Viad Corp., parent company of GES and Spiro, reported a 1.1% increase in revenues in Q2 2023 compared with Q2 2022. Total GES revenue came in at $231.8 million in Q2, a decrease of 4.0% from Q2 2022, primarily due to the sale of ON Services and 2022 shows that were postponed from Q1 to Q2 that returned to their normal first-quarter schedules in 2023. The decline was partially offset by live event activity strength and major non-annual shows like the Paris Air Show in the Q2 2023. 

The good news: GES Q2 results exceeded prior guidance, and Viad is raising its full year outlook, according to the release. 

Viad President and CEO Steve Moster said, “We delivered solid second-quarter results and are pleased to once again be raising our full-year guidance on stronger than expected GES performance.”

Moster continued, “We are very encouraged by the robust demand we’re seeing for Pursuit’s leisure travel markets and the continued growth in GES’ live events, and we remain confident that we will deliver substantial growth this year.”

Analysis of GES and Spiro

Total GES adjusted EBITDA was $26.8 million, a decrease of $8.3 million from Q2 2022, primarily due to lower GES revenue and increased staffing levels at GES as compared to Q2 2022 when a faster than expected recovery in event activity significantly outpaced workforce restaffing.

When asked about staffing leveling at GES and Spiro in Q2 2023 vs. Q2 2022, Viad told ENN, “We reached our full staffing levels to successfully support and produce our shows, but we continue to add talent in certain areas of the business to drive growth.”

In Q2, Spiro reported revenues of $80.4 million, compared with $89.4 in Q2 2022 or a decrease of 9.1%. Spiro’s client roster includes Boeing, Aveda, Cisco and the U.S. Air Force, to name a few.

“GES’ results exceeded our expectations for the second-quarter with higher than anticipated same-show revenue growth and the benefits of a series of margin-enhancing lean activities,” Moster said. “Same-show revenues for events produced by our U.S. exhibitions team grew to 99% of 2019 pre-pandemic levels as compared to 87% in the 2022 second quarter. At Spiro, spend from existing corporate clients is also near 2019 pre-pandemic levels, and we continue to win new clients in this large, fragmented market.”

Moster continued, “I continue to be impressed with the team’s focus on margin enhancement and the speed and strength of GES’ recovery from the pandemic. We remain committed to driving meaningful free cash flow through ongoing lean initiatives at GES Exhibitions and profitable growth at Spiro.”

We asked Viad to provide some insight into how the company will accomplish this. Viad told ENN, “We never stop looking for efficiency and continuous improvements at GES. Our lean initiatives include automation of processes and unique services that not only reduce manual labor, but also provide enhanced experiences to our customers such as our Shipping Label Kiosks. At Spiro, we will achieve profitable growth by winning, retaining, and growing clients while maintaining our cost discipline.”

2023 Outlook

“We are pleased to be raising our full-year guidance based on GES’ second quarter performance and our outlook for continued strong demand for GES’ live events and Pursuit’s leisure travel markets over the balance of the year,” Moster said.

Moster continued, “For the third quarter, we expect another record-breaking quarter at Pursuit with significant growth in adjusted EBITDA, partially offset by lower GES revenue due to show rotation and the sale of ON Services.”

In Q3, GES is projecting revenues of $165 to $180 million, compared with $218.9 in Q3 2022. For the full year, GES is projecting that same-show revenue for exhibitions will approach 2019 levels. 

Spiro clients’ marketing spend is expected to be similar to 2022. GES expects FY revenue growth from stronger demand for exhibition and event services. New Spiro wins will more than offset negative show rotation.  

“We intend to prudently invest in talent and capabilities at Spiro to fuel growth in 2023 and beyond,” according to the release.

Listen to a webcast of the earnings call here.

Photo caption: Spiro benefited from client activations at the Paris Air Show in Q2. The show, which was held in June, takes place every other year. The next Paris Air Show is scheduled for June 16-22, 2025.

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