Baidu’s net income jumps 169% in 2023

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Beijing, 28th February: Baidu, the leading search engine in China, recently announced its financial results for the year ended 31st December 2023. The company reported revenues of US$19 billion, up 9% year-on-year. Net income for the year grew 169%, reaching US$2.9 billion. Diluted earnings per share were RMB 55.08 (US$7.76).

Revenues from Baidu’s core business reached US$15 billion in the year, up 8% year-on-year. The majority of its revenues (US$11 billion) were generated from Baidu’s online marketing business, also up 8% year-on-year. The company’s non-online revenue amounted to US$4.0 billion and that segment increased by 9%.

Made-in-China.com’s net income up 26% in 2023

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Nanjing, 23rd February: Last month, Shenzhen-listed Focus Technology, owner and operator of Made-in-China.com, reported its financial results for the year ended 31st December 2023. Revenues in the year were US$214 million. That represents a modest increase of 3.8% year-on-year.

The company’s net income in 2023 jumped 26% year-on-year, reaching US$53 million. Diluted earnings per share were RMB 1.21 (US$0.17). The company’s management attributed the growth to the steady growth in revenues of Made-in-China.com and its management’s tight focus on cost reduction and other operational efficiencies.

Quick takes

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There are plenty of Quick Takes worth looking at this week:

Taylor Swift – event planning (and revenues) on a massive scale

The billionaire singer-songwriter is transforming events and local economies. She sold 96,000 tickets at each of the three nights she performed in Melbourne. This weekend, Singapore is also feeling the Swiftie buzz.

SE Asian buyers came out in force to AIME

Buyers from Southeast Asia accounted for the majority of the fully hosted Asia Pacific Incentives and Meetings Event (AIME) buyers from Asia. Held in Melbourne, three-day event hosted more than 600 buyers and an additional 3,500 visitors. It also featured 570 exhibitors.

Chinese visitors not returning to Japan

Japan attracted far fewer Chinese tourists than expected over Lunar New Year. “The number of Japan visas issued to mainland China-based travellers for the holiday was only 60% of the number issued over the same period in 2019.” That is a worrying trend for many Japanese exhibitions that rely on Chinese exhibitors and visitors.

Chinese corporate travel dynamics are changing

These are some of the trends in China’s massive corporate travel market. This is worth reviewing given the potential impact on business events:

·       Sustainable travel gains traction

·       Balancing work and leisure with bleisure

·       Efficiency through data-driven management

·       Prioritising employee safety with robust risk management

·       The rise of virtual meetings in business communication

·       Adapting corporate travel to economic challenges.

Malaysian business events boom on weak currency

This will make life even more challenging for Singapore where the cost of doing business has leapt since COVID. “Last week, the ringgit plummeted to an all-time low against both the US dollar and Singapore dollar, reaching 4.8 against the US dollar and 3.6 against the Singapore dollar on 20th February.”

UFI releases latest Industry Partners Benchmark Survey

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Paris, 15th February: UFI, the Global Association of the Exhibition Industry, has released its latest edition of the Industry Partners Benchmark Survey, finding innovation from industry partners to meet the evolving expectations of organisers and venues.

In its third edition, the survey showed the demand for services remain high and have increased from the previous years. Booth construction is the most relied upon service, while communication and marketing are the most important elements for event success. However, digital services decrease due to focus is back on live events. Satisfaction with regards to innovation from service providers also posts a decrease from the last survey.

ABEA signs MOU with ICCA

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Australia, 19th February: The Australian Business Events Association (ABEA) and ICCA – International Congress and Convention Association signed a memorandum of understanding (MOU), strengthening their partnership through a commitment.

The two associations will work together to strengthen their core values and positions on three pillars: Diversity, Equity, and inclusion (DEI); Legacy and Sustainability; and Talent Development and Retention. They will publish white papers, access to programs and information sharing, and develop key opportunities for emerging leaders.

Hong Kong’s events see strong rebound

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Hong Kong, 19th February: The Hong Kong government expects the convention and exhibition industry to reach or exceed pre-COVID levels this year, in the result for returning activities that left during the pandemic.

