The first half of 2017 has already been record-breaking
Annual revenues of €34.2 million in 2016 – Financial year 2017 proceeding according to plan – High rent payments help reduce debt – Proactively addressing market changes: “We are preparing ourselves for the future”
Annual Press Conference
The first half of 2017 has been shaped by records for Messe Friedrichshafen. The Motorradwelt Bodensee and the 25th AERO both wrapped up with double-records for both visitors and exhibitors and more exhibitors than ever were represented at the OutDoor 2017 (965 from 40 countries). At the Messe’s annual press conference in Friedrichshafen on Thursday, it was announced that “we are very pleased with how well things have gone in the first half of 2017. However, we also see developments and changes in the market, for example in the case of the Eurobike and the OutDoor, which we are addressing proactively.” The newly installed cooling system already passed the test with flying colors during the OutDoor 2017. During the first big heat wave in June, the exhibition center offices stayed “cool” while “comfortable working temperatures” reigned in the exhibition halls.
“The €5.2 million investment in the improvement of the cooling system was completed on time and within budget,” said Andreas Brand, Mayor of the City of Friedrichshafen and Chairman of the Supervisory Board of Messe Friedrichshafen. After all, such news is not to be taken for granted. “I am very pleased that I can report on positive developments at today’s annual Messe Friedrichshafen press conference. Looking back, the 2016 financial year concluded very positively,” concluded Brand. Not just the large international flagship trade show AERO, but also regional events like the IBO and the Motorradwelt Bodensee motorcycle show should be specifically mentioned in this context, Brand said. Together with Messe Friedrichshafen CEO Klaus Wellmann and authorized representative Stefan Mittag, Mayor Brand presented the 2016 annual report at the press conference on Thursday, July 6, 2017, and reported on the positive progress of the ongoing 2017 financial year.
“In the last few years, Messe Friedrichshafen has performed successfully and has put a strong focus on paying down debts,” Brand said, explaining the figures. “In 2016, the exhibition center generated impressive revenues of €34.2 million and paid €8.6 million of that in rent.” The supervisory board chairman also emphasized the rent payments made by the exhibition center operator Messe Friedrichshafen GmbH to the property ownership company, Immobilienbesitzgesellschaft der Internationalen Bodenseemesse GmbH. “This amounts to significantly more rent than expected (base rent: €4.1 million). The large majority of depreciations could also be covered by these payments, as well as all of the other expenditures, including financing costs.” Furthermore, in the past few years, it has been possible to agree upon higher and higher rent payments, to move ahead more forcefully with paying off debts and significantly reduce the burden of interest payments.
Financial year 2016
A total of 65 trade shows and visitor events, conferences and seminars were on Messe Friedrichshafen’s 2016 schedule. The business year was characterized by significant growth and even visitor and exhibitor records. “Visitors flocked to the Motorradwelt Bodensee and in the end the show reached a new high water mark of 44,900 visitors. The Pferd Bodensee horse exhibition also saw more visitors (19 percent increase) and exhibitors (18 percent increase),” CEO Wellmann explained. Then came the Fruchtwelt Bodensee fruit growing expo, also with a new exhibitor record (369 exhibitors) as well as the international industry trade show OutDoor, with 960 exhibitors. Likewise, the model engineering show Faszination Modellbau was able to set a new visitor record with more than 50,000 guests. But above all, it was the very good revenues at the AERO, the Eurobike and the OutDoor, as well as the Motorradwelt Bodensee and spring’s IBO trade show, that were responsible for 2016’s good financial results.
Financial year 2017
The ongoing 2017 financial year has also been characterized by records. Overall, Messe Friedrichshafen again expects revenues of about €34 million. “We expect a good financial result,” explained Stefan Mittag, head of finances at Messe Friedrichshafen., The Fakuma industry trade show will again take place in the 2017 trade show year and is already registering a “full house” for its 25th anniversary. The Faszination Modellbau in November 2017 is becoming a global event for model building.
Despite the successful news in the first half of 2017, Messe Friedrichshafen also sees challenging developments, for example in the markets of the OutDoor and the Eurobike, for which it is preparing. “For our two flagship shows, we must address an increasingly competitive situation,” stressed CEO Wellmann. “Themes that are part of our specific industry focus are being addressed at new trade shows locations and at in-house trade shows put on by some manufacturers, either as complementary to ours or as alternatives.” The hotel situation, the transportation infrastructure and the question of air access to the Lake Constance region are also topics that are very much of concern to the exhibition center. “We are entering a time of investments that are increasingly needed be individual events,” said Wellman. “We are therefore acting with a view towards changes in the industries and in the trade show landscape, and are preparing ourselves for the future.”
Facts about Messe Friedrichshafen
With 88 employees and additional support staff, in 2016 a total of 64 events (2015: 81) took place at the exhibition center and grounds, including international industry trade shows, regional exhibitions and visitor events. 712,580 visitors (2015: 689,434 visitors), 8,728 exhibitors from 58 countries (2015: 9,422 from 63 countries) and 4,727 media representatives from 51 countries came to Friedrichshafen during 2016, according to calculations.