MCH – more than a large hole!

MCH – more than a large hole!

7. December 2018

 

Since the beginning of 2018, MCH shares have lost about 64 % in value.

 

2018 overall will be even worse for MCH than expected. A loss of at least 14 million francs for 2018 is now projected, far above the up to now anticipated loss in the single digit million range.
This will push overall losses to around 170 million francs, way more than predicted.

 

MCH’s detachment from reality was best seen with "Grand Basel", a show for vintage and collectible automobiles which was held first time (and last) at the beginning of September 2018. "Because of the high deficit, it will not be repeated. Revenues did not meet expectations, and costs were significantly higher than expected due to start-up costs." The event attracted nearly (only!) 12,000 visitors. The planned "Grand Basel" in February 2019 in Miami was also canceled.

 

Questions is: why would people pay exorbitant entry to "Grand Basel" to see a few dozen “old-timer” cars, when one can travel 20 minutes in the direction of Mulhouse to the greatest car museum in the world and pay entry of a few Euro and see a few thousand exquisite cars!

 

MCH leadership seems to be divorced from modern actualities. This has led to Swatch the largest exhibitor at Baselworld, the watch and jewelry fair, cancelling their participation. Raymond Weil and Corum had also announced their withdrawal from Baselworld. This has devalued the importance of Baselworld, and the attrition will continue without the largest industry representatives. The 2018 Baselworld has already seen the exodus of other exhibitors. MCH had to write off more than 100 million francs with respect to the exhibition buildings.

 

MCH under new leadership is now in a “transformation phase”. The biggest criticism from Exhibitors whether Baselworld or Art Basel is that MCH kept raising both rental prices as well as ticket prices and spending way too much energy on the “jet set” who get in free anyway. MCH has to recognize that their business model at its core is about service, not self-aggrandization. The world is changing and if MCH wants to survive they need a huge reality check.