The MCH Group has updated its projection for the 2018 financial result. It expects a negative result prior to special measures of at least CHF 14 million. The prime reasons for the deterioration in the expected result compared with the forecast made in September 2018 are declines in the consumer fairs of Züspa and Comptoir Suisse and the final accounts for Grand Basel, which are further below the expectations.
In the context of the restructuring and transformation process that has been launched, the MCH Group is expecting provisions for restructuring costs in the range of CHF 30 – 40 million in the 2018 financial year. These provisions are planned primarily for structural measures and organisational optimisations. As announced at the beginning of September, the MCH Group also has to undertake further special depreciations for the value impairment of the exhibition halls in Basel in a three-digit million range.
The negative 2018 financial result prior to special measures is due first and foremost to the declines in Baselworld, the launch of Grand Basel and a further downward trend in the national exhibition and event business – namely for the general consumer fairs. By contrast to this, Swissbau, Art Basel and Masterpiece London were highly successful and were able to further strengthen their position. The MCH Group also registered a positive development in the “Live Marketing Solutions” division in 2018.
At the start of November, the MCH Group announced how it was approaching the necessary stabilisation and transformation of the company. In addition to the savings measures already introduced, it has launched further measures aimed at reducing costs, focusing the strategic initiatives and investments and streamlining the organisation.