Hamburg Messe und Congress GmbH continues on steady course

Growth and innovation strategy pays off. HMC heading for revenues of 58 million euros this year Hamburg Messe und Congress GmbH (HMC) continues on a steady course for growth. That is shown by the 2005 annual report, which has now been adopted by the Supervisory Board chaired by Johann C. Lindenberg. Total revenues increased last year to 42.9 million euros, 6.5% up versus reference year 2003. That was the highest revenue volume in an “odd-numbered” year in the company’s history. Odd-numbered years normally produce lower business volumes, because some of the leading international fairs such as the SMM and WindEnergy are held in Hamburg only every second year, i.e. in the even years. “That means HMC again exceeded revenue development in the German trade fair and conference sector as a whole. Our long-term growth strategy is paying off. And we will continue to pursue that strategy systematically in the future,” said Bernd Aufderheide, Managing Director of HMC. According to data from the professional association AUMA, sales volumes in the trade fair and conference sector grew by only 4.3% in 2005 compared with reference year 2003. However, the overall annual earnings of HMC were weaker than in 2003, because of the construction work at the fair site, giving a deficit of €9.3 million (versus €4.2 million deficit in 2003). The New Hamburg Trade Fair construction project has already had a positive impact on revenue development for Hamburg Messe (HM). Last year its revenues reached a total of €29.3 million*, that is 9.7% up on reference year 2003 (€26.7 million). “A major contribution to this positive development was made by the first new exhibition hall A1, increasing HM’s exhibition space by 10,000 square metres,” said Dietmar Aulich, Managing Director of HMC. “It was already fully booked in its first year, for INTERNORGA, hanseboot and shk Hamburg.” All in all, there were 10,424 exhibitors at HMC’s trade fairs and exhibitions. Compared with 2003 there was a particularly large increase in exhibitor numbers at HMC’s own events. The result was the best in “odd” years since 1999, with growth of more than 7%. The total space booked (including open-air space) for own events was likewise up on 2003, with a 10% increase to 410,168 square metres. This year, too, investments in the New Hamburg Trade Fair are expected to strengthen Hamburg’s long term position as a trade fair venue. For example, the Marketing Services event was held concurrently with the leading international fair WindEnergy, and the site was fully booked for the INTERNORGA 2006 and for the SMM 2006, which is the premier event for the shipbuilding industry. Revenues earned abroad amounted to €7.7 million (versus €7.3 million in 2004), coming from organisation of joint stands and national pavilions at international industry fairs. The focus of foreign activities was on core subjects for HMC such as the maritime industries, aviation, the food and hotel sector, and increasingly also petroleum and gas. The sales volume of the CCH-Congress Center Hamburg (CCH) in 2005 was €5.9 million (versus €8.6 million in 2004). The expansion and conversion work currently in progress limited the availability of the capacities at CCH, but despite this there were 313 events in the past year. There was a total attendance of 351,000 at 180 conferences and meetings, and 133 cultural events. The CCH thus mastered the challenge of keeping regular business running despite the construction work. Total attendance at conferences was in fact 27% up on 2004, at 146,000. The highlights of the past year included the WAEA – World Airline Entertainment Annual Meeting and Exhibition, the annual meeting of the shipbrokers and shipping agents, and the Annual General Meeting of Volkswagen AG. Construction work for expansion of CCH is proceeding rapidly. The new exhibition hall will already be in operation this autumn for acqua alta, 3rd International Trade Fair and Congress on Flood Protection, Consequences of Climate Change and Disaster Management. Events such as Bio- Europe are also strengthening the international profile of the conference location. CCH has now succeeded in attracting Europe’s major bio-technology and pharmaceuticals conference for 2007. The two Managing Directors of HMC, Dietmar Aulich and Bernd Aufderheide, continue to pursue a long-term growth strategy, with the four major pillars of internationalisation, innovation, infrastructure and integration. The growth trend at HMC will continue in the current business year. The company is expecting total revenues of €58 million for 2006 (one of the higher-revenue “even” years). That would mean growth of 5.3% versus 2004. HMC aims to double its total revenues to between 80 and 100 million euros by 2015. Its efforts are focused on the key clusters which are at the focus of Hamburg’s business and industry. These include the maritime and aviation industry, and also new energy resources, life science, restaurants and hotels, and the media.