VGL
26/02/2016 08:31
FLLYR
PRICE SENSITIVE
REL: 0831 HRS Vista Group International Limited
FLLYR: VGL: VGL - FY15 Results and Announcements
MARKET ANNOUNCEMENT
26 February 2015, Vista Group International Ltd, Auckland, New Zealand
Vista Group FY2015 Financial Results - Strong performance exceeding historic
CAGR revenue growth and Prospectus Forecasts
Highlights
o Revenue of $65.4m up 39% and EBITDA of $15.1m up 60% on FY14 actuals
o Performance exceeded the FY15 Prospective Financial Information (PFI) with
revenue up 6% and EBITDA up 14%
o Another Strong performance by Vista Entertainment
o Veezi exceeded PFI for installed sites and revenue
o Movio has increased cinema customer member profiles 212% since May 2014 to
81m and progresses Movio Media commercialisation to the film distribution
market
o MACCS signs Warner Bros. in the USA to its world leading distribution
software
o On target with growth objectives from Prospectus (3 July 2014)
Vista Group (NZX and ASX: VGL) has today announced its audited results for
the 12 months to 31 December 2015. Overall, performance is stronger than the
PFI forecasts contained in Vista's offering documents issued in July 2014 and
continues the strong revenue growth achieved in the 2014 year.
Group revenue of $65.4m was $3.9m or 6% up on the PFI forecast. EBITDA of
$15.1m and adjusted net profit attributable to shareholders of $9.0m also
exceeded the PFI of $13.2m and $8.1m respectively.
Divisional overview
Vista Entertainment Solutions' strong performance was helped by the
installation of 461 new cinema sites and the significant increase in annual
maintenance revenue driven by the strong site growth in the 2014 year and the
strengthened commitment from Regal.
The acquisition of Ticketsoft was completed in Q1 and the transition of their
202 sites to Vista cinema is continuing. The appointment of new distributors
in France (CCG), Russia (dcinex) and Japan (Vinx) is strategically important
to support future growth in new territories.
Veezi reached 350 installed sites by the end of the financial year and the
implementation of new customer sites is continuing to gain momentum. The main
success has been in the USA and UK and this should continue in FY16. The new
functions added to VEEZI (web ticketing, Loyalty, Inventory) have added sales
benefits plus additional revenue through extra subscription and per ticket
revenue. Monthly average revenue per site increased to $443 ($260 in FY14).
Additional growth should be achieved based on the appointment of CCG as a
distributor in France (one of the world's largest independent cinema
markets), recent certification in China and opportunities in India.
Movio's performance in FY15 has been impressive from a strategic perspective
for both its Movio Cinema and Movio Media products. 17 new circuits signed to
the Movio Cinema platform, including AMC in the USA, and member profiles in
the Movio database increased 212% to 81m (from 26m in May 2014). The Movio
Media product has been fully released to the market and the signing of NCM to
the full platform was an early success. Major US based studios have continued
to contract for use of the product on a campaign basis (Sony has now signed
for a 6 month, 5 film project) and the future growth prospects of this
product are positive.
MACCS achieved its major goal for 2015 and signed Warner Bros. in the USA in
July. The core international business has grown with 10 new customers but the
major development focus has been on the Warner Bros. project and the
associated creation of a product ready for the USA market. This resulted in
slightly lower revenue in FY15 as project revenue moved to FY16 due to the
later than expected start to the project
Numero achieved its goal of 99% box office data collection in Australia and
had signed 2 major distributors late in Q4.
Financial overview
Vista Group's revenue increased by 39% over the previous year and was
underpinned by a strong result from Vista Entertainment, the company's core
cinema software division. The revenue base was strengthened by the growth in
recurring revenue both in dollar terms and as a percentage of total revenue.
The revenue growth was supported by Vista's cloud based offering VEEZI
exceeding its installed base and revenue targets. Movio and MACCS revenue
were slightly behind forecasts but they are both well positioned for FY16.
EBITDA, a key measure of trading performance for the Group at $15.1m is up
61% on the 2014 actual and 14% on PFI
Operating Expenses as shown in the statutory accounts include non-operating
expenses totalling $3.5m. To show a NPAT attributable to Shareholders
comparable to the PFI an adjusted figure has also been provided. The
adjustments are for Movio contingent consideration ($2.0m), acquisition
expenses ($0.5m), LTI costs ($0.1m) and amortisation of intangibles on
Ticketsoft and CCG ($0.6m). The resulting adjusted NPAT of $9.0m is 10% up on
2014 and 11% on PFI.
Total assets for the Group have increased to $110m (Fy14 $95m). Cash on hand
remains strong at $27m with receivables higher due to increased invoicing the
last quarter of the year. Intangibles have increased to $50m with the
acquisition of Ticketsoft and the CCG customer acquisition. Liabilities have
increased in line with trading level increases and Shareholder Funds
(excluding non-controlling interests) have increased by $8m to $70m.
Trading Cash flow for the Group remained positive. Investment activity
(Ticketsoft & CCG) in the year totalled $9.7m. Overall the Group's cash
reduced by $3m to $27m but this keeps the Group in a strong position to fund
growth and any future investment opportunities.
Dividend
In line with its previous stated dividend policy there is no dividend
declared with respect to the FY15 year.
The Group has reviewed its future policy and it will commence paying
dividends for the FY16 year and in the future based on 30% to 50% of net
profit after tax subject to immediate and future growth opportunities and
identified capital expenditure requirements. The dividends will be provided
with the maximum value of imputation (franking) credits available to the
company to apply to the dividend.
Outlook
The start to the 2016 year has been strong and there are many good prospects
across all Group companies. The Group expects to maintain revenue growth in
the 20% to 30% range as a result. The Group will continue to invest in
projects to sustain and build future growth. Some investment will be by
acquisition but there will also be a level of investment in internal projects
to develop new software and build the capability of the business. This will
result in some level of software capitalisation along with some additional
expense to build the business capability to prepare for the future.
Contact:
Brian J Cadzow
Director - Commercial and Legal
Email - [email protected]
Phone - +64 9 984 4570
End CA:00278352 For:VGL Type:FLLYR Time:2016-02-26 08:31:51
