Recovery higher than expected: Fiera Milano updates the business plan

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The recovery was faster and more robust than expected, despite a start to the year which – due to the Omicron variant of Covid-19 – had made the exhibition sector tremble again. «The numbers say it: we have revised the guidance constantly throughout the year, and always in the direction of improvement. After the results of the third quarter, the Ebitda target for 2022 has been raised to 50-55 million euros, against the 40-50 foreseen in the Connect business plan presented in February 2021″. Luca Palermo, administrator of Fiera Milano, takes stock of this 2022 which he himself a year ago, right from the columns of our newspaper, had defined as the turning point year for Italian fairs. Well, there has been a turning point, and not just from an accounting point of view.

The update of the industrial plan

So much so that, Palermo announces, an update of the Connect plan will be presented in the coming months. «It is due, because since then the situation has completely changed, fortunately for the better – explains the managing director -. In November and December, we presented two new growth plans to the board, one linked to internationalization and one to digital and data services, which contain additional elements to the Connect plan. Furthermore, revenues from stand-fitting activities increased more than expected, exceeding the levels of 2019. In the light of these results, we will update the industrial plan during 2023».

However, the update will inevitably also have to take into account the problems of this historical phase: Fiera Milano, like all companies, has to deal with high energy costs and inflation. Next year, your energy bill will increase 3.5 times compared to 2022, not counting the additional costs of paying suppliers. The latest update of the guidance Ebitda for 2023, approved in mid-December, revised the target downwards (to 70-80 million), because 13 million additional costs for energy are estimated. However, the doubling of the photovoltaic system which currently covers 10% of needs will mitigate the bill. “By the end of the year we will reach 20%,” says Palermo.

Recovery better than expected

Despite the difficulties, the CEO is optimistic: 2022 has seen a very strong acceleration of the recovery, especially in the second half of the year, with Eicma approaching 500,000 visitors, while Games Week has even exceeded them, with a record of over 100,000 visitors and Artigiano in Fiera (of which Fiera Milano has become a 25% shareholder) also exceeded one million admissions. “At the end of the year we should reach around 1.2 million square meters of exhibition space sold, against 1.4 million in 2019”, specifies the CEO. 2023 opens with a rich calendar: there are over 50 events scheduled in Italy, including the flagships Tuttofood and Host, 23 abroad and about 160 congresses.

international development

Furthermore, in June Itma will return to Milan, the largest world fair for textile and clothing technology, which has been missing since 2015 and which confirms Fiera Milano’s strategy of attracting the most important international traveling fairs to the city, as happened this year with Gastech. This is precisely one of the three pillars of the new internationalization plan presented to the board of directors in November, which plans, by 2026, to host five international events a year in the Milan district. The second pillar of the plan is the opening of commercial offices abroad, to strengthen the business incoming of exhibitors and visitors to the Fiera Milano districts: «We will start with Germany, France and Spain – explains Palermo -. We expect to be up and running within three years». Lastly, Fiera Milano aims to consolidate its foreign presence in terms of exhibitions held. «We are ready to make partnerships and acquisitions», says Palermo. Furthermore, there is great attention for countries where there are still opportunities to develop their own formats, alone or in partnership, such as Singapore, where this year Fiera Milano has brought Find, the fair dedicated to furniture and design.