EUROPE - German venue Koelnmesse claims turnover for 2011 reached €235m (US$303m), a figure almost equal to its 2010 level, as the company looks to enter the black for the first time in years.
The company, which recorded an overall net loss due to high rental costs in 2011, claims its results will be affected by the smaller number of events scheduled for 2012, resulting in turnover between €220m and €230m.
However turnover for 2011 was almost on a par with the company’s 2010 record at €237m, “greatly exceeding” expectations for the 2011 trade fair year, according to CEO Gerald Böse. A continuation of this performance, during the stronger year in Koelnmesse’s exhibition cycle, is hoped to lead the venue and organisers into the black in 2013.
"If our company and the global economy are not hit by another worldwide crisis, in 2013 we will be in the black for the first time in years, as we previously announced. We will then remain profitable as of 2015," said Böse.
"There were double-digit percentage increases in the rented space and the exhibitor and visitor figures for the events in 2011," he added. “The systematic efficiency-boosting measures that were started in recent years and intensified in 2011 are also producing good results. We've succeeded in boosting our earnings by about €15m.”
However, Bose conceded high rental costs mean the company will post an overall loss this year. "We will once again post a net loss because of the high rent we pay for the Northern section of our exhibition centre, but we expect the figure to be under €10m," he said.
The biggest share of the turnover increase was generated by Koelnmesse Group’s own events. The previous record, set in 2010, included the staging of the German Pavilion at EXPO in Shanghai.
German organiser and venue owner Messe Frankfurt recently claimed it is benefiting from Germany’s trade agreements with the Gulf Cooperation Council.
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