MCH Group Shares Extend Decline Amid Downbeat Baselworld

   By Cristina Roca 
 

Shares in MCH Group AG (MCHN.EB) traded lower Monday, extending a decline from Friday when the organizer of watch-and-jewelry trade fair Baselworld said it needed to restructure after a 2018 loss.

The SIX Swiss exchange-listed company said 2018 was loss-making partly due to "the financial burden imposed by the downscaling of Baselworld 2018," and it had to book extraordinary writedowns due to the depreciation of the value of its Baselworld exhibition building, as well as other assets.

MCH shared ended 5.7% lower at CHF16.50.

Friday's news came during the 2019 Baselworld event--which runs until Tuesday--highlighting questions over how the trade show plans to move forward in a changing environment.

Last year, Hermes International SCA (RMS.FR) and Kering (KER.FR) chose to present their new products at a Geneva show instead of Baselworld. Then Swatch Group AG (UHR.EB), one of the fair's biggest exhibitors, said in July last year that it wouldn't be part of the 2019 event. Earlier this month, Swatch said the decision to drop Baselworld was permanent.

In 2018, Baselworld said the fair had 650 exhibitors in attendance, which compares with about 1,500 in 2013. A spokesman for Baselworld said he wasn't able to provide the number of brands attending the event this year.

MCH's interim chief, Hans-Kiristian Hoejsgaard, said earlier this year that from 2020 onwards, Baselworld would change from a classic sales and distribution platform to a "future-oriented experience event." The fair already made changes for its 2019 edition, including placing a greater focus on jewelry.

Write to Cristina Roca at [e-mail]; @_cristinaroca

(END) Dow Jones Newswires

March 25, 2019 12:56 ET (16:56 GMT)

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