‘Solid Performances Across All Sectors’: Scottish Event Campus Increases Operating Profit

Scottish Event Campus Limited, owner and operator of the SEC, which includes the 13,000 capacity SSE Hydro, the 3,000 capacity Armadillo and the SEC conference center, has published its earnings in the financial year ending March 2018.

Marc Turner – The Scottish Event Campus
From Left: the Armadillo and the SSE Hydro

According to the earnings report, “2017/18 has been another very successful year for Scottish Event Campus Limited. Turnover increased by 1 percent to £29.1 million [$38.5 million], EBITDA increased by 11 percent to £3.8 million and operating profit increased by 19 percent to £1.3 million.”

The SSE Hydro in Glasgow, Scotland, ranked six in the arena category of Pollstar‘s midyear worldwide ticket sales charts. It was the most successful UK venue in terms of ticket sales, just ahead of Manchester Arena. 

The Hydro sold 1,076,209 tickets in the calendar year 2017, and stood at 420,714 for 2018 at press time. “Live Entertainment turnover was in line with the previous year and with the number of performances in line with UK trends,” the earnings report states.

– The SSE Hydro
The venue’s Club Restaurant offers panoramic views while enjoying dinner and drinks

Best-sellers in the recent financial year include Celine Dion, Bruno Mars and Ed Sheeran, but also non-music related and family events such as Andy Murray Live, boxing, Disney On Ice productions and WWE.

Overall cash balances increased by £5.8 million, to which the level of ticket sales for future SSE Hydro performances during the year was “a key contributor.”

While exhibition turnover from events including the All Energy exhibition and conference, MCM Comic Con and Brick Live increased, conference turnover decreased by 2 percent year-on-year, which was “expected and was in line with the cyclical nature of some national and international conferences,” according to the report, which adds that “during the year a record level of future conferences was secured.”

The SEC’s event management subsidiary QD Events continued to provide a solid contribution to group results. The group intends to reinvest trading profits into its customer experience. “An example of this, and a significant addition, has been the creation of the recently launched SEC Meeting Academy which caters for smaller conferences and meetings,” the report states.

Glasgow has contributed a lot to the events industry over recent years. The city not only boasts three state-of-the-art venues, but also hosts the acclaimed Summer Nights at the Kelvingrove Bandstand and DF Concert’s TRNSMT Festival, which just celebrated a successful second edition.

“To capitalize on the success that Glasgow and Scotland have had in the events industry over recent years a feasibility study was prepared in the previous financial year to establish viable options for upgrading and expanding the campus, principally to facilitate further growth in the Conference and Exhibition sectors,” the report continues, adding that “in the current financial year, a planning permission in principle application has been proposed and supported by a robust business plan and an economic impact study.”

SEC chief executive Peter Duthie also highlighted the economic impact on the city of Glasgow generated by the campus, which generated net additional expenditure of over £1 million per day in the Glasgow area, and a total of £400 million for the year.

“The results include the impact from the disposal of the second of two hotel sites on the campus. The development of the two hotels is expected to begin in the summer of 2018 with opening anticipated in 2019. This will increase the number of hotel bedrooms around the campus from 950 to almost 1,400 and will be an invaluable addition to support our growing Conference and Exhibition sectors as well as our Live Entertainment offering,” Duthie said.

“In line with this, a key focus will be to secure funding for our expansion project which will be of significant benefit to the Glasgow, Scottish and UK economies. The development plans fit with the objectives of Glasgow City Council, as major shareholder, to ensure additional economic benefit across the city in terms of spend on hotels, restaurants, retail, and the related employment creation,” he continued.

– View from Glasgow University
The SEC contributes a lot to the city’s economy