Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the Fiera Milano results at the 31st March 2026 conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Vincenzo Cecere, Head of Investor Relations and Sustainability. Please go ahead, sir.
Thank you. Good evening, everyone, and welcome to Fiera Milano's last conference call. This is Vincenzo Cecere, Head of Investor Relations and Sustainability, and I'm here joined today by Francesco Conci.
Massimo De Tullio, CFO of Fiera Milano. Today's presentation will be structured in three main sections. Francesco Conci will begin with an overview of the key highlights for the first quarter of 2026. Massimo De Tullio will then provide a more detailed review of the group's business performance and financial results initiative. Following the presentation, we will open the floor for Q&A, during which management will be available to answer your questions. Francesco, please go ahead.
Good evening, everyone, and thank you for joining us today. Q1 2026 was an outstanding quarter for Fiera Milano, with very strong growth across all our main financial indicators and a significant improvement in profitability. Revenues almost doubled year- on- year, increasing by 98% to EUR 126.4 million, compared with EUR 63.7 million in Q1 2025. EBITDA increased by +316% to EUR 50.1 million. Net profit reached EUR 27.7 million. The performance of the quarter was supported by several positive drivers.
First, from a more favorable exhibition calendar, mainly due to the presence of Mostra Convegno Expocomfort, one of the leading international exhibition in the heating, ventilation, air conditioning and first concrete contributions from the acquisition completed during 2025, particularly Expotrans and Stipa, which are supporting both revenue growth and the expansion of our integration service platform. Third, the contribution from the Milano Cortina 2026 Winter Olympic Games was above expectation, generating the revenue in the quarter, including EUR 20 billion related to temporary infrastructure activities, EUR 6.8 million related to venue users. Beyond the economic contribution, the Olympics continue to strengthen the international valuability and strategic positioning of Fiera Milano as a key infrastructure platform capable of managing highly complex global events.
This growing international recognition been also confirmed by the recent announcement that Allianz MiCo will host CES Unveiled Milan in October 2026, the official European stop of CES Las Vegas, one of the most leading technology events. At the same time, the Congress business delivered a very strong performance, with revenue increasing from EUR 10.5 million to EUR 18.9 million, also supported by the use of Allianz MiCo as the main media center for the Olympic Games. Looking ahead, we continue to see solid momentum across our exhibition portfolio. The 2026 calendar benefits from a more balanced seasonality, measured by annual exhibition now taking place in even numbered years, including TUTTOFOOD, the contribution from new events launched in recent quarters, and the progressive integration of recent acquisitions.
For this reason, including the strong start to the year, the current limited impact from the geopolitical environment, the above-expectation contribution from Olympic-related activities and the progress in integrating recent acquisition, we decided to upgrade our 2026 guidance. Our updated guidance now includes revenue expected in the range of EUR 380 million-EUR 400 million, compared with the previous guidance of EUR 305 million-EUR 325 million. EBITDA expected between EUR 100 million-EUR 110 million compared with the previous range of EUR 90 million-EUR 100 million. More broadly, we believe these results confirm that Fiera Milano is entering in a new phase of development, supported by a broader, more diversified and structurally more resilient business platform.
Financial review. Thank you, Francesco, and welcome to everybody. Before we get into the details of the so-called performance effect and the calendar effect at consolidated level, let me briefly walk you through the divisional performance by legal entities, which it helps to explain the strong results recorded in the first quarter 2026. Starting with the Italian exhibition business, which represents and remains the core of our activity, with 76% of the group revenues in this quarter. Looking at revenues. Revenues increased from EUR 52.8 million to EUR 98.2 million, with a growth of EUR 45.4 million .
EBITDA is rising from EUR 11.3 million in the first quarter 2025 to EUR 38.1 million in Q1 2026, with a growth of EUR 26.3 million. This performance was mainly driven by at least three factors. For sure, the contribution from the Milano Cortina 2026 Winter Olympic Games. Secondly, a more favorable exhibition calendar, mainly due to the presence of Mostra Convegno Expocomfort in Q1 2026. This is a biannual, even year exhibition. Third, the contribution from the recent acquisition of the Stipa company. The company operating in the stand fitting sector. Looking at what the Olympics Games generated for us, we can identify revenues clearly coming from the venue usage agreement.