The two main event venues in Hong Kong, the Hong Kong Convention and Exhibition Centre (HKCEC) and AsiaWorld-Expo (AWE) on Lantau is set to host about 150 conferences and 160 exhibitions this year.

Separately, the Hong Kong Trade Development Council (HKTDC) announced its major focus areas for 2024-2025 to strengthen Hong Kong’s status as a leading global business and investment hub and convention and exhibition (C&E) centre.

ICC Sydney releases six trends shaping the evolution of events

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Sydney, 20th February: International Convention Centre Sydney (ICC Sydney), managed by ASM Global, announced its new approach to inclusive, socially impactful, sustainable events that prioritise health and wellbeing, human connection and human-centric technology, to strengthen its “venue of choice” status for event organisers and attendees.

ICC Sydney and McCrindle have released a report, “RESPECT: Shaping Events for Success”, showing a high representation from Gen Z at events. The report also highlighted the importance of socially impactful, sustainable, accessible, innovative and connected event experiences for Australians.

RELX’s exhibitions business up 30% in 2023

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London, 15th February: Yesterday, the RELX Group, the parent company of RX Global (formerly Reed Exhibitions), released its financial results for the year ended 31st December 2023. Revenue in RELX’s exhibitions business recorded underlying growth of 30% - or £1.1 billion (US$1.4 billion). Adjusted operating profit in the year was £319 million (US$406 million), which doubled the figure of the previous year.

RELX’s group revenue in 2023 was £9.2 billion (US$12 billion), representing an underlying growth of 8%. Adjusted operating profit for the year grew 13%, reaching £3.03 billion (US$3.9 billion).

BOL’s revenues up 12% in 2023

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Bangkok, 13th February: Business Online (BOL), a leading online information service provider in Thailand, has reported its financial results for the year ended 31st December 2023. Revenue for the year was US$23 million, representing year-on-year growth of 12%. BOL’s net profit for the year grew 7.2% reaching US8.4 million. Diluted earnings per share in 2023 was Baht 0.35 (US$0.0103).

More than 92% of BOL’s revenue was generated from its service business, amounting to US$21 million, an increase of 11% year-on-year. The remaining revenue was generated from dividend income (US$1.4 million) and “other income” (US$206,000).

Indonesia offers support to tourism and events

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Indonesia, 13th February: The Indonesian government has announced plans to establish the Indonesia Tourism Fund (ITF) to support the promotion of tourism and “nation branding” through sports, concerts, and business events. Initially, nearly US$130 million will be available through the ITF.

The ITF will be funded and managed from the marketing budget of the Ministry of Tourism and Creative Economy (MoTCE). It will also be used to encourage tourism to destinations such as Lake Toba, Borobudur, Mandalika, Labuan Bajo, and Likupang. Beginning in the second half of 2024, the fund will support bids for international major events in Indonesia.

KLCC set for a strong 2024

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Kuala Lumpur, 14th February: The Kuala Lumpur Convention Centre (KLCC) announced that it has already reached 65% of its revenue target for the year.

The venue has confirmed bookings for 37 conventions and 50 exhibitions in 2024. The numbers are expected to increase due to more national conferences and exhibitions, as well as short lead-time meetings and events that will be held during the year.

Quick takes

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Two bits on Alibaba

TechCrunch reported that Alibaba is starting to attempt to sell-off “non-core” assets. That is going to be an enormous task. Alibaba has acquired dozens and dozens of big and small businesses over the past 15 years. And interesting, Michael Burry (of “The Big Short”) fame is doubling down on his investment in Alibaba and JD.com.

When events go very wrong…

Tatler Asia, a Hong Kong-based publisher, had a great event planned when football stars, Messi, Beckham and their Inter Miami teammates came to Hong Kong. Then politics, egos and emotions got in the way. Messi sat out the match. 40,000 fans were upset and it snowballed from there. According to the Financial Times, Tatler Asia had anticipated making US$1.6 million from its event, but now faces a US$5.5 million loss.

