Ann: FLLYR: VGL: Vista Group - FY14 Result Announcement

• Release Date: 27/02/15 08:30
• Summary: FLLYR: VGL: Vista Group - FY14 Result Announcement
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					VGL
27/02/2015 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Vista Group International Limited

FLLYR: VGL: Vista Group - FY14 Result Announcement

27 February 2015
Vista Group exceeds PFI for 2014 year
Highlights
- Revenue $2.0m ahead of PFI
- Profit attributable to shareholders at $4.0m, up 17% on PFI of $3.4m
- 1,103 new cinema sites installed by Vista Entertainment
- Significant growth in China with successful DADI cinema rollout
- Integration of Movio and MACCS operations into Group successfully completed

Vista Group (NZSX: VGL, ASX: VGI) has today announced its audited results for
the 12 months to 31 December 2014. 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 2013 year.
Group revenue of $47.2m was $2.0m or 4.4% up on the PFI forecast. Operating
earnings of $6.6m and profit attributable to shareholders of $4.0m also
exceeded the PFI of $6.3m and $3.4m respectively.
Divisional overview
Vista Entertainment Solutions' strong performance was driven by the
installation of 1,103 new cinema sites. Amongst the most significant of these
customer Installations were the completion of the rollout of 583 sites for
Regal Cinemas in the USA and the completion of 230 sites for DADI cinemas in
China, of which 210 were implemented in just 6 weeks. Global market share has
increased to 38%.
A conditional contract to acquire Ticketsoft has the potential to further
strengthen Vista's US based operations in the medium term.
Veezi reached 150 installed sites by the end of the financial year and
investment in sales and marketing model refinements has resulted in an
increasing sales pipeline. Further development of the cloud based software
will enable more market requirements to be addressed, particularly in the
USA. Work is being undertaken to enable an expansion into markets beyond USA,
Australasia and UK.
Movio's performance since its full acquisition in August 2014 remains on
target. Movio Media (studio analytics and marketing product) is in BETA
testing with studios and is expected to be fully released in Q2 2015. The
marketing data analysis and a campaign management platform product continues
to be rolled out through the Vista cinema client base. In addition, the
Movio functionality is acting as a draw card to potential new customers.
The core business for MACCS performed well in 2014 with growth from US market
expansion expected in 2015. The timing of this revenue recognition has
resulted in a shortfall in revenue and profit to PFI for 2014.
Financial overview
Vista Group's revenue increased by 30% over the previous year and was
underpinned by a strong result from Vista Entertainment, the company's core
cinema software division. A record number of new cinema sites were installed
(1,103) including installations for the largest exhibitor in the USA (Regal
cinemas - 583) and DADI in China (230).
The revenue growth was supported by Vista's cloud based offering VEEZI
meeting its installed base target and the data analytics and marketing
company Movio meeting forecasts in the period since it was fully acquired in
August 2014. MACCS, the Netherlands based supplier of film distribution
software made excellent progress on its strategic entry to the USA market and
is well positioned for 2015.
Expenses were slightly higher reflecting the associated cost of the increased
revenue, the $1.0m cost of the share based payments allocated at the time of
the IPO and the staff reward and retention allocation in December. IPO
expenses were largely in line with the PFI forecast. Finance charges were
assisted by a small foreign currency gain due to the lower NZ dollar at
balance date. Tax expense was up slightly due partly to the higher level of
non-deductible expenses related to the capital raising process.
Total assets for the Group were $94.9m. Cash on hand was $30.7 with
receivables at $21.9m reflecting the strong finish to the year and strong
pre-billing of annual maintenance contracts in December. An increase in
current liabilities to $17.6m reflects the higher level of pre-billing of
future maintenance income in December.
Cash flow for the Group remained positive although the cash outflow on
operating expenses was higher than forecast as timing of certain payments
fell prior to balance date.
Outlook
The start to the 2015 year has been in line with expectations and the
business is on track to achieve the forecasts provided in the PFI. With the
acquisition of Ticketsoft, A trading update will be provided once the half
year results are known.  This is anticipated for late August 2015.

Contact:
Brian J Cadzow
Director - Finance and Legal
Email - [email protected]
Phone - +64 9 984 4570
End CA:00261219 For:VGL    Type:FLLYR      Time:2015-02-27 08:30:25