MCH Group with significantly lower annual loss in 2021
The MCH Group reported a significantly lower net loss of 17.3 million Swiss francs for 2021. In 2020, the trade fair operator had posted a loss of 72.2 million Swiss francs.
At a media briefing on the annual accounts on Tuesday, those responsible for the MCH Group were emphatically positive about the 2021 result and optimistic about the future prospects. The positive result in the second half of the year (plus 12.1 million Swiss francs), which was primarily influenced by the resurgent Art Basel exhibition, gives rise to "good prospects for 2022".
With operating income of 243.3 million Swiss francs, the previous year's result (188 million Swiss francs) was significantly exceeded despite the ongoing pandemic.
Operating profit before interest, depreciation and amortization (EBITDA) was even positive at CHF 8.5 million (2020: -45.1 million). These factors were influenced, among others, by special financial effects in connection with the pandemic and the sale of a property.
After-effects of the pandemic remain
The pandemic will continue to affect the course of business in the current year. CFO Michael Hüsler mentioned the cancellation of this year's Giardina trade fair and the postponement of Swissbau in a reduced form to the unfavorable month of May for the construction industry. Art Basel in Hong Kong will also take place again in a reduced form.
The fate of the Baselworld watch and jewelry show was not a topic at the media conference. CEO Beat Zwahlen said in response to a question from journalists that they were currently investigating whether and in what form the MCH Group could continue to position itself in the luxury goods segment. The work on this needed more time than originally expected.
According to Zwahlen, the MCH Group is currently focusing on numerous new initiatives with the aim of responding to the major changes in the exhibition market. In doing so, he said, it is focusing on the three business fields of "Community Platforms", i.e. physical and digital formats, "Experience Marketing", for example, for the development and implementation of marketing solutions, and "Venues" in the halls in Basel and Zurich.
At the moment, the actual trade fair operations are clearly focused on the Art Basel segment with the previous editions in Basel, Miami Beach and Hong Kong and the new event "Paris+ par Art Basel", which will have its premiere in October. In this context, Chairman of the Board Andrea Zappia once again emphasized that the ultimate aim of going to Paris was to strengthen Basel as a location.
Capital increase
In 2023, the MCH Group will have to repay a bond amounting to CHF 100 million. This will not be possible to make from its existing own funds, Zwahlen said. "We assume that we will raise at least 50 million francs in fresh capital." Investor James Murdoch's anchor shareholders City of Basel and Lupa Systems support those plans, according to Zwahlen. (SDA)
