Cannes Lions drives profits for Top Right with events division posting pre-tax profit of $99.7m
Advertising festival Cannes Lions drove a surge in profits for parent company global business-to-business media group Top Right, which saw its revenues surge 15 per cent to $620.3m in 2014.
Events, the company’s largest business segment, delivered organic revenue growth of 14 per cent, with the Cannes Lions singled out as the biggest driver of that, to deliver a revenue result of $280.6m, up from 2013’s revenue of $240.6m.
The division posted a profit before tax of $99.7m, up from $86.2m the previous year.
According to Top Right’s annual report, more than 12,000 delegates from 94 countries attended the Cannes Lions festival, of which more than half are director level or above.
The launch of the Lions Health two-day festival was also cited as one of the key drivers of growth while last year saw the highest number of entries at regional festivals Eurobest, Dubai Lynx and Spikes Asia.
Top Right Group chief executive Duncan Painter said in a statement: “Our three year turnaround plan is now complete. Our businesses have effective growth strategies in place and clear operating priorities.
“I am delighted to announce that we have again grown our client base and further improved customer satisfaction and retention to industry-leading levels.
“Our 2014 revenues were above £300m for the first time and as results from earlier acquisitions and internal investments in systems and technology come through, I am particularly pleased to report a substantial growth in profits, with EBITDA increasing by 24 per cent headline, a significant acceleration over previous years.”
The positive results will bolster rumours the company will look to hive off certain events, with conversations about the sale of the Cannes Lions thought to have happened in the last 12 months.
The group’s subscription content segment, which comprises EMAP and the Media Business Insight business which was sold in January this year, generated revenues of $155.2m, an organic growth of 6 per cent. It delivered a profit before tax of $34.8m.
EMAP’s digital and events revenue lines shifted from 34 per cent of revenues in 2008 to 59 per cent in 2014.
Painter said: “Our focus for 2015 is very simple – Improving our products and how we provide them, to ensure they deliver what our customers tell us is important to them.”
Miranda Ward
Miranda Ward worked for Mumbrella from 2013 to 2017, eventually becoming deputy editor. Miranda joined Mumbrella in September 2013 from Sky News.
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