The contract we signed in order to make available the spaces, pavilion 22, 24 and 13, 15, in order to host the speed skating and hockey games. The other leg of the revenues coming from the Olympic Games clearly is related to the construction of the temporary infrastructure winter sport disciplines. More broadly, these results confirm the strong scalability and operating leverage of our exhibition platform. Now moving to the foreign exhibition business, which represents around 2% of the group revenue during the quarter. Revenue increased by EUR 2.2 million-EUR 3 million, mainly supported by the good performance of the international events such as Fruit Attraction São Paulo in Brazil and Investec Cape Town Art Fair in South Africa.
EBITDA is slightly improved from - 0.4 to - 0.3, and this reflect the result of the JV in China. Now, turning to the Congress business, Allianz MiCo, which represents around 15% of our revenue. We have seen revenues increasing from EUR 10.5 million to EUR 18.9 million, and also EBITDA was growing very impressively from EUR 1.1 million to EUR 11.5 million. The main driver of this growth is clearly related to the contract we signed with the Fondazione Milano Cortina 2026 in order to host in our venue, in our Allianz MiCo venue, the main media center and broadcasting center for the Milano Cortina 2026.
This clearly was substituting with the normal business for the congress' activities, but was bringing additional revenues, but more importantly, a completely different profitability for this kind of contract, which helped to reach this level of EBITDA. Finally, moving to the other sector, which in this moment includes basically Expotrans Group, revenue amounted to EUR 9.5 million. Clearly, there's no comparison with 2025 because the acquisition of the group was managed during the second quarter, starting from May. We are accounting now for EUR 9.5 million revenues in first quarter and an EBITDA of EUR 0.8 million. The overall, putting all together, all these business, all these divisions, brought a group revenue of EUR 126.4 million.
The margin increasing from 18.9% in Q1 2025 to 39.6% in Q1 2026. Clearly, this level of EBITDA margin is positively affected by the Olympic, by the Olympic activities and also by the calendar. Now, moving to the, let's say the performance effect and calendar effect in order to understand how revenues moved from approximately EUR 64 million to EUR 126 million and more. Which amounted almost to EUR 60 million and was boosting the hosted division. The presence of Mostra Convegno Expocomfort is the main driver for this impact. New exhibition amounted to around EUR 0.4 million. It gave positive impact.
We have a positive performance effect all in all of EUR 1.8 million, which, to be honest, I think it's important to be highlighted because growing, still growing with a, let's say, a material number anyway, compared to 2025, which was the record year for Fiera Milano. Growing in this kind of geopolitical scenario and also economic environment, it was something that we were not even expecting, to be honest. We are quite positive on the fact that we managed to anyway re-reach a positive growth compared to the previous year.
Clearly, in explaining the element and the impacts that led to a growth of this size, there is the consolidation scope effect, amounting to EUR 12 million almost, which is mainly driven by the consolidation with Expotrans that was not present in the Q1 2025, but also driven by the impact of the consolidation of the new company both from Fiera Milano, Stipa. As we mentioned before, EUR 27 million almost coming from the Olympic activities, currently related to the 2026 portion of the revenues generated by the contract for the temporary infrastructure. Just as a reminder, this contract finally reached EUR 31 million revenues, of which EUR 11 were accounted in 2025, and the remaining EUR 20 million have been accounted in 2026.
On top of this EUR 20 million in 2026 Q1, we are clearly recording also the revenues from the use of the Rho venue for the users of pavilion 22, 24 and 13, 15, which amounts to EUR 7 million. On top of that, last but not least, the positive performance of the Congress division, mainly driven by the contract to host the Olympic media and broadcasting center. Now, moving to the consolidated income statement. Again, let me highlight that revenues increased from EUR 63.7 million to EUR 126 million. We are showing a growth of more than EUR 70 million EUR 62 million, almost EUR 63 million. Again, main driver were performance, close to EUR 2 million impact, calendar effect EUR 16 million. The consolidation scope, which at with another EUR 12 million the investment funds and Stipa.
Then we have also the impact of Milano Cortina for EUR 10.7 million and the Congress business. EBITDA again recorded an absolute value of EUR 50 million, EUR 50.1 million with a positive change of +EUR 38 million. The main factor of this growth are the same, the Milano Cortina Olympic Games with a contribution of almost EUR 15 million in terms of additional EBITDA compared to Q1 2025. The calendar effect related to Mostra Convegno again, close to EUR 12 million. Then Congress business, where the increase in revenue has been even overcome in terms of increasing margin because the profitability connected to this contract, the Olympic, the contract towards the media broadcasting center is by far higher than the standard profitability that we reach when we host operate events.
