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Jun 30, 2022
MotiTest Q2 2022 Earnings Report
Viad Corp's second quarter results exceeded expectations, with full year expectations raised due to strong performance in GES and Pursuit.
Key Takeaways
Viad Corp reported a strong second quarter with net income of $19.8 million, driven by substantial year-over-year growth in both GES and Pursuit. The company is raising its full year 2022 guidance for consolidated Adjusted EBITDA based on current trends and first half performance.
Second quarter results significantly exceeded prior guidance due to faster recovery of in-person event activity.
GES' second quarter revenue reached 75% of the pre-pandemic 2019 second quarter.
Pursuit delivered record second quarter revenue, 40% greater than the 2019 quarter, driven by new experiences.
Full year 2022 guidance for consolidated Adjusted EBITDA was raised.
MotiTest
MotiTest
Forward Guidance
Viad Corp anticipates very strong year-over-year growth from both Pursuit and GES and is increasing its full year guidance for consolidated Adjusted EBITDA, assuming no material adverse changes to the macro environment.
Positive Outlook
- US same store revenue outperforms 2019 on strong leisure travel demand and benefit from continued investment in the guest experience
- Canada same store revenue remains below 2019 as certain long-haul international leisure travel markets are slower to recover
- New experiences continue to ramp up as guest awareness builds and long-haul leisure travel demand increases
- Revenue management efforts to drive rate increases help offset wage rate and other inflationary pressures
- Margins will improve from 2021, but remain below 2019 due to guest mix that will see strong demand from N. America and Europe while Asia Pacific markets are slower to recover
Challenges Ahead
- Exhibitions same-show revenue will generally remain at or better than 75% of pre-pandemic levels
- Experiential marketing budgets of major Spiro clients will remain at 80%+ of pre-pandemic levels
- SG&A will gradually increase to support increased business activity and future revenue growth
- Corporate expenses will be slightly higher in the second half of 2022 primarily due to timing of certain expenses
- Potential adverse changes to the macro environment from COVID, geo-political events, or other factors