© Forbes
Arena Events Group (ARE) shares jumped after interim results revealed that it swung from a £0.3m loss to an operating profit of £5.3m as projects in Saudi Araba and the Rugby World Cup in Japan offset weaknesses in Hong Kong and Dubai.
For the 6 months ending 31 December, the company reported earnings of £13.4 million, up 56% from the prior year’s £8.6 million, off the back of revenues increasing 16% to £92.7 million.
Greg Lawless, CEO, commented: "In the Middle East & Asia, the successful delivery of several large, high-profile projects in Saudi Arabia and at the Rugby World Cup in Japan have more than offset weakness in the Hong Kong and Dubai markets.”
In the Middle East, the company was behind the contract for a temporary 15,000 seat stadium and 3,000 guest VIP hospitality structure for the Joshua-Ruiz boxing match, as well as some temporary hospitality structures for the Abu Dhabi F1 Grand Prix.
Shares in Arena Events Group jumped 9.18% to 26.75p during Tuesday trading
In the UK, Arena Events benefited from major events that included the Wimbledon Tennis Championships. The Open Golf at Royal Portrush and the installation of more than 20 ice rinks around the country.
Mr. Lawless said: “The London events market remains soft, but it is pleasing to note that major Tier 1 events continue to grow with robust attendance levels in all regions.”
Looking further forward, despite some concerns about the general trading environment in a few markets, the company said it still expects revenue growth with the return of the US Open, the Ryder Cup, the Dubai Expo 2020 and further projects in Saudi Arabia.
The company will make its dividend declaration for the fifteen-month period ending March 2020 in early July 2020.
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