Again, EBITDA has been commented. Clearly, we have also the impact of the recent acquisition. Again, the impact is not huge because we have clearly the consolidation of the Expotrans, but we started consolidating Stipa just from the 4th of March. All in all, the impact of the acquisition is approximately EUR 1.4 million. Again, the Olympic activities, EUR 15 million. As I already remember and recall, the impact of the Congress business is EUR 9 million. The balance sheet. Let me highlight the main changes in our balance sheet. First of all, goodwill. Looking at goodwill, we see an increase of EUR 20.4 million. Clearly, this movement from EUR 97.6 million to EUR 118 million is mainly driven by the acquisition.
The acquisition of Stipa, but also the acquisition of Made in Steel, which is not creating economic impact in our P&L this year because this company is organizing a show which will be organized basically in all the even years. Sorry, odd years. We will not see major economic impacts up to basically second quarter of 2027 coming from this acquisition. For sure on our balance sheet, impact of the acquisition is visible in terms also of additional goodwill. In terms of networking capital, the networking capital moves from under EUR 35 million as of 31st December 2025 to EUR 126 million. The change of close to EUR 9 million is basically due to the following components.
The increase in the current assets of EUR 26.276 million, which is driven by the raise in trade and other receivable of EUR 25 million. Part of this increase was related clearly to the change of perimeter of consolidation, EUR 10 million are coming from the new companies included in the two acquisition basically that we performed in the Q1.
Increase in current liabilities by close to EUR 19 million, which is the result of a decrease in the trade payables of approximately EUR 4 million and an increase in advances by close to EUR 25 million, which basically represent the increase due to debt advances invoices related to exhibition that will take place in the following quarter, in particular Salone that was also in April, so in second quarter TUTTOFOOD, which is happening just during these days with very positive results, Host and Plast. All exhibition that will happen later or this year or even in the coming years. We also registered a decrease in provision for risk and charges. In terms of equity, the movement in the equity.
The equity group increased from EUR 181 million to EUR 196 million, up by EUR 50 million overall, mainly supported by clearly EUR 27.4 million net profit generating during the quarter, which has been partially offset by the EUR 30 million accounting impact related to the put option associated with the acquisition of Stipa. Looking at the net financial position, despite basically approximately EUR 34 million of net impact on our net financial position considering the put option and the upfront payment, the group maintain a very strong financial profile. Net financial position stood at EUR 145.1 million compared to EUR 157.2 million. This reduction basically reflects the acquisition completed during the quarter, partially offset by the positive operating cash flow generation of the business.
Overall, the balance sheet across the strong cash generation of the group and the solid financial flexibility. Again, looking at finally the cash flow and starting from our 50.1 EBITDA result, taking out the cash outs related to rents, which accounts to more or less EUR 14 million and adding a net working capital negative movement of EUR 9 million that I already explained, mainly related to the movement in the trade receivables. Then we end up with an operating cash flow positive by EUR 25.4 million, taking out taxes, but more importantly, taking out the impact of the M&A, finally, we end up with a net free cash flow in the quarter of - EUR 12.2 million.
Now, related to the guidance, clearly Francesco already highlighted that based on results achieved in Q1, based on the fact that despite the geopolitical environment and economic environment, we do not see at the moment a major negative impact on our main KPIs that we monitor in order to understand if the business or all the different business are working or not. We do not see a very huge impact in terms of decrease in terms of visitors. We do not see in this moment a major impact in terms of attendance of the exhibitors. We do not even see a reduction in terms of expenses in services from the exhibitors.
At this moment, we remain prudent with our previous forecast, but clearly we are embedded now in our guidance, the impact of the acquisition and the better results that we achieved with the Olympic Games. The result of this stable position in terms of performance and positive impact coming from the acquisition and the Olympic Games led us to this new guidance for 2026 of EUR 380 million-EUR 400 million in terms of revenues and EBITDA in the range of EUR 100 million-EUR 110 million. ESG Topics.
Thank you, Massimo. Just a very quick final note on sustainability. Being first quarter, the group published in the Italian Legality Rating, a certification issued by the Italian Competition Authority that asserts this company's compliance with high standards of legality, transparency and ethical business conduct, achieving the maximum available score.
With this, we conclude today's presentation, and we are now ready to open the floor for the Q&A session and take your questions. Thank you.
Thank you. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. We kindly ask to use handset when asking questions. Anyone who has a question may press star and one at this time. The first question is from Emanuele Gallazzi, Equita.
