Ticking over: Koelnmesse planning equity incr...
Ticking over

Koelnmesse planning equity increase

Koelnmesse intends to resume its sustained growth as soon as possible after the coronavirus pandemic. The company plans to return to previous levels of profit and revenue from 2023, assuming that the global economy returns to its previous level of stable growth. So far, the financial reserves from the solid economic trend of recent years, combined with short-time work and the current policy of strict austerity, have carried the company through the crisis without major staffing cuts. Chief financial officer Herbert Marner estimates around 95 million euros in revenue for 2020, with a loss of roughly 115 million euros. The company is helped by the fact that in 2019 it booked record revenue of 413 million euros, with more than 30 million euros in profit after tax.
„We are certainly going to have to accept further significant losses in revenue“
Herbert Marner, CFO Koelnmesse
Marner: "Nearly half of our above-average equity of more than 250 million euros may have been consumed by year's end, but the equity remaining is still enough to handle previously known and potential further losses in 2021." This is also set to be true for liquidity for the time being, "which we might have to replenish with fresh borrowing in the second half of the year." In addition, contrary to plans before the crisis, Koelnmesse is looking to finance a portion of its innovation and investment programme Koelnmesse 3.0 through an additional, earmarked equity increase of 120 million euros as part of the effort to safeguard its future competitiveness. "We currently have this matter under discussion with our shareholders." A forecast for the current year remains difficult. Herbert Marner: "We are certainly going to have to accept further significant losses in revenue and, depending on the duration of the crisis, we will be seeing high losses."