After several challenging years, these results mark the first significant progress in the turnaround process, which aims to establish long-term financial health as a foundation for sustainable business success and substantial growth. The focus for the second half of the year is on achieving a break-even net result.
Consolidated key figures at a glance (figures for the prior-year period 2023 in brackets):
- Operating income: CHF 236.6 million (CHF 218.4 m, incl. CHF 4.5 m one-off effects)
- EBITDA: CHF 15.3 million (CHF 20.0 m, incl. CHF 5.5 m one-off effects)
- Net profit: CHF 3.6 million (CHF 4.7 m, incl. CHF 5.5 m one-off effects)
Initial progress of the turnaround: stabilization, efficiency, cost reduction
The first half of 2024 was marked by decisive progress: we continued our turnaround and invested in stabilizing our business activities. Andrea Zappia, Chairman of the Board of Directors of the MCH Group, emphasizes: “There is still a lot to do to accelerate the pace of change and build strong growth, but MCH team is on the right path”.
“Our way forward is defined by three key phases: Perform, Grow and Breakthrough.”
Florian Faber, Group CEO, MCH Group
The MCH Strategy 2030, which has been redefined together with the Board of Directors of the MCH Group, serves as a benchmark for the turnaround. “Our way forward is defined by three key phases: Perform, Grow and Breakthrough”, emphasizes Group CEO Florian Faber. “We are currently in the Perform phase, in which we are focusing on optimizing efficiency and reducing our cost base. To achieve this, we have taken initial measures worldwide to optimize our organization, systems and processes and save costs.”
With this strategic approach, we want to achieve our ambitious goals and lay the foundations for significant growth and sustainable success moving forward.
Outlook for the second half of 2024
The priority for the second half of the year is to achieve a break-even net result. The key objectives include solidifying revenues and intensifying our efforts to enhance profitability.
Revenue growth is expected to be moderate, largely due to seasonal fluctuations in our own exhibition business in Switzerland. This should be balanced by a strong performance in the USA and Middle East through our Live Marketing Solutions division and successful Art Basel shows in Paris and Miami Beach. The EBITDA margin will be stable compared to a negative EBITDA in 2023.
In the coming months, our agenda will center on investments in the expansion of our core business and the growth of Art Basel, the recovery of our own exhibition portfolio in Switzerland, growth in guest exhibitions and guest events, as well as securing and expanding our international live marketing business.
With the dedicated efforts of our global teams and the support of the programs we have introduced to secure our company’s future, we remain realistically optimistic about the period through the end of 2024.