Sri Lanka goes visa-free

Sri Lanka is the latest Asian country to remove visa requirements to boost arrivals. It will be open to visitors from seven countries: India, China, Indonesia, Russia, Thailand, Malaysia and Japan. Sri Lanka had a target of 1.5 million visitors in 2023 which it narrowly missed.

Jaarbeurs sells China portfolio to PE

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Shanghai, 2nd February: Royal Jaarbeurs has sold its 70% stake in VNU Exhibitions Asia Ltd (VNU EA) in China to Advent International, a Palo Alto-based private equity firm. According to BSG’s records, this is the first PE acquisition of a China-only portfolio. This also appears to be Advent’s first investment in the business events sector. The remaining 30% of VNU EA is believed to be held by company founder, David Zhong and other founding investors. The terms of the deal were not disclosed.

VNU EA was founded almost 30 years ago and its headquarters remains in Shanghai. The company operates across ten cities in China and hosts over 20 exhibitions and conferences every year. Its flagship event is Pet Fair Asia, which was launched in 1997, now features more than 24,000 exhibiting brands and attracts over 350,000 visitors.

UFI research: exhibitions poised for record growth in 2024

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Paris, 6th February: UFI, the Global Association of the Exhibition Industry, has released its latest Global Exhibition Barometer research.

According to the survey research, the exhibition industry in most markets around the world fully recovered from the pandemic slump in 2023, with revenues reaching a comparable level to 2019. In addition, the outlook for 2024 is also positive, with revenues expected to grow by 15%.

Messe Düsseldorf China posts strong growth in 2023

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Shanghai, 7th February: According to its management team, Messe Düsseldorf in China recovered in 2023 as its 13 largest trade fairs in China were back at full strength. 2023 marked its busiest and fullest exhibition calendar to date.

In 2023, Messe Düsseldorf in China hosted exhibitions covering a total exhibition space of 776,500 m2, that figure is an increase of 62% higher than the 2019 figure, the pre-pandemic level.

In 2023, a total of 10,047 domestic and international exhibitors participated at Messe Düsseldorf’s trade fairs in China, which is an increase of 29% compared with 2019. The fairs attracted more than 573,000 visitors, up 88%.

Alibaba’s profit falls 77% last quarter of 2023

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Hangzhou, 7th February: Earlier this week, the Alibaba Group, the largest e-commerce company in China, released its results for the quarter ended 31st December 2023. The company reported total revenues of US$37 billion, up 5% year-on-year. That is the good news. The group’s net income, however, dropped 77% year-on-year, down to US$1.5 billion. The company’s management attributed the decrease in profit to significant changes to its equity investments and a write-down of the goodwill value of Youku.

Revenues from Alibaba’s B2B business in China under the Taobao and Tmall Group, primarily generated through 1688.com, were US$747 million, that represents a year-on-year increase of 23%. The international B2B business under the Alibaba International Digital Commerce Group, primarily operating through Alibaba.com, generated revenues of US$740 million, which posted an 8% increase over the previous year. B2B revenues accounted for only 4.1% of the group’s total revenues in the quarter.

Quick takes

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Dubai wins 349 event bids in 2023

There is plenty of talk about Saudi Arabia investing a lot of capital into its MICE sector, but this shows just how far ahead the UAE remains. Dubai won a record 349 business event bids in 2023, reflecting a 49% increase in successful bids compared to 2022.

Singapore keeps focused as visitor numbers rebound

The Lion City’s international visitor numbers hit 13.6 million in 2023 – 71% of 2019 arrivals. Accord to the Singapore Tourism Board that figure was within its forecast of between 12 million and 14 million visitors. Tourism receipts were approximately 88% to 94% of 2019 figures.

Indian visa-waivers paying off for Southeast Asia

In recent months, Southeast Asian markets have begun to offer visa-waivers to Chinese and Indian travellers. That strategy has begun to payoff. Indian outbound demand for destinations like Malaysia, Thailand and Sri Lanka have started to increase. Searches for Thailand from India have grown 45% since its visa-waiver came into effect.