satis&fy achieves double-digit growth
Consolidated revenue for fiscal 2013/2014 ending on September 30th, 2014, came to €58.6 million euros—up from €44.7 million in the previous year and well above the Karben-based company’s expectations. The investment-to-revenue ratio was around 7%.
Management’s outlook on the current fiscal year is bright. The company expects the New York branch, slated to open shortly, to also drive business.
satis&fy AG (satis&fy) increased its revenue by 31.1% to €58.6 million in fiscal 2013/2014. This revenue growth had a positive impact on earnings. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose from €3.5 million in the previous year to €7.5 million. Opened just two years ago, the Portland, Oregon, branch accounted for 26.4% of total revenue. The Group’s workforce grew by 11.7% to 419 employees in the same period. This figure does not include the 34 employees at Neuss-based Lightcompany, which joined the Group last spring. The company, one of Europe’s market leaders, expects to post similar figures for the current fiscal year. “We are confident that we can sustain the positive development in revenue despite a challenging environment. With our strategic plan, Vision 2020, we are ideally positioned to future-proof the company for the long haul,” said Ubenauf. Lightcompany’s turnover will be factored into the company’s revenue for the first time next financial year. Ubenauf expects its contribution to come to around €5 to €6 million.
100 events in a single week
“Our growth came as a bit of a surprise even for us,” admits Ubenauf. The enterprise staged more than 3,200 productions last fiscal year. Events surrounding the World Cup triggered positive momentum in spring and summer. “In early June of last year we handled 100 events in parallel, all in a week,” said the 45-year old executive. One highlight was staging the World Basketball Festival in Chicago for sportswear manufacturer Nike. With this event, the company achieved the highest revenue for a single job in its history.
The collaboration with a major German bank and events staged for industry clients such as TUI Cruises, Swarovski, Huawei, Alcatel and Essilor provided further stimulus for growth. Renowned artists such as Helene Fischer, Adel Tawil and Udo Lindenberg were also on the Touring division’s books.
Structural reforms continue
Key strategic decisions taken in the past two years also had a positive impact on revenue growth. As early as 2013, satis&fy initiated structural reforms within the framework of Vision 2020, the aim being to prepare the company for new tasks. To this end, it improved internal processes and expanded service segments such as its key account management. CEO Kai Weiberg’s transition to the supervisory board brought further changes. One example is the new corporate development team, which was set up to develop corporate solutions for issues related to the company’s strategies, processes and practices.
Another branch to be added in the USA
The full-service provider will be pursuing ambitious goals in the new fiscal year. It aims to open a branch in New York in the second quarter and drive on with its efforts to internationalize operations. “We handled more events on the East Coast last year so it was a logical step for us to plant a footprint in New York,” said the CEO. It is the company’s second branch office in the USA. The first had been opened in Portland on the West Coast in 2012. The USA is an important growth market for satis&fy. “We take responsibility for all event equipment and support to offer a full-service package that is unlike any other on the US market.”
New enterprise resource planning system
The company’s chief executive expects the transition to a new ERP system will present a special challenge in the year ahead: “After gearing up this changeover for a year and a half, we have been working with the new tools since December.” The system is designed to help better manage the firm’s many complex processes and enable faster quote and order handling with 24/7 tracking. The changeover has already streamlined workflows at this early stage.
“In the months ahead, we will concentrate on future-proofing the company, steadily and sustainably. We will continue to focus primarily on organic growth,” noted Ubenauf. Improving the services offered, cutting costs and developing the organizational structure further to promote growth are all tasks that sit prominently on the company’s to-do list. The enterprise will also drive on with its efforts to integrate Lightcompany. Both sides say that the progress made so far has been exemplary.