Significantly better than planned
Karlsruher Messe- und Kongress GmbH (KMK) presented its balance sheet figures for 2016.
2016 was a record-breaking year for generated contribution margin. KMK’s Managing Director Britta Wirtz comments on this all-time high: “Operational results totalled 7.5 million euros, an improvement of 1.9 million euros compared to the 2016 business plan. This accomplishment far exceeds our expectations and is the best operative result ever achieved by the company. Intensive expansion of the portfolio certainly pays off.”
The improvement in generated contribution margin II, which occurred simultaneously with a slight decline in revenues, underscores the fact that the company possesses the most valuable portfolio since its founding.
Gabriele Luczak-Schwarz, mayor of Karlsruhe and chair of the supervisory board of KMK, expressed strong satisfaction with the achieved result: “The very good news, which is especially pleasing to me as chair of the supervisory board and as Karlsruhe’s financial mayor, is this: compared to the financial planning of 27.1 million euros, revenues improved by 3.5 million euros to a total of 30.6 million euros. This is a slight decline of 0.6 million euros compared to the record set in 2015. All in all, KMK has developed exceedingly well.” The financial planning had already taken into consideration and accordingly overcompensated for the anticipated consequences of the closure of the Stadthalle in 2017 and the cyclically weaker annual portfolio of KMK’s own fairs.
The drivers of this positive development are: organic growth of the existing portfolio and expansion of the portfolio of KMK’s own fairs; acquisition of valuable events with high service revenues; solid acceptance of the young trade fair centre; and long-term commitments from guest organizers. Together, these comprise a stable foundation for future business development. (ps)