Profits on song at SMG Europe
SMG Europe, the operator of the Manchester Arena, nine other venues in the UK and sites in Germany, Turkey, Poland and Norway, has reported strong annual results.
The US-owned group – which has its headquarters at its 20,000-capacity flagship Manchester venue – said its 2011 results had been boosted by comedian Peter Kay’s “sensational” 20-night run in Manchester.
Profits rose from £5.7m to £6.4m on turnover of £44.1m, up from £42.2m the year before.
Directors said UK trading had improved “significantly” in 2011, while Germany – where it operates the Odysseum in Cologne and the König-Pilsener Arena Oberhausen – saw only modest growth.
In 2011 SMG Europe operated 1,027 events, compared with 881 in 2010, hosted 2.2 million concert attendees (1.9 million in 2010). Average income per event though was below the previous year at £23,591 compared with £25,089.
In their review of trading, directors said: “The group’s flagship arena, the MEN Arena, performed in line with budget and Newcastle Metro gave a strong performance which provided the platform for the UK group to exceed budget.
“Attendance numbers and the number of events increased significantly compared to 2010, this was due mainly to the opening if York Barbican and Scunthorpe Baths Hall.
“Consumer secondary spend is still impacted by the global recession when comparing income by event to 2009, however the income held up and produced a very good set of results for 2011.”
During the year SMG Europe opened two new venues on the continent – the Ora Arena and Convention Centre in Istanbul and Wroclaw Stadium in Poland. Both venues are performing in line with expectations, the group stated.
It said it was “difficult” to end the naming rights deal for the Manchester arena with MEN Media, but said the situation “opens a new chapter and greater potential to build on the reputation of one of the largest indoor venues in Europe.”
Looking forward the group said it is targeting Eastern Europe for growth in terms of larger venues, and warned that margins are under pressure from “state subsidised venues.”
