time, is planned in October and Art
Basel in Miami Beach in December. In Basel, the program includes
the “Holz” (trade fair for the wood working industry) and the Basel
Wine Festival, the “Berufsmesse Zürich” (careers and education
fair), the IFAS (health market trade fair) and the Digital Festival
and HackZurich are planned in Zurich, and the Ilmac (platform for
the chemical, pharma, and biotechnology industry) and the “Salon
des métiers et de la formation” in Lausanne. In the area of
experience marketing, we see a further increase in demand for our
services, both for orders in the second half of 2022 and already
towards 2023.
Assuming a progressive normalisation of the pandemic situation
and without further geopolitical destabilisation, we expect a
further positive development of business activity. According to
current estimates, the second half of 2022 will show a consolidated
loss in the low to mid single-digit million range at Group
level.
According to current expectations, we expect EBITDA to continue
to improve in the second half of the year and to be positive, so
that EBITDA for the full year can also be expected to be
positive.
Based on the significant increase in business activity and on
the further development of the strategy, we have updated the
multi-year planning. The medium and long-term goals are still
ambitious. We are convinced that they are achievable. However, a
crucial prerequisite for this is the successful implementation of
the planned capital increase in the second half of 2022.
Planned capital increase
The announced planned capital increase will be submitted to the
shareholders at an Extraordinary General Meeting on 28 September
2022. The invitation will be sent out soon. The Board of Directors
plans a capital increase of up to around CHF 80 million, of which
CHF 68 million are backstopped by the Canton of Basel-Stadt and
Lupa Systems.
- Half-year Report
- Ad hoc announcements
Media contact:MCH Group AGCorporate
CommunicationsEmanuel Kuhn+41 58 206 22
43emanuel.kuhn@mch-group.com
About MCH GroupMCH Group, headquartered in
Basel, Switzerland, is an internationally active experience
marketing company with a comprehensive service network. It
organizes around 30 community platforms in Switzerland and abroad,
including the Art Basel fairs, Swissbau, and Giardina. The Live
Marketing Services division offers comprehensive experiential
marketing solutions with its brands MCH Global, MC2, and
Expomobilia. MCH Group also operates the Messe and Congress Center
Basel and the Messe Zurich.The company employs more than 800
permanent staff, around half of whom are based in Switzerland and
the US. In the 2021 financial year, the group posted consolidated
sales of CHF 243 million, despite business operations coming to a
virtual standstill in many areas due to
Covid-19.www.mch-group.com
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