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PCC’s Board of Directors Knows the Results of the Last Year’s Economic Activities

July 14, 2017 MICE No Comments Email Email

The results of the Prague Congress Centre’ s financial activities in 2016 are known and the financial statements finished by December 31, 2016 have been independently audited. The Prague Congress Centre remains in positive numbers and generates profit.http://www.granmonte.com/

The Prague Congress Center ended with a profit of CZK 35.8 million in 2016. Compared to the record year 2015, when a profit of CZK 84.9 million was achieved, there was a decrease in revenues and an increase in costs. However, the year-on-year comparison of sales is influenced by a change in the way catering services are invoiced, which led to a decline in revenues and, at the same time, the cost of purchased services. Most importantly, the result was influenced by the cost of renovation of the main congress building and the interior of the Holiday Inn Prague Congress Center.

In the segment of short-term leases, revenue in 2016 reached the same level as in the successful 2015. The biggest events include the European HABITAT (4,000 delegates), the 23rd Congress of the International Society for Photogrammetry and Remote Sensing ISPR 2016 (2,468 delegates) or the Living Planet Symposium 2016 (2,000 delegates).

A total of 84% of the proceeds was realized in the segment of large events with turnover more than 1 million CZK. These actions are for PCC crucial and most of marketing activities and sales promotions focus on their acquisition. The share of small events with turnover up to 200 thousand CZK was about 6%.

The structure of sales by type of client has changed significantly over the previous years. The share of public sector events (22 %) increased, while the number of association events (47 %) decreased. In addition to the mentioned European Habitat organized by the Ministry of Regional Development and a traditional fair for education organized by the City of Prague called Schola Pragensis or the International Interpol Conference of the Ministry of the Interior of the Czech Republic. The segment of corporate clientele and cultural events then contributed to the budget with 14 % of revenues. The ratio of foreign and domestic clients has remained the same for the long term and it is 65 % to 35 %.

An important part of the financial management of PCC is also revenues from long-term leases, which decreased by 2.6% compared to the previous year to 152.5 million CZK. However, despite the fact that the most important tenant, T-Mobile left the Business Centre Vysehrad (which is part of the PCC), the occupancy of the premises was 91 %.

The Holiday Inn Prague Congress centre was the most successful in terms of year-over-year revenue growth. Its sales grew by 2.6 % compared to 2015 and reached the level of 129.7 million CZK, with an average occupancy of 64.8 %. In 2016, the kitchen was renovated and the first phase of the interior renovation of the rooms continued in the beginning of 2017. This should further on increase the interest in accommodation and gastronomic services of the hotel, whose cuisine is increasingly appreciated by experts and the hotel meets the demanding standards of the InterContinental Hotels Group.

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