Shows Contribute to Firms' Growth in '04

Advanstar, Tarsus and VNU all report strong results from exhibitions

By Margo McCall -- Tradeshow Week, 3/21/2005

Business-to-business companies had nary a negative word to say about tradeshows in 2004. VNU experienced strong growth from exhibitions in both the United States and Europe. Tarsus Group reported further expansion into the packaging-show realm. And Advanstar's fashion, power sports, licensing and home entertainment events continued to perform satisfactorily.

"[It] was a successful year for us," Advanstar CEO Joe Loggia told analysts during the company's conference call. "We're encouraged by both our financial performance and the progress we've made on achieving our strategic objectives."

Advanstar's overall revenue of $378.1 million in 2004 compared with $306.8 million in 2003. Tradeshows accounted for $151.5 million of that, up from $142.1 million in 2003.

CFO David Montgomery said revenue from the company's MAGIC Marketplace shows increased by 8 percent last year. Six new launches, together with the addition of tradeshows and conferences that came with the Thomson Healthcare Properties and IVT acquisitions, contributed $10.2 million in revenue. The gains, however, were balanced by the sale of British events and the company holding five fewer tradeshows in the technology and beauty markets.

The Netherlands-based VNU reported that its 150 tradeshows, produced by the U.S.-based VNU Expositions and VNU Exhibitions Europe, contributed 8 percent more revenue in 2004 than in 2003. "Tradeshows are always doing very well with us," CEO Rob van den Bergh told investors during a conference call.

Together, VNU's tradeshows, magazines and media properties in 2004 generated $3.8 billion ($5.1 billion), compared with $3.9 billion ($5.2 billion) in 2003. Its net earnings of $163 million ($218.6 million) were up slightly from $130 million ($174.4 million) produced in 2003.

The London-based Tarsus, a producer of exhibitions, conferences and publications, reported 2004 revenue of £15.5 million ($29.8 million), down from £17.7 million ($34 million) in 2003.

In the United States, five Off-Price Specialist Shows delivered a 10-percent revenue increase, while Labelexpo America's 2004 revenue was 13 percent higher than the previous year.

Neville Buch, Tarsus executive chairman, said that the company's core shows and newly launched and acquired events should translate into growth in 2005.