Good afternoon, everybody. I have Francesco, Massimo and Vincenzo. Three questions from my side. I would like to start with the Congress business, which clearly posted a strong set of results in the 1st quarter ahead of my expectation. Can you help me understanding the contribution of the Olympic game on tiers of business unit? Looking at the remaining part of the year, can you just comment on the booking level for the Congress business? The 2nd question is on the 2nd quarter. If you can just comment on the performance of the 2nd quarter events, specifically any indication on Salone del Mobile and TUTTOFOOD would be useful. I think you mentioned during the speech a very good performance of TUTTOFOOD, but any additional comments would be useful.
The third one is on the capital allocation because, still very strong cash generation in the first quarter. You sit on over EUR 140 million of net cash. Should we have to expect new M&A deals this year? Thank you.
Thank you, Emanuele, for your questions. Regarding the Congress business, as we anticipated, basically, it's since the last quarter that we have not used the Congress center for its normal purposes because we have completely made available these spaces for the Olympic organizer in order to host the center. There has been a complete substitution of business in which we have signed a contract that totally amounted for EUR 26 million. 2025, and first quarter, to be honest, first four months of 2026, the media broadcasting center . This led to a very positive impact in terms of revenues compared to the normal seasonality of Q1 in congresses. We scored these additional revenues.
More importantly, this contract is different from the normal standard contract that we sign when we host congresses or corporate events. Because basically a lot of costs that we normally incur, and we have to repay with normal tariffs, were to be added on top of the contract and the tariffs that we set up with the Olympic Committee. This led to a very huge important profitability in this sense. Coming to the expectation, Sorry. That, in our availability, the Allianz MiCo, we anyway organize some congresses using the Rho Fiera venue. This is part of the synergy that we clearly use in these groups of spaces that we have in our trade fair venue in Rho, can be used also to host congresses and corporate events.
In these cases, we also hosted four events, four congresses and corporate events in Q1, and this was an additional boost to revenues in Q1. Looking forward, we see a very positive booking level on the congress venue. 2026 will not be the year in which we will host major international events because decide to use the Allianz MiCo venue in 2026 or later in order to organize their major international events. We will anyway book a lot of events and use this venue to host lots of events in 2026. We see anyway a level of revenues very, very close, probably the same that we reached in 2024, in 2025, and probably we will again be able to reach in 2026.
Second question is about the exhibition that, yeah, the second quarter. You remember well.
Yeah.
In the second quarter, we have been hosting 2 very important exhibition for us, Salone del Mobile and TUTTOFOOD. Starting from Salone del Mobile, we have seen a very solid exhibition again. There were more than 300 visitors during events, clearly an increase compared to 2025. It was a decrease compared to 2024. If we want to do a like-for-like comparison, there has been a decrease. Considering the three the Europe cities or to use Dubai hub, we think that this result was anyway quite important. In terms of contribution margin, we increased our contribution margin compared to the last edition, 2025, by close to 8%. It was in line with our budget.
Again, considering what is happening, that was not forecasted when we did the budget, we are quite happy of the results that we have achieved. Regarding TUTTOFOOD has increased, again, square meters sold. There is an increase of approximately 4%, 4%-5% in terms of square meters. Also, our results in terms of revenues and contribution margin is increasing. I think we will reach probably a 10% or even more increase in terms of revenues and contribution margin. This again is the, confirms that the exhibition is consolidating its positioning as international. Be ready to fight directly against SIAL in a couple of years.
Another important, very important signal to be highlighted is that we have seen visitors rate increase in the region of 20%, even 30% in some days, in part of the days of the exhibition. The venue is really crowded. We have not seen so often the venue so crowded with an international exhibition. All in all, very positive signals from Q2. The result of Salone del Mobile and TUTTOFOOD are in line with our expectation. It's important to highlight that the more TUTTOFOOD is strong, the more this will help to reduce now the impact of the seasonality because now TUTTOFOOD is definitely an even year exhibition. We like to boost 2026, 2028, and going forward all the even years.
This clearly will not absorb completely the calendar effect, but will help to reduce it or anyway will help to make an even year attractive in terms of economic performance and financial performance, like an odd year. The third question was about cash. This cash availability is really something we want still to rely in order to keep working on our M&A strategy. We have concluded four M&A in less than one year, and we are still working on identifying new targets. Some of them have been already identified, and we are working in order to understand if there are the condition to start setting up a term sheet and eventually to going forward with an M&A operation. There are at least 3 possible M&A operation in the near future.
