(Adds background, company comments)
Oct 3 Exhibition organiser ITE Group
Plc said on Monday that the attempted coup in Turkey in
July had "significantly affected" international travel to the
country, hurting the company's bookings on Turkish events.
The company's shares fell as much as 4.2 percent before
paring losses to trade at 156.5 pence at 0845 GMT on the London
Turkey, which accounts for 12 percent of the company's
sales, is set to host the East Mediterranean International
Tourism and Travel Fair (EMITT) organised by ITE in January
The event's website says 71 countries are expected to
participate with exhibitors in fields ranging from travel
agencies to medical tourism. The company expects over 25,000
visitors to attend the EMITT fair in Istanbul.
Peel Hunt said in a note that the event is likely to be
heavily impacted by the coup attempt. The brokerage cut its
estimate for ITE's full-year 2017 pretax profit by 6.5 percent
to 34.5 million pounds, and earnings by 8 percent to 10.3 pence
Investec said the key challenges for CEO Mark Shashoua would
be stability in Turkey and leveraging macro-economic conditions
in Russia, and future merger activity going forward.
ITE declined to comment about business prospects in Turkey
and the challenging environment in Russia and the Commonwealth
of Independent States (CIS). Russia and the CIS accounted for
over 40 percent of total revenue in the first half of this year.
ITE reported an 8 percent fall in like-for-like revenue in
its fourth quarter ended Sept. 30, despite benefits from the
post-Brexit weakness of the pound.
Revenue for the period remained flat at 23 million pounds
ITE maintained its full-year 2016 revenue forecasts at 133
million pounds and added that it expected to see material
benefits from the improvement in relations between the Russian
Federation and Turkey from 2018.
($1 = 0.7762 pounds)
(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Sunil