One of these is at international level in the sense that it's related to a company which operates in another country in which we are already present with a legal entity. This is at a very advanced stage. We will probably start very quickly the diligence process. H2 could be also the moment in which this acquisition could happen. There are another couple of M&A on which we are at the point in which we have to draft the term sheet probably in order to start rolling the deal.
Very clear. Thank you very much. The next question is from Simonetta Chiriotti, Mediobanca.
Good afternoon. A couple of questions also from my side. The first is on services. This quarter, basically, you report in slide 11 a negative trend in services net of calendar effect. I'm wondering if this reflects the fact that venues have been used for other purposes. More in general, if you can comment on the trend in services in the quarter apart from that. Also on the company that you have acquired. Now, they are consolidated, how were these first weeks, can you comment on the performance and expectations? Thank you.
Thank you, Simonetta, for your question. Services performance has been affected basically, but I would resume by one exhibition. We had a negative impact on BIT. This is not related to our capability to deliver or the quality of what we deliver, but it was a kind of physiological impact because some of the regions that are exhibiting in BIT had to change by their internal rules, the provider. We were not able to support and to provide our services, our stand fitting services to some of the regions where we did last year this kind of activity. We were expecting anyway to find substitution of the clients and customers.
Because of the also performance of the exhibition that was not growing as we expected, probably also because of the presence of the Olympic Games in the first quarter. The services didn't reach the same result of last year. I would just highlight that it's mainly due by one exhibition, and the main reason is probably it's a kind of external impact. It's related to some constriction that the regions have in their purchasing process and their purchasing rule. It is clearly reached important result in 2025. 2025 was a record year for Fiera Milano.
It's challenging, at least in this moment, in this context, considering what is happening in terms of geopolitical scenario and economic scenario, is a little bit of challenge to grow in this moment compared to 2025. We still see performances overall in line and slightly above last year. This cannot be considered nor normal result if we do consider what is happening in the environment in which we are working. Speaking about Stipa, we are very, really excited about the positive that this company can bring to the group. They are quite solid in the customized and fitting industry. They have a big chunk of their revenues coming from abroad. Because just to give you an idea, 30% of their revenues are delivered in Europe mainly.
In other venues, I've been in Düsseldorf for Interpack, a major exhibition just few days ago, where Stipa built six stands in that exhibition. We really rely on the synergies that we for sure will create using this company and the asset of this company, the capability of this company to provide to our customers, additional services, additional very high-end and very quality driven services. All in all, we expect during the year Stipa to bring to the group something like EUR 15 million additional revenues with EBITDA margin in the region of 20%+.
Thank you.
The next question is from Andrea Bonfà, Banca Akros.
Hello, good afternoon to everybody, and thank you for taking my question. Very quickly, it's a more generic one in the sense that you increase your sales guidance by something like on average of EUR 75 million looking at the midpoint. You just increase your profitability guidance by EUR 10 million. Let's say the increase in sales is much higher than the one in profitability. Considering that the data is likely, if I'm correct, to the Olympics, which had a good profitability. I was wondering if you can comment on the mix underneath this kind of calculation indication. Thank you very much.
Yes, thank you for your question, Andrea Bonfà. In terms of revenues, clearly the impact of the Olympic Games was not part of our plan. You have also to consider that we increased the guidance because of the acquisition of Expotrans, the acquisition of Stipa, and the acquisition of Made in Steel. Looking at Expotrans and Stipa, clearly the contribution, the EBITDA margin that is attached to these two companies and the business they manage is not comparable to the one, let's say, standard business of Fiera Milano, in terms of organizing events or hosting events or hosting the congress business.
This is the main reason why the increases in revenues is not bringing an increase in terms of EBITDA comparable or proportional to the increase in terms of revenue. We are a little bit of changing the mix, at least. Clearly, when we speak about even years, this creates even more an impact in terms of possible dilution of the EBITDA margin, because we cannot rely on our biannual organized events, which are bringing a higher profitability. We are increasing the weight of the organized events out of the total revenues. That's the main reason why we increased guidance by in a less proportional way compared to the increase in terms of revenues.
Sorry, I forgot.
I forgot also to mention that we are consolidating now MiCo DMC within the integrational consolidation method, which again, brings additional EUR million in terms of revenues with a lower profitability because MiCo DMC has a different profitability and has a different EBITDA margin compared to the past. Again, this is creating again this kind of impact.
Okay. Thank you very much.
Yeah.
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Thank you, everyone.
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